How to Make Profits in This Ongoing Altcoin Season?
So the first question will be „What is an altcoin?”
The term „altcoins” refers to all cryptocurrencies other than Bitcoin.
There are 2741 coins listed on CoinMarketCap website which is the world’s most-referenced price-tracking website for crypto assets in the rapidly growing cryptocurrency space. All these coins apart from Bitcoin are referred to as Altcoins.
Why so many altcoins exist?
Bitcoin is like digital gold or seen as a store of value. Bitcoin is more like an asset similar to real estate or as a commodity which you buy and hold for a long time investments. The altcoin has specific use case like the following example:
1. Ether: Ether is the cryptocurrency generated by the Ethereum platform, so this cryptocurrency is often also called Ethereum. The Ethereum platform is a ledger technology other companies can build on. For example, CryptoKitties uses the Ethereum platform.
2. Monero: Monero is designed to be “secure, private, and untraceable”. Unlike with Bitcoin, transactions on the blockchain can’t be traced back to individual users.
These are just a few examples. But there are thousands of altcoins, and anyone can create one. Of course, anyone can create something, call it a cryptocurrency, and try to get people to use it. There’s no guarantee the underlying technology is even based on a blockchain or a solid distributed trust network just because someone’s throwing the word “cryptocurrency” around.
So now coming back to the main question,
„How to make profits in this ongoing altcoin season?”
There are several points you need to pay attention to before making any decision.
1. You need to visit this website: https://coinmarketcal.com/en/ where all the latest events on Cryptocurrencies are listed.
2. Show your interest in coins which is among the top-100 on CoinMarketCap website as they are quite trustable.
3. Look for events such as Mainnet launch, Hardfork, Listing on a new exchange, Announcement, Coin burn and then do some research on them, firstly, if they are among the top-100 coins on CoinMarketCap website.
4. Then look at the circulating supply of the coin. This means the total number of the coin in circulation. Normally coins having low circulating supply have great chances of going up a lot as compared to those having huge circulating supply.
5. Go with the trend always. Right now the trend is in the DeFi space. Just for example a coin by name LEND has gone up by 100x reaching the peak that it made during the heights of the crypto hype in Jan 2018. Another coin by name BNT has gone up in 10x in the last few months. So go with the flow.
I am expecting some big movements in the coming weeks in STX/BTC, MANA/BTC, IOTX/BTC, NANO/BTC, QTUM/BTC, RVN/BTC
This article was written on 19th July 2020 at 21:05 so if any coin moves by 10% then do not chase it as there will always be some opportunity to buy next time.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the article’s content as such. Author, website or the company associated with them does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
Guruprasad Venkatesha is Co-Founder & CEO of b-cube.ai, French-Hungarian startup making trading in cryptocurrencies easier & more profitable using AI/ML and complex mathematical models. He started his first asset management company when he was 16 years old and had a successful exit later. Then he went on to work for Morgan Stanley as an Investment analyst then he quit the job to jump into the world of Cryptocurrencies.
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