The recent increase in cryptocurrency volatility has made it possible for scalpers and traders to make large profits. However, it is not always easy to know when to buy or sell some digital currencies. Moreover, with altcoins and smaller virtual currencies being launched to the market on a daily basis it is difficult to select the most winning strategies.
Altcoins and Micro-caps Represent a Trading Opportunity
Trading in the cryptocurrency market is not an easy task. However, it certainly provides large opportunities to traders and investors from all over the world that want to make some extra money at the end of the month or even live with a day-trading job.
Fast Fortune Club is one of these projects that would certainly make it easier for you to learn about cryptocurrencies and coins that could be ready to surge. It is certainly not always easy to select the most winning digital currencies. For one or another reason, we always pick the wrong coin.
But don’t worry. We will tell you in the next sections which are the main aspects you should take into consideration about the crypto market.
If you have been in the cryptocurrency market for several years, you might know that there are periods of time that are called “Altseasons.” These alteasons make reference to times in the cryptocurrency market when smaller virtual currencies grow faster than larger digital assets.
For example, if we see that Bitcoin’s relative market capitalization compared to other virtual currencies falls for consecutive weeks and months. We should consider we are in an Altseason. However, in many cases, we are not sure which coins to select. It is always very important to have a diversified portfolio and avoid scams.
Initial Coin Offering Craziness
We have also heard about the Initial Coin Offering (ICO) craziness that the cryptocurrency market experienced back in 2107 and 2018. During these years, there were thousands of projects releasing their tokens to the market.
This has created a situation in which micro-caps investors thought that each of the new tokens released to the market could replace Bitcoin or Ethereum. Of course, this did not happen. Bitcoin remained the leader in the crypto space alongside Ethereum.
Nevertheless, during that period of time, it was possible for traders to make very profitable trades. Many ICO tokens were able to massively surge. However, they were not a good long-term investment. Indeed, most of these tokens lost more than 98% of their value and most of these projects died.
Microcaps are always one of the best ways to get early in an investment. The main issue that traders could face is related to the fact that it is difficult which coin to pick. Moreover, once a trader selects a coin, it is also very risky to hold it for long periods of time.
This is why it is very important to always diversify our investments rather than placing all our bets on a single coin. Those investors that select the best digital asset would definitely get the chance of making very large profits if the microcap virtual currency then becomes a larger digital asset.