Cryptocurrency Investment Guide: Comparison of Mainstream Coins and Strategy Analysis

In an era of increasing volatility in financial assets, more and more investors are beginning to allocate virtual currencies as part of their asset portfolios. Cryptocurrencies offer advantages in confidentiality and liquidity, but with a wide variety of coins on the market, beginners often don’t know where to start. This article reviews the most noteworthy crypto projects currently, analyzes their investment characteristics, and introduces scientific trading strategies.

How to scientifically select cryptocurrencies?

A classic investment motto circulating in the market is: “In an uptrend, allocate to altcoins; in a correction, stick to mainstream coins.” The logic is actually very simple:

Allocate to altcoins during upward cycles to pursue higher returns, because low-market-cap coins tend to have large price elasticity and are easier to push up; while stick to mainstream coins during correction cycles to reduce risk, as major coins are more resistant to declines and less likely to go to zero.

The core of choosing coins lies in judging the overall trend of the current market, which is the top priority. Next, it is necessary to evaluate factors such as the coin’s notoriety, trading activity, liquidity depth, volatility characteristics, and application ecosystem.

Overview of leading cryptocurrencies by market cap

Projects ranked high in market cap tend to attract more market attention, not only because of their inherent quality but also because they often lead their sectors and serve as market indicators. The following is the current landscape of mainstream coins:

Data updated as of January 6, 2026

It should be noted that this ranking is not fixed but dynamically adjusts with market changes. Projects that once entered the top ten, such as Filecoin, Luna, Polkadot, etc., have been pushed out due to shifts in market narratives. Many investors, chasing high returns, allocated funds to these coins, only to suffer losses due to their high volatility and risks.

Therefore, every coin carries risks; rankings are for reference only. Avoid the all-in strategy—diversify your investment portfolio.

In-depth analysis of mainstream coins with investment potential

Based on performance in previous bull markets, the following coins are worth close attention:

Bitcoin (BTC): The status of digital gold

As the pioneer of cryptocurrencies, BTC was born in 2009 and has long dominated half of the entire ecosystem’s market cap. Since the SEC approved spot ETFs in 2024, its price performance has been even more impressive.

Core advantages:

• Fixed total supply of only 21 million, incomparable scarcity
• The halving mechanism every four years induces deflation, with the latest inflation rate below 0.80%
• As the market benchmark, highest recognition and liquidity

Ethereum (ETH): The hub of ecological applications

Although ETH’s market cap is lower than BTC, its smart contract functionality attracts many developers, forming the foundation of the DeFi ecosystem. Data shows its total value locked (TVL) reaches $93.1 billion, ranking first among all public chains.

Core advantages:

• Rich application scenarios, active trading often reaching 60-70% of BTC
• As the second crypto asset to launch a spot ETF, institutional recognition continues to grow
• Fund institutions are applying for ETH spot ETF staking features; if approved, it will further attract capital inflows

TAO Token (TAO): The intersection of AI and blockchain

With rapid development of AI technology, integrating AI with blockchain has become a market focus. TAO emerged, with the Bittensor network aiming to build a distributed machine learning service marketplace where users can use TAO to purchase AI model services on nodes.

Core advantages:

• Design inspired by BTC, with a fixed supply of 21 million and gradual emission mechanism
• Current price $282.10, +7.75% in 24 hours
• Closely aligned with the hottest AI narrative

Ripple (XRP): Institutional-grade payment tool

Backed by Ripple Inc., XRP has established extensive cooperation with governments and financial institutions worldwide, greatly enhancing its recognition. Technically, XRP’s theoretical throughput reaches 1500-3400 transactions/sec, with actual sustained TPS of 500-700, far exceeding traditional payment solutions.

Core advantages:

• Backed by Ripple Inc., high recognition in finance
• Clear speed and cost advantages
• Current price $2.36, +10.87% in 24 hours

Solana (SOL): High-performance on-chain ecosystem

SOL is dubbed the “Ethereum killer” due to its excellent performance. Using parallel processing technology, its theoretical throughput can reach 65,000 TPS, with real-world performance maintaining 3,000-4,000 TPS, far surpassing Ethereum’s 15-30 TPS and Bitcoin’s 7 TPS. Average transaction fees are only $0.00025, offering high cost-effectiveness.

Core advantages:

• Speed and fee structure form an unbeatable combination
• Rich ecosystem applications, large user base
• Current price $138.80, +2.32% in 24 hours

Other noteworthy projects

Chainlink (LINK): The bridge connecting blockchain with real-world data, an oracle network enabling smart contracts to securely access off-chain data, a key infrastructure component. Current price $13.89, +2.59% in 24 hours.

Dogecoin (DOGE): Supported multiple times by Elon Musk, its price often fluctuates based on his statements. Current price $0.15, +1.94% in 24 hours.

TON: Backed by Telegram, with natural advantages in social ecology. Current price $1.93, +3.92% in 24 hours.

Mainstream coins vs. altcoins: investment logic

Cryptocurrency assets can be classified along multiple dimensions. By market cap: mainstream coins (top ten by market cap) and altcoins. By stability: stablecoins and volatile coins.

Investment logic for mainstream coins:

Mainstream coins benefit from capital aggregation effects and tend to perform more stably in bear markets. When a correction cycle occurs, capital tends to withdraw from high-risk coins and flow into mainstream coins, which is why mainstream coins are less likely to go to zero. From a safety perspective, mainstream coins are more suitable for long-term allocation over a full cycle (4+ years).

Limitations of stablecoins:

USDT, USDC, etc., pegged 1:1 to USD, have minimal volatility (usually less than 1%), and cannot generate significant returns through holding. They are only suitable as cash reserves.

Sources of high returns:

In previous bull markets, assets like BTC, ETH, TAO, XRP, DOGE, SOL showed substantial gains, making them more suitable for long-term holding compared to stablecoins. For example, XRP during the last bull market, due to regulatory pressures, performed modestly, rising from $0.2 to $1.8 (800% increase), while BTC reached about 1800% during the same period.

Even for short-term trading, these large-cap coins are less susceptible to manipulation due to their market size, effectively avoiding liquidation risks caused by abnormal volatility. In contrast, newly emerging altcoins are often controlled by project teams or platforms, making retail investors prone to pitfalls.

Cryptocurrency trading practices

Proper buying process

The most standard method is through centralized exchanges. Typical steps: register an account → verify identity → link payment method → buy stablecoins (USDT/USDC) with fiat → trade on the spot market to acquire target coins.

BTC and ETH are somewhat special; they can be purchased directly with fiat on the exchange. Besides spot trading, exchanges also offer futures, leveraged tokens, staking, and other derivatives.

OTC trading alternatives

If you dislike the exchange process, you can seek OTC (over-the-counter) trades. The simplest way is to find trusted acquaintances to buy from, but be sure to do face-to-face transactions to avoid losing coins after payment. Additionally, some forex brokers offer spread trading tools, tracking underlying asset price movements for buying and selling, suitable for short-term operations.

Investment mindset and strategic advice

Long-term holding is most friendly to beginners

Beginners should avoid short-term trading, especially intraday operations, due to lack of systematic strategies, position management skills, and healthy psychological resilience. Long-term investing has a low threshold—just master basic buy/sell operations and understand coin market caps.

Long-term holding often yields greater profits

In theory, short-term trading can achieve higher returns through low buy and high sell, but it requires precise prediction and flawless execution—impossible for most investors. In reality, many suffer from small losses, missed opportunities, or continuous losses from buy low, sell high.

Based on personal experience, in 2018, I bought 3 BTC near the arc bottom (~$5000), sold at $7000, then watched it rise to $12000 and regretted not holding. Fortunately, the 312 event provided a second entry point. Long-term holding avoids missing the market and effectively locks in profits during upward cycles.

Asset security is paramount

From a bear market to a bull market, if one day your assets are stolen, the loss will be irreparable. Therefore, always protect your account passwords and wallet private keys/mnemonics. When storing assets in wallets, stay away from phishing DApps.

Beware of altcoin traps

Beginners often make fatal mistakes: being attracted by low prices of altcoins, fantasizing that just reaching one cent or one毛 (fen) will make them rich. The reality is, these coins either go to zero or are on the way there. Even worse, beginners often exchange large-cap coins for a bunch of trash coins, ending up empty-handed.

Choosing strategies based on risk appetite

Conservative investors: Focus on BTC and ETH, the most well-known and stable coins.

Growth investors: Besides BTC and ETH, consider DOGE, ADA, SOL, and other mainstream coins, but require basic trading skills.

Aggressive investors: Can participate in MEME coins and other high-volatility assets, but due to extreme fluctuations, constant market monitoring is necessary. Not recommended for beginners.

Key tip: Regardless of which coins you choose, avoid common mistakes—unclear investment goals, no stop-loss, long-term holding of trash coins. Otherwise, you will keep losing money and paying tuition.

Summary

The cryptocurrency market is ever-changing, with market cap rankings constantly shifting. The key to investing is not chasing rankings but selecting strategies suitable for your risk tolerance.

Long-term holding saves time and fees; short-term trading involves higher risks but offers more opportunities. Leveraged trading amplifies risks and can easily lead to liquidation, unsuitable for beginners.

The focus should not be on which coin to pick but on building a scientific asset allocation framework, clarifying trading goals, and maintaining disciplined execution. Regardless of market ups and downs, staying rational is the way to go further in the crypto market.