The debate has been raging on for months now. Will we have another ALT season. The question I ask is, do people want to make money? The answer to this 99% of the time is yes. One thing we forget to remember is not everyone in the crypto market wants to just make more BTC. There are those in this space that just want to make more USD/USDT, also you are effectively making more BTC the more USD you make. At the end of the day, if it can make people money, they will buy ALTs.
The thing is that as of now, ALTs are not in full swing. It is generally speculated that true ALT season, one reminiscent of 2017 will not happen until BTC reaches $20,000 USD. I agree with this sentiment. However, there will be ICO’s, IEO’s and maybe some IDO’s that will preform. Im not counting on IDO’s in the short term to make large gains as the liquidity on these DEX platforms are not “there” yet. But there are still modest gains to be made in the right projects, on the right platforms.
Buying the actual IEO is advised. Buying on exchange is also advised if you are catching a bounce. I find many traders are still showing signs of desperation and buying in too early, getting themselves caught in traps. This is the nature of a market with money exchanging hands and not new money coming in. From my point of view, the biggest advantage of a brand new market, is the advantage of being an early adopter. Because this market is so new and the market cap is so low, patience is a virtue. As we wait for new money to come in the market we should be keeping in mind to make the right strategic trades.
It is possible that as the market recovers and hopefully attracts more retail and institutions gain the regulatory framework to enter the market, that newer projects will gain momentum over old ones. Not to say that all the old projects will go by the wayside, but tech in this industry evolves fast and new investors will likely be starting fresh with new and innovative projects and ideas. There are winning coins that are already out but it is crucial to concentrate on strong fundamentals, projects and communities with great partnerships and use cases for the coin.
In the short term, right now is not the time to be buying bags and holding for the long term for the most part. Rather, I will be concentrating on shorter term holds to earn more BTC if they are there. If not, it will be better to stay in BTC for the time being.
In short, I am certain there will be another ALT season. Don’t believe the fud going around from the nay sayers. Most of these nay sayers of a new ALT season are likely BTC maximalists, who in this recovering market (and a market cap still hovering under 300 Billion) would prefer the ALT coins to die off and have the money from those, flow into BTC.
Ultimately, this market needs ALT coins to scale it up. In the long run, this market will be bigger than just BTC. Last bull run we began to see whole new companies and business models built on blockchain, and this will most definitely continue going forward.Tags: ALT Coins, ALT Season
Categorised in: Cryptocurrency Markets
This post was written by BlockAdvisor