3 Devastating Mistakes to Avoid During Crypto Altcoin Season

Core Insights - The article discusses the phenomenon of altcoin season, a period characterized by significant capital rotation from Bitcoin to various altcoins, leading to substantial price increases for non-Bitcoin cryptocurrencies [1][2]. Group 1: Common Mistakes During Alt Season - Mistake No. 1: Over-investing - During alt season, altcoins like Ethereum, Solana, and Cardano often experience rapid price increases, which can lead to over-enthusiasm among investors. This can result in overtrading and speculative positioning, as fear of missing out (FOMO) drives investors to make impulsive decisions [4][5]. - The article emphasizes the importance of having a preset investing schedule and position sizing to mitigate emotional decision-making. Dollar-cost averaging (DCA) is suggested as a strategy to maintain discipline and manage risk effectively [6][7]. - Mistake No. 2: Rotating out of quality to chase the hottest new thing - Investors may be tempted to sell high-conviction assets like Bitcoin to invest in lower-quality altcoins that are experiencing rapid price gains. This common mistake can lead to poor long-term investment outcomes as investors misinterpret short-term price increases as indicators of quality [8][10].