Crypto Investment Guide: How to Precisely Choose the Coins Worth Investing In?

The current financial markets are experiencing increased volatility, and more and more people are viewing cryptocurrencies as an important component of asset allocation. From retail investors to institutions, everyone is searching for cryptocurrencies that have both liquidity and growth potential. But faced with thousands of different coins, how should one choose? This article will analyze the mainstream coins worth paying attention to from multiple dimensions such as market cap ranking, investment cycle, risk characteristics, and more, and share a practical trading strategy framework.

Master the Cycle Logic: Selecting Coins During Bull and Bear Transitions

“Buy altcoins in a bull market, buy mainstream coins in a bear market,” this widely circulated rule in the crypto circle contains profound market psychology.

During a bull market, market sentiment is high, risk appetite increases, and altcoins—due to their low price base and high volatility—often become the first choice for investors seeking high returns. In contrast, mainstream coins have already experienced significant gains, with limited room for further appreciation. But in a bear market, risk sentiment reverses, funds start to withdraw from high-risk assets, and altcoins—due to poor liquidity and high risk of zeroing out—are heavily sold off, with funds concentrating in high-recognition, resilient mainstream coins like BTC and ETH.

Therefore, before choosing a type of cryptocurrency, it’s essential to determine which phase of the cycle the market is currently in. Then, consider factors such as the coin’s reputation, trading volume, liquidity, volatility features, and actual application scenarios.

Current Status of the Top Ten Cryptocurrencies by Market Cap

Below is the current market cap situation of mainstream cryptocurrencies (as of December 2025):

It’s worth noting that rankings are not fixed. Previously top ten altcoins like Filecoin, Luna, Polkadot, etc., were eventually pushed out due to shifts in market narratives and waning popularity. This reminds investors that no coin is perfect; avoid “putting all eggs in one basket” or doing all-in operations.

Eight Cryptocurrencies Worth Layout

Bitcoin(BTC): Unshakable King

As the pioneer and leader of the crypto market, Bitcoin always accounts for over 50% of the total market value. Since the approval of spot ETFs in 2024, institutional funds have continued to flow in, and the price trend remains strong.

BTC’s core competitiveness lies in its absolute scarcity: a fixed supply of 21 million coins, with a four-year halving deflation mechanism that reinforces its value support. The latest inflation rate is below 0.80%, which is extremely rare among financial assets. From a long-term asset preservation perspective, BTC has become a must-hold asset for many institutions.

Core features: strongest scarcity, best anti-inflation, highest recognition

Ethereum(ETH): Mother of Application Ecosystems

Compared to BTC’s single attribute, Ethereum has opened the era of blockchain applications through smart contracts. Its ecosystem applications such as decentralized finance(DeFi) and non-fungible tokens(NFT) create continuous demand for ETH.

Ethereum’s total value locked(TVL) reaches $93.1 billion, ranking first among all public chains. As the second cryptocurrency approved for spot ETFs, ETH is attracting increasing attention from traditional financial institutions. Several funds have applied to regulators for ETH spot ETF staking functions, which, if approved, will further enhance its attractiveness.

Core features: richest application scenarios, most complete ecosystem, high institutional recognition

TAO Token(TAO): Fusion of AI and Blockchain

With rapid advances in artificial intelligence, integrating AI with blockchain has become a focus in the industry. TAO Token was born out of this trend, supported by the Bittensor network, creating a decentralized machine learning service marketplace.

Users can use TAO to purchase AI model services on nodes, giving TAO practical utility. Its design references Bitcoin, with a fixed supply of 21 million and a gradual deflation mechanism. The current price is $208.70, with a market cap of $2 billion.

Core features: aligns with current AI trends, clear practical value, reasonable scarcity design

Ripple(XRP): Connector for Cross-Border Payments

Ripple’s company has established deep cooperation with hundreds of financial institutions and government agencies worldwide, providing strong support for XRP’s recognition. Compared to BTC’s 7 transactions per second, XRP’s theoretical throughput reaches 1,500 to 3,400 TPS, and in actual operation, it can maintain 500 to 700 TPS, making it an ideal choice for institutional-level payment scenarios.

Currently, XRP is priced at $1.87, with a market cap of $113.45B. Despite a relatively flat performance during the last bull market due to regulatory crackdowns, its long-term development potential remains worth attention.

Core features: strong institutional backing, clear application scenarios, excellent payment efficiency

Solana(SOL): Representative of High-Performance Public Chains

Known as the “Ethereum killer,” Solana has achieved a qualitative leap in performance through advanced technologies like parallel processing. Its theoretical throughput reaches 65,000 transactions per second, and in real environments, it can reach 3,000 to 4,000 TPS, far surpassing Ethereum’s 15-30 TPS and Bitcoin’s 7 TPS.

Moreover, its transaction costs are highly attractive: averaging only $0.00025 per transaction, ideal for frequent traders. The Solana ecosystem’s DeFi applications and NFT markets are developing rapidly, with a growing user base.

Core features: fastest transaction speed, lowest costs, most active ecosystem development

Other Mainstream Cryptocurrencies

Chainlink(LINK): Leading oracle provider connecting blockchain with real-world data. Its Oracle network enables smart contracts to securely access off-chain data, providing an irreplaceable infrastructure value. Compared to “air coins,” Chainlink plays a tangible role in the network, with clear market demand. Current price: $12.24, market cap: $8.67B.

The Open Network(TON): Backed by Telegram, TON has unique advantages in combining instant messaging with blockchain. Current price: $1.46, market cap: $3.58B.

Dogecoin(DOGE): Despite originating as a joke, continuous attention from Elon Musk and community enthusiasm have repeatedly brought DOGE into the public eye. Current price: $0.13, market cap: $21.53B. These three coins attract attention due to influential backers, but caution is still advised when investing.

Deep Comparison of Cryptocurrency Types and Trading Strategies

Mainstream Coins vs Altcoins: Balancing Risks and Rewards

Based on market cap, the top ten are usually defined as mainstream coins, while others are altcoins. Mainstream coins, with large market caps, high liquidity, and high recognition, better protect investors during bear markets. When market panic occurs, funds tend to flow heavily from risk assets into mainstream coins, which is a key reason why mainstream coins have a very low probability of zeroing out.

In contrast, altcoins, although capable of dramatic gains, carry enormous risks. Many altcoins—especially new ones—are easily manipulated by project teams or exchanges, making ordinary investors vulnerable to being left holding the bag.

Conclusion: For safety, mainstream coins are more suitable for long-term investments spanning over four-year bull and bear cycles.

Stablecoins: Store of Value, Not a Growth Tool

USDT, USDC, and other stablecoins pegged 1:1 to USD have extremely low volatility (usually less than 1%), making their primary functions as cash reserves and trading pairs, not as growth tools. If you aim to earn significant returns by investing in stablecoins, it’s akin to chasing illusions.

Performance of Non-Stablecoins in Bull Markets

Conversely, mainstream non-stablecoins like BTC, ETH, TAO, XRP, DOGE, SOL, etc., perform excellently in each bull market. Historical data shows BTC’s gains of about 1800% in the last bull run, and XRP, despite regulatory setbacks, rose from $0.2 to $1.8, an 800% increase. This demonstrates the growth potential of mainstream non-stablecoins.

Practical Trading Strategies: From Spot to Derivatives

Entry Path for Beginners

The most common approach: register and verify on a centralized exchange, open fiat-to-crypto trading channels, buy USDT or USDC as stablecoins via C2C, then trade in the spot market for mainstream coins like BTC and ETH.

For short-term traders, exchanges also offer futures, leveraged tokens, staking, and other derivatives. But remember, leveraged trading carries very high risks and is not suitable for beginners.

OTC Trading and Spread Trading

OTC trading suits counterpart trading and investors seeking convenience. The simplest method is to trade with trusted acquaintances, with face-to-face confirmation effectively mitigating risks.

Another option is to conduct spread trading through forex brokers, tracking the price movements of the underlying assets for buying and selling, especially suitable for short-term operations.

Long-term Holding Psychological Challenges

On the surface, long-term holding is “buy and hold,” seemingly simple. But in practice, rising prices tempt you to take profits early, while falling prices push you to cut losses quickly. Regardless of price movements, staring at candlestick charts can trigger constant selling impulses, causing long-term strategies to collapse instantly.

Solution: Clarify your investment goals, adopt a combination of long and short strategies, and store funds in different platforms. Further, transfer long-term assets to cold/hot wallets for physical separation to fundamentally curb impulsive “hands.”

Investment Tips and Risk Warnings

Long-term Investment Is More Suitable for Beginners

Beginners often lack systematic trading strategies, position management skills, and healthy trading psychology. Short-term trading, especially intraday, demands these skills at a very high level. In contrast, long-term investing has much lower entry barriers, requiring only basic buying and selling skills and knowledge of coin market caps.

Long-term Investment Can Yield Higher Profits

Intuitively, frequent low-buy high-sell in short-term trading can increase the principal base and potentially generate higher returns. But this relies on the premise of 100% accurate market prediction and flawless execution. In reality, investors often miss big moves or fall into a cycle of buying high and selling low, suffering losses.

The author once bought 3 BTC near the arc bottom of $5,000 in 2018, and sold them in a rush at $7,000, only for BTC to continue rising to $12,000. Regret was immense, but the 312 event provided a second chance to re-enter. Conversely, long-term investing advocates holding for the long haul, not missing the overall gains from upward trends.

( Asset Security Is the Bottom Line

The joy of holding through bear and bull markets can be wiped out overnight by asset theft. Be sure to protect your account passwords, private keys/mnemonics, avoid accessing unknown DApps, and regularly check your account security.

) Beware the Wealth-Fast Traps of Altcoins

A common fatal mistake for beginners is being lured by low-priced altcoins. Animal coins, meme coins, etc., with low prices and many zeros after the decimal point, seem to promise instant wealth if they reach a dime or a cent, with investors holding millions or billions of tokens.

But reality is much harsher: these altcoins either go to zero or are on the path to zero. Even worse, many beginners exchange high-market-cap coins for a bunch of junk coins, ending up in a double-loss situation.

How to Choose the Right Cryptocurrency for Yourself?

Investor Classification Guide

Conservative Investors: Focus only on BTC and ETH. These top-tier coins have the highest recognition, maximum safety, and are especially suitable for risk-averse investors’ long-term layout.

Growth Investors: Based on BTC and ETH, consider adding DOGE, ADA, SOL, and other mainstream coins. If you have some trading experience and risk tolerance, you can also try TAO, XRP, and other emerging mainstream coins.

Advanced Investors: Flexibly switch between long and short strategies based on market cycles, or participate in leveraged trading. But be sure to have clear stop-loss points; improper position management can easily lead to liquidation.

Common Investment Pitfalls

Regardless of which cryptocurrencies you choose to invest in, avoid these common traps:

• Blindly buying without clear investment goals
• Lacking stop-loss mechanisms, holding on when caught in a loss
• Holding high-risk altcoins long-term, waiting for zeroing out
• Excessive leverage leading to liquidation
• Frequent chasing and selling, with fees eating into profits

Conclusion

The crypto market is ever-changing, with rankings shifting daily. The key is to learn to select suitable cryptocurrencies based on your risk appetite and trading goals, using a scientific approach.

Long-term holding saves effort and fees, while short-term trading carries higher risks but offers the chance for higher returns. Whatever path you choose, first master basic knowledge to avoid paying “tuition” repeatedly. It’s recommended to start with the most stable mainstream coins like BTC and ETH, and expand your investment scope gradually as you gain experience.

Remember: there is no perfect coin, only the investment strategy that suits you best.