What Is Altcoin Season and How to Trade Altcoins?

ByChristopher
Is Altcoins Season Over? Here's What Experts Think

If you’ve been following the cryptocurrency market for a while, you’ve probably heard the term altcoin season. It’s one of the most exciting phases in crypto, when a wide range of coins—everything except Bitcoin—start to dramatically outperform the market leader. During altcoin season, tokens that were flying under the radar can suddenly post massive gains, making it a golden window for investors and traders alike.

But what actually triggers an altcoin season? How can you tell when it’s starting? And most importantly, how do you trade altcoins effectively when the market heats up?

This guide breaks it all down in plain language and gives you a practical roadmap for making smart moves during alt season.

What Is Altcoin Season?

Altcoin season is a period when altcoins outperform Bitcoin, both in terms of price appreciation and overall market interest. During this time, money begins to flow out of Bitcoin and into alternative cryptocurrencies, driving up their value.

The shift usually begins when Bitcoin dominance—the share of the total crypto market cap held by Bitcoin—drops below 50 percent. This signals that investors are diversifying into other assets and seeking higher returns in less saturated markets.

A Look Back at 2017

One of the clearest examples of altcoin season occurred in 2017. That year, Bitcoin dominance fell from 87 percent to 32 percent. The overall crypto market cap soared from 30 billion dollars to 600 billion dollars.

  • Ethereum surged from $8 to $1,400, a gain of over 17,000 percent.
  • XRP skyrocketed by 36,000 percent in under a year.

These kinds of returns are rare, but they show the kind of potential altcoin season can offer.

Different Types of Altcoins to Know

Not all altcoins serve the same purpose. Here are the main categories to understand before investing.

Smart Contract Platforms

These altcoins support decentralized apps and finance systems. Leading examples include:

  • Ethereum (ETH)
  • Solana (SOL)
  • Avalanche (AVAX)
  • Qubetics Network (TICS Crypto)

Ethereum alone processes more than 5 billion dollars in daily DeFi transactions. These platforms are the infrastructure of Web3 and are key drivers of blockchain innovation.

Payment Coins

Coins like XRP and Litecoin (LTC) are designed for fast, low-cost transactions. XRP can handle up to 1,500 transactions per second and is often used for international money transfers.

Gaming and Metaverse Tokens

These tokens power digital economies inside games and virtual worlds. Top performers in past cycles include:

  • Axie Infinity (AXS)
  • The Sandbox (SAND)

In 2021, AXS delivered over 10,000 percent returns. These tokens are highly speculative but can offer large upside during altcoin rallies.

Meme Coins

Started as jokes but fueled by community and culture, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have become household names in crypto. At its peak, Dogecoin had a 30 billion dollar market cap.

AI and Infrastructure Tokens

Tokens like Render (RNDR) and Fetch.ai (FET) are tied to artificial intelligence and decentralized computing. RNDR surged over 1,000 percent in 2024, showing investor appetite for AI-related crypto projects.

Stablecoins

Stablecoins like USDT and USDC are tied to fiat currency values and are useful for moving money quickly and safely between trades. They don’t generate profits directly but are essential tools for managing risk and capturing gains.

How to Spot Altcoin Season Before It Explodes

Getting in early is everything. Here are four key signals that altcoin season might be on the horizon.

Bitcoin Dominance Falls Below 50 Percent

This is often the first sign that capital is shifting toward altcoins. When Bitcoin’s share of the overall market declines, altcoins tend to take the spotlight. In 2021, Bitcoin dominance dropped from 70 percent to 38 percent, setting the stage for a massive altcoin rally.

Altcoin Season Index Rises

Websites like BlockchainCenter.net track a metric called the Altcoin Season Index. When this index scores over 75, it suggests that altcoins are outperforming Bitcoin in most cases. In December 2024, it hit 78, confirming a strong alt season.

Increased Trading Volume in Altcoin Pairs

Volume tells the story. Watch for volume spikes in altcoin trading pairs like ETH/USDT or XRP/USDT. When volume rises, it often signals growing demand and market momentum.

ETH to BTC Ratio Climbs

When Ethereum starts gaining against Bitcoin, it often signals growing confidence in the altcoin space. A rising ETH/BTC ratio suggests that investors are shifting from Bitcoin to Ethereum and beyond.

How to Trade Altcoins Like a Pro

Altcoin season is not the time to gamble. A clear trading plan and disciplined strategy can help you maximize gains while minimizing losses.

Choose a Trading Platform

To make the most of altcoin season, you need access to a wide range of tokens, competitive fees, and real-time trading tools. MEXC is a strong choice, offering over 3,000 cryptocurrencies, including trending altcoins, meme coins, AI tokens, and more. The platform supports spot and futures trading, has a user-friendly interface, and includes tools like advanced charting and customizable alerts.

MEXC also supports multiple funding methods, from crypto transfers to bank cards and P2P transactions, making it easy to start trading regardless of your location. Their low trading fees and deep liquidity make them a go-to option for both beginners and advanced traders during altcoin season.

Fund Your Account

Deposit your trading capital using your preferred method. Most platforms support crypto deposits, wire transfers, debit or credit cards, and peer-to-peer services.

Diversify Your Holdings

Avoid going all-in on one coin. A diversified portfolio spreads risk and increases your chances of holding at least one top performer. Consider allocating your capital like this:

  • 30 percent in smart contract platforms like ETH and SOL
  • 20 percent in payment coins like XRP and LTC
  • 20 percent in gaming or metaverse tokens like AXS and SAND
  • 10 to 15 percent in speculative plays like meme coins
  • The remainder in stablecoins for quick trades or protecting profits

Use Smart Order Types

Master the basics of market, limit, and stop-loss orders:

  • Market orders execute instantly at the best available price
  • Limit orders let you set a specific entry or exit point
  • Stop-loss orders help limit losses by triggering a sale if a coin drops below a chosen threshold

Smart order usage is crucial when markets are volatile and moving fast.

Take Profits in Steps

Don’t wait for a peak you’ll never predict. A solid approach is to take profits gradually:

  • Sell 20 percent of your position after a 50 percent gain
  • Sell another 30 percent after doubling your money
  • Let the remaining 50 percent ride or rotate into other opportunities

Taking profits in stages helps lock in gains while keeping you exposed to potential upside.

Final Thoughts

Altcoin season is one of the most explosive periods in the crypto market. It’s driven by investor behavior, market cycles, and innovation across blockchain ecosystems. By learning how to spot early signals and adopting a disciplined trading strategy, you can navigate this volatile window with confidence.

Whether you’re holding Ethereum for the long term or looking to catch the next big breakout in gaming or meme coins, preparation is everything. Choose a strong trading platform, diversify wisely, and stay alert to market shifts. That’s how you turn altcoin season from hype into real results.

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