Recently, many people have been asking how to choose cryptocurrencies. Instead of just choosing coins, it's more about selecting the right timing and strategy. I’ll organize my understanding of this market and discuss the differences among various types of cryptocurrencies and how to get started.

First, it’s essential to understand a basic logic: in a bull market, buying altcoins is for high returns because small-cap coins are easier to pump; in a bear market, buying mainstream coins is for survival because they are more resistant to drops and have lower zeroing risks. Therefore, before choosing coins, you must first clearly observe the current market trend, which is the top priority for judgment. Next, consider factors like reputation, trading volume, liquidity, volatility, and application scenarios.

When it comes to mainstream coins, cryptocurrencies with high market caps tend to attract more market attention, not only because the projects are of high quality but also because they often lead their sectors. According to the latest data, Bitcoin’s market cap is about $1.57 trillion, accounting for 42.61% of the entire crypto market; Ethereum’s market cap is about $263.2 billion, making up 7.16%; Ripple, Tether, Binance Coin, Solana, and others also rank high. These coins are well-known, have high trading volumes, and are top considerations.

I especially want to discuss a few types of cryptocurrencies worth paying attention to. Bitcoin, as the king of cryptocurrencies, was the earliest to emerge, with a fixed supply of only 21 million coins. Coupled with the halving mechanism every four years that causes deflation, its scarcity determines its value. Since the launch of spot ETFs, institutional funds have continued to flow in, and the price trend has been steadily upward.

Ethereum, although not as large in market cap as Bitcoin, often has trading volumes reaching 60-70% of Bitcoin’s, because its smart contract functionality allows developers to build various applications on it. Currently, Ethereum’s TVL (Total Value Locked) is as high as $93.1 billion, ranking first among all public chains.

TAO coin is an interesting choice. Its underlying network, Bittensor, aims to build a peer-to-peer machine learning service marketplace, perfectly riding the AI and blockchain wave. TAO’s design also references Bitcoin, adopting a fixed supply of 21 million coins and a gradual emission mechanism.

Solana is called the “Ethereum killer.” Its performance is indeed impressive, with a theoretical throughput of up to 65,000 transactions per second, and it can maintain around 3,000 to 4,000 TPS in practice, far surpassing Ethereum’s 15-30 TPS. The most attractive feature is its extremely low transaction fees, averaging only $0.00025, offering an incredible cost-performance ratio.

Chainlink’s value lies in connecting blockchain with real-world data. Its oracle network allows smart contracts to securely access off-chain data, making it a truly practical infrastructure, unlike worthless “air coins.”

DOGE and TON are popular because they are backed by strong supporters. Their movements can trigger significant price swings.

Regarding the classification of cryptocurrencies, they can be divided by market cap into mainstream coins and altcoins, and by nature into stablecoins and non-stablecoins. Stablecoins like USDT and USDC are pegged 1:1 to the US dollar, with volatility not exceeding 1%, mainly used as cash reserves, and are hard to generate substantial returns from.

In contrast, non-stablecoins like BTC, ETH, TAO, XRP, SOL, DOGE, etc., tend to have good gains in each bull cycle and are more suitable for investment. Mainstream coins are suitable for long-term holding because their large market caps make manipulation difficult, effectively locking in profits during upward trends. Altcoins, especially newly born small coins, are often controlled by project teams or exchanges, making retail investors vulnerable to liquidation.

Talking about trading strategies, beginners are best suited for long-term holding. Why? Because short-term trading, especially intraday, requires an independent trading system, position management skills, and strong psychological resilience—none of which most beginners possess. Long-term investing requires much less; just understanding basic buy/sell operations and the market cap of coins is enough.

From a profit perspective, although theoretically, short-term low-buy high-sell can yield higher returns, it relies on precise market prediction every time, which is impossible for any investor. In reality, most people lose money by overestimating their ability, missing opportunities, or buying high and selling low, leading to continuous losses. I have my own lesson: in 2018, I bought 3 BTC near $5,000 and sold at $7,000, only to see it rise to $12,000 afterward, which made me regret it deeply.

If you are a conservative investor, just consider the most well-known coins—BTC and ETH are enough. If you are a growth-oriented trader and good at trading, besides BTC and ETH, you can also consider DOGE, ADA, SOL, and other mainstream coins. As for small altcoins and meme coins, their volatility is too extreme, and I don’t recommend beginners to touch them.

No matter which types of cryptocurrencies you choose to invest in, the most important thing is to clarify your trading goals, know how to set stop-losses, and avoid holding onto small altcoins long-term. Another key tip: keep long-term and short-term funds on different platforms or accounts to prevent impulsively selling long-term assets. If self-control is weak, transfer assets to a cold wallet for physical isolation.

Finally, a reminder: many beginners are tempted by low-priced coins, thinking that coins worth a few cents will become rich if they rise to a dollar. But reality is cruel—most altcoins either go to zero or are on the way there. Even more dangerous, some people exchange high-market-cap mainstream coins for a bunch of trash coins, only to end up empty-handed on both ends.

The cryptocurrency market changes rapidly, and rankings can shift. The best we can do is choose coins based on our trading goals. Long-term holding doesn’t require frequent monitoring, saving time and fees. Short-term trading involves higher risks but also more opportunities, especially with leverage trading, which is definitely not suitable for beginners. In short, choosing the right strategy is more important than choosing the right coin.