The Ultimate Guide to Cryptocurrency Types: From Digital Gold to Meme Coins

“I want to start investing in cryptocurrencies, but there are thousands of coins on the market, Bitcoin, Ethereum, Solana... what's the difference anyway?” “Besides Bitcoin, can those cool sounding altcoins (altcoins) really be bought?”

This is the most common and core question for many newcomers to the Web3 world. Today's cryptocurrency market is no longer a unique era of Bitcoin, but a mature, clearly classified global financial ecosystem with a total market capitalization of up to several trillion dollars. From chains that shoulder different missions, stablecoins as trading mediums, to crystals of cultural myth and technical experimentation, each token has its own unique value proposition and risk.

This article will take you through the main types of cryptocurrencies, their core features, market positioning, and most importantly — how you should understand and choose the right asset for you in today's new era of “institutional integration” and “regulatory transparency.”

📌 Important reminders before reading

Properties of this article: Educational content that does not constitute investment advice

Data Timing: In-text market data and project status may change at any time. Please check the latest information before investing

Risk Alerts: Cryptocurrencies belong to a very high risk asset class, the price of which can be subject to the risk of losing all of the capital.

Investors in Taiwan: Please select a legally compliant exchange registered with HKMA VASP and you can go toMoney Laundering Prevention Information Networkquerying

1. Why do you need to know the “Currency Classification”? Moving from Speculation to Configuration

In the current market, the mindset of investing in cryptocurrencies needs to keep pace with the times. According to researchers such as Messari, the market is shifting from a simple “price game” to “practical fusion” as institutions adopt a deeper and clearer regulatory framework.

The old myth that “buy and die” an unknown coin can make you rich is difficult to replicate. Market data shows that the per capita supply of tokens has increased tens of times compared to 2021, with the number of projects exploding but survival rates extremely low.

Therefore, understanding the functions and positioning of different currencies and establishing an “asset allocation” concept like traditional finance is key to surviving and profiting in this volatile market.

2. the main types and representative projects of cryptocurrencies

1. Value Storage Type: Digital Gold in the Crypto World

The core features of this type of currency are resistance to inflation, value storage, and high volume settlement, which are the cornerstones of the entire crypto market.

Bitcoin (Bitcoin, BTC)

Core Positioning: As the world's first and most widely recognized cryptocurrency, Bitcoin is known as “digital gold”. Its core value comes from absolute scarcity — a total of 2,100 million pieces, and about 1,960 million mined, with annual inflation of less than 0.5%, which is rarer than gold.

Technical Features:

• Highest degree of decentralization, tens of thousands of nodes worldwide
• Workload Proof (PoW) consensus mechanism, safety and security verified for 15 years
• Predictable supply by half every 4 years

Market Position:

• Market capitalization accounts for about 40-50% of the overall cryptocurrency market
• Institutional funds continue to flow in after the approval of the US Spot ETF in 2024
• Several countries, such as El Salvador, have it as legal currency

Investment Considerations:

• ✅ Advantages: Strongest consensus, highest liquidity, relative stability
• ⚠️ Risks: still high price volatility (30-80% annual volatility), energy consumption disputes, scalability restrictions

Summing up one sentence: BTC is the best choice if you only want to configure the most stable, common-sense crypto assets.

2. Smart Contract Platforms: “Operating Systems” in a Decentralized World

These types of currencies (also known as Layer 1 blockchain cryptocurrencies) are not just currencies, but the “fuel” and ecosystem that support decentralized applications (dApps) running.

Ethereum (Ethereum, ETH)

Core Positioning: As a pioneer of smart contracts, Ethereum is the largest ecosystem of DeFi (decentralized finance), NFTs, and Web3 applications, known as “digital oil”.

Technical Features:

• Complete “The Merge” upgrade in 2022, moving from PoW to Proof of Interest (PoS)
• Energy consumption reduced by 99.95%
• Stakeholders get 3-5% annual returns (Staking Rewards)

Ecological advantages:

• DeFi Total Lockout Value (TVL) exceeds $500 billion, accounting for more than 60% of the overall market
• The most active developer community, the most complete toolchain
• NFT trading volume dominates the market for a long time

The institution adopts:

• Traditional financial institutions such as BlackRock choose Ethereum for asset tokenization
• Enterprise Ethereum Alliance (EEA) members include Microsoft, JP Morgan, etc.

Investment Considerations:

• ✅ ADVANTAGES: THE MOST COMPLETE ECOLOGY, RICH DEVELOPER RESOURCES, HIGH ORGANIZATIONAL RECOGNITION
• ⚠️ Risks: Gas costs remain high at peak periods, competitors (Solana, etc.) rise, regulatory attitude towards PoS staking is unclear

Summing up one sentence: Take a look at the blockchain ecosystem with the wave of institutional tokenization, ETH is the core configuration.

Solana (SOLANA, SOL)

Core Positioning: Known for its high performance, it aims at “high throughput, low transaction fees”. Its unique Proof-of-History (PoH) consensus mechanism can theoretically handle up to tens of thousands of transactions per second.

Technical Features:

• Very low transaction fees (about $0.00025 each)
• Average transaction confirmation time is about 400 milliseconds
• Suitable for high-frequency trading, chain gaming, NFT mining

Application Scenario:

• PayPal's stablecoin PYUSD runs primarily on Solana
• Major Battlegrounds for Minesweeper Trading
• Decentralized Exchange (DEX) Trading Volume Continues to Grow

Investment Considerations:

• ✅ Advantages: Good user experience, low transaction costs, high retail payment application potential
• ⚠️ Risk: Multiple crashes in history, high centralization of questions, shadows associated with FTX crashes

Summing up one sentence: IF YOU'RE PURSUING HIGH-FREQUENCY INTERACTIVITY EXPERIENCES SUCH AS CHAINS, PAYMENTS, OR ARE LOOKING INTO THE FUTURE OF HIGH-PERFORMANCE LINKS, SOL IS WORTH WATCHING.

Binance Coin (BNB)

Core Positioning: Originally an exchange platform coin, it has now evolved into the core of the BNB Chain ecosystem. It can not only be used to defray Binance exchange transaction fees (with discounts), but also as the base currency applied on its chain.

Ecosystem:

• BNB Smart Chain (BSC): EVM compatible, TVL maintains the top five for a long time
• opBNB: Layer 2 Expansion
• Extensive DeFi, GameFi project deployments

Token Economy:

• Quarterly Destruction Mechanism (Shrinkage Model)
• Handling fee credit, deposit, launchpad and more

Investment Considerations:

• ✅ Advantages: Binance Exchange's huge user base, active ecosystem, multiple application scenarios
• ⚠️ Risks: Parent regulatory risk (2023 settlement with the US SEC), centralized exchange risk, highly related to Binance's operating status

Summing up one sentence: Ideal for users who are active in the Binance ecosystem or are interested in the synergy effects of centralized exchanges with their blockchain.

3. PAYMENTS AND TRANSFERS: DIGITAL CASH TARGETING CROSS-BORDER AND MICROPAYMENTS

This type of currency focuses on improving transaction efficiency, reducing transaction fees, and aims to be a better means of payment.

Ripple (XRP)

Core Positioning: Focusing on cross-border payment and remittance services, it acts as a “bridge currency” for inter-bank transfers, reducing settlement time from a few days to seconds.

Technical Features:

• RippleNet Payment Network
• Transaction confirmation time 3-5 seconds
• Very low handling fee (about $0.0002)

Institutional cooperation:

• Collaborate with multiple banks and financial institutions around the world
• Cross-border remittance service providers (such as MoneyGram)

Regulatory Progress:

• Litigation with the US SEC since 2020
• Partial appeals won in 2023, improving regulatory clarity

Investment Considerations:

• ✅ ADVANTAGES: CLEAR CROSS-BORDER PAYMENT APPLICATION SCENARIOS, MULTIPLE AGENCY COLLABORATIONS, FAST SPEED AND LOW COST
• ⚠️ Risks: regulatory litigation shadow, high centralization (Ripple company holds large amounts of XRP), lack of technological innovation

Summing up one sentence: Focusing on payment solutions that combine traditional finance with blockchain, XRP is the representative of the track.

Litecoin (LTC) & Bitcoin Cash (BCH)

Core Positioning: Both are forks or variants of Bitcoin and are designed to solve the problem of slow, high-cost Bitcoin transactions and offer faster, cheaper payment options.

Technical Features:

• Litecoin: block time 2.5 minutes (Bitcoin 10 minutes)
• Bitcoin Cash: Larger block size (8-32MB vs Bitcoin 1MB)

Market Position:

• Longer run history (LTC since 2011)
• Acceptance by some merchants
• Market Value Continues to Decline

Investment Considerations:

• ✅ Advantage: Stable operation, there is some historical consensus
• ⚠️ Risk: Technological innovation is not the case with new public chains, limited use scenarios, decreased market focus

4. Stabilizer: Crypto Market's' Transfusion 'and' Haven '

These currencies are anchored 1:1 to the franc (such as the US dollar) and are price stable, and are the infrastructure of the entire crypto economy.

Tether (USDT), US Dollar (USDC)

Core Positioning: Act as the “cash” of the crypto market. Investors use it to hedge, transfer funds between exchanges, or engage in DeFi lending for steady returns.

Market Size:

• USDT is the largest stablecoin with a market capitalization of more than $1 billion
• USDC has a market capitalization of approximately $300-500 billion, issued by Circle

Reserve Mechanism:

• USDC: Monthly transparent audit with reserves mainly for US Treasury bonds and cash
• USDT: Quarterly Audit, Reserve Transparency Questioned But Gradually Improving

Application Scenario:

• Cryptocurrency trading pairs (the main denomination of almost all exchanges)
• DeFi Lending Agreements (annualized yield 4-12%)
• Cross-border payments and remittances
• Corporate Capital Management

Regulatory Progress:

• Step-by-step establishment of regulatory frameworks such as the US GENIUS Act
• EU MiCA regulations impose strict requirements on stablecoins

Investment Considerations:

• ✅ Advantages: price stability, very high liquidity, wide range of application scenarios
• ⚠️ Risks: Issuer credit risk (insufficient reserves), regulatory change risk, unanchored risk (historically USDC briefly broke anchor to $0.87 due to Silicon Valley bank closures)

⚠️ Important Reminder: When choosing a stablecoin, note:

1. Prioritize a stable currency (such as USDC) that reserves transparent, regularly audited
2. Avoid algorithmic stablecoins (such as a crashed UST)
3. Don't treat stablecoins as bank deposits — they don't have deposit insurance

Summing up one sentence: It is an indispensable tool for you to deposit funds, hedge bear markets and earn interest.

5. Functionality and Predictor Tokens: “Bridges” on and off the Chain

Chainlink（LINK）

Core Positioning: LINK is the native token of the decentralized predictor network. The function of the predictor is to securely transmit on-chain real-world data (such as asset prices, weather data, sports scores) to the chain for smart contracts.

Why is it important?The smart contract itself cannot get external data. For example:

• DeFi Lending Agreements Need to Know the Real-Time Price of ETH to Calculate Collateral
• Decentralized insurance needs to know if flights are delayed
• Predicting the Market Needs to Know the Election Results

Chainlink provides this data and is the key infrastructure for DeFi and RWA (Real-World Asset Tokenization).

Market Position:

• Predictor Market Share Over 50%
• Collaboration projects include top-tier DeFi protocols such as Aave, Synthetix
• Adoption of traditional financial institutions (such as SWIFT) testing

Investment Considerations:

• ✅ ADVANTAGES: SOLID INFRASTRUCTURE POSITION, CONTINUOUS EXPANSION OF APPLICATION SCENARIOS, LONG-TERM VALUE POTENTIAL
• ⚠️ Risk: Complex token economy model, high price volatility, and competition (e.g. Band Protocol)

Summing up one sentence: It is the “invisible champion” of the DeFi and RWA circuit, and if you take a good look at these apps, LINK is indispensable.

6. Emerging Hotspots: Mincoin, AI, and DePin

The market is more diverse, and in addition to the traditional categories, there are many new narrative layers.

Mynote coins (such as Dogecoin DOGE, Shib Coin SHIB)

Core Positioning: Originating in online rumors or jokes, the value comes primarily from community consensus, cultural identity, and celebrity effects (such as Musk), rather than technological innovation.

Market Phenomenon:

• Extreme price volatility (1-day rises and falls of 30-50% are common)
• Community-driven, emotional-driven trading
• Liquidity rotates quickly on chains such as Solana

Typical case:

• Dogecoin (DOGE): The largest mini-coin by market capitalization, has entered the top 10 of the market capitalization
• SHIB COIN (SHIB): SELF-PROCLAIMED “DOGCOIN KILLER”
• Thousands of “dog” projects released on platforms such as Pump.fun

⚠️ Serious Risk Warning:

MYANCOIN IS THE CRYPTOCURRENCY MARKETThe highest riskCategories:

1. Extremely high zero rate: OVER 99% OF MYANCOINS END UP AT ZERO
2. Extreme Volatility: Single-day rises and falls of more than 50% are normal
3. Rug Pull Risk: Developer Reel Runway Streaming
4. Liquidity Trap: Unable to sell after a surge
5. Serious Manipulation: ZHUANGJIA CONTROL WHEEL, LAGAO SHIPMENT

Statistics Alerts:

• Study Shows 99.6% Final Loss Among Mincoin Participants
• Average life cycle less than 2 weeks
• The vast majority return to zero within 24 hours of release

If you still want to participate, you must:

• ❌ Do not invest more than 1-3% of total assets
• ❌ Do not use leverage
• ❌ Don't chase FOMO
• ❌ Do not believe in the “community commitment” or the “project vision”
• ✅ Set a clear stop point
• ✅ Be ready to go to zero at any time
• ✅ Treat it as “entertainment” instead of “investment”

Summing up one sentence: High-risk, high-return “casinos” are strongly discouraged for beginners, even if they participate only with a small amount of money that “losing light does not hurt”.

AI and DePin (Decentralized Physical Infrastructure Network)

Core Positioning:

• AI Coins: Projects that combine blockchain with artificial intelligence (such as Fetch.ai, SingularityNET)
• Depin: Use tokens to incentivize users to share hardware resources (such as storage, computing power, wireless networks)

Representative Project:

• Filecoin (FIL): Decentralized Storage
• Helium (HNT): Decentralized Wireless Network
• Render (RNDR): Decentralized GPU computing

Investment Considerations:

• ✅ Advantages: Solve practical problems, have business application scenarios, comply with Web3 decentralization concept
• ⚠️ Risks: High technical thresholds, complex token economy models, and competition from traditional cloud services

3. the lesson of history: major risk events for cryptocurrencies

After understanding the various currencies, it is even more important to be aware of the risks of this market. Even seemingly robust projects can face systemic risks.

Luna/UST crash (May 2022)

Events: UST, the top 10 algorithmic stablecoin in the market, fell from $1 to 0 in a week, leading LUNA to fall from $119 to $0.00001.

Loss: Investors lost more than $400 billion

Lesson learned:

• Algorithmic stablecoins lack real asset support and are extremely fragile
• Anchor Protocol with “20% annualized return” is unsustainable Ponzi scheme
• Even items in the top 10 of market capitalization may go to zero in a few days

FTX Bankruptcy (November 2022)

Events: FTX, the world's second-largest cryptocurrency exchange, went bankrupt for misappropriating client funds, and founder Sam Bankman-Fried was sentenced to 25 years.

Loss: Over $100 billion in user funds could not be recovered

Lesson learned:

• Centralized exchanges are at risk of default
• “Not your keys, not your coins”
• Platform Scale Doesn't Equal to Security
• The Importance of Regulation and Transparency

Brutal Fluctuations in Market Cycles

Bitcoin's Biggest Drop in History:

• 2017-2018: Decreased from $19,783 to $3,122 (down 84%)
• 2021-2022: Decreased from $68,789 to $15,760 (down 77%)

Ethereum's Biggest Loser in History:

• 2021-2022: Down from $4,878 to $880 (down 82%)

Altcoins are more brutal:

• The vast majority of the top currencies in the 2017-2018 bull market are now at zero or are down more than 99%
• Each bull market generates thousands of new items, but 99% will disappear in a bear market

4. how to get started: 3 steps for beginners

Step 1: Choose a Compliant Exchange

Suggestions for Taiwanese investors:

1. Enquire HKMA VASP Registrants:Money Laundering Prevention Information Network
2. Compare transaction fees, support currencies, security measures
3. Complete Authentication (KYC)

Safety measures:

• Enable Two-Factor Authentication (2FA)
• Use a strong password, do not reuse
• Beware of fishing sites

Step 2: Start the experience with a small amount

Recommended path:

1. First investment ($1,000-5,000):
   • Buy BTC or ETH
   • Experience the full process: Top Up → Buy → Hold → See Price Fluctuations
2. Second investment (5,000-10,000 yuan):
   • Try a transfer (Exchange→Wallets→Exchanges)
   • Learn about Blockchain Verification, Gas Fees
3. Third investment (by personal financial situation):
   • Start running a regular quota plan
   • Try Staking or Stable Money Banking

Important: Don't invest a lot of money in the first place!

Step 3: Continuous Learning

The cryptocurrency market is changing rapidly and continuous learning is essential.

Recommended Resources:

Official information:

• Bitcoin.org - Bitcoin Official Website
• Ethereum.org - Ethereum Official Website
• GitHub and official documentation for each project

Data Tracking:

• CoinMarketCap/CoinGecko - Price & Market Cap Tracking
• DeFilama - DeFi Protocol Data
• Glassnode - On-Chain Data Analytics

News & Analysis:

• CoinDesk, The Block - cryptocurrency news
• Messari, Dune Analytics - Research Report
• Taiwan: Blockbuster, Floating Trends

Community (Involved with caution):

• Twitter (X) - Real-time information, but possibly full of noise
• Reddit (r/CryptoCurrency) - Community Discussions
• Discord - The official community for each project

⚠️ Alerts:

• The web is full of fake news, scams and overly optimistic predictions
• Any “guaranteed profit” or “inside information” is a scam
• Don't trust KOL's recommended “100x”

5. FAQ Q&A

Q1: How much money should I invest in crypto?

A: Depends on your financial situation and risk tolerance.

General recommendations:

• Conservative investors: 1-5% of total assets
• Medium risk tolerance: 5-10%
• Aggressive investors: 10-20%

Prerequisites:

• There is an emergency reserve (6 months of living expenses)
• Basic insurance planning is in place
• Invested funds are “fully losable”

Do not:

• Active Emergency Reserve
• Borrowing and investing
• Affects quality of life

Q2: Bitcoin and Ethereum, which one should I choose?

A: Both can be configured depending on the investment objective.

Suggested:

• CONSERVATIVE TYPE: 70% BTC+30% ETH
• Balanced type: 50% BTC + 50% ETH
• Entry Type: 40% BTC+60% ETH

Q3: Is altcoin worth investing in?

A: Choose carefully, strictly control the scale.

Altcoin Features:

• Higher potential returns (possible 10x-100x in bull markets)
• Very high risk (possibly -90% or zero in bear markets)
• Poor liquidity
• Information asymmetry is severe

Select Standard:

1. TOP 50-100 BY MARKET CAPITALIZATION (FILTER BASIC LIST)
2. There are practical application scenarios or technological innovations
3. Open transparency of the development team
4. Highly active in the community
5. Reasonable model of the token economy (without hyperinflation)

Configuration Recommendations:

• Altcoins should not exceed 20-30% of the portfolio
• Further spread over 3-5 different tracks
• Never All-in single altcoin

Avoid:

• “Microcoins” outside the market value of 200
• Items copied by anonymous teams or white papers
• Projects that promise “guaranteed returns”
• MYTH COINS (UNLESS YOU ACCEPT ZERO COMPLETELY)

Q4: When to sell?

A: Develop a clear exit strategy.

When to sell:

Downtime (must be executed):

• Reach the default breakpoint (e.g. -30%)
• Project Fundamental Deterioration (Team Runway, Major Vulnerability)
• REGULATORY CRACKDOWN (IF A COUNTRY ANNOUNCES A BAN)

Profitable closing conditions (to be considered):

• Reach target price (e.g. sell 50% after doubling)
• BULL MARKET MADNESS (WHEN THE MARKET IS EXTREMELY GREEDY)
• Need to spend money (living needs come first)

Batch strategy (recommended):

Example: Purchase price $10,000, current price $40,000 (4 times)

Plan 1: Hold all (bet it continues to rise, but the risk is to withdraw the full toss)
Option 2: Sell all (bag is safe, but missing subsequent gains)
Option 3: Sell in batches
 - Sold 25% when 20,000 yuan (Reclaiming principal)
 - Sell 25% when $30,000 (lock profit)
 - Sold 25% when $40,000 (continuous profit)
 - Retain 25% long-term holding (higher gains)

⚠️ Common Mistakes:

• Greed while making money, unwilling to make a profit (the result increases all the way back)
• UNWILLINGNESS TO RECOGNIZE CLAIMS IN CASE OF LOSS (DEEPER AND DEEPER)
• Frequent transactions (fees erode profits)

Q5: How to avoid scams?

A: Increase alertness and remember these red flag signals.

Common Fraud Practices:

1. Fake Exchanges/Fake Wallets
   • Fishing website (URL is one letter different)
   • App that impersonates famous brands
2. Ponzi scam
   • Commitment to high fixed returns (e.g. 10% monthly interest)
   • Man Head Bonus System
   • Cannot be withdrawn or there is an additional charge
3. Pump and Dump
   • The community promotes a lot of “100x coins”
   • Crash after a brief surge in prices
   • Behind the scenes, bookmakers sell first for profit, take over from private buyers
4. Fake customer service
   • Proactively contact you to “solve problems”
   • Request a private key or password
   • Require first transfer “Verification”
5. Airline Scam
   • “Get Free XXX Coins”
   • Request wallet connection and authorization
   • As a result of wallet asset theft

Protection principles:

• ✅ Only use the official website (carefully check the URL)
• ✅ Enable Two-Factor Authentication (2FA)
• ✅ PRIVATE KEY/AUXILIARY WORDS SHOULD NEVER BE SHARED WITH ANYONE
• ✅ Strangers actively contact is always ignored
• ✅ Promises that are too good are scams
• ❌ Don't click suspicious links
• ❌ Do not install unknown apps
• ❌ Do not participate in the “Guaranteed Profit” project

Taiwan Special Reminder:

• 165 Anti-Fraud Hotline: Report Fraud Instantly
• HKMA official website to inquire about legitimate VASP operators
• Do not trust the “investment teachers” of Line Group or Facebook community

Conclusion: Build your digital asset roadmap from understanding

The world of cryptocurrencies in 2026 is much more complicated than “what to buy will rise”. It is a diverse ecosystem made up of stores of value (BTC), application infrastructure (ETH, SOL), trading mediums (stablecoins), predictors (LINK), cultural carriers (Mycoins), etc.

For beginners, the first step is not chasing 100x, but understanding the “role” of each coin in the ecosystem. Starting with BTC and ETH, experiencing firsthand the complete process from account opening, deposit to purchase, transfer is your first step into the most stable new world. Once you have a good feel for your core assets, it's natural to explore other frontier areas more calmly.

Final reminder:

1. The market cycle will play out again: The bull market makes you greedy, the bear market makes you afraid. Understand the cycle and do not get emotional, so you can make a profit in the long run.
2. Risk management takes precedence over returns: Keeping this money is more important than making money. A return of zero can wipe out ten profits.
3. Continuous learning: This market is changing very fast, and yesterday's knowledge may be outdated today. Maintain curiosity and the ability to learn.
4. Don't be a loner: Cryptocurrencies are only part of the asset allocation and should not affect your normal life.
5. Legal Compliance: Choose a legitimate platform, comply with tax regulations, protect your interests.

Remember, in this market, cycles change, but humanity does not. ARM YOURSELF WITH KNOWLEDGE, MAINTAIN DISCIPLINE AND PATIENCE, AND YOU WILL BE NOT ONLY AN INVESTOR IN CRYPTOCURRENCIES, BUT ALSO A PARTICIPANT IN THE FUTURE OF FINANCE.

💡 Useful resources

Official Information and Learning:

• Bitcoin.org - Bitcoin Official Website
• Ethereum.org - Ethereum Official Website
• CoinMarketCap Learn - Cryptocurrency Education

Data Tracking:

• CoinMarketCap - Price & Market Cap
• CoinGecko - Aggregate Data
• DeFilama - DeFi protocol TVL
• Glass node - On-chain data analysis

Taiwan Resources:

• Money Laundering Prevention Information Network - Enquire legitimate VASP operators
• 165 Anti-Fraud Hotlines - Report fraud immediately
• Blockbuster, Fluctuating Trend - Taiwan Cryptocurrency News

International News:

• CoinDesk
• The Block
• Decrypt

⚠️ Disclaimer

Important Legal Notice

This article is for educational and informational purposes only.Does not constitute investment advice, legal advice, tax advice or financial planning advice of any kind。

Investment Risk Alerts

Extremely high risk asset classes:

Cryptocurrencies and virtual assets belongHigh Risk, High VolatilityIn investment instruments, investors may face the following risks:

1. Risk of loss of all principal: Cryptocurrency prices can fluctuate sharply, with one-day gains and losses of 30-50% or even zero. Many projects in history, including those in the top 10 by market capitalization, have gone completely to zero.
2. Liquidity risk: Some cryptocurrencies have low trading volumes and may not be able to buy or sell at the ideal price.
3. Technical Risks: TECHNICAL FACTORS SUCH AS SMART CONTRACT VULNERABILITIES, BLOCKCHAIN FORKS, 51% ATTACKS, LOSS OF PRIVATE KEYS MAY RESULT IN ASSET LOSS.
4. Platform Risk: Exchanges may face risks of closure, hacking, misappropriation of customer funds, such as FTX events.
5. Regulatory Risks: Regulatory policies in different countries are constantly changing, which may result in certain cryptocurrencies being banned from trading or holding.
6. Fraud Risk: The market is full of scam practices such as Ponzi scams, Lagoo shipments, phishing sites, counterfeits, etc.
7. Psychological stress: Extreme fluctuations can cause severe psychological stress and emotional decisions.

Reminder of Taiwan Gold Council

“Virtual assets are non-currency and are not covered by deposit insurance, insurance settlement funds or other related safeguards. The risk of trading is extremely high and investors should be cautious about their own profit and loss.”

Must Know Before Investing

1. You may lose all of your invested capital: Only invest money that you can fully afford to lose.
2. Past performance does not guarantee future results: Historical price movements do not represent future performance.
3. This article does not constitute investment advice: Any investment decision should be based on your own research, judgment and risk tolerance.
4. Seek professional advice: If in doubt, consult a qualified financial advisor, accountant or lawyer.
5. Tax Liability: Cryptocurrency transactions may incur tax liability, please consult a tax professional.

Data and Information Disclaimer

1. Time-Effectiveness: The data, prices, market capitalization, and technical information cited in this article have been tried to ensure accuracy at the time of writing. However, the cryptocurrency market and technical environment are changing rapidly and the relevant information may be outdated at any time.
2. exactitude: Although efforts have been made to be accurate, the information in the article is not guaranteed to be completely correct or complete.
3. Third Party Information: Third-party data, reports or opinions cited in this article do not represent the position of the authors of this article nor guarantee their accuracy.
4. Project Risk: The specific cryptocurrency items mentioned in the article are intended only to illustrate the use of different types of tokens,Does not constitute a recommendation。 All projects are at risk, including technical failure, team disintegration, regulatory pressure, and more.

Compliance and Law

1. Investors in Taiwan: If you select a registered Virtual Asset Service Provider (VASP), you can check the list of legitimate operators on the HKMA Anti-Money Laundering Information Network.
2. Legal Compliance: Investors should comply with the relevant laws and regulations of their respective countries, including but not limited to anti-money laundering, tax reporting, etc.
3. minors: Minors under the age of 18 are not allowed to invest in cryptocurrencies.

Specific risks re-emphasised

Mineswein: OVER 99% OF MYANCOINS END UP IN ZERO, WHICH IS NOT RECOMMENDED FOR BEGINNERS TO PARTICIPATE. Even if you participate, you can use only a small amount of money that “light loss doesn't hurt” and be fully prepared for the loss.

Algorithm Stabilizer: Lack of real asset support, multiple crashes in history (such as UST), and the risk is extremely high.

New project: The vast majority of new releases go to zero in the short term, and never be attracted by the rhetoric of “100x”, “Next Bitcoin” etc.

Last Reminder

Investments are risky. Please evaluate carefully before making a decision.

Cryptocurrency investing is not for everyone. Before investing, be sure to:

• You have a complete understanding of how cryptocurrencies work and their risks
• You have enough emergency reserves (at least 6 months of living expenses)
• You do not use borrowing or leverage to invest
• Your investment decisions are based on independent research, not recommendations from others or market sentiment
• You choose a legally compliant trading platform
• You understand and accept the worst possible outcome (all loss)

If you have any questions, please consult a professional before investing.

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