Altcoins are finally going to the moon, it seems. With 90% of the altcoins in the green with big numbers we now have very promising projects for still very low prices that are shooting upwards. Do you want to know the causes, how you can profit, and which coins to pick?
No volatility in Bitcoin (altcoins to the moon cause #1)
All the eyes of the world are watching the upcoming BAKKT launch of the Bitcoin futures on September 23. Most technical analysts expect a big breakout of Bitcoin soon because of a big triangle price pattern. It will be $9,000 and lower, no it will be $12,000 and higher. And for weeks now, nothing has happened. We have become so accustomed to volatility that price movements of just a few hundred dollars either make us very bored or very worried. There is so much more money to be made by big traders when volatility is high. Is it because of Bitcoin’s lack of momentum the altcoins have been elected as second choice instruments to trade with a profit? Then watch out, because this party may end as suddenly as it started and money will flow back to Bitcoin immediately when it starts to rise.
New money (altcoins to the moon cause #2)
New money, meaning first-time investors in cryptocurrency, nearly always starts with Bitcoin because it is the most popular and well-known coin. And new money has come into Bitcoin in 2019, making it rise rapidly in value. Altcoin investors feared they are missing out (FOMO) and also moved value from altcoins to Bitcoin, which more than tripled in value this year.
If you believe in market cycles repeating, when the Bitcoin rally is finished, it is the time to buy as many altcoins as you can for very low prices. It does take a few months for new cryptocurrency investors to become acquainted with the cryptocurrency sector as a whole and discover there is more than Bitcoin. If they start investing in altcoins they will first use their Bitcoins before investing more euros or dollars. Bitcoin will usually move sideways because some new money is still flowing in. If the flow of money is big enough the altcoins will start to rise and the existing investors that feared missing out on the Bitcoin rise will FOMO into the altcoins again making them rise far more rapidly than Bitcoin and start a new market cycle. At the moment, if we look at total market capitalization, not enough new money is flowing in to expect the same bull market as 2017.
Strategic buying (altcoins to the moon cause #3)
The problem with many cryptocurrencies is that there was a big difference between how much these projects are valued and how many people actually use them. Most major altcoins are down almost 50% against Bitcoin this year while actual use of their networks is rising. Long term investors will accumulate altcoins at these low prices and as long as the selling continues it will not move the price in a positive direction. There is a time when the prices have dropped too far. The selling slows down and ends, while the investors keep accumulating. Now we suddenly see the price go up like today. It will take a week or so before the media frenzy will start again and this will sustain the general move upwards. If you time it correctly you can make 2x gains on your portfolio in no time. Just remember that these big investors have no issue with selling all their coins once they have reached their price target.
How to profit?
In the bull market of late 2017, a Top 30 in the ratio of 30 equal parts was convincingly able to beat Bitcoin in terms of performance.
In 2017, there was actually nothing but promises in all projects, and investors went completely crazy. Today there is visible development and technology providing solutions for different real-word problems. More and more partnerships with existing companies make these developments also achievable long-term. This is especially true for our Top 30 Bundle (24H: +7.33%), which makes this the Bundle with the best potential for profiting from a change of seasons into altcoins.
The most likely purchases of brand new investors will be the small priced coins like our Penny Stock Bundle (24H: +10.35%) thinking cheapest will gain the most. This Bundle, which decreased 50% in value over the past three months, has gained as much as 25% in a week in the past. An increase in the price of €0.01 will almost double the value of the average coin in this bundle. Having only 10 coins in this Bundle also makes it much more volatile.
Which altcoins to pick?
It is imperative to remember that we are early still with the growth of the altcoin user base. The roadmaps and partnerships may seem impressive but adoption is not. Without the proper endorsement from the right service providers and governmental agencies, institutional money may also be slow to flow into altcoins. We have to assume it may take months or even years for altcoins to go to the moon and again reach the glorious levels of 2017 or higher. But at these low prices, there’s a lot of potential gain on the way.
Some projects like IOTA (in cars), BAT (in browsers and social media) or Vechain (supply chain) will have a mainstream audience that has never bought cryptocurrencies before. Some projects like Cardano and EOS have very good funding allowing them to keep up with all new inventions and integrate them into their projects without market pressure. In our financial system Ripple and Stellar are creating solutions for problems old institutions like banks have had for decades. And there are so many other potential gainers in a variety of projects. It is not hard to pick a coin, but impossible at this time.
Considering that many analysts and investors believe right now that all altcoins are dead, today will be a big surprise, but not enough to convince them. If you are convinced then your chance is now. We do not know if this will be a sudden tsunami for altcoins or the slow rise of sea levels but we do know altcoins are not going away and will play a major role in technological innovation and cryptocurrency adoption. And they will make people a lot of money who invest at the right time.