Extended Accumulation
One thing is for sure! This cycle has seen unparalleled opportunities for altcoin accumulation. While some choose to moan and complain, others have been bargain-hunting. Certain altcoins experienced an initial surge. However, in most cases, the majority of these gains have been lost to Bitcoin, stablecoins, or simply HODLing. The HODL approach tends to pay off over the long term. However, if you have insight into the market, certain strategies can easily outperform HODL returns.
I think the most attractive aspect of the HODL strategy is that of simplicity and the absence of stress. Investors simply continue to dollar-cost average into the market, and hopefully, capitalize on the heavy dips. Regardless of whether you have been dollar-cost averaging into altcoins, the current market is laden with opportunities. However, altcoin investing requires a lot of conviction and is often the result of extensive research.
One of the best ways to help hedge your altcoin portfolio is to select coins that operate via a Proof-of-Stake protocol. In this way, investors can increase their holdings by 5% to 18% per year. This makes an enormous difference once altcoin season kicks in. I must admit, in all my years this has to be the most anticipated altcoin season of them all. The initial altcoin pump was somewhat selective, and as a result, many altcoins are currently very near their bear market lows. This is perhaps a disappointment for HODLers but simultaneously a great opportunity for speculators entering the market.
The Key Aspect Of Any Altcoin Season
The most important aspect of any altcoin season is to identify the most critical point of the cycle. studying any altcoin will reveal the following:
The majority of the price appreciation takes place within a very short timeframe.
All appreciation before this final surge is somewhat insignificant in comparison. Let’s examine a few charts. Pictured below is HIVE on the monthly chart. The green box reveals the enormous move of a single monthly candle. In fact, the peak is reached before the completion of the candle.
It’s possible that the peak was reached within two to three weeks. In other words, HIVE surged from approximately $0.83 to $3.41 in a few weeks. Relative to the earlier price action, this is an enormous move within a short timeframe. The same can be seen in the Fantom (FTM) chart. Fantom’s monthly candle commences at $1.20 and peaks at $3.48. Once again, the majority of the move takes place within a few short weeks.
These are not isolated occurrences, and this “effect” can be even stronger within the micro-cap sector. Altcoins pop, they don’t climb. This is where many investors are caught off-guard, they expect altcoins to climb similarly to Bitcoin. However, that’s not how it works. Yes, there is a nominal increase alongside BTC. However, these initial moves are relatively small compared to what eventually unfolds in the final weeks of an altcoin season.
Final Thoughts
This altcoin dynamic tends to catch the majority of investors. They fail to understand how this market operates. It’s imperative to study and then to study again… to research tirelessly until you are in step with and understand the market you are investing in. Altcoins provide extended periods of accumulation. However, many inexperienced investors interpret this as a failure because they have very little understanding of the Crypto market. Hopefully, you don’t fall into this category. Let’s remain focused and I will catch you in the next one.
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Posted Using InLeo Alpha
