Many are starting to talk about ALTSEASON coming soon.

With that in mind, I’d like to explain the basics of what an altseason is.

And, most importantly, how to MAKE MONEY on it.

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1)In order to understand how altseasons work, we need to understand the market cycles in crypto.

Now, this is only a rough outline; crypto is such a new market that it’s hard to talk about stuff like this with any certainty.

That being said, let’s get into it.

2)Basically, money in the crypto markets flows in the following way:

BTC > ETH (and other larger-cap alts) > Mid cap alts > Small caps

It all starts with a #BTC rally.

As investors see that BTC is going higher, they rush to get in, making the price shoot up rapidly.

3)At this time, alts typically perform relatively poorly as everyone is getting their money into #BTC .

One exception might be $ETH, which has started to rally alongside $BTC in the past.

Eventually, though, the rally weakens and $BTC consolidates.

4)Now, investors take profits from $BTC and start putting them into altcoins.

This is driven by both greed and boredom. On the one hand, investors are looking for the higher profit potential of alts.

On the other hand, they are getting bored with $BTC consolidating.

5)As this is happening, large-cap alts pump, and this is the start of the altseason.

Then, when large caps start to consolidate, the transition happens again and investors move onto mid-caps.

Finally, the same thing happens again and they move onto small caps.

6)As investors start looking for higher profits, they also become willing to accept more risk.

Finally, when small caps finish their rallies, money flows out of them and back into fiat and $BTC.

7)Then, the whole cycle starts again, sometimes after a consolidation period of the whole market.

So, what should your strategy be when navigating these crycles?

Ideally, you should get into each phase as it’s just starting.

8)For example, don’t wait for alts to moon before you start buying them. That’s how you buy the top.

The same goes for #BTC .

9)Finally, there’s one important metric that you should keep in mind in order to gauge the current state of the market.

That’s #Bitcoin dominance: the % of the entire crypto market cap that is taken up by BTC.

The lower the BTC dominance, the more potential there is for alts.

10)Of course, there are other factors in play here (e.g. BTC dominance might start to look different as big investors are moving in), but that’s the general idea.

Don’t follow the hype...

...try to predict where it’s going.

Peace.