How to Choose Established Cryptocurrencies

Daniel Coach -

Ready to learn the next step in doing your own research? Selecting the right investment is like choosing the right anchor to hold your ship steady. In this blog, we'll explore why opting for well-established currencies can be the way to go.

A Sea of Possibilities

There are more than millions of tokens out there, each with its own potential for growth and success. But, choosing the right ones can be a game-changer for your portfolio.

Why Choose Established Coins?

  • Proven Track Record: Established tokens like Bitcoin (BTC) and Ethereum (ETH) have been around for a while. They've weathered the storms and proven their resilience.
  • Liquidity: These tokens have higher liquidity, making it easier to buy or sell without affecting their market price. They’re less prone to more extreme fluctuations at this point.
  • Community and Development: Established coins have active communities that support innovation and adoption.
  • Recognition and Acceptance: They're widely recognized and accepted by exchanges, some merchants, and now some institutions with the edition of BTC and ETH ETFs now being approved.

Risk Mitigation

Crypto investing is risky, but choosing established options can reduce some of that risk:

  • Reduced Volatility: Established cryptocurrencies are less volatile, so you can avoid extreme price fluctuations.
  • Transparency: They have well-documented histories, making it easier to assess their performance.
  • Easier Research: There's plenty of research and analysis available, so you can make informed decisions.

Doing Your Homework

While established cryptocurrencies have many advantages, it's still critical to do your due diligence:

  • Research: Dive into the tokens history, technological advances, and use cases.
  • Community Engagement: Explore their community forums (discord, telegram, reddit, etc) and social media channels (crypto twitter aka X being one of the most common). As you explore, there are also web3 native social platforms to scope out such as lens or torum.
  • Partnerships and Adoption: Look into their partnerships and real-world adoption.
  • Market Cap: Consider their market capitalization. Market cap is a widely used metric to make assessments the size of a token, and it is often used to categorize coins into different ranges, such as large-cap, mid-cap, and small-cap. Small-cap tokens will generally be more prone to liquidity issues and extreme volatility than a large-cap token.

In Conclusion

Choosing established cryptocurrencies is like hoisting reliable sails in your portfolio. It's a smart play to help you navigate the markets with greater confidence.

Embrace the wisdom of choosing well-established options to learn how markets operate before branching out into riskier options. Let your investments be anchored in credibility, resilience, and potential for long-term growth. In the ever-evolving crypto sea, these established assets can be your reliable guides to financial success.

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