How to analyze altcoins before buying?

A strong altcoin review looks at more than price. You want cycle context, momentum, sentiment, funding, market structure, and supply pressure in one place so you can see whether the setup looks calm or overheated.

What makes a good altcoin?

A good altcoin usually has a credible use case, active builders, healthier token design, real market demand, and a risk profile that still looks reasonable for the current phase of the cycle. The goal is not to find hype first, but to find coins where quality and timing both line up.

How to find good altcoins to invest in?

The cleaner process is to filter coins through a repeatable scoring system instead of browsing social hype. Altcoin Rules helps by turning multiple inputs into one structured score so you can compare setups, reject weak projects faster, and stay more disciplined during overheated markets.

What is the Altcoin Rules score?

The Altcoin Rules score is an altcoin scoring system built by Alpha Factory to help investors judge whether a coin looks attractive, neutral, or overheated. It combines cycle position, momentum, sentiment, market structure, and supply risk into one clearer read before you buy.

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Public Altcoin Rules Guide

Altcoin Rules: Altcoin Scoring System

Altcoin Rules is Menno's weighted scoring system for analyzing altcoins before you buy. It blends cycle context, momentum, sentiment, market structure, and supply pressure into one cleaner read so you can stop guessing whether a setup looks attractive, neutral, or overheated.

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thealphafactory.io/altcoin-rules

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Core indicatorsLive modifiersHistorical tops and bottoms

Live tracked-coin snapshot

A public slice of the same Altcoin Rules engine members use.

This public board shows a compact live read on a few tracked coins. Members get the full per-indicator breakdown, history, and deeper context for any supported asset.

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Public view: core score + zone only.Premium view: full indicator stack, history, and any supported coin.

One core score

See low, neutral, or high risk at a glance instead of guessing from one chart.

Why the score moved

Open each indicator to see whether the shift came from cycle risk, momentum, sentiment, or supply pressure.

Historical context

Compare today's core score with prior bottoms and tops instead of reacting to one noisy candle.

What goes into the score

One framework, core signals plus live modifiers.

The real tool combines cycle context, momentum, sentiment, market structure, and supply pressure. That is why it is more useful than staring at one indicator in isolation.

Risk Wave

Cycle position versus the long-term average.

2-Week RSI

Momentum without the daily noise.

4Y High Distance

How far the market is from major cycle highs.

Dominance

Whether market share looks stretched or cheap.

Fear & Greed

Sentiment context when the market gets euphoric or fearful.

ALT/BTC Ratio

How overheated altcoins look relative to Bitcoin.

Funding Rate

Modifier

Leverage pressure when traders get too one-sided.

Token Unlocks

Modifier

Supply-risk pressure that can hit altcoins fast.

How Menno uses it

The score is not a magic signal. It is a risk map.

Lower scores mean the inputs sit below their heated ranges. Higher scores mean several are stretched at once. The score describes the market; it is not a buy or sell instruction.

Below 40

Lower risk

Most inputs sit below their heated ranges.

40-60

Neutral

The normal range, with inputs pointing in different directions.

60 and above

Higher risk

Several inputs are stretched at once.

Next step

Choose your path based on what you need right now.

Want proof first? Open the public receipts. Want to test the thinking on your own coins? Run the free audit. Already convinced? Unlock Premium and open the real Altcoin Rules tool.

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Not financial advice. The tool is a decision framework, not a guarantee.

Also try our DCA Simulator — backtest dollar-cost averaging strategies on any coin.

What is the Altcoin Rules Framework?

Altcoin Rules is Alpha Factory's proprietary risk framework that combines multiple weighted market indicators — including Risk Wave, RSI, dominance, funding rates, and token unlocks — into a single composite score from 0 to 100. Lower scores read as lower risk and higher scores as higher risk, in five bands: below 20, 20 to 40, 40 to 60, 60 to 80, and 80 and above.

Why a Scoring Framework Matters

According to CoinGecko data, over 14,000 cryptocurrencies have been listed since 2013, with the majority losing 90%+ of their value within two years (source: CoinGecko Annual Crypto Industry Report 2024). Altcoin Rules was built to filter signal from noise using weighted indicators that combine market structure, momentum, sentiment, and supply-side risk into a single 0-100 composite score. The framework evaluates cycle position via Risk Wave, momentum via 2-Week RSI, distance from prior highs, market-share dominance, Fear & Greed sentiment, ALT/BTC overheating, funding-rate leverage pressure, and token unlock supply risk. Each indicator is weighted by its historical predictive value across three bear-market cycles (2018, 2022, 2025), giving recent data more influence while preserving structural lessons from earlier crashes.

Created by Menno at Alpha Factory, the system replaces watching one indicator in isolation. Instead, it combines multiple market signals into a single composite score that tells you whether an altcoin currently looks cheap, neutral, or dangerously overheated. It describes where the coin sits; it is not a buy or sell instruction.

How does the Altcoin Rules scoring system work?

The Altcoin Rules scoring system works by combining multiple weighted market indicators into a single composite score from 0 to 100. Each indicator captures a different dimension of market risk: Risk Wave measures cycle position, 2-Week RSI tracks momentum without daily noise, 4-Year High Distance gauges proximity to prior cycle peaks, Dominance shows whether market share is stretched, Fear & Greed provides sentiment context, ALT/BTC Ratio detects altcoin overheating relative to Bitcoin, Funding Rate reveals leverage pressure, and Token Unlocks flags imminent supply-side dilution risk. Each indicator is individually scored and combined into the composite score, which maps to five risk bands: below 20 (very low risk), 20 to 40 (low risk), 40 to 60 (neutral), 60 to 80 (high risk) and 80 and above (very high risk).

The Weighted Indicators

Risk Wave — Cycle position versus the long-term average.

2-Week RSI — Momentum without the daily noise.

4-Year High Distance — How far the market is from major cycle highs.

Dominance — Whether market share looks stretched or cheap.

Fear & Greed — Sentiment context when the market gets euphoric or fearful.

ALT/BTC Ratio — How overheated altcoins look relative to Bitcoin.

BTC Production Cost — Bitcoin's price against what it costs to produce.

Funding Rate — Leverage pressure when traders get too one-sided.

Token Unlocks — Supply-risk pressure that can hit altcoins fast.

The Five Risk Bands

Below 20: Very low risk — Most inputs sit well below their heated ranges.

20 to 40: Low risk — Conditions are calmer.

40 to 60: Neutral — The normal range, with inputs pointing in different directions.

60 to 80: High risk — Several inputs are stretched.

80 and above: Very high risk — Many inputs are stretched at once.

Frequently Asked Questions

What is the Altcoin Rules framework?

A weighted risk framework that combines multiple market indicators into one composite score from 0-100, covering cycle context, momentum, sentiment, market structure, and supply pressure. Created by Menno at Alpha Factory.

What are the indicators?

Risk Wave, 2-Week RSI, 4-Year High Distance, Dominance, Fear and Greed, ALT/BTC Ratio and BTC Production Cost. Funding Rate and Token Unlocks sit beside the score as live modifiers. The indicators are combined into the composite score.

Is it free?

A public snapshot showing live scores for Ethereum, Solana, Chainlink, and Sui is free on this page. The full tool with per-indicator breakdowns and any supported coin requires an Alpha Factory premium membership.

How should I use the score?

The score is a risk map, not a signal. Low scores mean the inputs sit below their heated ranges, high scores mean several are stretched at once. It describes the market; what you do with that is your own decision.

Altcoin Rules: Altcoin Scoring System

A public slice of the same Altcoin Rules engine members use.

One framework, core signals plus live modifiers.

The score is not a magic signal. It is a risk map.

Choose your path based on what you need right now.

Keep exploring Altcoin Rules

Prefer the lighter version? Start with the five checklist rules before you open the full score.

Risk Wave Score

RSI (Relative Strength Index)

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