This guide is designed to help clarify which cryptocurrencies align with your specific investment goals, risk tolerance, and financial situation. It’s tailored for investors, helping you go beyond generic internet rankings (“Top 10 Cryptos to Buy!”) and take a smarter, more personalized approach to investing.
Which Cryptocurrency Should I Invest In?
The most common question in crypto is probably some variation of what cryptocurrency to buy. Many people feel confused because there’s so much terrible information out there about crypto. Instead of that, we’ll lay out a straightforward framework for understanding investing, crypto prices, and when to buy or sell. Then, we’ll show you which cryptocurrencies we think have long-term staying power (and which to stay away from).
Clarifying Your Investment Goals
Before considering specific cryptocurrencies, let’s clarify why you’re investing in crypto. Genuinely honest crypto investors know they’re partly drawn in by wild price swings and the implied chance to make lots of money on one trade. In other words, crypto is risky, speculative, especially in the long-term, since, like many technologies, we have no idea if crypto will still be around in 20 years. This makes crypto a bit uncertain for long-term wealth preservation. However, cryptocurrencies are also an area of rapid innovation, making them similar to other high risk investments, like venture capital or flipping real estate.
To help you understand your investment goals better, take a couple of minutes to review the questionnaire below. (If you already know your goals, feel free to skip ahead to the next section.)
Self-Assessment Questionnaire
Time Horizon: When will you need access to this investment?
- Short-term (< 1 year)
- Medium-term (1-5 years)
- Long-term (5+ years)
Risk Tolerance: How would you react to a 50% drop in your crypto investment value?
- I would panic and sell immediately (LOW risk tolerance)
- I would be concerned but hold if I believed in the long-term potential (MEDIUM risk tolerance)
- I would see it as a buying opportunity (HIGH risk tolerance)
Financial Situation: What percentage of your overall investment portfolio are you allocating to crypto?
- Below 5% (Conservative)
- 5-15% (Moderate)
- Above 15% (Aggressive)
Technical Knowledge: How comfortable are you with blockchain technology concepts?
- Beginner: I understand the basics of Bitcoin and blockchain
- Intermediate: I understand smart contracts and different consensus mechanisms
- Advanced: I can evaluate tokenomics and technical implementations
Cryptocurrency Portfolio Allocation Strategies
Based on your self-assessment, consider these allocation approaches:
Conservative Approach (Lower Risk Tolerance)
- 40-60% Bitcoin (BTC)
- 20-30% Ethereum (ETH)
- 5-10% Blue-chip altcoins (Top 10 by market cap)
- 0-5% Experimental projects (small-cap cryptocurrencies)
- No stablecoins
Moderate Approach (Medium Risk Tolerance)
- 30-40% Bitcoin (BTC)
- 20-30% Ethereum (ETH)
- 10-20% Top 10 altcoins
- 10-15% Mid-cap cryptocurrencies (Top 11-50)
- 5-10% Small-cap projects
- 0-10% Stablecoins (for buying opportunities only)
Aggressive Approach (Higher Risk Tolerance)
- 20-30% Bitcoin (BTC)
- 15-25% Ethereum (ETH)
- 15-25% Top altcoins with strong fundamentals
- 15-25% Mid-cap projects with growth potential
- 10-20% Small-cap projects with innovative technology
- 0-10% Stablecoins for (buying opportunities only)
NOTE: we do not recommend holding stablecoins in the long-term as they are not a riskless asset, yet they provide no rewards to investors for these risks. Instead, we believe stablecoins should only be held temporarily, to buy or “swap” for other cryptocurrencies.
Understanding the Cryptocurrency Landscape
The cryptocurrency market has evolved into different categories, each serving specific purposes:
Layer 1 Blockchain Platforms
These are foundational protocols that process transactions and secure the network:
- Bitcoin (BTC or XBT): The original cryptocurrency, focused on being a store of value
- Ethereum (ETH): The leading smart contract platform; most blockchain applications choose Ethereum over other platforms
- Solana (SOL): Known for high speed and lower transaction costs
- Cardano (ADA): Focuses on security and an academic research approach; has a mixed reputation among enthusiasts
- TRON (TRX): Platform for decentralized applications with entertainment focus
Stablecoins
Cryptocurrencies designed to maintain a stable value — usually pegged to fiat currencies:
- Tether (USDT): The largest stablecoin, pegged to the US dollar
- USD Coin (USDC): Regulated alternative with regular attestations of reserves
Note: stablecoins generally add issuer risk to the underlying fiat assets they hold. An example: US dollars are considered a riskless asset; buying a US dollar stablecoin means you are trading this riskless asset for all the risks that come with the company issuing the stablecoin.
Exchange Tokens
Native cryptocurrencies of trading platforms that offer benefits to users:
- Binance Coin (BNB): Powers the Binance ecosystem with various utility functions
Payment Networks
Designed specifically to facilitate fast and low-cost transactions:
- Ripple (XRP): Focuses on cross-border payments and remittances
- Dogecoin (DOGE): Originally created as a joke, but now used widely for tips and micropayments
Current Market Data (March 2025)
| Coin | Market Cap | Price | 1-Year Return | Key Use Case |
|---|---|---|---|---|
| Bitcoin (BTC) | $1.6 trillion | $81,603 | +13% | Store of value, reserve asset |
| Ethereum (ETH) | $232.6 billion | $1,929 | -53% | Smart contract platform, DeFi, NFTs |
| Tether (USDT) | $143.0 billion | $1.00 | 0% | Stable value, trading pairs |
| XRP | $122.3 billion | $2.11 | +236% | Cross-border payments |
| Binance Coin (BNB) | $77.9 billion | $547 | +5% | Exchange utility, BNB Chain ecosystem |
| Solana (SOL) | $62.9 billion | $123.62 | -17% | High-performance smart contracts |
| USD Coin (USDC) | $58.0 billion | $1.00 | 0% | Regulated stablecoin |
| Cardano (ADA) | $25.2 billion | $0.72 | -3% | Smart contracts, academic approach |
| Dogecoin (DOGE) | $23.6 billion | $0.16 | -9% | Community-driven payments |
| TRON (TRX) | $21.6 billion | $0.23 | +70% | Entertainment DApps platform |
Cryptocurrency Evaluation Framework
When assessing any cryptocurrency for investment, begin by considering these key factors:
1. Fundamental Analysis Metrics
Project Fundamentals
- Problem-Solution Fit: Does the cryptocurrency solve a real problem?
- Competitive Advantage: What makes it better than alternatives?
- Team Background: How likely are the project’s developers and leadership able to build and implement all aspects of the project?
- Development Activity: Is there regular GitHub activity and updates?
Tokenomics
- Supply Mechanism: Is the token supply inflationary, deflationary, or fixed?
- Token Distribution: How concentrated is token ownership?
- Token Utility: What gives the token value beyond speculation?
- Token Burn/Buyback Mechanisms: Are there mechanisms to reduce token supply?
Network Effects
- Active Users: How many people actively use the network?
- Transaction Volume: Is the network processing significant transaction value?
- Developer Activity: How many projects are building on the platform?
- Institutional Adoption: Are businesses and institutions using it?
2. Risk Assessment
Technical Risks
- Security Track Record: Has the protocol experienced hacks or exploits? If so, how have they handled it?
- Decentralization Level: How distributed is control over the network?
- Scalability Solutions: Can it handle growing usage?
Regulatory Risks
- Regulatory Clarity: Is the project’s legal status clear in major jurisdictions?
- Compliance Measures: Does the project implement KYC/AML where required?
- Legal Challenges: Are there any ongoing lawsuits or regulatory actions?
Market Risks
- Liquidity: Can you easily buy or sell significant amounts?
- Exchange Listings: Is it available on reputable exchanges?
- Market Correlations: How does it perform in different market conditions?
Overview of Top Cryptocurrencies
Bitcoin (BTC)
Investment Thesis: Bitcoin is widely touted as “digital gold” and a hedge against inflation, which should be taken with some skepticism (when the stock market plummets, BTC’s market price often goes down with it). With its fixed supply cap of 21 million, Bitcoin’s market value may be supported by its scarcity as adoption grows.
Best For: More conservative investors seeking long-term growth.
Key Metrics:
- Market Dominance: Approximately 55% of total crypto market cap
- Adoption: Held by major corporations and nation-states as a reserve asset
- Growth: 16,221% increase from $500 in 2016 to over $81,600 in 2025
- Security: Secured by the world’s largest decentralized computing network
Risks:
- Energy consumption controversies
- Slow transaction processing (7 TPS)
- Limited smart contract functionality
- Regulatory scrutiny in some jurisdictions
Ethereum (ETH)
Investment Thesis: As the leading smart contract platform, Ethereum powers most of DeFi, NFTs, and dApps, giving it strong utility and network effects.
Best For: Investors seeking exposure to the broader blockchain ecosystem and applications.
Key Metrics:
- Developer Activity: Highest of any blockchain platform
- Total Value Locked in DeFi: Majority of DeFi applications run on Ethereum
- Growth: 17,434% increase from $11 in 2016 to around $1,929 in 2025
- Scalability Improvements: Continues to implement upgrades to improve transaction capacity
Risks:
- Competition from other smart contract platforms
- Scaling challenges during high network activity
- Down 53% over the past year, indicating volatility
Ripple (XRP)
Investment Thesis: XRP specializes in cross-border payments, aiming to replace legacy systems like SWIFT with faster, cheaper settlement.
Best For: Investors interested in financial technology disruption and payment systems.
Key Metrics:
- Transaction Speed: Processes transactions in 3-5 seconds
- Transaction Cost: Negligible fees compared to traditional systems
- Growth: 35,031% increase from $0.006 in 2017 to $2.11 in 2025
- Performance: Up 236% in the past year, making it the best performer among top cryptocurrencies
Risks:
- More centralized than other cryptocurrencies
- Competition from foreign CBDCs and other payment solutions
Binance Coin (BNB)
Investment Thesis: BNB powers the Binance ecosystem, including exchanges, DeFi platforms, and the BNB Chain, giving it strong utility across multiple applications.
Best For: Investors looking for a cryptocurrency with established utility and exchange benefits.
Key Metrics:
- Use Cases: Trading fee discounts, participation in token sales, payments
- Growth: 546,567% increase from $0.10 in 2017 to around $547 in 2025
- BNB Chain Activity: Growing ecosystem of applications built on BNB Chain
- Performance: Up 5% in the past year, showing relative stability
Risks:
- Regulatory challenges facing Binance in multiple jurisdictions
- Centralization concerns
- Dependency on Binance’s business success
Solana (SOL)
Investment Thesis: Solana offers extremely high transaction throughput at low costs, positioning it as a scalable platform for applications requiring high performance.
Best For: Investors seeking high-growth potential in next-generation blockchain infrastructure.
Key Metrics:
- Transaction Speed: Up to 65,000 transactions per second
- Transaction Cost: Approximately $0.00025 per transaction
- Growth: 15,954% increase from $0.77 in 2020 to $123.62 in 2025
- Developer Activity: Growing ecosystem of DeFi and Web3 applications
Risks:
- Network reliability issues and past outages
- Competition from other high-performance blockchains
Stablecoins (USDT, USDC)
Investment Thesis: Stablecoins provide a bridge between traditional finance and crypto, making it easier for investors to transact on blockchains using fiat monies.
Best For: Traders seeking shelter during market volatility and yield farmers.
Key Metrics:
- Stability: Maintained $1 peg with minimal deviation
- Market Cap Growth: Significant increase in adoption and circulation
- Utility: Used as trading pairs on most exchanges
- Yield Opportunities: Can be lent or staked for passive income
Risks:
- Counterparty risk with the issuing organizations
- Regulatory scrutiny increasing globally
- Limited upside potential compared to other cryptocurrencies
Entry Strategies and Timing
Dollar-Cost Averaging (DCA)
This strategy involves investing a fixed amount at regular intervals, regardless of price: Benefits:
- Reduces the impact of volatility
- Removes emotional decision-making
- Works well for beginners and long-term investors alike
Implementation:
- Choose your cryptocurrencies based on your risk profile
- Set a regular schedule (e.g., weekly, bi-weekly, monthly)
- Automate purchases if possible through an exchange’s recurring buy feature
Value Averaging
A modification of DCA where you adjust your contribution amount based on portfolio performance: Benefits:
- Potentially better returns than standard DCA
- Buys more when prices are low, less when high
- Adds a value-investing component
Implementation:
- Set a target growth rate for your portfolio
- Adjust contributions to meet your growth targets
- Requires more active management than standard DCA
Lump Sum Investment
Investing all your allocated capital at once: Benefits:
- Historically outperforms DCA in upward-trending markets
- Minimizes opportunity cost
- Simpler to execute
Considerations:
- Higher timing risk
- Not recommended for volatile assets unless you have high risk tolerance
- Better for stablecoins or established cryptocurrencies
Risk Management Strategies
Position Sizing
Never invest more than you can afford to lose: Conservative: Limit crypto investments to 1-5% of your investment portfolio
Moderate: Allocate 5-15% of your investment portfolio
Aggressive: Allocate 15-30% of your investment portfolio
Diversification
Spread your crypto investments across different categories: Assets: Mix large-cap, mid-cap, and small-cap cryptocurrencies
Categories: Include Layer 1, Layer 2, DeFi, stablecoins
Correlation: Choose assets that don’t always move together
Stop-Loss Orders
Protect your capital by setting automatic sell orders: Fixed Percentage: Sell if the asset drops 10-20% from purchase price
Trailing Stop: Sell if the asset drops 10-20% from its highest point since purchase Consider Volatility: Set wider stops for more volatile cryptocurrencies
Tax Considerations
Cryptocurrency investments have tax implications that vary by jurisdiction:
Common Tax Events
- Trading: Selling cryptocurrency for fiat or other cryptocurrencies
- Staking Rewards: Income from validating transactions or providing liquidity
- Airdrops: Receiving free tokens from projects
- Mining: Earning cryptocurrency by validating transactions
Tax Optimization Strategies
- Hold Long-Term: Many jurisdictions offer lower tax rates for assets held over one year
- Tax-Loss Harvesting: Selling underperforming assets to offset gains
- Track Everything: Use crypto tax software to monitor all transactions
- Consult a Professional: Work with a tax advisor familiar with cryptocurrency
How to Buy Cryptocurrencies
Once you’ve decided which cryptocurrencies to invest in, you’ll need to: 1. Choose an Exchange: Select a reputable exchange available in your jurisdiction
- Major Options: Coinbase, Binance
- Consider: Fees, security, available cryptocurrencies, user interface
2. Set Up Your Account:
- Complete identity verification (KYC)
- Set up strong authentication (2FA)
- Connect a payment method
- Consider: using dedicated, crypto-only devices for added security
3. Purchase Cryptocurrency:
- Use market orders for immediate purchases
- Use limit orders to specify your desired price
- Consider exchange fees when calculating your investment
4. Secure Your Investment:
- Move significant holdings to a secure wallet
- Hardware wallets provide the highest security for long-term storage
- Keep detailed records of all transactions
Creating Your Personal Crypto Investment Plan
After reviewing this guide, create your personal investment plan:
1. Define Your Goals: Write down why you’re investing in cryptocurrency
2. Set Your Risk Parameters: Determine how much volatility you can tolerate, including how much capital you can afford to lose
3. Create Your Allocation Strategy: Decide which cryptocurrencies to buy and in what proportions
4. Implement Your Entry Strategy: Choose between DCA, value averaging, or lump sum
5. Document Your Exit Conditions: Define when you’ll take profits or cut losses, and stick to your plan!
6. Schedule Regular Reviews: Set times to reassess your strategy and re-balance if needed
Remember that successful cryptocurrency investing requires patience, discipline, and ongoing education. The market continues to evolve rapidly, so staying informed about technological developments and regulatory changes is crucial. (Blockchainsure publishes a weekly newsletter that covers this.)
Final Thoughts: Start small, focus on learning, and only increase your investment exposure as your knowledge and comfort level grow. The most successful cryptocurrency investors are those who take a methodical, research-driven approach rather than chasing trends or following hype.
Disclaimer: This article provides educational information, not financial advice. Cryptocurrency investments involve significant risk, including the potential loss of principal. Always conduct your own research and consider consulting with a financial advisor before making investment decisions.
Blockchainsure stands by the pursuit of truth, and each article we publish draws on reliable sources and scientific principles. We are resolutely committed to accuracy and integrity. If you have any questions or notice errors, please reach out through our contact page.
