1. Bitcoin: The Foundation of Crypto
Bitcoin (BTC) remains the cornerstone of cryptocurrency. Without Bitcoin, the entire industry wouldn't exist. All other cryptocurrencies started as imitations—even Ethereum began by modifying Bitcoin's blueprint.
Key takeaways:
- Bitcoin has never been surpassed in security or decentralization
- Altcoins historically follow Bitcoin's lead
- Veteran miners often view only Bitcoin as "real" crypto
2. Proof-of-Work Coins Show More Resilience
During the April 12, 2024 market dip (when most coins fell ~20%), PoW coins demonstrated stronger resistance than PoS alternatives. This pattern holds true across major PoW coins:
👉 Discover why PoW matters for long-term holders
Comparison:
| PoW Coins | PoS Coins |
|---|---|
| BTC, LTC, BCH | ETH, DOT, ADA |
| Doge, ETC, ETHW | Cosmos, SOL |
Reasons:
- Miners' hardware investments create natural price floors
- PoS staking creates "easy money" dynamics that amplify volatility
3. Always Measure in BTC Terms
Successful altcoin trading means tracking performance against Bitcoin—not fiat currencies. Here's the strategy:
- Convert BTC to promising altcoin (e.g., Doge)
- Wait for altcoin to outperform BTC (e.g., +20%)
- Convert back to BTC for profit
Benefits:
- Removes emotional response to USD price fluctuations
- Focuses on true crypto-to-crypto value
- Avoids fiat-based trading pitfalls
Warning: Never touch leverage trading—spot markets provide enough opportunity.
4. Stick to Top 100 Projects
CoinMarketCap's top 100 projects offer:
- Lower risk of catastrophic failure
- Better wallet/exchange support
- More stable contract addresses
Recent example: An AI-sector coin outside top 100 changed contract addresses overnight, causing 20% immediate value loss.
5. Decentralization Signals Strength
Projects become truly decentralized when founders step away:
Case Studies:
| Project | Decentralization Milestone |
|---|---|
| BTC | Satoshi's anonymity |
| BSV | CW's 2024 legal loss |
| ETC | No active founder |
Ethereum's ongoing centralization concerns:
- Vitalik still drives roadmap
- PoW → PoS transition required founder leadership
- SEC may classify ETH as a security
👉 Learn how decentralization protects your investments
6. Top 10 Crypto Breakdown
| Rank | Coin | Key Characteristics |
|---|---|---|
| 1 | BTC | 50% market dominance |
| 2 | ETH | 16% dominance, EVM pioneer |
| 3 | USDT | Largest stablecoin |
| 4 | BNB | Exchange token |
| 5 | SOL | High-speed but centralized |
| 6 | USDC | Gold-backed stability |
| 7 | XRP | Enterprise-focused |
| 8 | DOGE | Top meme coin |
| 9 | TON | Telegram integration |
| 10 | ADA | Academic approach |
FAQs
Q: Why focus on Bitcoin instead of altcoins?
A: Bitcoin sets market trends—when BTC moves, alts follow. Trading against BTC helps isolate true project performance.
Q: How do I identify good PoW projects?
A: Look for: 1) Active mining communities 2) Transparent hash rates 3) Hardware-based security models.
Q: What makes top 100 coins safer?
A: They undergo more scrutiny, have better liquidity, and maintain more reliable technical infrastructure.
Q: Should I worry about ETH being labeled a security?
A: Potentially—classification could restrict US trading and impact its market leadership position versus BTC.
Q: How often should I rebalance to BTC?
A: After any altcoin achieves 15-25% gains against BTC, or if Bitcoin dominance starts rising sharply.
Q: Why avoid leverage in crypto?
A: Crypto's natural volatility already provides ample opportunity—adding leverage multiplies risk exponentially.