What are Altcoin Hype Cycles?The Altcoin Hype Cycles are driven by factors relating to Fundamental Analysis. Fundamental Analysis refer to future events that could impact the market like partnership announcements or mainnet releases.
The graph shows the typical movement of the Altcoin market throughout a year. Typically, at the end of every quarter, majority of altcoin projects have to update investors about their progress. Usually this is when mainnet launches and partnership announcements occur. With new developments and updates to the project, the teams behind the altcoins honour their deadlines. For this reason, majority of altcoins can pump at the end of every quarter.
How to make the most of Altcoin Hype CyclesThere are two key factors that influence the altcoin market – Timing and information.
Timing is everything, when investing in altcoins. There is a lot of research about an altcoin, and then one needs to be patient to get in right at the bottom in order to maximise profits.
The Altcoin Hype Cycles are a handy tool to assist traders in identifying what time of the year presents the best opportunity to strategically position one’s capital. The idea is to buy in anticipation of hype and not when the hype is almost over. DYOR (Do Your Own Research) is very important for all traders. You have to stay up to date with what is happening in the crypto space and what news events are coming up. Having the right information i.e. dates for mainnet launches etc, will help you to make the most of Altcoin Hype Cycles. Hype moves markets but it is important to know that not all events are equal. A network upgrade for example, can cause a lot of hype whilst a blockchain conference may not have the same impact. Check out Coinmarketcal for upcoming crypto events.