Why 2021 #Altseason could be the biggest one ever!

While crypto newbies only know about bitcoin, there are over a thousand other coins

While crypto newbies only know about bitcoin, there are over a thousand other coins, and a very good number of them offer features very different than Bitcoin and are positioned to serve a wide variety of use case.

Historically, a Bitcoin bull run is always followed by an Altseason.

So what is an Altseason?

Simply put, an #altseason is the duration of time where many altcoins (aka crypto projects other than the top two projects - Bitcoin and Ethereum) turns bullish and sees significant gains.

So how does an Altseason happen?

Quite contrary to the seasons that divide the year, an #altseason doesn’t depend on what time of the year is. It actually depends on the “Crypto Market Cycle” — which is nothing but how the money flow cycle works for Crypto — it’s depicted in the picture below (based on historic data).

This is how the money flows in the crypto market — based on historic behavior

So how to predict when the next Altseason will happen?

Whenever Bitcoin has had an epic run, and starts to show signs of a correction, the crypto enthusiasts pour their profits in other projects, called altcoins. Typically, the cycle of money flow is as shown in the diagram: the Bitcoin profits first flow into coins with large market capital, then in the coins with medium market cap, and then coins with small market cap.

So the best is to keep an eye on Bitcoin bullrun and when the pattern above starts to become visible.

So why are we up for the best #altseason ever?

1. Bitcoin has had the most Eric run of recent years — within a year it has hit a low of below $4000 and has just hit a price about $40,000. That’s more than ten times within a year! So as Bitcoin starts to take a breath from this phenomenal run, the Crypto Market Cycle above will kick off. And it will trickle down to every altcoin at some point.
2. More and more people are understanding that Crypto is not just Bitcoin — with many alt projects getting so much of attention over last one year, crypto investors are always on the lookout to build a “portfolio” of crypto assets, not just parking all their money in Bitcoin.
3. Crypto investors by nature are more risk taking — so rather than moving their profits back to fiat, they are seen to move those to alts (which actually causes an altrun). With many Bitcoin investors sitting on more than 10X profits, even if they spend 10% of that into alts, the alts will appreciate multifold.
4. Alts are right now highly undervalued — during the Bitcoin bullrun, investors pulled money from alts to put in Bitcoin, and many good alts came down to their all time low, losing more than 75% in many case. The reverse trend is likely to happen now.

So how do I know which alts to invest in when there are more than a thousand out there?

Do your own research. Go to telegram & discord communities of these alts, follow news, follow core team members to see which alts have solid future. Once you have marked a few, invest in the proportion you are comfortable with based on your own research.

Hope you will be able to take advantage of the #altseason2021 — which, the indications are, around the corner, and that it’s going to be one of the biggest ever.

Disclaimer: this is a knowledge sharing article and should not be considered or used as financial advice. Do your own research before deciding to invest.