Quick Facts

Alt season typically ends in November every year, as the major holdings of bitcoin in the hedge fund are usually sold down after the fourth quarter.
Altcoins usually follow the trend of bitcoin, however may be less affected by bitcoin swings due to their lower market capitalization.
Altcoin exchanges may have different market cycles and their volatility may be different from major exchanges.
Altcoin traders often use stop-losses to limit potential losses in case the altcoin’s price plummets.
News from the altcoin world and emerging trends can greatly affect prices, use what you can find to stay well-informed.
Investing in altcoins can be quite high-risk, be sure to understand the risks before making any trades.
Technical analysis of altcoins similar to that of major cryptocurrency exchanges should be done.
Store leftover altcoins in a so-called cold storage to be more safe from hacks and theft.
Altcoin storage risks often extend to your overall portfolio, perhaps due to other coins you hold.
Fees vary greatly across exchanges so review fees before each trade.

When Does Alt Season End? Managing Your Portfolio Through the Chaos

As a seasoned trader, I’ve been around the block a few times, and I’ve seen my fair share of alt seasons come and go. But have you ever stopped to think, when does alt season actually end? Is it when Bitcoin starts to rise again? When Ethereum reaches a new high? Or is it when the hype dies down and the market cools off?

What is Alt Season, Anyway?

Alt season is a period of time when alternative cryptocurrencies (altcoins) experience rapid price increases, often outperforming Bitcoin and Ethereum. This phenomenon usually occurs when investors start looking beyond the top two cryptocurrencies for returns.

The Signs of an Ending Alt Season

So, how do you know when alt season is ending? Here are some signs to look out for:

Bitcoin’s Resurgence

When Bitcoin starts to rise again, it’s often a signal that alt season is coming to an end. As investors regain confidence in the market, they tend to rotate back to the king of cryptos.

Altcoin Sell-Offs

When altcoins start to sell off, it’s a sign that the hype has died down, and investors are taking profits. This can be a indicator that alt season is ending.

Decreased Trading Volume

A decrease in trading volume is often a sign of a cooling market. When volume dries up, it can be a sign that alt season is ending.

Managing Your Portfolio During Alt Season

So, how do you navigate the chaos of alt season? Here are some practical tips to help you manage your portfolio:

Diversification is Key

Spread your investments across a range of assets, including Bitcoin, Ethereum, and a selection of altcoins. This will help you ride out the ups and downs of the market.

Set Stop-Losses

Set stop-losses to limit your losses if an altcoin’s price starts to fall. This will help you avoid getting caught out by a sudden downturn.

Take Profits

Don’t be afraid to take profits when an altcoin’s price is rising. This will help you lock in gains and minimize losses.

Altcoin Selection Criteria

When selecting altcoins, I use the following criteria:

Criteria	Description
Market Capitalization	Look for altcoins with a high market capitalization, as they tend to be more stable.
Use Case	Choose altcoins with a clear use case and a strong development team.
Community	Look for altcoins with a active and engaged community.
Tokenomics	Evaluate the tokenomics of an altcoin, including its supply and distribution.

Real-Life Example

During the 2017 alt season, I invested in a small-cap altcoin called Steem. At the time, Steem was a relatively unknown cryptocurrency with a small market capitalization. However, I saw potential in its use case as a decentralized social media platform. I invested a small amount of money and set a stop-loss at 20% below my entry price.

As the alt season heated up, Steem’s price started to rise, and I took profits when it reached a certain level. Eventually, Steem’s price crashed, but I had already locked in my gains. This experience taught me the importance of diversification and taking profits during alt season.

Frequently Asked Questions