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🌐 What are altcoins and alt season? Let's explain! 🌐
If you are a newbie in cryptoassets, you may have heard the terms "altcoin" and "alt season." Let me explain briefly!
🤔 What is an altcoin?
"Altcoin" is simply put as "alternative coin." It refers to all cryptoassets other than Bitcoin. Since Bitcoin was the first to appear and is still the most popular, everything else such as Ethereum, Cardano, and XRP is considered an altcoin.
📈 What is alt season?
"Alt season" refers to the period when altcoins begin to increase in value more rapidly than Bitcoin. During this time, many investors pay attention to altcoins because higher returns are expected compared to Bitcoin. This is usually due to expectations of new projects or technological innovations, or investors searching for the next major cryptoassets.
What are the signs of alt season?
Here are some signs:
Decrease in Bitcoin's market capitalization dominance: When the percentage of Bitcoin's share in the overall cryptoasset market decreases, it usually indicates that more funds are flowing into alts.
Altcoin performance surpasses Bitcoin: If many altcoins are growing faster than Bitcoin, it may indicate that we are entering an alt season.
Attention to new projects: New technologies and projects in the cryptoassets field can attract significant interest in altcoins.
Why is alt season important?
Alt season is an exciting time for traders and investors. This is because some altcoins have the potential to generate significant profits in a short period. However, caution is also necessary as altcoins are more volatile than Bitcoin.
💡 Remember: alt season has the potential to generate profits, but it is important to always research and understand the risks associated with cryptoassets trading.
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