For many, this will be their first altcoin season in their lives.
This is the time that many people dream of becoming wealthy, multiplying their investment by 100 or even 1000 times. But in reality, this period will be a serious test for your patience and character.
What awaits you?
- You will want to check every day how much your investment portfolio has grown.
- You will dream about how much your assets will grow when some altcoins soar to new heights.
- You will want to brag about your successes to friends who are not particularly interested in this topic.
- Every correction or ESPECIALLY a new high will make you want to invest even more money.
- There will be temptations to break your own rules about risk and position size for each individual coin.
- The deeper you go into altcoin season, the more you will start to consider lower quality projects.
This will be a real test. Only those who can keep calm and withstand declines of 30%, 50%, or even 70%, and impressive growth of 100%, 300%, or even 500% will succeed.
What to do?
1. Clear planning: Define your goals, decide in advance when you will withdraw from the coins.
2. Realistic: Set reasonable financial goals, do not rely on a "million" percent.
3. Accumulate when prices are low: To do this, you should monitor the RSI indicator (it indicates when the market is too hot or, conversely, has dropped too much).
4. Determine when the end of the cycle is most likely to occur. Signs of the end of alt season:
- The mainstream media starts to write more about altcoins.
- Double top formations appear on larger timeframes with low/decreasing volume.
- RSI on the monthly chart exceeds 90 points for a long time.
The most important thing is to maintain humility and rationality. And stick to the plan and goals.
Altcoin season can be a great opportunity, but only for those who can remain calm and act consciously. Good luck!!