How to Buy Altcoins During the Altseason: An Investor's Practical Guide

The cryptocurrency market follows its own cycles of activity and stagnation. One of the most exciting periods is when investor attention shifts from Bitcoin to alternative coins, creating unprecedented growth opportunities. But how do you properly buy altcoins at such a moment? What is altseason and how can you recognize it? Let’s analyze in detail.

Altseason: what it is and why it matters

Altseason refers to a period in the cryptocurrency market when the total market capitalization of alternative coins surpasses Bitcoin during a bullish trend. It’s not just a price spike — it’s a fundamental shift in capital allocation between assets.

The key difference between modern altseason and previous years lies in its mechanics. If before money simply rotated from Bitcoin into altcoins, now the dynamics have changed. CryptoQuant CEO Ki Young Ju notes that the trading volume of altcoins in pairs with stablecoins (USDT, USDC) is now a more significant indicator than simple capital rotation. This reflects real market growth supported by increasing institutional interest.

Historical context: how altseason developed

ICO boom and its consequences (late 2017 – early 2018)

The first massive altseason occurred during the ICO frenzy. Bitcoin’s dominance dropped from 87% to just 32%. During this period, thousands of new projects appeared, including Ethereum, Ripple, and Litecoin. The total market capitalization of cryptocurrencies grew from $30 billion to over $600 billion. However, regulatory pressure and many failed projects quickly ended this period.

DeFi and NFT era (early 2021)

The second significant altseason coincided with explosive growth in decentralized finance and non-fungible tokens. Bitcoin’s dominance fell from 70% to 38%, while the share of altcoins increased from 30% to 62%. Market cap exceeded $3 trillion.

Current period: sector diversification (2023–2024)

The current cycle is characterized by greater diversification. Besides traditional DeFi and NFTs, AI-oriented projects, GameFi platforms, and memecoins are growing. Projects like Render (RNDR) and Akash Network (AKT) have shown gains of over 1000% thanks to AI integration. Platforms like ImmutableX (IMX) and Ronin (RON) revived interest in blockchain gaming.

Significant development also occurred within the Solana ecosystem, which demonstrates a token growth of 945%, regaining relevance after the “dead chain” period.

Key indicators to identify altseason

Before buying altcoins, it’s important to recognize whether the market is in altseason.

Bitcoin dominance decline

Historically, altseason begins when Bitcoin’s dominance sharply falls below 50%. This signals a capital outflow into alternative assets. When it drops below 40%, altseason is usually in full swing.

ETH/BTC ratio

An increasing Ethereum-to-Bitcoin price ratio serves as an altseason barometer. When Ethereum outperforms Bitcoin, it often precedes broader altcoin rallies.

Altseason index from Blockchain Center

This tool measures the performance of the top 50 altcoins relative to Bitcoin. A value above 75 clearly indicates altseason. As of late 2024, the index was at 78, signaling the market was in an active altseason phase.

Trading volume growth

An increase in trading volumes in altcoin-stablecoin pairs, especially in AI coins and memecoins niches, is a clear sign of growing retail interest.

Four phases of altseason: where is your entry?

Altseason typically unfolds in four distinct phases, each offering different opportunities for investors.

Phase 1: Bitcoin dominance

At this stage, capital concentrates in Bitcoin as a safe haven. The Bitcoin dominance index rises, trading volumes increase, and altcoin prices stagnate. This is a great moment to prepare and study potential altcoins for purchase.

Phase 2: Ethereum takes the lead

Capital begins flowing into the largest altcoin. ETH/BTC ratio increases, activity on DeFi platforms grows. This signals upcoming broader altcoin movements.

Phase 3: Major altcoin rally

Attention shifts to established projects: Solana, Cardano, Polygon show double-digit gains. This is when many conservative investors start entering altcoins.

Phase 4: Full altseason

At the peak of altseason, small-cap altcoins and speculative projects dominate. Bitcoin’s dominance drops below 40%. Smaller altcoins show parabolic growth. This is the riskiest but most profitable phase.

How to buy altcoins: step-by-step guide

Deciding that altseason has arrived and it’s time to act, the next step is practical implementation. Here’s how to buy altcoins on leading platforms:

First step: preparation and registration

1. Choose a reliable platform. Not all exchanges offer a full range of altcoins. Platforms with more than 500–800 cryptocurrencies provide more options. Check if the exchange applies strict security and regulatory standards when listing new projects.

2. Create an account. Register using your email or phone number. Set a strong password.

3. Complete verification (KYC). Usually required for withdrawals and full platform access.

4. Enable two-factor authentication (2FA). Critical for protecting your account from unauthorized access.

Second step: fund your account

Before buying altcoins, you need to have funds on your account. Several methods are available:

• Crypto deposits: If you already have Bitcoin or Ethereum, transfer them to the exchange. Go to Assets → Deposit, select the cryptocurrency, and follow instructions.

• Fiat deposits: Most modern exchanges accept payments via credit/debit cards and bank transfers, though availability varies by region.

• P2P trading: An alternative way to acquire crypto directly from another user without a bank.

Third step: find and select altcoins

1. Research projects. Before investing, study:

   • The project team and their experience
   • Technology and innovation
   • Real use cases of the token
   • Partnerships and integrations
   • Price history and volatility

2. Identify categories. The current altseason cycle shows strength in several directions:

   • AI coins: projects integrating artificial intelligence into blockchain
   • GameFi: tokens of blockchain games and metaverses
   • Memecoins: despite their speculative nature, some (DOGE, SHIB, BONK) show resilience
   • DeFi protocols: a classic choice for altseason

3. Use exchange search. Enter the ticker or name of the coin. Review the price chart, trading volumes, and market cap ranking.

Fourth step: place an order

Most platforms offer various order types:

• Market order: Buy immediately at the current market price. Fast, but may be more expensive in low liquidity conditions.

• Limit order: Set your desired purchase price. The order executes only if the market reaches that level. It may take time, but you control the price.

Enter the amount of altcoins you want to buy and confirm the order. Some platforms also offer advanced options like margin trading, futures, or trading bots — use them cautiously.

Fifth step: manage your holdings

After successful purchase, your altcoins will be credited to the Assets section. You can:

• Keep them on the exchange — convenient for active trading but less secure long-term

• Withdraw to a personal wallet — safer, but requires a decentralized wallet

• Use for earning — some platforms offer staking and lending programs with interest on altcoins

Altcoin trading strategies during altseason

Diversification as a foundation

Don’t put all your funds into one altcoin, even if it looks promising. Distribute investments among 5–10 projects across different categories. This reduces the risk of total loss if one project fails.

Gradual profit-taking

When your position grows, don’t wait for the maximum. Take profits gradually:

• 25% at 50% profit
• 25% at 100% profit
• 25% at 200% profit
• Keep 25% for longer-term growth

This simple technique protects you from sudden corrections.

Dollar-Cost Averaging (DCA)

Instead of buying the entire amount at once, invest small amounts regularly (weekly or monthly). It smooths out volatility effects and reduces psychological stress.

Monitor institutional flow

Tom Lee from Fundstrat emphasizes the increasing role of institutional investors. When major players like BlackRock open opportunities to invest in altcoins (e.g., via ETFs), it’s a strong bullish signal.

Critical risks and how to manage them

Extreme volatility

Altcoins are much more volatile than Bitcoin. Prices can drop 50% in hours. Never invest more than you can afford to lose.

Fraud and rug pulls

Some projects are outright scams. Developers attract investors and then disappear with the funds. Warning signs:

• Anonymous team without verifiable history
• Unrealistic income promises
• Pressure for quick decisions (“offer ends soon”)
• Lack of functional technology, only marketing

Pump-and-dump schemes

Investor groups coordinate to buy low-liquidity altcoins, artificially inflate the price, and attract retail investors. Then they quickly sell, leaving newcomers with losses.

Ignoring risk management

Using leverage (margin trading) can quickly multiply your capital but also wipe it out entirely. Beginners should avoid margin trading on altcoins.

Regulatory shocks

Unexpected regulatory pressure or bans can crash altcoin prices. For example, tightening ICO regulations in 2018 quickly ended the altseason. Conversely, positive regulation (like approval of spot Bitcoin ETFs in the US) can strongly support the market.

Signs of altseason ending

It’s important not only to enter altseason but also to exit timely. Signs of its conclusion:

• Bitcoin dominance rising: When BTC dominance starts growing again and exceeds 50–60%, it indicates a return of focus to Bitcoin
• Small altcoins losing 70%+ from peaks: Altseason is entering its final phase
• Disappearance of retail hype: When social media stops overflowing with altcoin discussions, it’s a reliable sign
• Negative regulatory announcements: Bans or strict rules quickly reduce interest in altcoins

The importance of regulatory context

Altseason development is closely linked to the regulatory environment. In the US, approval of spot ETFs for Bitcoin and Ethereum significantly expanded retail access and boosted market sentiment. Favorable regulation can prolong altseason for months, while regulatory setbacks can destroy it within days.

Conclusion: act informed

Altseason offers real profit opportunities but is not without risks. To successfully buy altcoins and achieve results:

1. Study market indicators (Bitcoin dominance, altseason index, ETH/BTC ratio)
2. Conduct thorough research on each project before investing
3. Diversify your portfolio across multiple altcoins
4. Gradually take profits as prices rise
5. Set stop-loss orders to protect against large losses
6. Never invest funds needed in the short term
7. Stay updated on regulatory changes

Altseason is not a guarantee of wealth, but a well-planned entry considering risks can lead to significant gains. The key is being informed, disciplined, and managing risks appropriately.