A bull run is defined as a period where the majority of investors’ demand outweighs supply, market confidence hits a peak and prices rise. If in a given market you witness prices quickly climbing, it could be a sign that the majority of investors are becoming “bullish” and are optimistic about the price increasing further and may mean that you’re looking at the starting point of a bull market. Bitcoin Halving appears to be fueling the next bull run to happen in 2024.
Investing in the best altcoins can be rewarding as they offer diversification and potentially higher returns. However, it is important to approach the altcoin landscape with caution and do a thorough research. Understanding the development team, technology, community and use case of altcoins are vital factors for making informed decisions.
Additionally, it is essential to be updated on market trends and regulatory changes for navigating the ever-evolving cryptocurrency landscape. By evaluating these key factors, investors can make strategic decisions when considering altcoin investments. Let us see some altcoins to consider buying for the next bull run in 2024.
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Which Altcoin To Buy in The Next Crypto Bull Run
Ethereum (ETH)
Market cap: $459.16 billion
Ethereum is one of the biggest altcoins on the crypto market. Of the almost $2.49 trillion that portrays the total market capitalization of the 20,000-plus crypto assets, more than 17% is held in ETH. It is a distributed computing network where users can use the blockchain to run dApps and host smart contracts.
Ethereum critics point to high fees for running transactions. However, ETH is here to stay with thousands of apps and other altcoins powered by its blockchain.
Solana (SOL)
Market cap: $58.39 billion
Solana gained popularity among crypto investors helped by its lightning-fast transaction speeds along with low fees. It is a blockchain platform that is highly focused on overcoming the challenges of speed and scalability faced by many existing blockchains.
Solana has jumped nearly 16.60% in the last seven days. On March 4, 2024, it surged by approximately 7% in a span of 24 hours, surpassing the BNB coin and securing a higher rank among the top five cryptocurrencies.
The surge in SOL brought the digital asset to its highest point in two years, reaching levels last observed in April 2022 which was three months after the culmination of the bull cycle in 2021.However, it dropped slightly and landed on the fifth slot, with BNB regaining dominance shortly after on March 4.
Cosmos (ATOM-USD)
Market cap: $4.85 billion
Cosmos (ATOM-USD) is in charge of solving some slow transactions and high-cost problems. It emerged with Tendermint (software) to create an interconnected network of blockchains. ATOM—a native token of Cosmos, is a decentralized network that provides developers with open-source tools to create their own interoperable blockchains. Cosmos is working to become the “internet for blockchain”.
The Cosmos ecosystem permits blockchains to willingly share tokens and data across all the blockchains in the system. One of its essential roles is to secure the Cosmos Hub and regulate the network of the ATOM tokens obtained via a proof-of-stake algorithm.
A recent report by the Cosmos blog focuses on the steadiness of Inter-Blockchain Communication (IBC) volume and close connections that assure high diversity in tokens and, in turn, higher liquidity. The interchain ecosystem is an area where blockchains act as joined blocks that communicate via the IBC protocol, where developers can run their rare chains as different blocks with different practicality.
Kaspa (KAS-USD)
Market cap: $3.48 billion
Kaspa cryptocurrency was launched in the year 2021 with its implementation of the GHOSTDAG protocol, working on blockDAG for fast confirmation and high block rates. The Kaspa community projects it as a cryptocurrency that unfolds the blockchain trilemma which will stabilize security, speed and scalability. In the year 2023, this project encountered transformational developments including the switch to state-of-the-art ASIC miners.
In addition, Kaspa had planned listings on exchanges and launched ideas like the Kaspium mobile wallet and Wrapped Kaspa. It has very aspiring plans for the time ahead including sophisticated smart contract functionalities, Rusy Kaspa Testnet 11 public and exceeding ten blocks per second.
Stellar (XLM-USD)
Market cap: $3.92 billion
Stellar (XL,-USD) is a decentralized, public blockchain that presents developers with tools to create experiences that are more likely cash than crypto. It can be a great altcoin to add to your investment portfolio in this bull run given its accountability for peer-to-peer connecting the world’s financial system.
The biggest aim of Stellar is to make money move easily and fast. The network is cheaper, faster and more energy-efficient than most systems based on blockchain. Lumens behave as mediators for transactions and keep a smooth running system. Its strength is its security. With XLM holders holding the keys, it makes the network more secure for transactions.
Stellar has lately launched some very amazing features such as Soroban and spread Lumens into positive projects through its Community Fund. Additionally, through the compassionate side of the project via Stellar Aid Assist, it has already helped those in need by sending over $2 million to them.
Note: The market capitalization is taken from CoinMarketCap as of March 6, 2024.
Factors Driving Altcoin’s Growth
Market Demand: Altcoins are initially driven by market demands. Investors are more likely to invest in altcoins that have a higher growth potential. Factors that contribute to the market demand for altcoin are consumer sentiments, market trends and investors confidence.
Regulatory Policy: The regulatory policies that can play a very important role in the development and growth of altcoins. Regulatory bodies or governments can impose restrictions on the usage of cryptocurrency, which definitely affects the demand for it.
Technology: The primary or basic technology behind an altcoin is also a factor that affects its growth and development. Altcoins that have unique features or innovative technology are more likely to gain popularity among others.
Competition: Competition is huge in the world of the cryptocurrency market and it can also affect the growth and development of altcoins. Altcoins offering similar features might struggle to gain market share.
Economic Conditions: It is another factor that can affect the altcoin’s growth and development. For instance, in times of economic uncertainty, investors are more likely to invest in altcoins as an economic instability or hedge against inflation.
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Altcoin Investment Strategies for the Next Bull Run
Support strategies by avoiding decisions made with emotions involved and create an effective investment plan that involves target prices for entry and exit. You must stay abreast of market events and news but also limit your social media consumption which many times encourages greedy behavior. Let us see altcoin investment strategies for the next bull run.
Risk Management
Risk management is the initial step every trader needs to think and learn while strategizing their investment plans, but it is the step that is generally overlooked until it’s very late. Investors need to manage risk productively by calculating how much is affordable to risk on an all-inclusive investment and then stick to it by using a stop-loss order to limit losses when the market is not in your favor.
Investment Plan
As we are aware that the crypto market is highly unpredictable and volatile. It is highly recommended to steer clear of the temptation to spring into buying on the very first sign of a rally with all your savings. Carefully evaluate how much you’re willing to invest in other cryptocurrencies like Bitcoin and Ethereum and also in altcoins.
While investing in altcoins, you may benefit by considering industries that have high potential and divide your portfolio between them. For example, 30% to Real World Assets, 20% to AI, 10% to Layer-2s etc. Then consider rupee-cost averaging into your position in order to benefit from any dips.
Stick To Profit Targets
One of the major errors in investing is not being aware of when to take profits. This is accurate, especially for crypto, where the market is highly volatile and driven by social media, overnight sensations, emotion and greed. As prices increase, set realistic targets for gaining profits and cling to them. A well-disciplined approach to profit targets can protect you from unexpected market downturns.
If you have no clue where you want to exit, then scaling out is the best strategy by using rupee-cost averaging to sell. For example, sell 25% altcoin at price points 1 and 2 each, etc. This will help assure you take profits while still benefiting from further upside.
Diversify Your Risk
Many investors look to altcoin for higher risk-reward assets while considering BTC and ETH as blue-chip cryptocurrencies. Given the high risk of altcoins, investors should consider restricting them to a mini portion of their portfolio. The reward opportunity is higher. So, investors still have the potential for fair gains without over-granting and exposing them to excessive downside.
Remember that any gains can be temporary and many altcoins are not fit for long-term buy-and-hold portfolios. The majority of altcoins usually fall out of favor between market cycles and downturns of 95%.
This means it’s crucial to have a logical exit strategy with your targeted price set before you enter the trade. So, if investors want to consider a portfolio with altcoins then settle it with a mixture of high-cap cryptos and altcoins to ease volatility.
Decision Making
It’s a very bad decision to invest based on hype or fear of missing out (FOMO). Cryptocurrency is a unique asset class because every transaction is recorded on a chain for public display. It means you have enough information and tools available to help you make informed decisions, instead of having to shift through the tea leaves like in many other markets.
Below are a few free tools you can use:
- Ai: Put in any address to get a methodical breakdown of transactions, portfolio and more. Get an analysis of in-depth data for individual blockchains. Layer-2s, dApps and DeFi with metrics like trade volume and total value locked.
- Fi: It is like an antivirus scanner for cryptocurrency and smart contracts with the intention to detect harmful or flawed smart contract codes or intentional rug-pulls.
- Arkham Intelligence: Arkham is a blockchain observer that lets you see the relationship between wallets in an understandable way. You can use it to mark shady transfers or stop a Sybil mistake when airdrop framing.
- Cryto-fundraising.info: Using this tool will track investors’ VC funding for new crypto projects, giving them insights related to the firms and the amount raised.
Use the above tools to conduct thorough research into a project’s fundamentals, market position and team. You can also do this by conducting a strengths, weaknesses, opportunities and threats (SWOT) analysis. Always challenge your thesis and look for reasons why a project will crash, rather than information that confirms your existing bias.
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