As the bear market continues, individual traders are finally starting to think, "Alts are dead."
Is it true?
Let's look at the facts, filtering out the noise. The crypto market is more volatile than ever, with many unexpected players, including U.S. President Donald Trump and his sons, U.S. legacy financial institutions like Fidelity and Blackrock, third-party nations like El Salvador, and major market makers and manipulators like Binance and other CEXs.
Mixed with the interests and calculations of each stakeholder, the BTC and overall crypto market is experiencing peak volatility while continuously declining.
The rotation cycle is also getting faster. Most alts have a very short-term rise period followed by a dump. If a trader expects to hold for several months, the possibility of loss increases exponentially. Our tactics should be adjusted to this short-term cycle quickly and flexibly.
When selecting investment targets, we should return to basic principles. It's necessary to check more than just price. Many altcoins, even those in the top 10 by market cap, lack sufficient utility and development forces/funds. Their transaction speed and scalability are also poor compared to real-world usage chains like Solana, Ethereum, and Sui. If you buy coins based purely on speculation, it will be riskier than before in this upcoming era of practical blockchain applications.
Trend analysis and diversification are essential before buying alts. The 50-day or 200-day moving average can signal trend changes and help to gauge momentum. And within an altcoin portfolio, avoid putting everything into just one speculative coin. Diversify your portfolio with several altcoins to mitigate risk.
