For most beginners and new traders in the crypto world, bitcoin is practically a synonym for the word cryptocurrency itself. However, the individuals regularly dealing with cryptocurrency would highly disagree with this.
Cryptocurrency is much more than just bitcoins. Although with the extreme popularity of bitcoins and hike in their value, a huge crowd of investors is turning to other forms of cryptocurrency too.
Which all in all opened a whole new horizon for the various cryptocurrencies available to investors and traders worldwide.
After the huge success of bitcoins, various other cryptocurrencies also came into light generally termed as alternative coins Or simply altcoins
What Is Alt Crypto?
If you are struggling with the confusion of what is alt crypto and what is altcoins, you are in the right place.
Alt crypto refers to all forms of cryptocurrency other than bitcoins including currency in the form of tokens and coins.
“Altcoin” refers to any type of cryptocurrency other than Bitcoin.
From different categories of cryptocurrencies, bitcoins are the most popular and valued ones. But, with advancement in the crypto world, there are various other cryptocurrencies categories as alt crypto proves to provide better advantages than bitcoins.
Whereas, all the coins in the cryptocurrency form except for bitcoins are categorised differently and termed as altcoins which is an abbreviation of alternative coins.
Out of which, many altcoins use highly energy-saving techniques such as PoS. This is counted as their added advantage to what a normal bitcoin offers.
For many traders and investors in the cryptocurrency market, “what are altcoins” and “what is alt season” are still some of the big questions. As mentioned above, altcoin is a term used for all sorts of cryptocurrency coins excluding bitcoins.
With clarity in this question of what altcoins are, a huge difference in investment growth is observed in the cryptocurrency market. Thus, recent market charts have shown exponential growth in the value of the altcoins.
Difference Between Altcoins And Bitcoins
Bitcoins contribute approx 50% of the profits and investment of the cryptocurrency world. However, there are over sixteen thousand other forms of cryptocurrency for investors to explore. The basic difference is made by the advancement made over the years by altcoins. Altcoins stand different from bitcoins due to their energy-saving techniques and large market variety chart.
One of the most common misconceptions and confusion related to Altcoins, Ethereum is counted amongst altcoins Or bitcoins?
As we know “Altcoin” refers to any type of cryptocurrency other than Bitcoin.So Ethereum is an Altcoin.
Also Read: Litecoin Vs Ethereum: What’s The Difference?
What Is Alt Season?
Another important and major question generally asked in the market regarding altcoins is what is alt season?
A simple answer to this is fluctuation in the value of different altcoins concerning the release of a different one is termed as the alt season.
The alt season occurs when there is a increase or decrease in the value of altcoins due to price spikes of bitcoins and the value of dollars. This clarifies what alt season is for different categories of investors.
Another significant impact of the alt season is the noticeable tension in the cryptocurrency market. The value of bitcoins has decreased as compared to the other forms of cryptocurrency, especially altcoins.
In addition to this, the divergence of a huge crowd of investors is seen towards the alternative cryptocurrency forms.
If you are interested in the cryptocurrency market, and yet observing it from the outside, these are the factors you should examine before investing. Also, the common confusion of how you determine the alt season can be resolved by observing these factors.
How Do You Determine Alt Season?
If you wish to determine if you are in the Alt season or not, you will have to check the fluctuations in the price of the crypto for the previous year.
You may have noticed that because of the pandemic, many companies have modified their strategies and path towards decentralisation and then digitization.
Because of this Bitcoin and many other ALT coins have performed exponentially. There have been some statistics that around 75% of altcoins have performed better than Bitcoins over a certain time period.
With this, we can easily determine that ALT season has officially arrived. In simple words, when you see that Altcoins are performing better than Bitcoin, you can say that Alt season has arrived.
Also Read: Is Dogecoin the Next Bitcoin?
How Long Does The Alt Season Last?
However, answering the common question of how long the alt season lasts is still a tricky one for the market analysts.
Therefore, there is no accurate information regarding how the alt season lasts. Yet, some of the tools such as alt season indicators can provide an approximate idea of how long the current alt season lasts.
Alt Season Indicator Index
This tool provides an idea about the share of sales produced by altcoins and bitcoins individually. The tool used to get an idea about how long the alt season lasts is called The alt season indicator. The predictions are based on the current situation and demands of the market regarding different cryptocurrencies.
Mostly, the alt season index indicates its duration for the forthcoming three months. The prediction consists of data where almost three fourths of available altcoins exceed the value of bitcoins.
What Causes The Alt Season?
Once you clarify what is alt season, the next question is what causes alt season. The first alt season occurred a few years back which became a matter of attention for all the investors.
The reason behind it was the sudden improvement in altcoins performance and the emergence of different cryptocurrencies other than bitcoins.
Now, The determination of the actual cause of the alt season is difficult as it varies with the operations and functions in the market. This can happen due to various reasons observed over years.
The major issues for it are observed as
- Lack of interest in Bitcoin by the new investors
- Sudden sale of bitcoins by the existing market investors
- Divergence of major investors towards Altcoins rather than bitcoins
- Unavailability of enough bitcoin leading to increased investment in altcoins
- Situations like Dogecoin hype increasing the value of altcoins and this their dominance in the market
Also Read: Why Dogecoin Has No Cap?
How Often Is The Alt Season?
As it is difficult to determine the actual cause of the alt season, it is equally important yet difficult to get an idea about how often is the alt season for a certain period.
The occurrence frequency of the alt season varies every year. Simply, whenever there is a downtrend in the sales graph of bitcoins, alt season is likely to happen.
However, actual occurrence frequency can not be determined practically by the use of any specific tool.
The previous year’s performance of different altcoins and bitcoins can present a blur idea of how many times a fluctuation i.e. alt season can happen during the observed time.
When Should I Buy Altcoins?
As per the market situation, the investors need to examine when is the right time to buy altcoins. There are various factors to keep in mind before investing and buying altcoins.
Factors such as market growth rate, expected growth value, movement of graph values, history of the selected Altcoin should be kept in mind.
The major feature to keep in mind while wondering when buying altcoins is the profit and sale price associated with it.
‘Before investing in any type of cryptocurrency, it is safe to study the history, profit charts, graphs of previous years, and trends related to certain altcoins.
You can also pay huge attention to factors indicating Altcoin season as the investors can gain a better return rate during the hiked prices of altcoins.
What Happens To ALTs When Bitcoins Go Up?
Investors must also examine and wait for any kind of hike in the prices and demands of altcoins during a certain period.
This is a consequence of the decrease in the sales value of bitcoins. Investors can simply invest in the logic of what happens to alts when bitcoin goes up. If bitcoin got up, the demand for altcoins would increase too.
As the investors save extra profit by investing in alternative cryptocurrencies i.e. Altcoins instead of Bitcoins.
This is not a good time for new investors and safe investors to buy altcoins as they can experience a hiked price for the desired cryptocurrency. This can be a major bump in their portfolio and their profit charts.
Also Read: Why is Dogecoin So Cheap?
Is Alt Season Real?
For the beginners in the cryptocurrency market, facing the common delusion and dilemma of Is Alt season real? This comes right after understanding What is Alt season, this can be a very tricky situation.
Yes, Alt season is 100% real. This is one of the major characteristics of altcoins and the cryptocurrency market. And thus, beginners and new investors should pay attention to what alt season is and its related history while investing in any kind of cryptocurrency to avoid losses.
Also, if not necessary, do not sell altcoins at a lower profit scope as the hike in altcoin value during alt season is very high.
You must also understand that every alt season varies in intensity and scope and hence, no judgments shall rely upon the previous year’s charts. However, analysis can get a better vision for predicting the upcoming alt season.
Is Etherium An AltCoin?
The answer to,” Is Ethereum altcoin” Or “Is Ethereum a bitcoin” is Ethereum is an Altcoin. Ethereum is one of the most popular altcoins. It contributes up to 25% of the total value of altcoins in the cryptocurrency market.
Top Altcoins Of This Year
There are over thousands of different forms of cryptocurrencies other than bitcoins with even higher potential. They are not only the alternative to bitcoins but an upgraded version of it and a worthy investment option.
Top Altcoins of This Year are follow:
- Ethereum (abbreviated as ETH)
- Chainlink (LINK)
- Sushi
- Litecoin
- Stellar Lumens (XLM)
- Aave
- Uniswap (UNI)
- Solana (SOL)
- Enjin (ENJ)
Also Read: Dogecoin Mining Pool
Conclusion
Altcoins are now leading options for investors looking for cryptocurrencies that accept Bitcoins. Alt season is hence a piece of valuable information to fetch the maximum profit from the possessed cryptocurrencies.
In addition to which, it allows you to explore other forms of cryptocurrencies and buy altcoins with equal potential as bitcoins.
It is important for the investors, especially the beginners, to understand the trends of the alt season to maximise profit in altcoin trading.
