Diehard crypto traders say that more Bitcoin can be earned from altcoins during this uptrend. In fact, it is the season where most traders will make the highest profits during the crypto year, whether trading altcoins for more Bitcoin or for more fiat.
Crypto enthusiasts liken the altcoin season to crypto Christmas. It is characterized by a pervasive positive sentiment over altcoins whose values are often in an exponential rise. Often, these alternative digital currencies gain immense benefits during these seasons.
To ascertain the validity of earning more BTC from altcoins, crypto enthusiast Dr. Squeeze [LTC] took a pool on it. His poll asked crypto twitter their input over the question:
“In your opinion, what’s the best way to earn more Bitcoins? BitMex margin trading, Altcoins, Bitcoin spot trading, None. Just HODL $BTC!”
As of the time of writing this article, the option “altcoins” had the lion’s share of the votes. One crypto trader gave his opinion that “Pro: margin trading, Noob: hodl, Expert: Altcoins.”
Another opined that margin trading and alts are risky ways to make more BTC, but for a competent trader, they give the highest opportunities to make more BTC holdings.
Bitcoin (BTC) Dropping Volatility
Bitcoin’s volatility has been declining since its meteoric rise and crash during the 2017 crypto bull run. Some pundits believe that this is a sign that the digital currency is finally coming of age. The coin has now been existence for a decade, and as Bloomberg Intelligence strategist Mike McGlone a commodity strategist says:
“This is a maturing market, so volatility should continue to decline…When you have a new market, it will be highly volatile until it establishes itself.”
The reduction on volatility, therefore, implies that the enormous profits once made during Bitcoin’s price swings are slowly reducing in size. Margin trading profits where a broker on platforms such as BitFinex or BitMex lends a trader funds to trade BTC, in this case, are very dependent on the BTC’s price volatility.
An x100 leveraged trade on a deposit on BitMex would bring in over 500 percent in profits in the past. However, the altcoins are still maturing, and their volatility and low prices compared to Bitcoin’s offer large profit margins if trades are coupled with market experience.
Trade in Altcoins and Buy More Bitcoin (BTC)
Some traders, however, just want to Hodl their Bitcoin and await that $1m value. Unfortunately, this does not in any way assist in the increment of BTC in their wallets. But by merely picking the most significant altcoins by market capitalization, traders can generate more profit, which can be channeled back to BTC.
There is so much potential in purchasing altcoins when they are at their lowest and selling them off when they are ripe. Those traders will need little patience and with no time to study the over 2000 plus alternative coins in the market, need only to go with the popular ones for profit.
There is no debate about which coin or token is the best store value. Bitcoin remains unchallenged in this area, and Bitcoin holders will make the new generation of the financially independent. Rhythm trader puts this characteristic of Bitcoin very aptly by tweeting:
“Bitcoin may be volatile, but it has recovered from every single downturn. As an example, if you had bought $10 worth of Bitcoin every day, starting at its all-time peak high in Dec 2017, you’d be up nearly 50 percent.”