When is the Best Time to Invest in Altcoins?
When is the Best Time to Invest in Altcoins?
Cryptocurrency investors are constantly looking for the next big thing, hoping that they can make the same kind of gains that Bitcoin has provided over the years. There are now countless cryptocurrencies on the market, falling into altcoin and memecoin categories.
There’s potential to make returns on investment when buying altcoins, but they are extremely risky and volatile. That’s why it’s best to wait until the prime altcoin window opens.
Bitcoin is the Most Reliable of All Cryptocurrencies
Bitcoin isn’t going to reward the same type of profitability to investors that it did in its early days, but it will provide steady growth over the next year and will rise in value. All cryptocurrencies are highly correlated to the decentralized grandaddy, and most of the time they move up and down in price in a similar fashion. That’s why, 90 percent of the time, it’s best to stick to predominantly Bitcoin and Ethereum holdings in your portfolio.
There’s no doubt that Bitcoin is the most trusted asset and has been put to good use in the real world. The fact that it is prevalent in the mainstream highlights how more people are realizing its reliability. Companies like Microsoft and Burger King now accept Bitcoin payments, and more big businesses will soon follow.
Bitcoin is reliable because it uses blockchain, which is also creeping into the online casino industry. Some of the top casino Canada sites now use blockchain technology to ensure the fairness of games. The Valley of the Gods developer, Yggsdragil, for instance, is currently working on a cohesive blockchain ecosystem. There are even crypto-themed titles available, such as Blockchain Megaways from Booming Games.
Wait Until the End of the Bull Run for Altcoins
Various altcoins out there have solid applications and are doing great work to push the cryptocurrency market forward. Ethereum was the original altcoin, and now that enjoys the same stature as Bitcoin. Solana could be the next big thing. However, investors need to be aware that most coins on the market are Ponzi schemes, designed to make their creators rich.
The success of Dogecoin in the last bull market led to the rise of memecoins. These tokens serve no purpose, but they can enjoy surges in popularity from time to time. Usually, the creators will market the memecoin and encourage investment to pump up its value. Then, when there’s enough attention, they’ll dump on new adopters. This can happen in the space of hours sometimes, which is why they are incredibly risky.
There is, however, a time at which savvy investors may be able to take advantage of an altcoin pump. At the end of each bull run, altcoins tend to have a roughly one-month period of extreme gains. This is when Bitcoin hype is at its peak and new investors want to get in and catch the next big thing. They will look down the list of cryptocurrencies and choose lower market cap options that they think could follow the same path as Bitcoin.
Altcoins are best avoided most of the time. But, if you want to invest, wait until Bitcoin hype is high towards the end of the bull market.
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