A few days back BTC was suffering and the price drastically dropped. It is usually the case that when the price of BTC goes down, the cost of ALT coins starts pumping. I think it is a general belief that people who book their profits or exit from BTC invest in alt coins, making it go up. This has been the case several times in the past. I was expecting there could be a new pump in the alt coins because BTC price was dropping. But to my surprise, the value of alt coins also started going down.
Crypto markets are unpredictable
For someone who is trying to trade in the crypto markets, this is just one example to know how careful we have to be when it comes to crypto markets. Trading is not an easy thing in any market. But when it comes to the crypto market, we have to be a little more careful because the regular planning will not work well here. Some people might have experience trading in the regular market, but those strategies won't work out in the crypto market. But some people survive here, and sometimes they are very lucky that they grab big bags from here from trading.
A trader should know when to book their profits, and they should not be greedy when it comes to booking profits or stopping loss. Usually people sell their BTC and switch to alt coins when the price of BTC keeps going down. This has been the case in the past. But these days the crypto markets are not following any regular patterns. That's why it is becoming more unpredictable. Many experts believed that after the ATH of BTC, there would be an alt season, but it never happened. Maybe some coins had a good time, but it is not sufficient.
Heavy competition among Alt coins
Earlier there used to be only a few alt coins and the competition was very minimal. But today we have so many projects in the crypto space and every coin has its community and their promotional group and at the same time some use case as well. It is highly competitive and the cryptocurrency that is good in marketing and bringing good investments is the usual winner. Other cryptocurrencies are just surviving in this long crypto winter.
Let's say someone wants to invest in anything other than BTC, when they enter the alt coin space, it is heavily crowded and people easily get lost in the crowd. There is also a fact that more than 80 percent of the cryptocurrencies are a scam or they are not doing very well. People will have to take a lot of effort to see beyond those scams and find good projects and communities to invest.
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