Complete Guide to Cryptocurrency Types: Mainstream Coins vs. Altcoins, How Should You Choose?

During times of financial asset volatility, more and more people are turning their attention to the crypto market. However, faced with thousands of virtual currencies, the most common question investors ask is: Which coin is reliable to buy? This article helps you sort out the top ten cryptocurrencies by market cap, analyze the differences among various types of cryptocurrencies, and teach you how to choose the appropriate investment strategy based on market cycles.

How to categorize different types of cryptocurrencies? Bull and bear cycles determine your choices

There is a classic saying in the crypto world: “Buy altcoins in a bull market, buy mainstream coins in a bear market.” This is not nonsense; there is a deep logic behind it.

Why buy altcoins during a bull market? Because small-cap coins are easier to push higher by capital, offering greater profit potential. Mainstream coins have larger market caps, making it harder to drive their prices up.

Why buy mainstream coins during a bear market? Because they are more resistant to declines, with a lower risk of going to zero. Altcoins often plummet rapidly or even become worthless.

Therefore, the first step in choosing cryptocurrencies is to judge the overall trend of the market. Only then should you consider factors like reputation, trading volume, liquidity, volatility, and application prospects. This way, you avoid blindly following the trend.

Top 10 cryptocurrencies by market cap (latest data as of January 2026)

Top-ranked cryptocurrencies tend to have higher market recognition, not only because they are quality projects but also because they serve as industry indicators. Let’s see who currently makes the TOP 10:

Important reminder: This ranking is not fixed. Previously top 10 coins like Filecoin, Luna, Polkadot, and others have already fallen out of the top ranks. Market narratives change, hot spots shift, and rankings shuffle. So, never “all in” on a single coin; diversification is the key.

In-depth comparison of different types of cryptocurrencies: Stablecoins vs. Non-stablecoins

Stablecoins: Only suitable for holding cash

USDT, USDC, and USD are pegged 1:1, with minimal fluctuations (usually less than 1%), which means it is almost impossible to earn profits by buying stablecoins. Their role is to serve as cash reserves, facilitating quick position switching.

Non-stablecoins: True wealth creation tools

Bitcoin, Ethereum, SOL, DOGE, and other non-stablecoins can perform outstandingly in each bull cycle. Historical data speaks volumes: in the last bull market, BTC surged by 1,800%, and even the regulated XRP rose by 800%. This is why mainstream coins deserve long-term attention.

8 most recommended cryptocurrencies for investment

1. Bitcoin(BTC): The King of Cryptocurrency

• Market dominance: Accounts for 55% of the entire crypto market
• Scarcity advantage: Only 21 million coins, halving every four years, inflation rate controlled below 0.80%
• Institutional backing: Since the approval of spot ETFs in 2024, continuous influx of traditional funds
• Investment logic: The most risk-resistant crypto asset, essential for long-term holdings

2. Ethereum(ETH): Application Ecosystem Leader

• Smart contracts: Attract global developers to build applications, forming network effects
• Fund volume proof: TVL reaches $93.1 billion, ranking first among all blockchains
• Trading volume: Although market cap is less than BTC, trading volume often reaches 60-70% of BTC
• ETF progress: Spot ETF approved, staking features under application, strong capital inflow expectations

3. TAO(Bittensor): AI + Blockchain Experiment Field

• Market trend: During the AI boom, TAO represents the integration of AI and blockchain
• Application scenario: Building peer-to-peer machine learning markets where buyers can purchase AI model services on nodes
• Design concept: Inspired by Bitcoin mechanism, fixed total supply of 21 million, gradually deflationary

4. Solana(SOL): Performance Monster

• Transaction speed: Theoretical TPS of 65,000/sec, actual 3,000-4,000/sec, far surpassing Ethereum(15-30 TPS) and Bitcoin(7 TPS)
• Cost advantage: Average transaction fee only $0.00025, top-tier cost performance
• Market recognition: Known as “Ethereum killer,” active DeFi and NFT ecosystem

5. Ripple(XRP): Institutional-Grade Settlement Tool

• Backed by: Ripple company collaborating with global governments and financial institutions
• Settlement capacity: 500-700 TPS, comparable to institutional financial networks
• Application value: Real-world cross-border payment applications, not just hype

6. Dogecoin(DOGE) and other mainstream coins

DOGE: Backed by Musk’s continuous support, high market attention, good performance in bull markets

Chainlink(LINK): Infrastructure connecting blockchain with real-world data, not “air coins,” with actual application needs

TON: Backed by Telegram ecosystem, social attributes bring unique advantages

Practical investment strategies for cryptocurrencies

Beginners should start with long-term holdings

Short-term trading, especially intraday, requires systematic trading strategies, position management skills, and psychological resilience. Beginners simply cannot handle it. Long-term investing is much easier; just understanding basic operations and coin knowledge is enough to get started.

Long-term investing can achieve higher returns

It may seem that short-term trading yields higher profits due to frequent transactions and larger base, but in reality: accurate prediction is difficult, greed leads to buying high and selling low, resulting in losses.

Long-term investment logic is clear: buy quality coins and hold them long-term to automatically benefit from price increases. You don’t need to worry about “missing out” on market rallies because you are always in the game.

Asset safety first

From bear to bull markets, profits earned can be stolen, which is a blow beyond words. Protect your exchange accounts with strong passwords and two-factor authentication. Store your assets securely by safeguarding private keys and seed phrases in wallets.

Beware of the deadly temptation of altcoins

Coins with many zeros after the decimal point are the easiest to confuse newcomers: “As long as it rises to a dime, I’ll get rich.” However, most altcoins end up zeroed out. Swapping high-market-cap mainstream coins for junk coins usually results in losses on both ends.

Which type of cryptocurrency should you choose?

Conservative investors: Only consider BTC and ETH, lowest risk, stable returns

Growth investors: Include DOGE, ADA, SOL, and other mainstream coins with higher growth potential

Aggressive investors: Appropriately allocate emerging coins with potential, but no more than 20% of total assets

No matter which category you belong to, remember these pitfalls:

✗ Lack of clear investment goals and timeframes

✗ Not understanding stop-loss, adding to positions as prices fall

✗ Holding altcoins long-term expecting miracles

✗ Getting scared out by short-term price fluctuations

The crypto market is constantly changing, and rankings will shuffle accordingly. The most important thing is to learn how to select suitable assets based on your risk tolerance and investment goals, and to build your own trading system. Only then can you go further in the crypto space.