How Should Beginners Allocate Crypto Assets? This Guide Has You Covered

As everyone knows, risk and returns are directly proportional—instruments with higher returns naturally carry higher risk. In the world of crypto assets, the risk of investing in mainstream coins is far lower than that of altcoins, which explains why some altcoins may offer higher investment returns than mainstream coins. Different types of coins each have their pros and cons. So for beginners, which crypto assets are suitable to purchase? And how should one manage positions and adjust mindset?

I. Understanding and Selecting Types of Crypto Assets

After more than a decade of development, Bitcoin has gradually been accepted and recognized by investors. An increasing number of users outside the crypto space are starting to learn about Bitcoin and choosing to enter the加密世界. Once inside this world, we discover that there is not only Bitcoin as an investment target—investors have hundreds or thousands of asset allocation options to choose from.

1. Mainstream Coins

Crypto assets that rank near the top of the cryptocurrency market cap chart are usually referred to as mainstream coins. The characteristics of mainstream coins include a large user base, good trading depth, relatively high market activity, and most have withstood the test of history, possessing strong risk resistance. Mainstream coins generally have fairly strong consensus in the crypto market, significant practical application value, and better liquidity than typical crypto assets. They are widely recognized investment targets among investors.

Therefore, for new users just entering the market, allocating mainstream assets is relatively more appropriate. Examples include Bitcoin , Ethereum, Litecoin, Ripple, and others. As the first crypto asset, Bitcoin occupies half of the entire crypto asset market capitalization. Many long-term users use its trends as the primary reference for allocating other assets. For an introduction to Bitcoin and its investment value, please refer to What is Bitcoin and Why Bitcoin is Worth Investing In . For introductions to other mainstream coins, see What Are Mainstream Coins? What Are Stablecoins? What Are Altcoins .

These mainstream coins have relatively high market awareness, strong liquidity, and relatively lower investment risk. They can be said to be wise choices for new users investing in crypto assets.

2. Altcoins

Altcoins are defined relative to mainstream coins. The "山寨" (alternative) nature of altcoins is not a derogatory term—they are also crypto assets produced using blockchain technology, only with lower market awareness, consensus, and liquidity compared to mainstream coins. However, when encountering explosive market hype, they can also deliver remarkable performance. For example, hyped meme coins, surging public chain tokens, as well as GameFi, Layer 2, DeFi, and NFT concept coins, have all been leaders of investment fervor in different time periods.

So, do altcoins have investment value? This question is somewhat a matter of perspective. From the historical price trends of altcoins, their price fluctuations are relatively large, so this still needs to be tested by time and the market.

For new users, before investing in any altcoin, first clarify its essence—what is it? Does it have application scenarios? What is your purpose in investing in altcoins? Invest cautiously within the scope of confirming your own capabilities and risk tolerance.

3. Stablecoins and Platform Coins

Among crypto assets, there are also concepts such as stablecoins and platform coins.

Stablecoins, as the name suggests, are digital assets unaffected by price fluctuations. Their greatest characteristic is price stability—they do not experience sudden surges or crashes like Bitcoin. To maintain price stability, stablecoins require support from some form of alternative value, such as the US dollar, gold, or other basket of fiat currencies. This has led to the emergence of many USD stablecoins (such as USDT, GUSD, etc.) as well as Facebook's previously announced Diem (Libra) stablecoin project.

The emergence of USD stablecoins mainly addresses two problems: 1) the issue of excessive cryptocurrency price volatility. 2) Acting as a medium of exchange between fiat currency and cryptocurrency. Currently, the most established stablecoin is USDT. It is issued by Tether, a company formed by Bitfinex, the world's largest cryptocurrency trading platform. It is pegged to the US dollar, with the price of 1 USDT approximately equal to 1 US dollar. Users deposit US dollars in Tether's bank account, and Tether issues USD certificates with a price equal to one dollar. Simply put, issuing a certain amount of USDT means Tether holds an equivalent amount of US dollar reserves. Besides USDT, there are other stablecoins such as USDC, TUSD, GUSD, DAI, PAX, and others.

Platform coins refer to tokens/universal points of digital asset trading platforms. Because most of their application scenarios are within the platform, they are also referred to as platform coins by investors. However, precisely because they rely on trading platforms, they inherently possess their own trading value and circulation value.

II. Diversified Allocation of Different Crypto Assets

For new users just entering the crypto space, it is recommended to use a portion of idle funds for investment. When allocating assets, new users should avoid putting all eggs in one basket. Learn to allocate positions across different crypto assets to reduce investment risk. Suppose you have 1,000 in idle funds. You could allocate most of these funds to invest in mainstream coins like Bitcoin and Ethereum. If you recognize the value of mainstream coins, consider extending your investment cycle. The remaining smaller portion of funds can be used to allocate altcoins. However, because altcoins typically have larger volatility, pay attention to risk control. When you lack sufficient confidence and experience, it is not recommended to hold them for the long term—after all, the high risk they contain is not acceptable to all investors.

"Don't put all your eggs in one basket" actually has a second half: "but don't put them in too many baskets either." Asset allocation actually utilizes the risk differences between different assets to reduce overall risk and lower the volatility of an investment portfolio. True diversification emphasizes the differentiation of investment platforms and wealth management products—diversifying investments from multiple perspectives including platform type, product type, investment duration, expected returns, and more.

After understanding crypto asset allocation, new users also need to pay attention to market entry timing. Selecting an optimal entry time often yields greater returns. If you are a new user who has done sufficient homework, understands and recognizes the philosophy and value of crypto assets and is preparing to enter, then every market downturn is actually a good entry opportunity. Appropriately extend your investment cycle and don't fret over short-term fluctuations in exchange for greater returns. If you are a new user with only partial understanding of crypto assets, having only heard of hot coins like Bitcoin and Dogecoin, then you need to understand the overall market trend as well as the historical price trend of the crypto assets you wish to invest in. At the same time, stay updated with the latest news to assist your judgment—buy low and sell high to earn returns from market volatility. Of course, the crypto asset market is quite volatile, so pay attention to risk control.

III. Position Management and Mindset Management

Whenever the crypto market experiences significant volatility, position management and mindset management become extremely important.

Many investors consider making money as the primary goal of investment, but this is not actually the case. Warren Buffett once shared his investment philosophy: preserve principal. The same applies to investing in crypto assets. During times of significant market volatility, our primary objective is capital preservation, with profit as a secondary goal. Every qualified investor needs to establish a position management system that belongs to them. No matter when, remember strict stop-loss. Many people know the compound interest position-adding method, which is equivalent to abandoning position management. In such cases, one must achieve absolutely strict stop-loss—ignoring this will inevitably result in losing all capital.

Additionally, mindset management is a point many investors often overlook. Some investors with knowledge of K-line analysis can discuss trends or technical aspects extensively, such as left-side trading, right-side trading, Fibonacci retracements, and more. But if unable to properly manage mindset, investors are very likely to experience immense frustration and self-doubt from just one or two judgment errors, which may even affect their investment and wealth management for a long period afterward. After all, humans are not gods and cannot make every judgment with perfect accuracy. If investors can properly manage their mindset, even when several judgment errors occur, they can quickly regather their emotions and return fully prepared. Mindset management enables investors to trade with greater confidence.

Good mindset management includes thinking about risk, accepting risk, resisting FOMO emotions, eliminating illusions, managing return expectations, and more. As the ancients said, "A general who considers defeat before considering victory can fight a hundred battles without peril." Conversely, not accepting risk is avoiding risk, and the consequences can be disastrous. For example, investors who like to avoid risk tend to develop FOMO emotions when market conditions are favorable—seeing a certain crypto asset rise repeatedly and developing a psychology of chasing gains. This blind buying behavior, without market analysis, is likely to make investors feel regret when that crypto asset experiences a decline.

Conclusion: As a new user about to enter or already in the market, you should not only comprehensively examine mainstream coins like Bitcoin, but also deeply understand the purpose and value of other blockchain projects. When you recognize the value of the blockchain projects you research, such as the currently popular DeFi, NFT, Polkadot, and other sectors, your investment confidence will be more sufficient, and your understanding of risk and take-profit/stop-loss points will be clearer. Of course, like investing in other asset classes, crypto asset investment is not profit-only without losses—it also involves risks. Therefore, investors need to pay attention to position management and mindset management, and control risks reasonably.

Disclaimer

This article may contain product-related content not applicable to your region. This article is intended solely to provide general information and does not bear responsibility for any factual errors or omissions contained herein. This article represents only the author's personal views and does not represent the views of OKX . This article is not intended to provide any of the following advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holding digital assets (including stablecoins) involves high risk, may fluctuate significantly, and may even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. For questions regarding your specific situation, please consult your legal/tax/investment professional. The information appearing in this article (including market data and statistics, if any) is for general reference only. Although we have taken all reasonable precautions in preparing these data and charts, we assume no responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in its entirety, or excerpts of 100 words or less from this article may be used, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: "This article copyright © 2025 OKX, used with permission." Permitted excerpts must cite the article name and include attribution, such as "Article Name, [Author Name (if applicable)], © 2025 OKX". Some content may be generated or assisted by artificial intelligence (AI) tools. Derivative works or other uses of this article are not permitted.

How Should Beginners Allocate Crypto Assets? This Guide Has You Covered

How Should Beginners Allocate Crypto Assets? This Guide Has You Covered

I. Understanding and Selecting Types of Crypto Assets

1. Mainstream Coins

2. Altcoins

II. Diversified Allocation of Different Crypto Assets

III. Position Management and Mindset Management

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