Altcoin season has begun. What cryptocurrencies to buy right now?

The share of bitcoin in the industry is declining, while other coins are outperforming the asset in terms of value growth. What coins is it not too late to invest in and how the current situation differs from the 2017 market.

Over the past week, November 17-23, almost all of the largest altcoins in terms of capitalization outpaced Bitcoin in terms of profitability. The price of the first cryptocurrency rose by 14%, to $ 18.6 thousand, while Ethereum rose in price by 31%, to $ 594, and XRP – by 86%, to $ 0.50. The share of BTC in the digital money market continues to decline, now it is 62.8%, although on November 18 it exceeded 68%, according to Coin market cap.

In 2017, a similar situation developed, and then bitcoin began to grow earlier, followed by altcoins. At the same time, such a concept as “altseason” appeared. Mikhail Karkhalev, financial analyst at Currency.com, believes that this is natural. The more the price of BTC rises, the more dangerous it is to buy it, since a correction may begin at any moment. For this reason, retail investors are turning their attention to less popular and cheaper assets that lag behind bitcoin and the market in general.

The task is to get significantly more profit than the bitcoin, which has already risen in price, can potentially give, Karkhalev explained. You can note that the coins start to grow in a certain sequence: Bitcoin, Litecoin, Ethereum, now XRP is connected. At the moment when popular and, in the opinion of the community, reliable coins will reach certain heights, less popular coins will begin to grow, pulling up to general market indicators, the expert predicted. These can be relatively well-known tokens issued during IEO (initial exchange offering), DeFi tokens, and so on.

Karkhalev named the main difference between the current market situation and the events of the end of 2017, when many cryptocurrencies showed a multiple increase in value in a short period of time. According to the specialist, now the price of the first cryptocurrency is growing not on the hype, but on the money of institutional level investors. At the same time, altcoins, as in 2017, are rising in price due to investments from retail investors.

“If the growth from the money of institutional investors occurs systematically, without large impulse jumps, then altcoins are likely to give out high volatility and impulsive growth. As in 2017, the correction in the altcoin market is likely to begin after the start of the bitcoin correction. Should you buy altcoins now? Here, as in the case of bitcoin, the market is still prone to purchases after any correction, there is no talk of the beginning of a bear market now,” Karkhalev is sure.

Leading analyst at 8848 Invest, Viktor Pershikov, added that the altcoin season has definitely begun – “this fact is beyond doubt.” According to the expert, it is the altcoins that will push the BTC price further up, since they are affected by the “low base effect”. Unlike Bitcoin, which is about to reach a historic high, other digital coins from the top 10 in terms of capitalization are still far from them.

“I recommend not waiting, but buying or increasing the volume of purchases in the most capitalized altcoins. The fact that BTC in the near future by inertia may rise above the historical maximum suggests that other assets still have room to grow. I recommend to pay attention to those altkoiny which are the fundamental basis for growth, namely ETH, LTC, EOS, NEO, VET », – said the expert.

Earlier, the head of the Binance crypto exchange Changpeng Zhao said in an interview with RBC-Crypto that in the future the digital money market could grow 1000 times. He predicted that cryptocurrencies will become one of the fastest growing industries in the next 10 or 20 years.