Recently, I’ve been organizing my thoughts on cryptocurrency investing and found that many beginners actually don’t understand how to choose coins. Instead of blindly following the trend, it’s better to first understand the basic logic behind different types of cryptocurrencies.

Let’s start with a common topic: “Buy altcoins in a bull market, buy mainstream coins in a bear market.” The logic behind this is simple—altcoins are highly volatile and tend to surge during bull markets, but they can also go to zero during bear markets; mainstream coins are more resistant to declines and are better suited to survive the winter. So, the first step in choosing coins is to look at the overall market trend. Then, consider factors like reputation, trading volume, and liquidity.

Let’s look at the current top-ranked cryptocurrencies by market cap. According to the latest data, BTC remains the absolute leader, with a market cap of $1.57 trillion and a market share of 41.74%. As the most scarce asset, BTC has a fixed supply of 21 million coins, and with the halving mechanism every four years, its inflation rate is extremely low (not exceeding 0.80%). This is the fundamental reason why it remains bullish in the long term.

ETH also holds a very solid position, with a circulating market cap of $264 billion. Its smart contract functionality makes it the infrastructure backbone of the entire DeFi ecosystem, with a total value locked (TVL) of $93.1 billion, ranking first among all public chains. This advantage is unlikely to be shaken in the short term.

Next are XRP, USDT, BNB, and SOL. XRP is backed by Ripple, which has extensive cooperation with global financial institutions, with a TPS (transactions per second) of 500-700, far surpassing BTC’s 7. USDT and USDC are stablecoins, mainly used for storing value, with volatility less than 1%, offering basically no investment returns. SOL is called the “Ethereum killer,” with extremely low transaction fees (about $0.00025 per transaction), a throughput of 3,000-4,000 TPS, and a high cost-performance ratio.

In the overview of cryptocurrency types, TAO is also worth noting. With the explosion of AI technology, TAO, as the token of the Bittensor network, represents a new direction combining blockchain and AI. It also uses a fixed supply of 21 million coins, which is quite interesting.

Recently, DOGE has become active again thanks to support from a tech giant. Although it started as a joke, the community consensus is very strong. Chainlink, because it connects on-chain and off-chain data, has become an indispensable infrastructure for smart contracts.

Regarding investment strategies, my experience is as follows. Mainstream coins are suitable for long-term holding, especially through a full bull-bear cycle (about 4 years). Short-term trading sounds profitable, but in reality, it’s hard to be precise and often results in losses due to frequent trading fees. Long-term investing makes it easier to lock in profits during upward trends.

The most common way to buy and sell cryptocurrencies is through centralized exchanges. First, buy stablecoins with fiat currency in the fiat trading zone, then exchange them for your target coins in the crypto trading zone. BTC and ETH can be purchased directly with fiat. If you want to avoid the hassle, you can also do OTC trades with trusted acquaintances, preferably face-to-face.

The real challenge isn’t choosing coins but executing your plan. Long-term holding tests your psychological resilience—wanting to lock in profits during a rise, and wanting to cut losses during a fall. My advice is to clarify your trading goals, keep long-term and short-term funds on different platforms, and even transfer long-term assets to a wallet for physical separation to reduce impulsive trading.

Another common pitfall is being fooled by low-priced altcoins. Seeing a bunch of zeros after the decimal point, you might think that reaching a dime will make you rich. The reality is, these coins either go to zero or are on the way there. Swapping high-market-cap mainstream coins for a bunch of trash coins often ends in disappointment on both ends.

In summary, the most recommended cryptocurrencies in this overview are BTC and ETH. Conservative investors should stick with these two. If you have some trading experience, you might consider adding SOL, DOGE, ADA, and other mainstream coins. But regardless of your choice, always set a clear stop-loss point and avoid holding altcoins indefinitely. The market is constantly changing, rankings shift, and learning to adjust your strategy based on your risk tolerance and available time is the key to long-term success.