In the current turbulent financial environment, more and more investors are viewing cryptocurrencies as an important option for asset allocation. But with thousands of cryptocurrencies available, how should one choose? This article will help you understand market logic, recognize top market cap projects, and develop an investment strategy suitable for you.
Bull and Bear Cycles Determine Investment Direction
There is a classic rule circulating in the crypto circle: “Buy potential coins in a bull market, buy mainstream coins in a bear market.” This is not nonsense, but a profound summary based on market reality.
During a bull market, market sentiment is high, funds are abundant, and small- to mid-cap projects often gain attention due to their narrative novelty, with price increases often far exceeding mainstream coins. In contrast, the upside potential of mainstream coins is relatively limited because their market cap base is already large.
However, the bear market is the exact opposite. When the market falls into panic, investors start selling high-risk assets, and small- to mid-cap tokens are the first to be driven out of the market, even facing zero risk. At this time, top-ranked mainstream coins, due to high consensus and lower risk, become safe havens for capital.
Therefore, when choosing cryptocurrencies to invest in, the first step is to judge what the current market trend is. Then, consider factors such as the project’s reputation, trading volume, liquidity, and practical application.
Top 10 Cryptocurrencies by Market Cap
Leading cryptocurrencies usually attract more attention and serve as stronger market indicators. They occupy these positions because of their high-quality features, often representing leaders in their respective sectors.
Based on the latest market data, the current rankings are as follows:
First: Bitcoin (BTC)
Current Price: $87.36K
Circulating Market Cap: $1.74T
Market Share: 55.11%
Circulation Rate: 95.08%
As the pioneer and largest of cryptocurrencies, Bitcoin’s market cap accounts for over half of the entire market. Its scarcity is a core advantage—fixed total supply of 21 million coins, with a halving event every four years, further reinforcing deflationary expectations.
Second: Ethereum (ETH)
Current Price: $2.93K
Circulating Market Cap: $353.91B
Market Share: 11.18%
Circulation Rate: 100.00%
Ethereum has become the infrastructure for various applications thanks to its smart contract functionality. Its ecosystem includes decentralized finance, NFTs, gaming, and more, with total value locked (TVL) maintaining a leading position among public chains.
From third to tenth place:
XRP: Current Price $1.87, Market Cap $113.39B, Market Share 5.91%, supported by Ripple, with unique advantages in cross-border settlement.
Tether (USDT) and USD Coin (USDC): Both stablecoins, pegged 1:1 to USD, with minimal volatility, mainly used for value storage rather than investment growth.
BNB (Binance Coin), Solana (SOL), TRON (TRX), Dogecoin (DOGE), Cardano (ADA): Each with distinctive features, ample liquidity, and high trading volume.
It’s important to note that rankings are not fixed. Former top favorites like Filecoin, Luna, Polkadot, etc., have gradually faded due to market narrative changes and technical factors. This reminds us that rankings are only for reference and should not be the sole basis for investment.
Most Notable Cryptocurrencies to Watch
Among many tokens, the following have shown good performance through multiple bull markets and are relatively more worthy of long-term attention:
Bitcoin (BTC): The symbol of digital gold
Bitcoin’s investment logic is straightforward: scarcity. As mining difficulty increases and halving cycles progress, new supply decreases, while continuous net inflows from institutional investors push demand higher. Since the launch of spot ETFs in 2024, institutional capital entry has become easier, accelerating this trend.
Bitcoin’s latest inflation rate has fallen below 0.80%, a rare low among all assets, highlighting its scarcity asset nature.
Ethereum (ETH): Leader in application ecosystem
Compared to Bitcoin’s simplicity, Ethereum’s value comes from its complex application ecosystem. Its smart contract functionality attracts developers worldwide, with various applications running daily on Ethereum. The existence of real-world use cases makes ETH a necessity.
Although Ethereum’s market cap is smaller than Bitcoin’s, its daily trading volume often reaches 60-70% of Bitcoin’s, reflecting active demand for this platform.
Solana (SOL): Representative of high-performance public chains
Solana is praised as the “Ethereum killer” due to its high transaction processing speed. After adopting parallel processing technology, its theoretical throughput reaches 65,000 transactions per second, and in real environments, it can maintain 3,000-4,000 TPS, far surpassing Ethereum’s 15-30 TPS. Transaction fees average only $0.00025, offering excellent cost performance.
XRP: Institutional-grade choice
Supported by Ripple and deep cooperation with global financial institutions, XRP can handle 1,500-3,400 cross-border transactions per second, with actual levels around 500-700 TPS, making it a preferred choice for financial institutions. Compared to retail market volatility, XRP enjoys higher recognition among institutions.
TAO Token: The intersection of AI and blockchain
With the AI wave sweeping, TAO has emerged. The Bittensor network aims to establish a peer-to-peer machine learning service marketplace, where users can buy AI model services with TAO tokens. Its design also references Bitcoin, with a fixed supply of 21 million and a gradual deflation mechanism.
Other Projects Worth Watching
Chainlink (LINK): Current price $12.23, market cap $8.66B. Its unique value lies in bridging blockchain with real-world data, providing reliable off-chain data sources for smart contracts, with significant infrastructure value.
Dogecoin (DOGE) and The Open Network (TON): The former gained attention due to Elon Musk’s promotion, while the latter is backed by the Telegram ecosystem. The prices of these tokens are often highly correlated with the statements of their backers.
How to Differentiate Types of Cryptocurrencies
Cryptocurrencies can be classified along multiple dimensions:
By Market Cap: Mainstream coins vs. Altcoins. The top ten by market cap are generally considered mainstream coins; others are altcoins. Mainstream coins, due to their large market cap and high consensus, are less susceptible to manipulation and carry lower risk. Altcoins often have poor liquidity and are more easily controlled by whales, making them riskier.
By Price Stability: Stablecoins vs. Non-stablecoins. Stablecoins like USDT and USDC are pegged to USD, with volatility usually under 1%, suitable as cash equivalents but less for investment returns. Non-stablecoins have volatility and growth potential.
Practical Investment Strategies
Why long-term investing is more suitable for beginners
For new investors, day trading or short-term operations are big taboos. These require independent trading systems, precise position control, and strong psychological resilience—things that cannot be developed overnight.
Long-term investing has a much lower threshold. You only need to master basic buy/sell operations, understand the market cap and use cases of different coins. Once purchased, you can focus on your own affairs without daily chart watching.
Why holding long-term yields higher returns
This may sound counterintuitive. Theoretically, short-term trading can compound through low buy and high sell, increasing the principal. But in reality, almost no investor can predict perfectly. More often, people miss the chance to sell at the top or buy at the bottom, or even repeatedly buy high and sell low.
In contrast, long-term investors, due to their extended holding periods, can effectively capture market upward trends. Those who persist through bear markets and hold during bull markets often achieve the most substantial returns.
Asset security comes first
Enduring the bear market to reach the bull market only to lose everything due to a security breach is the most tragic ending. Therefore, whether on exchanges or private wallets, security measures must be in place.
Use strong passwords and enable two-factor authentication on exchanges. When storing large assets in cold wallets, keep private keys and seed phrases safe, and avoid connecting to unknown DApps.
Practical Tips for Choosing Cryptocurrencies
For conservative investors: Focus on the two giants, BTC and ETH. They have the highest consensus, lowest risk, and are suitable for long-term allocation.
For growth-oriented investors: Besides BTC and ETH, consider mainstream coins like SOL, XRP, DOGE, ADA. These have good liquidity but offer greater upside potential compared to top-tier coins.
For speculators: Small market cap tokens like MEME coins are highly volatile, with potential for quick riches but also high risk of losing everything. If entering this space, be sure to set stop-losses and only invest what you can afford to lose.
Common Investment Traps to Avoid
The most common mistake for beginners is the “decimal point trap.” Seeing a coin priced at $0.001 with hundreds of millions of coins held, thinking “if it hits $0.1, I’ll be rich.” But in reality, 99% of these coins end up zero.
A more dangerous approach is swapping mainstream coins for a bunch of junk coins. Altcoins are often manipulated and tend to crash rapidly after a pump, leaving investors with losses.
Other common mistakes include unclear investment goals, holding altcoins too long, not setting stop-losses, and frequently chasing highs and selling lows. These lead to continuous losses.
Summary: Find Your Own Path
The crypto market is ever-changing; top-ranked coins shift, and new projects constantly emerge. But regardless of how the market evolves, the core principles of choosing investment targets remain:
First, judge whether to be aggressive or conservative based on the current market trend. Second, select specific coins based on this judgment, prioritizing well-known, highly liquid projects with clear practical applications. Finally, decide whether to hold long-term or trade short-term according to your risk tolerance and experience.
Remember, there is no perfect investment—only what suits you best. Make a plan, stick to it strictly, and review regularly. Only then can you go further in this market full of opportunities and risks.
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Crypto Market Guide: How to Find the Most Promising Cryptocurrencies?
In the current turbulent financial environment, more and more investors are viewing cryptocurrencies as an important option for asset allocation. But with thousands of cryptocurrencies available, how should one choose? This article will help you understand market logic, recognize top market cap projects, and develop an investment strategy suitable for you.
Bull and Bear Cycles Determine Investment Direction
There is a classic rule circulating in the crypto circle: “Buy potential coins in a bull market, buy mainstream coins in a bear market.” This is not nonsense, but a profound summary based on market reality.
During a bull market, market sentiment is high, funds are abundant, and small- to mid-cap projects often gain attention due to their narrative novelty, with price increases often far exceeding mainstream coins. In contrast, the upside potential of mainstream coins is relatively limited because their market cap base is already large.
However, the bear market is the exact opposite. When the market falls into panic, investors start selling high-risk assets, and small- to mid-cap tokens are the first to be driven out of the market, even facing zero risk. At this time, top-ranked mainstream coins, due to high consensus and lower risk, become safe havens for capital.
Therefore, when choosing cryptocurrencies to invest in, the first step is to judge what the current market trend is. Then, consider factors such as the project’s reputation, trading volume, liquidity, and practical application.
Top 10 Cryptocurrencies by Market Cap
Leading cryptocurrencies usually attract more attention and serve as stronger market indicators. They occupy these positions because of their high-quality features, often representing leaders in their respective sectors.
Based on the latest market data, the current rankings are as follows:
First: Bitcoin (BTC)
As the pioneer and largest of cryptocurrencies, Bitcoin’s market cap accounts for over half of the entire market. Its scarcity is a core advantage—fixed total supply of 21 million coins, with a halving event every four years, further reinforcing deflationary expectations.
Second: Ethereum (ETH)
Ethereum has become the infrastructure for various applications thanks to its smart contract functionality. Its ecosystem includes decentralized finance, NFTs, gaming, and more, with total value locked (TVL) maintaining a leading position among public chains.
From third to tenth place:
It’s important to note that rankings are not fixed. Former top favorites like Filecoin, Luna, Polkadot, etc., have gradually faded due to market narrative changes and technical factors. This reminds us that rankings are only for reference and should not be the sole basis for investment.
Most Notable Cryptocurrencies to Watch
Among many tokens, the following have shown good performance through multiple bull markets and are relatively more worthy of long-term attention:
Bitcoin (BTC): The symbol of digital gold
Bitcoin’s investment logic is straightforward: scarcity. As mining difficulty increases and halving cycles progress, new supply decreases, while continuous net inflows from institutional investors push demand higher. Since the launch of spot ETFs in 2024, institutional capital entry has become easier, accelerating this trend.
Bitcoin’s latest inflation rate has fallen below 0.80%, a rare low among all assets, highlighting its scarcity asset nature.
Ethereum (ETH): Leader in application ecosystem
Compared to Bitcoin’s simplicity, Ethereum’s value comes from its complex application ecosystem. Its smart contract functionality attracts developers worldwide, with various applications running daily on Ethereum. The existence of real-world use cases makes ETH a necessity.
Although Ethereum’s market cap is smaller than Bitcoin’s, its daily trading volume often reaches 60-70% of Bitcoin’s, reflecting active demand for this platform.
Solana (SOL): Representative of high-performance public chains
Solana is praised as the “Ethereum killer” due to its high transaction processing speed. After adopting parallel processing technology, its theoretical throughput reaches 65,000 transactions per second, and in real environments, it can maintain 3,000-4,000 TPS, far surpassing Ethereum’s 15-30 TPS. Transaction fees average only $0.00025, offering excellent cost performance.
XRP: Institutional-grade choice
Supported by Ripple and deep cooperation with global financial institutions, XRP can handle 1,500-3,400 cross-border transactions per second, with actual levels around 500-700 TPS, making it a preferred choice for financial institutions. Compared to retail market volatility, XRP enjoys higher recognition among institutions.
TAO Token: The intersection of AI and blockchain
With the AI wave sweeping, TAO has emerged. The Bittensor network aims to establish a peer-to-peer machine learning service marketplace, where users can buy AI model services with TAO tokens. Its design also references Bitcoin, with a fixed supply of 21 million and a gradual deflation mechanism.
Other Projects Worth Watching
Chainlink (LINK): Current price $12.23, market cap $8.66B. Its unique value lies in bridging blockchain with real-world data, providing reliable off-chain data sources for smart contracts, with significant infrastructure value.
Dogecoin (DOGE) and The Open Network (TON): The former gained attention due to Elon Musk’s promotion, while the latter is backed by the Telegram ecosystem. The prices of these tokens are often highly correlated with the statements of their backers.
How to Differentiate Types of Cryptocurrencies
Cryptocurrencies can be classified along multiple dimensions:
By Market Cap: Mainstream coins vs. Altcoins. The top ten by market cap are generally considered mainstream coins; others are altcoins. Mainstream coins, due to their large market cap and high consensus, are less susceptible to manipulation and carry lower risk. Altcoins often have poor liquidity and are more easily controlled by whales, making them riskier.
By Price Stability: Stablecoins vs. Non-stablecoins. Stablecoins like USDT and USDC are pegged to USD, with volatility usually under 1%, suitable as cash equivalents but less for investment returns. Non-stablecoins have volatility and growth potential.
Practical Investment Strategies
Why long-term investing is more suitable for beginners
For new investors, day trading or short-term operations are big taboos. These require independent trading systems, precise position control, and strong psychological resilience—things that cannot be developed overnight.
Long-term investing has a much lower threshold. You only need to master basic buy/sell operations, understand the market cap and use cases of different coins. Once purchased, you can focus on your own affairs without daily chart watching.
Why holding long-term yields higher returns
This may sound counterintuitive. Theoretically, short-term trading can compound through low buy and high sell, increasing the principal. But in reality, almost no investor can predict perfectly. More often, people miss the chance to sell at the top or buy at the bottom, or even repeatedly buy high and sell low.
In contrast, long-term investors, due to their extended holding periods, can effectively capture market upward trends. Those who persist through bear markets and hold during bull markets often achieve the most substantial returns.
Asset security comes first
Enduring the bear market to reach the bull market only to lose everything due to a security breach is the most tragic ending. Therefore, whether on exchanges or private wallets, security measures must be in place.
Use strong passwords and enable two-factor authentication on exchanges. When storing large assets in cold wallets, keep private keys and seed phrases safe, and avoid connecting to unknown DApps.
Practical Tips for Choosing Cryptocurrencies
For conservative investors: Focus on the two giants, BTC and ETH. They have the highest consensus, lowest risk, and are suitable for long-term allocation.
For growth-oriented investors: Besides BTC and ETH, consider mainstream coins like SOL, XRP, DOGE, ADA. These have good liquidity but offer greater upside potential compared to top-tier coins.
For speculators: Small market cap tokens like MEME coins are highly volatile, with potential for quick riches but also high risk of losing everything. If entering this space, be sure to set stop-losses and only invest what you can afford to lose.
Common Investment Traps to Avoid
The most common mistake for beginners is the “decimal point trap.” Seeing a coin priced at $0.001 with hundreds of millions of coins held, thinking “if it hits $0.1, I’ll be rich.” But in reality, 99% of these coins end up zero.
A more dangerous approach is swapping mainstream coins for a bunch of junk coins. Altcoins are often manipulated and tend to crash rapidly after a pump, leaving investors with losses.
Other common mistakes include unclear investment goals, holding altcoins too long, not setting stop-losses, and frequently chasing highs and selling lows. These lead to continuous losses.
Summary: Find Your Own Path
The crypto market is ever-changing; top-ranked coins shift, and new projects constantly emerge. But regardless of how the market evolves, the core principles of choosing investment targets remain:
First, judge whether to be aggressive or conservative based on the current market trend. Second, select specific coins based on this judgment, prioritizing well-known, highly liquid projects with clear practical applications. Finally, decide whether to hold long-term or trade short-term according to your risk tolerance and experience.
Remember, there is no perfect investment—only what suits you best. Make a plan, stick to it strictly, and review regularly. Only then can you go further in this market full of opportunities and risks.