Bitcoin dominance: What is it?

Wondering about the future of altcoins and where to invest wisely? Curious if there’s an upcoming alt season? These are hot topics buzzing in Telegram chats today. Let’s get straight to the point:

✅ 1. Decoding Dominance Charts

What’s that dominance chart all about? Well, it’s a snapshot of who’s flexing more muscle in the crypto arena – Bitcoin or the rest of the gang. In simpler terms, it tells you where the money’s flowing – into Bitcoin or altcoins.

✅ 2. Reading Between the Lines

Dominance on the rise? Money’s funneling from all assets into Bitcoin (people selling altcoins to stash funds in BTC).

Dominance taking a tumble? Capital’s streaming from Bitcoin into other assets (folks selling Bitcoin to bulk up on alternative markets).

✅ 3. Navigating Altcoin Buys

Considering an altcoin buy? Great, but it’s not just about diving in blindly. You’ve got to grasp the market’s vibe. Here’s the lowdown:

• Bitcoin’s sliding? Others may plummet even harder, as folks flee to safety in dollars or Bitcoin.
• Bitcoin’s soaring? Alternatives might lag behind because everyone’s riding the Bitcoin wave.
• Bitcoin’s holding steady? This can spark altcoins to shine as traders hunt for fresh opportunities.

Understanding these market vibes holds the key to your crypto success. Base your moves on chart reality, not wishful thinking.

Quick Risk Management Tips

• Don’t chase local bottoms.
• Wait for a second bottom as a gift – buy when the price goes sideways above the local minimum or surges after an impulse correction.
• Don’t keep averaging down with every new low. Buying at every dip can drain your funds. Invest when interest in the asset sparks, not when it’s absent.
• Always factor in risk. Determine how much you can afford to lose without catastrophe – usually 5-10% of your deposit.
• The more positions you hold, the quicker you hit your risk limit. When you reach it, close the losing positions, step away, and resist chasing losses.

There you have it – a concise guide to tackling the world of altcoins and minimizing crypto risks. Happy investing!