Ethereum (ETH) and Solana (SOL) are among the largest crypto assets after Bitcoin. Most of the time they move in the same direction as Bitcoin, but with larger percentage swings. That makes them attractive in strong trends and dangerous in sudden reversals.
Follow Bitcoin first
Before trading an altcoin, look at the Bitcoin chart. If Bitcoin is in a clear uptrend, long setups on ETH or SOL have the wind behind them. If Bitcoin is falling sharply, altcoins usually fall harder. Trading against Bitcoin's direction is the most common altcoin mistake.
Relative strength
Compare the altcoin with Bitcoin over the last few days. If ETH rises more than BTC on up days and falls less on down days, it is showing relative strength: a better candidate for longs. The opposite is a better candidate for shorts.
Sizing
- Altcoin stops need to be wider in percentage terms than BTC stops.
- Reduce the position value so the dollar risk stays at 0.5–1% of the account.
- Do not open BTC, ETH and SOL longs at the same time at full size: they are one correlated bet.