Crypto altcoin season is here
Keep an eye out for Algorand, Hedera and XRP as top altcoins start to soar
A coin based on Algorand, called Meta, is up over 31% on the day. It’s a coin for a project called Cometa, a DeFI platform that just announced it is shutting down.
That typically means the underlying coin is headed into the basement, not soaring up in price.
So, while I hate to get ahead of myself… it really looks like altcoin season is starting.
Bitcoin hit a new all-time high; Ethereum, generally sitting around $2,500, crossed the $3,000 mark; Algorand is up over 22 cents, Hedera is over 20 cents (I bought most of mine around 4 cents.
For some context, the Fear and Greed index on CoinMarketCap is at 67, just edging into greed territory. The altcoin index (measuring BTC/Altcoin dominance) is at 30, a shift toward alts. And the total crypto marketcap is at $3.69T.
Prepare for altcoin season
This is my third crypto cycle. In the summer of 2017, I bought small amounts of BTC, ETH and Litecoin. I didn’t know what I was doing. All I knew is that I read about BTC’s annualized returns and buying some seemed like a small but potentially lucrative bet.
I was right. That fall and into Christmas BTC, ETH and LTC soared. I suddenly found myself with 5X the money I had put in. When I saw on the news that people were taking out second mortgages to buy BTC, that seemed insane and I sold everything.
Those coins did crash, and in the meantime I made a tidy profit. I did the same in 2021, though not quite as lucratively.
My strategy has changed in a number of ways. My biggest holding is Algorand, where I have it invested in DeFI, earning from yield and not price action. (Increasing prices do lead to more income, though.) My sponsors on my YouTube channel also pay me over Algorand (USDC on Algorand rails).
You can see one of my experiments here:
Besides that, after taking enough profits that my bull run portfolio is now safely in profit territory (I’ve taken enough profits that if everything went to zero I would still have made money) I’ve switched my BTC strategy to DCAing into 2-3% dips. I plan to hold long-term, and will no longer profit take.
Alts are another matter. I have limit orders set on everything, and usually shave 10-15% off with each price level hit. This is how you lock in profits as crypto prices soar and make sure you don’t round trip (meaning the value of your bag rises and crashes and you never benefited).
The recent pump is nice, but its also a reminder that we’re nowhere near all-time highs for most crypto. BTC has been setting new highs, but ETH isn’t close and many of my alts are below highs they set earlier in the cycle.
But as I write this, prices are rising and holding there. In the coming days if we keep stacking green candles, it’ll be confirmed that the real bull run is here.
Until then, hold on to your hats.
Be sure to check out
Remember the FrugalBC YouTube channel livestreams nearly every Friday at 12:15 pm CST. Come join us! In addition, FrugalBC is on Twitter/X and Kick.
Want to maximize your safety in crypto? Check out Ledger:
Non-Fungible Domains: Turn your long complicated wallet address into an easy to remember .algo address for a one-time, affordable fee.
MARCUS: Follow the memecoin and NFT project based on Marcus Aurelius (in this case, Marcus Furrelius) built on the Algorand blockchain.