The cryptocurrency market has grown exponentially, boasting over 10,000 different cryptocurrencies. However, not all of these cryptocurrencies are equal. While some have strong fundamentals and practical use cases, many others lack substance and are driven primarily by speculation.
For instance, memecoins—cryptocurrencies often created as jokes or based on internet trends—frequently experience dramatic price surges fueled by social media hype and concentrated groups of investors. While they may generate short-term excitement, these coins are notoriously volatile and can plummet just as quickly as they rise, leaving latecomers at a significant loss.
For beginners, the safest strategy is to focus on established, major cryptocurrencies with proven track records and real-world applications. Cryptocurrencies like Bitcoin, Ether, and Solana are widely recognized, have robust ecosystems, and are supported by active developer communities. These assets are less prone to extreme volatility compared to smaller, speculative tokens and are considered foundational to the crypto space.