If you're looking to diversify into altcoins but don't know where to start, here's a guide:
Start with Ethereum ( $ETH )
If you're unsure what to buy, Ethereum is an excellent first exposure to the altcoin market. It's often considered the "mother" of all altcoins due to its vast network valuation and the sheer number of Decentralized Applications (DApps) built on it. When Ethereum rises, most altcoins tend to follow, and vice versa. Consider using a Dollar-Cost Averaging (DCA) method to enter Ethereum gradually, rather than a single large lump sum.
Focus on "Proven" Altcoins
A common mistake for beginners is chasing "micro-cap coins," falling into the fallacy that smaller valuations equate to higher potential gains. They often overlook the high risk of these low to medium-cap projects not developing properly. For newcomers, it's best to stick to larger market capitalization coins. You can easily find these at the top of platforms like CoinMarketCap or CoinGecko.
Gain Exposure to RWA and AI
If you have to pick just two sectors likely to perform well until the end of 2025, Real World Assets (RWA) and Artificial Intelligence (AI) are strong contenders. RWA will likely remain relevant due to high institutional interest, while the AI sector will persist given the continuous advancements and updates in AI technology.
Avoid Micro-Caps; Buy Sparingly if You Must
Many dream of becoming millionaires by buying meme coins, but while possible, it's far less probable. Understand that memecoins carry extremely high risk and you could lose all your invested funds. If you still wish to dabble in memecoins, allocate only a very small amount of capital.
Disclaimer Alert: This is not financial advice, nor an invitation to buy or sell. All information provided is for educational purposes only. We are not affiliated with any of the parties mentioned herein. Always conduct your own research (DYOR).
