4 Altcoins to Consider Buying for the Next Bull Run in 2024 – Forbes Advisor INDIA

A bull run is defined as a period where the majority of investors’ demand is greater than supply, purchases, market confidence is at a peak and prices are rising. In a given market, if you see prices quickly trending towards the top, this may be a sign that the majority of investors are becoming “bullish”, which is optimistic about the price going up further and may mean that you are moving towards the starting point of ‘ a bull market. Bitcoin Halving is fueling the next bull run to occur in 2024.

Investing in the best altcoins can be a rewarding venture, offering 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 altcoin are essential factors in making informed decisions.

Additionally, staying abreast of market trends and regulatory changes is essential to navigating the ever-evolving cryptocurrency landscape. By evaluating these key factors, investors can make informed and strategic decisions when considering altcoin investments. Let’s look at some altcoins to consider buying for the next bull run in 2024.

Which Altcoin to Buy in the Next Crypto Bull Run

Ethereum (ETH)

Market Cap: $367.80 billion

Ethereum is one of the biggest altcoins on the crypto market. Of the nearly $837 billion that represents the total market cap of the 20,000 plus cryptoassets, 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 conducting transactions. However, ETH is here to stay with the thousands of apps and other altcoins powered by its blockchain.

Cosmos (ATOM-USD)

Market cap: $4.12 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 allows blockchains to willingly share tokens and data across all the blockchains in the system. One of the essential roles is to secure the Cosmos Hub and regulate the network of the ATOM tokens which are obtained via a proof of play algorithm.

A recent report by the Cosmos blog focuses on the steadiness of IBC volume and tight connections that ensure high diversity in tokens and in turn higher liquidity. The interchain ecosystem is an area where blockchains act as aggregated blocks that communicate via the IBC protocol, where developers can manage their rare chains as different blocks with different practical uses.

Kaspa (CASH-USD)

Market cap: $3.68 billion

Kaspa cryptocurrency was launched in the year 2021 with the implementation of the GHOSTDAG protocol, and works on blockDAG for fast confirmation and high block rates. The Kaspa community projects it as a cryptocurrency that unfolds the blockchain trilemma that will stabilize security, speed and scalability. In the year 2023, this project experienced transformational developments, including the switch to modern ASIC miners.

In addition, Kaspa planned listings on exchanges and introduced ideas such as the Kaspium mobile wallet and Wrapped Kaspa. It has many ambitious plans for the time ahead, including sophisticated smart contract functions, Rusy Kaspa Testnet 11 public and more than ten blocks per second.

Stellar (XLM-USD)

Market cap: $3.26 billion

Stellar (XL,-USD) is a decentralized, public blockchain that provides developers with tools to create experiences that are more likely to be cash than crypto. This could be a great altcoin to add to your investment portfolio in this bull run, it is responsible for peer-to-peer connecting the world’s financial system. The main goal is to move money easily and quickly.

The network is cheaper, faster and more energy efficient than most blockchain-based systems. Lumens act as intermediaries for transactions and maintain a smooth working system. Its strength is its security. With XLM holders holding the keys, it makes the network more secure for transactions.

Stellar has recently introduced some really great features like Soroban and distributing Lumens in positive projects through its Community Fund. In addition, through the compassion side of the project via Stellar Aid Assist, it has already helped those in need by sending them over $2 million.

Note: The market capitalization is taken from CoinMarketCap as of February 26, 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 higher growth potential. Factors that contribute to the market demand for altcoin are consumer sentiments, market trends and investor confidence.

Regulatory policy: The regulatory policy that can play a very important role in the development and growth of altcoins. Regulatory bodies or governments may impose restrictions on the use of cryptocurrency, which certainly affects the demand for it.

Technology: The primary or basic technology behind an altcoin is also a factor influencing 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 that offer similar features may struggle to gain market share.

Economic conditions: This is another factor that can affect the altcoin’s growth and development. For example, in times of economic uncertainty, investors are more likely to invest in altcoins as an economic instability or hedge against inflation.

Altcoin Investment Strategies for the Next Bull Run

Support strategies by avoiding decisions made with emotions involved and create an effective investment plan that includes target prices for entry and exit. You need to stay on top of market events and news, but also limit your social media consumption which many times encourages greedy behavior. Let’s look at altcoin investment strategies for the next bull run.

Risk management

Risk management is the first step that every trader should think about and learn while strategizing their investment plans, but it is the step that is generally overlooked until it is too late. Investors should 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 stay away from the temptation to withdraw at the first sign of a rally with all your savings. Carefully check how much you are willing to invest in blue chips like Bitcoin and Ethereum and also in altcoins.

While investing in altcoins, consider 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 in your position to take advantage of any dips.

Stick to profit goals

One of the big mistakes in investing is not being aware of when to take profit. 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 profit and stick to them. A well-disciplined approach to profit targets can protect you from unexpected market downturns.

If you have no idea where you want to exit, scaling down is the best strategy using rupee cost averaging to sell. For example, sell 25% altcoin at price points 1 and 2 each, etc. This will help ensure you take profits while still taking advantage of 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 limiting them to a mini portion of their portfolio. The reward opportunity is higher. Thus, investors still have the potential for fair profits without conceding too much and exposing themselves to excessive downside.

Remember that any gains may be temporary and many altcoins are not suitable for long-term buy-and-hold portfolios. The majority of altcoins usually fall out of favor between market cycles and 95% downturns.

This means that it is crucial to have a logical exit strategy with your target price set before entering the trade. So, if investors want to consider a portfolio with altcoins, then settle with a mix of high-cap cryptos and altcoins to ease volatility.

Decision making

It is a very bad decision to invest based on hype or fear of missing out (FOMO). Cryptocurrency is a unique asset because every transaction is recorded on a chain for public display. This means that you have enough information and tools available to help you make informed decisions, instead of sifting through the tea leaves as in many other markets.

Below are some free tools you can use:

Ai: Put in any address to get a methodical breakdown of deals, portfolio and more. Get an in-depth data analysis for individual blockchains. Layer-2s, dApps and DeFi with statistics such as trading volume and total value locked. Fi: It’s like an antivirus scanner for cryptocurrency and smart contracts with the aim of detecting harmful or flawed smart contract codes or intentional rollbacks. Arkham Intelligence: Arkham is a blockchain observer that allows you to see the relationship between wallets in an understandable way. You can use it to flag shady transfers or stop a Sybil error when airdrop framework. 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 thoroughly research 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 fail, rather than information that confirms your existing bias.