Why You Should Track Altcoins Against Bitcoin (Not USD): $KAS, $BTC and $ADA performance
In Brief
Smart traders are shifting their focus from USD Value to Altcoins’ performance against Bitcoin pairs, as most altcoins are losing value against Bitcoin pairs.
The majority of altcoins keep losing their value against Bitcoin pairs. Smart traders focus on how their altcoins perform against $BTC instead of focusing on USD Value. This strategy could completely change the way you trade.
The Cardano (ADA) Lesson
Cardano ($ADA) was booming in December of 2017. The price skyrocketed from 0.38 USD to 1.10 USD early in 2018. The reality is that it crashed down to 0.035 USD at a loss of 97%. In 2021 it hit 3 USD per token and in 2024 $ADA went back to 0.35 USD. The takeaway? Altcoins are unpredictable and often disappointing when viewed in USD.
Source: https://www.tradingview.com/x/7XlDhTCQ/
Let’s go deeper into this. Imagine that on December 17th, 2017, you bought $ADA at around 0.38 USD, jumping into the extreme crypto hype phase. The excitement is electric, and within weeks, the price skyrockets to $1.10. You’re feeling like a genius, enjoying a nearly 3x return in no time. So, you decide to hold on, convinced this is only the beginning.
Big mistake
Instead of soaring higher, Cardano starts to tank. After two years, your investment went down to 0.035 USD per token. You’re down nearly 90%, yet you remain hopeful—sure that the comeback is around the corner.
In early September 2021, it happens—sort of. Cardano rockets to nearly $3 per token, offering an 800% return. But again, you don’t sell, believing the bull market will carry it even higher.
Another mistake
Now, it’s September 2024, and Cardano is sitting at around $0.34. After seven long years, your initial investment is actually at a loss. As a fact, Cardano ($ADA) went from 6th place as one of the largest cryptocurrencies to 11th. It’s been a brutal ride, and you’re still waiting for that payoff.
Why Bitcoin is the Key
So, what’s the takeaway? Altcoins, even those as hyped as Cardano, can be financial traps if you don’t play them right. Most investors track their altcoins in USD, but here’s the hard truth: that’s often misleading. In the wild world of crypto, what really matters is how your altcoins are performing against Bitcoin.
Bitcoin is the king. When it’s on the run, most altcoins struggle to keep up. But occasionally, an altcoin will outperform Bitcoin—even in a down market—and that’s where the real opportunity lies. If you focus on altcoin vs. $BTC pairs, you can grow your $BTC stack. This is the smart play.
The Right Way to Track Altcoins
If you want to be a smart investor, stop tracking altcoins only in USD. A smart move is to pay attention to how they perform relative to Bitcoin ($BTC). The major sign showing that it is worth holding altcoin or even buying more is when it slightly outperforms Bitcoin ($BTC). Once it starts losing strength against the $BTC pair, it might be a great signal to cut off your losses and speed up.
You are way better positioned to achieve maximum profits by tracking altcoins against Bitcoin ($BTC). This play is about accumulating more Bitcoin, not about increasing the USD balance.
Source: https://beincrypto.com/altcoin-markets-strengthen-crypto-bull-cycles/
Timing the Altcoin Market
To profit from altcoins, you need to know when an altcoin has reached its cycle bottom. That’s why I developed a proprietary Cycle Indicator based on Stochastic RSI, which alerts you when an altcoin is primed to outperform Bitcoin.
Example: KAS/BTC Strategy
Let’s see this strategy in action. Take the KAS/BTC pair on a daily timeframe. On January 18th and April 19th, 2024, my Cycle Indicator flashed light green signals—marking key reversals in the KASPA pair. Following these signals led to 40% and 70% gains against Bitcoin, with over 60% gains in USD terms during those periods. These are the types of opportunities I share with my subscribers.
$KAS increased 40% against BTC in January 2024$KAS increased 65.5% against USD in January 2024$KAS increased 70% against BTC in April 2024$KAS increased 60.8% against USD in April 2024
By using this approach, you can cut through the noise and make more informed decisions about when to buy, sell, or hold an altcoin. It’s all about finding those reversal points in altcoin/BTC charts—not just focusing on altcoin/USD movements.
Crypto might look like a rollercoaster, whereas altcoins are one of the wildest rides in the park. But by tracking your altcoin/BTC, you can turn that volatility into opportunity. Don’t fall into the trap of only watching USD values—focus on what truly matters: your Bitcoin holdings.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Strategy Master is a cryptocurrency trader and market analyst with expertise in the field since 2018. His research primarily focuses on the crypto cycle analysis, with a particular emphasis on Bitcoin. Master's deep understanding of market cycles and crypto trends allows him to provide valuable insights, making him a trusted voice in the Web3 and cryptocurrency industry.
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Strategy Master is a cryptocurrency trader and market analyst with expertise in the field since 2018. His research primarily focuses on the crypto cycle analysis, with a particular emphasis on Bitcoin. Master's deep understanding of market cycles and crypto trends allows him to provide valuable insights, making him a trusted voice in the Web3 and cryptocurrency industry.
