When Is Altcoin Season? A Comprehensive Guide to Trading Strategies

Understand the Cryptocurrency Market Cycle

The cryptocurrency market is like a big wave - sometimes booming with excitement, sometimes quiet and somber. During these fluctuations, the phenomenon of the “altcoin season” appears as a financial opportunity that many investors are waiting for. As of the end of 2025, Bitcoin is trading at $87.05K with a market share of 54.91%, while Ethereum is at $2.92K. These figures reflect a rapidly changing market landscape.

Altcoin season is not just a temporary craze - it is a patterned phase when capital flows from investors shift from Bitcoin to other cryptocurrencies. During this time, altcoins begin to shine with remarkable surges surpassing Bitcoin, creating attractive profit opportunities for those who know how to “read” the market.

What Is Altcoin Season? Clear Definition

Altcoin season refers to a period when the total market capitalization of all cryptocurrencies other than Bitcoin outperforms Bitcoin in price appreciation. During this phase, altcoin trading volume surges, attracting increasing attention from investors.

It’s important to understand that altcoin season does not occur randomly. It usually begins when:

• Bitcoin’s price has risen to a level less accessible to retail investors
• Market sentiment shifts from “Bitcoin is the only safe asset” to “explore other opportunities”
• Triggering events such as technological updates or promising new projects occur

The Difference Between Altcoin Season and Bitcoin Season

To better understand, imagine the cryptocurrency market as a stadium. Sometimes, all the spotlight is on Bitcoin (mùa Bitcoin), and other times, the light is scattered across various altcoins (mùa altcoin).

Bitcoin Season is characterized by:

• A high Bitcoin dominance index (dominance)
• Investors concentrating capital into Bitcoin
• Altcoin prices tend to stagnate or decline
• Conservative psychology, prioritizing safety

Altcoin Season on the other hand:

• Bitcoin dominance drops below (usually under 50%)
• Capital flows into diverse cryptocurrencies
• Many altcoins record outstanding returns
• Market sentiment is optimistic across the board

When a bear market (bear market) appears, investors often return to Bitcoin or stablecoins as “safe harbors.” Conversely, when sentiment is positive, they are willing to take risks exploring new projects.

Looking Back at History: Memorable Altcoin Seasons

Period 2017-2018: The ICO Fever

In late 2017 and early 2018, the cryptocurrency market experienced a frenzy. Bitcoin’s dominance index dropped from 87% to just 32%, a decline never seen before. The total market capitalization surged from $30 billion to over $600 billion within a year.

At this time, the ICO (Initial Coin Offering) craze exploded. Thousands of new tokens were launched each month, each promising to be a “shortcut to wealth.” The bubble inflated and burst, leaving costly lessons behind.

Early 2021: The DeFi, NFT, and Memecoin Boom

2021 saw a new “renaissance.” Bitcoin’s dominance fell from 70% to 38%, while altcoin market share doubled to 62%.

Popular sectors included:

• DeFi (Decentralized Finance): Projects unlocking blockchain’s potential
• NFTs: Everyone wanted to own a picture with a “certificate”
• Memecoin: Dogecoin and Shiba Inu became market sentiment icons

Notable altcoins like Solana, Polygon, BNB recorded impressive growth figures. The total cryptocurrency market cap surpassed $3 trillion for the first time, with Bitcoin reaching $69,000.

Current (Q4 2025): About to Explode?

Current sentiment is supported by factors such as approval of Bitcoin ETF spot and the potential for strong “protests” in new fields: AI, GameFi, metaverse, DePIN, and web3. Projects like Arweave, Worldcoin, and Fetch.ai have shown signs of enthusiasm.

Warning Signs That an Altcoin Season Is About to Begin

There’s no magic formula for precise prediction, but the following signals can help you detect:

1. Sudden Rise in Altcoin Dominance Index This measures the market cap of altcoins relative to Bitcoin. When it increases significantly, it indicates investors are shifting attention to other cryptocurrencies.

2. Bitcoin Dominance Falls Below 50% This is a red flag showing Bitcoin no longer “dominates” the entire market. Capital is seeking other opportunities.

3. Surge in Altcoin Trading Volume When users start trading more altcoins, it shows growing interest. Overloaded exchanges and rising transaction fees are typical signs.

4. Market Sentiment Turns Optimistic When positive news dominates the crypto space - favorable regulations, new promising projects, approved exchanges - optimism spills over into altcoins.

5. Specific Catalytic Events Launching breakthrough altcoin projects, developing supportive regulations, or announcements from major regulatory agencies can trigger an altcoin season.

Getting Started: How to Buy Altcoins

Once you decide to participate, here’s a practical guide:

Step 1: Open an Account on a Reputable Exchange Choose an exchange with a good reputation that offers many altcoin options. Complete identity verification (KYC).

Step 2: Secure Your Account Activate two-factor authentication (2FA) immediately. This step is essential.

Step 3: Deposit Funds You can deposit using cryptocurrencies or fiat money (depending on the exchange’s supported regions). Check available payment methods.

Step 4: Find Suitable Altcoins Use the search bar to find specific cryptocurrencies by name or symbol. Major exchanges offer over 500 altcoin options.

Step 5: Place a Trade Order

• Market Order: Buy immediately at current price
• Limit Order: Set your desired price and wait

Step 6: Manage Your Assets You can keep altcoins on the exchange or transfer them to an offline wallet for higher security. Always stay updated on market trends.

Effective Altcoin Trading Strategies

###Research Is the Foundation Before investing, spend time understanding:

• What is the project? What problem does it solve?
• Does the development team have experience?
• Is the underlying technology promising?
• Who are the competitors?

Don’t get caught up in hype without understanding the fundamentals. Always do DYOR (Do Your Own Research).

Diversify: The Umbrella for Investors

Don’t put all your capital into a single altcoin. Diversify investments across:

• Large-cap altcoins (like Ethereum, Solana)
• Mid-cap projects
• A few “safe bets” with high potential

This approach minimizes risk if some projects fail.

Set Realistic Profit Goals

Don’t expect to get rich overnight. Set targets:

• Short-term profit: 20-30% per month
• Mid-term profit: 100% per quarter
• Long-term profit: 500% per year

These figures are more realistic than “10x” or “100x.”

Risk Management: The Key

• Stop-loss: If an altcoin drops below your purchase level by 15-20%, sell to cut losses
• Partial profit-taking: When profits reach 50%, sell half
• Don’t use all your funds: Always keep reserves to buy at lower levels

Hidden Risks During Altcoin Season

Extreme Volatility

Altcoins tend to fluctuate more wildly than Bitcoin. Negative news can cause prices to drop 50% within hours. Exchanges can also become overloaded, leading to skyrocketing fees.

Bubbles and Speculation

Too much hype leads to artificial price increases. When the bubble bursts, late buyers suffer significant losses.

Scams and Rug Pulls

Some “fake” projects appear to deceive investors. Developers inflate prices to attract interest, then run away with funds. Warning: pump-and-dump schemes (price traps) are very common.

Regulatory Changes Can Destroy the Market

When governments tighten regulations, the altcoin market can be severely impacted. For example, ICO restrictions in 2018 or strict exchange regulations can cause panic. Conversely, clear and supportive regulations for cryptocurrencies (like approval of Bitcoin ETF spot) can trigger explosive growth.

Conclusion: Ready for Altcoin Season?

Altcoin season offers real opportunities for those willing to learn and manage risks. By:

• Keeping up with market trends
• Diversifying your portfolio
• Practicing proper risk management

You can maximize potential profits. Remember, knowledge is the greatest power in cryptocurrency trading. Keep learning, stay adaptable, and prepare to seize opportunities when altcoin season truly begins.