You know how exciting the altcoin season can be, right? Especially during these times, investors have the opportunity to make a lot of money. So, is this season really approaching, and how can we tell?

All cryptocurrencies except Bitcoin are called altcoins. Historically, BTC was the first to emerge, followed by other assets, which is why they were called "alternatives." From a technical perspective, the entire crypto industry is tied to Bitcoin — if it drops, usually others follow. Among the altcoins that make waves in the market are DOGE, ADA, XRP, LUNA, and of course, Ethereum. In fact, the first altcoin was Namecoin, which appeared in 2011.

Altcoins are categorized into different groups. Stablecoins like (USDT, USDC are assets pegged to fiat currencies. DeFi tokens like )UNI, AAVE, CRV are used in decentralized finance applications. Meme coins such as (DOGE, SHIB have a humorous aspect. PoW tokens like )LTC, ZCash are assets that use Proof-Of-Work. Staking assets like (ADA, AVAX, ATOM are coins that use Proof-Of-Stake.

The true meaning of the altcoin season is this: when Bitcoin is already showing strong growth and investors start reallocating their profits from BTC into other coins. As a result, altcoins tend to rise faster than Bitcoin. To compare, it’s like florists making big profits during special days like Valentine’s Day and International Women’s Day.

So, how do we know if we’re in an altcoin season? The Bitcoin dominance index comes into play here. This index shows Bitcoin’s share of the total crypto market capitalization. The higher the Bitcoin dominance, the more money is locked in BTC. When it drops, money flows into altcoins. Looking at the charts, Bitcoin has been sharply losing dominance since 2017.

The altcoin season index is the most practical way to understand this. It measures what percentage of altcoins have performed better than Bitcoin in the last 90 days. For example, a value of 88 means 88% of altcoins have grown more than BTC. If the altcoin season index exceeds 75%, we are experiencing a true altcoin season. If it drops below 25%, it’s a sign that Bitcoin season is coming.

2021 provides a great example. During that period, Gala surged over 10,000%, Axie Infinity over 10,000%, Solana nearly 8,000%, Fantom close to 7,000%, Polygon nearly 6,000%, and Terra exceeded 5,000%. DOGE was close to 3,000%, PancakeSwap nearly 2,000%, and The Sandbox around 1,000%. This season lasted until June and was the longest since 2017.

What should you pay attention to when choosing altcoins? Check the market cap, but not just the current value — look at past measurements too. Has the technology behind the project truly solved a problem? Ethereum offered energy efficiency, Polygon solved high fee issues. Does the project have clear goals? Is the team anonymous? Is there a strong community? How is the tokenomics? What’s the circulating supply, and how much more will be released in the future? Also, look at the daily trading volume.

By the way, when investing in altcoins, open accounts not only on major exchanges but also on smaller platforms. There are tokens listed on exchanges like Gate.io too. Remember, every altcoin investment carries risks — do your own research. No one can say for sure which assets will emerge in the next altcoin season, but it’s a good chance to make quick profits.

In conclusion, the main indicator of an altcoin season is the weakening of Bitcoin dominance. By following special tools like the altcoin season index, you can act at the right time. Past performance can give us clues, but there’s no guarantee that the same tokens will perform similarly in the next season. The crypto industry provides enough tools for this research — do your own analysis and make rational decisions.