A Beginner's Guide to the Crypto Market: Starting from Zero to Understand Mainstream Virtual Currencies and Investment Strategies

Why Invest in Crypto?

In the current unstable global economic situation, traditional assets are experiencing increased volatility. More and more investors are considering including Crypto in their asset allocation. Compared to gold, Crypto offers higher liquidity, transparency, and convenience, making it an indispensable part of diversified portfolios. However, with thousands of crypto assets available, which ones should you choose to invest in? This article will provide a detailed introduction to the characteristics, market performance, and practical investment strategies of various Crypto.

The Core Logic of Crypto Investment

The most important aspect of investing in crypto assets is understanding the concept of the “bull and bear cycle.” Experienced investors all know the classic saying: “In a bull market, allocate to altcoins; in a bear market, hold onto mainstream coins.”

The logic behind this is clear—bull market: the market is filled with optimism, small-cap coins are easily hyped, and their price surges can be astonishing; bear market: risk assets are sold off, and funds flow into large-cap mainstream coins because these tend to be more resilient and have almost zero risk of going to zero.

Therefore, when choosing crypto assets, first determine which phase the current market is in. Then consider:

• Reputation and recognition: affects liquidity and price stability
• Trading volume and market cap: reflects market activity
• Application prospects: determine long-term value
• Volatility: impacts risk and return ratio

Overview of Top Market Cap Crypto Coins

Assets ranked high in market cap usually represent market consensus and offer higher safety and liquidity. Here is an overview of the current major crypto coins:

1. Bitcoin (BTC) - The King of Crypto

Current Data (as of December 2025):

• Circulating Market Cap: $174.432 billion
• Market Share: 55.11%
• Current Price: $87,360
• Total Supply: about 19.96 million coins

As the first blockchain asset, Bitcoin has been operating for over 15 years and remains dominant. The key is its fixed cap of 21 million coins, with halving events every four years creating a deflationary effect, increasing scarcity. Recently, the launch of spot ETFs has attracted substantial institutional capital, further solidifying its value.

Investment Highlights: Absolute liquidity leader, strongest risk resistance, best for long-term holding

2. Ethereum (ETH) - The Father of Smart Contracts

Current Data (as of December 2025):

• Circulating Market Cap: $35.391 billion
• Market Share: 11.18%
• Current Price: $2,930
• Total Supply: about 120.7 million coins

Though its market cap is lower than Bitcoin, Ethereum’s trading volume often reaches 60-70% of Bitcoin’s. Its smart contract functionality makes it the infrastructure for DeFi ecosystems. TVL (Total Value Locked) reaches $93.1 billion, ranking first among all public chains. ETH has also launched spot ETFs following BTC, with several funds applying for staking features, which, once approved, will greatly enhance its appeal.

Investment Highlights: Rich application scenarios, most mature ecosystem, staking yield mechanisms highly attractive

3. Ripple (XRP) - Institutional-Grade Payment Solution

Current Data (as of December 2025):

• Circulating Market Cap: $11.315 billion
• Market Share: 5.90%
• Current Price: $1.87

Ripple’s deep cooperation with global financial institutions has earned broad recognition for XRP. Compared to Bitcoin’s 7 transactions per second, XRP can reach 500-700 TPS, with a theoretical maximum of 1,500-3,400 TPS, making it an ideal choice for institutional cross-border payments.

Investment Highlights: Institutional endorsement, clear practical value, wide payment scenarios

4. Binance Coin (BNB) - Trading Ecosystem Token

Current Data (as of December 2025):

• Circulating Market Cap: $1.158 billion
• Market Share: 3.65%
• Current Price: $840.80

As the native token of a major exchange ecosystem, BNB has continuous use cases and a burning mechanism. With increasing trading volume and expanding ecosystem applications, its value keeps growing.

Investment Highlights: Supported by trading ecosystem, ongoing token burns, broad application scenarios

5. Solana (SOL) - High-Performance Blockchain

Current Data (as of December 2025):

• Circulating Market Cap: $6.87 billion
• Market Share: 2.38%
• Current Price: $122.12

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

Investment Highlights: Leading performance, low fees, rapidly developing ecosystem

6. Dogecoin (DOGE) - Community Consensus Representative

Current Data (as of December 2025):

• Circulating Market Cap: $2.152 billion
• Market Share: 0.68%
• Current Price: $0.13

DOGE has evolved from a joke coin into an asset with real value due to its unique community culture and ongoing attention from celebrities. Strong community engagement, good liquidity, suitable for risk-tolerant investors.

Investment Highlights: Strong community culture, ample liquidity, high visibility

7. Cardano (ADA) - Scientific Blockchain

Current Data (as of December 2025):

• Circulating Market Cap: $1.313 billion
• Market Share: 0.50%
• Current Price: $0.36

Cardano’s blockchain is known for its rigorous scientific development approach. ADA holders can participate in network governance and staking rewards. The ecosystem is gradually improving.

Investment Highlights: Deep scientific research background, mature staking mechanism, high governance participation

8. TAO Token (TAO) - AI-Enabled New Star

Current Data (as of December 2025):

• Current Price: $209.70
• Total Supply: 21 million coins (designed similar to BTC)

TAO is backed by the Bittensor network, aiming to create a peer-to-peer machine learning service marketplace, representing the deep integration of AI and blockchain. Its fixed supply and deflationary mechanism are modeled after Bitcoin.

Investment Highlights: Aligns with AI development trends, scarce supply, innovative application prospects

Other Notable Crypto Coins

Chainlink (LINK) - Its unique feature is connecting on-chain and off-chain worlds. Its oracle network allows smart contracts to securely access real-world data, providing an indispensable infrastructure function rather than just hype.

TON - Supported by Telegram, with promising social application prospects, attracting market attention.

USDT and USDC - These stablecoins are pegged 1:1 to USD, with volatility usually less than 1%, suitable as cash reserves rather than for growth.

Classification and Investment Attributes of Crypto

Based on market cap, crypto assets are divided into mainstream coins and altcoins. The top ten by market cap are generally considered mainstream coins; others are altcoins.

Advantages of Mainstream Coins:

• Sufficient liquidity, easy to buy/sell
• Large market cap, less manipulation
• Strong risk resistance, minimal risk of zeroing
• More suitable for investment over 4+ years in full bull/bear cycles

Features of Altcoins:

• Potentially higher gains, but extreme volatility
• Easily controlled by project teams or exchanges
• Much higher risk than mainstream coins
• Beginners should avoid heavy allocation

Use of Stablecoins: Only as cash reserves and trading media, due to minimal volatility and no significant gains.

Practical Ways to Invest in Crypto

Step 1: Choose a Trading Platform

For beginners, the most straightforward method is using centralized exchanges. The typical process:

1. Register an account and complete identity verification
2. Link payment methods
3. Purchase stablecoins (USDT, USDC, etc.) in the “Fiat-to-Crypto” section
4. Transfer to the “Crypto Trading” section to buy desired crypto assets

Mainstream coins like BTC, ETH can be bought directly with fiat.

Step 2: Choose a Trading Method

Spot Trading: Buy and hold directly, suitable for long-term investors

Derivatives and Leverage: Including futures, leveraged tokens, staking, offering more profit opportunities but with higher risk

OTC Trading:

• Buying from trusted acquaintances (ensure high credibility)
• Face-to-face cash transactions for safety

Practical Tips for Long-Term Holding

Long-term investing is more suitable for beginners

Short-term trading, especially intraday, requires: independent and systematic trading strategies, precise position management, stable psychological resilience. Long-term investing has lower barriers—just master basic operations and understand market cap.

Why does long-term investing often yield better returns?

It may seem counterintuitive, but it’s true. Although high-frequency trading might theoretically generate higher gains, in reality:

• No investor can predict market movements with 100% accuracy
• Even with correct predictions, execution is difficult
• In practice, small mistakes often lead to missing big moves or buying high and selling low

For example: in 2018, buying 3 BTC at the arc bottom around $5,000 and selling at $7,000, then watching it rise to $12,000, would have been painful. Fortunately, the 312 event provided a second entry point. Long-term holders would have already secured 5x gains.

Asset security is paramount

Enduring from bear to bull markets only to have your account hacked and lose everything is the worst outcome. Be sure to:

• Protect your exchange passwords
• Backup wallet private keys or seed phrases
• Avoid accessing unknown DApps

Beware of self-deception traps

Beginners often fall for low-priced coins. Seeing a coin priced at $0.001 with hundreds of millions of tokens, thinking “if it hits a dime, I’ll be rich”—this mindset is deadly. The reality is: such altcoins either go to zero or are on the way there. Worse, exchanging high market cap coins for junk coins often results in losses on both ends.

How to Choose the Most Suitable Investment Portfolio?

Conservative Investors: Focus only on the top two—BTC and ETH. This is the safest choice.

Growth Investors: Besides BTC and ETH, consider allocating some to DOGE, ADA, SOL, etc. Requires some trading experience and risk tolerance.

Aggressive Investors: Can consider TAO, LINK, and other innovative tokens. But avoid MEME coins and extremely volatile assets unless you can monitor the market constantly.

Ultimate Advice for Crypto Investment

No matter which coins you choose, avoid these fatal mistakes:

• Unclear goals: Clarify whether you are long-term or short-term before investing
• Not knowing stop-loss: Set stop-loss orders and execute them to prevent unlimited losses
• Holding altcoins long-term blindly: This is the easiest way to lose money

Practical Tips:

• Define your investment goals clearly
• Use both long-term and short-term strategies, but keep assets in different platforms or accounts
• Transfer long-term holdings to wallets for cold storage
• This can effectively curb impulsive trading

The crypto market is constantly evolving, and market rankings will change accordingly. The key is to learn to adjust strategies flexibly based on market cycles and personal goals, rather than blindly following trends. Continuous learning, risk control, and a calm mindset are the keys to long-term success in crypto investing.