@Eybyoung 22 December 2020 edited more from that month

Why Altcoins are bleeding when Bitcoin surges up?

If you are a newbie in the crypto space you might wonder why the heck altcoins (the term for another coin aside from Bitcoin) is **bloody red** when Bitcoin is super **bullish**? There is a relationship between Bitcoin and altcoins that has similarities and differences. It is good to identify it so we will know it's the foundation to understand it better. To sum up, let's see the differences and similarities between Bitcoin and altcoins. **Bitcoin is;**

The most popular cryptocurrency is the first-ever crypto. Some called it the “KING” of crypto, or sometimes the “mother”. Sometimes mother**ker when it f**ks up the trade of altcoins lol. The fully decentralized cryptocurrency It maintains the market share majority The final major investment goal of swing and position traders It is likely less experience large price spikes **Altcoins is;**

It is very versatile, some altcoins gained their reputations through fundamental aspects while some are only driven by hype. Some are not fully decentralized because some of the Founders hold the largest coin. A small market cap can be easily manipulated by price. More likely to experience large price spikes. Some are accumulating altcoin to accumulate more Bitcoin down the road. Mostly, traders always chose Bitcoin for safety trades as it is not affected by other coin hype. It has its trends, especially if they do leverage trading. **Why does the altcoins price go down when BTC is pumping?** If you look at the market sentiment, there is a simple answer to that why altcoin bleeds when BTC pumps up because since most traders likely to increase their Bitcoin trades position there is no need to stay on altcoins position when the main coin is pumping. Traders will leave only a small position on altcoins Bitcoin starts to go uptrend Traders' position in altcoins suddenly loses its (BTC) value. To avoid greater losses, some traders moved their funds to Bitcoin to benefit from its bullish momentum. Due to this, large funds in the altcoins market were moved to Bitcoin (decrease on demand) while it increases the demand for Bitcoin. It results in an uptrend on Bitcoin while a downtrend on altcoins. **It is important to know that there are three coins where you can store in value, naming;** Bitcoin (BTC) Altcoins (Other crypto coins: e.g BCH) Stablecoins (other cryptocurrencies that are pegged to FIAT currency; e.g Tether (USDT) Mostly, people transfer their funds on Bitcoin when it rising and moved it to stablecoins when the market goes sideways. These things can truly affect the prices of altcoins. But if the market is relatively stable and more traders buy altcoins which caused them to increase their value, it is known as “altcoin season”. **How “alt season” works?** It usually occurs during a bull market but only lasts for a short period. During this time, those who hold altcoins can have a large profit gain. Altcoin season appears when 1 or more options occur simultaneously with the bull market conditions that have a positive outlook. More hype and positive rumors for an altcoin category (e.g Defi coins) Positive media announcements and coverage of the coins, events, and projects. Strong fundamental of the coins, it's utility case will more likely to add fuel on hype. **How to maximize profit potential during an altcoin season?** Participating in crypto markets is subjected to a high level of risk. To maximize your risk vulnerability, make sure to do this thing: TP (take profit) when your preferred coin hits its desired price points. You should have a realistic target beforehand, but if you are an avid investor you can just let the coin float until how many years and take profit when rises to the highest level. Set stop-loss, or sell the coin before its too late if your coin doesn't have strong fundamentals, it will likely to fail so you will avoid losing value before your emotions can logically process it. Most traders trade on BTC pairs to increase their BTC position, which has less risk. Invest in a coin that has strong fundamentals, partnerships, and a well-known team. Always DYOR before buying the coin. Search how its community development works and its utility (e.g BCH). *So, now you know why altcoin bleeds when BTC is rising. Trading in altcoins is riskier but the gains are worth it especially if you know the game well. I hope we will not be like that on my lead image, waiting for the bull run lol.* BCH reached $380 recently but it went down again because of BTC dominance Source; https://kryptomoney.com/why-do-altcoins-struggle-while-bitcoin-keeps-going-up/ Lead Image source: Pinterest