From Chump Change to a Mountain of Gold: The ‘Altcoin Season’ Phenomenon Returns – Here’s What You Need to Know

Jakarta, Pintu News – The cryptocurrency market is being discussed again after signs of Altcoin Season began to appear. This moment is often referred to as a period where altcoins – such as Ethereum (ETH), Solana (SOL), Cardano (ADA), and Pepe Coin (PEPE) – experience significant price spikes, even outperforming Bitcoin (BTC).

Many traders with small change dream of turning it into a mountain of gold in no time. But before joining the euphoria, it’s worth understanding this phenomenon, its risks, and how to capitalize on them.

What is Altcoin Season and Why is it happening?

Altcoin Season is a period where altcoins rise faster and more significantly than Bitcoin (BTC). These conditions usually arise when the crypto market is bullish, and investors start looking for greater profits from more volatile assets.

This phenomenon is often driven by capital rotation from Bitcoin to altcoins, where some investors sell their BTC after making a profit and shift capital to altcoins with higher profit potential. A commonly used indicator to measure this moment is the Altcoin Season Index, which assesses the dominance of altcoin performance over Bitcoin in a given period.

If you see many altcoins jumping more than 30-50% in a week, while Bitcoin tends to move flat, this could be an early sign of Altcoin Season. However, keep in mind that high volatility in altcoins also means that the risk of loss increases if the market reverses.

Altcoin Season Strategy for Beginners

For crypto newbies, it’s normal to be tempted to FOMO (Fear of Missing Out) when altcoins take off. However, having the right strategy can make the difference between real profits and deep losses.

The first step is to choose altcoins with clear fundamentals, such as those with DeFi ecosystems, NFTs, or actively developed layer-1 blockchains. Also, use risk management by only allocating funds that are prepared to lose, given the high volatility of altcoins.

Beginners can also use the Dollar Cost Averaging (DCA) method in buying altcoins, rather than putting a large amount of capital at once. With this strategy, you can reduce the risk of being caught at the peak of the price if the trend suddenly reverses.

For investors who want to try the DCA strategy, it can now be done easily through Pintu with the Auto DCA feature. This feature allows you to schedule daily, weekly, or monthly automatic purchases, allowing you to invest consistently without the need to monitor prices all the time. This way, the risk of buying at peak prices is reduced, and you can build your crypto portfolio gradually and with more discipline.

Common Risks and Mistakes to Avoid

As tempting as it sounds, Altcoin Season is also a trap for many new crypto investors. The most common mistake is chasing coins without research (FOMO buying), making it easy to be fooled by pump and dump or coins without clear utility.

In addition, investors often forget to prepare an exit strategy, either by targeting a gradual take profit or using a stop loss to limit losses. Relying solely on euphoria can make spare change evaporate instead of becoming a mountain of gold.

Finally, it is important to pay attention to global market sentiment. Altcoin seasons usually don’t last long, and when Bitcoin starts to correct sharply, altcoins tend to go down even deeper. Education and patience are key to surviving this brief but violent market euphoria.

Conclusion

The Altcoin Season phenomenon does provide great opportunities, even for those with small capital. However, behind the fantastic profit potential comes a high risk that can wipe out your capital in no time. With a basic understanding of crypto market mechanisms, risk management strategies, and trading discipline, the opportunity to turn “pennies into mountains of gold” can become a reality, without getting caught up in momentary euphoria.

That’s the latest information about crypto. Follow us on Google News to get the latest information about the world of crypto and blockchain technology. Check today‘ s bitcoin price, today’s solana price, pepe coin and other crypto asset prices through Pintu Market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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• Featured Image: Generated by AI