Altcoin Season 2025 Beginner’s Guide: How to Position for Potential Coins at Critical Moments

What is the core signal of alt season?

The main signals for determining the arrival of the alt season include:

• Bitcoin’s market share is declining: indicating that funds are starting to shift from Bitcoin to other coins.
• ETH and other altcoins see an increase in capital inflow: indicating that market confidence is diversifying.
• TOTAL2 and TOTAL3 rise: indicates that the overall altcoin sector’s market value is rapidly expanding.
• Market sentiment is warming up: discussions on social media and trading volume have significantly increased.

These signals usually do not appear alone, but rather change simultaneously with multiple indicators, forming a relatively strong trend confirmation.

Is the 2025 alt season here?

From the performance in August 2025, the conditions for alt season have gradually matured. Bitcoin’s price has stabilized at a high level, ETH has broken through an important threshold, and several medium-sized projects have surged significantly in a short period. The capital flow data indicates that investors are increasing their allocation to altcoins, which is also one of the typical characteristics of alt season.

In addition, the number of active addresses on the chain and the number of transactions have significantly increased, with many emerging tracks such as AI + blockchain, Layer2, and RWA tokenization becoming hotspots for capital pursuit.

Latest trends in price and capital flow

Since August, some popular coins have seen significant increases in value, such as Fetch.ai, Akash Network, and Ethena, which have risen over 30% in a short period. Established public chains like Polkadot and Avalanche have also performed strongly. Funding flow data further shows that the trading volume growth rate of small-cap coins is significantly faster than that of large-cap coins, indicating that short-term opportunities are more concentrated in small-cap projects.

The trading pairs of altcoins on exchanges have seen a surge in activity, especially on major global platforms, where the launch of new coins is often accompanied by a multiple increase in trading volume, further boosting market enthusiasm.

How to choose the right Newbie coins?

For investors who are new to the market, the following types of coins can be prioritized:

• Infrastructure category: projects that provide services such as computing, storage, cross-chain, etc.
• Mature Ecosystem: Public chains and protocols that already have a stable user base.
• Hotspot Overlap: Tokens that combine currently popular themes, such as hybrid projects that integrate AI, DeFi, and NFTs.

When choosing, one should consider market capitalization, liquidity, technological development roadmap, and community activity, avoiding blindly following trends.

Newbie Investment Strategies and Pitfall Avoidance Guide

• Enter in batches: During alt season, the market often experiences significant fluctuations, so it is not advisable to buy in all at once.
• Locking in goals: Prepare an investment list in advance to avoid missing opportunities due to frequent switching.
• Pay attention to security: use reputable exchanges, enable two-factor authentication, and prevent asset theft.
• Beware of pump and dump: coins that surge sharply in the short term are often easily sold off by whales, so set a take-profit point.
• Learn more about market information: pay attention to technical indicators, changes in capital flow, and the macro environment in a timely manner.