Altcoins and Altcoin Season – Financial Investment Academy

What are Altcoins?

Altcoins are concepts for alternative cryptocurrencies Bitcoin. They were born later but developed based on the idea of ​​​​the technology of Bitcoin but improved in some features.

Altcoins started appearing in mid-2010 and so far there are more than 5,000 different types of altcoins.

What are Altcoins?
What are Altcoins?

The number of altcoins is high, but still can not beat Bitcoin in terms of capitalization in the cryptocurrency market. Follow Coinmarketcap, the capitalization of all Altcoins accounts for only about 34% of the cryptocurrency market, the remaining 66% still belongs to Bitcoin.

In the last 2-3 years, the trend of money flow of veteran investors in the cryptocurrency market is gradually shifting to Altcoins. Therefore, making Altcoins have stronger price volatility than Bitcoin many times.

What is Altcoin Season?

Altcoin season or Altcoin season refers to the time when Altcoins simultaneously increased very strongly with profits of x2, x3 or even x10 times in a short time.

The most typical is the Altcoin season in September 2017, when investors choose to buy any Altcoin and just a few days later the asset increases very quickly after that.

Signs of the coming Altcoin season?

After many times observing the Bitcoin season, the 2 prerequisites that help investors realize whether the Altcoin season has come or not are:

Bitcoin Dominance Drop

Bitcoin Dominance aka Bitcoin’s market capitalization dominance rate in the cryptocurrency market.

BTC Dominance
BTC Dominance

When the daily rate increases, it shows that investors are tending to hold Bitcoin rather than Altcoins, so Altcoins will tend to decrease because investors sell Altcoins to BTC.

When this ratio tends to decrease, there will be two cases:

  • Investors are tending to sell BTC to USD or USDT.
  • Investors are tending to sell BTC to invest, buy into Altcoins.

Therefore, a decreasing Bitcoin Dominance rate is considered a necessary condition for an Altcoin season.

Cash flow moves to Altcoin

3 scenarios of capital movement in the cryptocurrency market. Including:

Scenario 01: BTC » Altcoin Top » Mid-cap/LowCap (most common).

  • Money was poured in to push up the Bitcoin price. At this time, the holders of usd/usdt started buying into BTC, pushing up the price of BTC.
  • After that, BTC leveled off sideways or had a slight downward trend (correction) at this time capital was flowing from BTC to the top Altcoins (large Cap), causing the price of these tokens to increase by 30-50%.
  • Finally, the capital will be poured into mid and low cap coins. While Altcoins of this type pump, BTC will be pumped or dumped strongly causing the sell-off and also the way to end the cycle that makes many people become reluctant holders.

Scenario 02: Midcap/Lowcap » Altcoin Top » BTC.

  • Bitcoin will be mostly flat and volatile. At this time, capital was pushed into midcap and low cap Altcoins with very strong pumps, x2 x3 within 1-2 weeks.
  • At this time, investors began to see fomo pouring money from usdt to buy pumping Altcoins.
  • But unfortunately, the capital will then flow back to the top Altcoins and eventually back to BTC causing BTC to pump strongly and then a sell-off that ends the cycle of capital.

Scenario 03: This is the most delicious and ideal scenario, which only happens when there is a large capital inflow into the market.

  • At this time, buying a coin without fundamental analysis will also be profitable because too much capital will flow to every corner of the market. From BTC to Altcoin and lowcap will pump very very strongly.

Important thing: Observing the BTC Dominance index and the scenario of capital flows in the market is possible to catch the Altcoin wave season.

Altcoin Season Rules
Altcoin Season Rules

Eg: Altcoin season in January to February 2020.

Altcoin Season January 2020
Altcoin Season January 2020

After BTC price rallied from $7,200 to $8,150 and BTC Dominance surged to 70.52% then started a bear cycle despite a slight price increase.

This is the first step signaling Altcoin season. Immediately after the BTC pump attracted the attention of investors. During this period, BTC increased but ALT/BTC did not drop sharply, causing the price of ALT/USDT to increase slightly according to BTC.

The next phase (from January 25, 2020 to February 14, 2020) capital flow began to be poured into Altcoin TOP and Midcap and lowcap, causing the prices of these Altcoins to increase very strongly by 100%-200%.

Meanwhile, the Bitcoin price has only increased slightly by 25%.

After that, BTC collapsed and all Altcoins collapsed. End of Altcoin Season.

Altcoins Rise:

Altcoins rise
Altcoins rise

Bitcoin slightly up:

BTC slightly increased
BTC slightly increased

What to do to increase assets fastest in Altcoin season?

Once we have identified the signs that the Altcoin season is about to begin. Here’s how to help investors optimize their capital:

  • Determine the stage of the capital flow in which scenario, which stage.
  • Review the coins into which capital will flow.
  • Analyze the chart and depending on your capital currently choose 1-2 VND to buy.
  • Make a trading plan: Entry point, exit point, stop loss, capital investment, risk management, expectation management, capital allocation… and conduct trades according to plan.
  • After reaching the target, go through the Altcoins that have not yet increased to take advantage of the power of compound interest.


Altcoin season is always the happiest, most exciting time of the crypto market with jumps x2 x3 x10 times assets.

But the financial market is a “Zero Game”: money will flow from the pockets of the uninitiated to the pockets of the knowledgeable.

If this article brings useful information, please share it with everyone so they can all know.


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