The token universe is a new and exciting realm filled with boundless potential, but it can be daunting for new starters. Though the token revolution is only just getting started, there are already thousands of tokens, with tens of thousands more likely to surface over the next decade. The endless choice available often leaves newer adopters asking two questions: which tokens should I buy? And how much should I invest? As token.com aims to help onboard the next generation of token users, we decided to curate a Collection that focuses on making the first steps into this space as easy as possible. It’s called The Crypto Starter Pack, and you can learn more about it below.
Please note: Investing in cryptoassets is risky. Due to the volatile nature of the cryptocurrency market, investors run the risk of losing their funds when they make an investment. Returns from cryptoasset investing are not guaranteed, therefore users should always be aware of the risks.
How tokens empower people
For anyone looking to enter the token economy, it’s important to understand the value of tokens—and what they are hoping to achieve from investing in the space. We believe that the token economy will one day include millions of tokens catering to all kinds of use cases, and this should usher in profound societal and technological change around the world.
When the token revolution launched with the advent of Bitcoin, the early community of crypto enthusiasts entered the space with the belief that it could revolutionise the world’s understanding of money. For ardent Bitcoiners, cryptocurrency is a solution to the failings of the traditional finance system. This ideology has remained at the core of the token movement for the last 14 years.
Although the crypto space has previously attracted attention from speculators looking to profit from the market, we believe that it’s important to highlight how tokens can empower people. Investing in tokens can have upside (as well as downside), but it can also enable greater monetary freedom for people.
token.com was created to help enable that sense of monetary freedom, and The Crypto Starter Pack achieves this by offering an accessible way to some of the ecosystem’s most essential projects.
Starting out on the token journey
Due to the cyclical nature of the cryptocurrency market, many people enter the space when prices are high and hype is at a peak. In these “bull” phases, newer tokens can rally 100x or more in a short period of time, sparking hopes of overnight riches among many newer investors.
While there are thousands of crypto tokens available and some can yield great returns for those who bought and sold at the right time, experts frequently recommend allocating first to Bitcoin and Ethereum. That’s because they have larger market capitalisations than the rest of the market, respectively accounting for around 40% and 20% of the total space. This means that they are also less volatile and widely viewed as less risky than other newer assets. Bitcoin and Ethereum have historically risen at a slower rate than other tokens during bull markets, but they have also preserved their value better during downturns. While many tokens may die out after hype fades, Bitcoin and Ethereum have always held the number one and two spots on the crypto leaderboard.
Besides the top two crypto tokens, investing in established niches within the token universe can be a great way for new starters to get exposure to the ecosystem and level up their skills. For example, during the 2021 bull run, several “Layer 1” blockchains that act as alternatives to Ethereum welcomed many newer token adopters and saw their ecosystems expand at a rapid rate.
In 2020, the token space saw a boom in decentralised finance applications on Ethereum thanks to the advent of yield farming, an activity in which users can earn tokens for depositing their assets into an application to bootstrap adoption. “DeFi,” as it’s popularly known to token enthusiasts, has since become the clearest use case for blockchain technology and several innovative applications catering to use cases like lending and borrowing have flourished. As DeFi is likely to be a core component of the token economy for decades to come, investing in the space is one of the best ways for newer token adopters to begin their journey and discover the possibilities of blockchain technology.
The token.com Collection
The Crypto Starter Pack is the entry point for anyone looking to start collecting their first crypto tokens. Naturally, it features the world’s two leading cryptocurrencies—Bitcoin and Ethereum. Serving as the token ecosystem’s digital gold and top settlement platform for applications, the top two tokens constitute roughly 60% of the market. For crypto veterans and new adopters alike, they are the typical tokens of choice in any investing portfolio.
While we believe in Ethereum, we also support the thesis that there will be several dominant smart contract networks in the future. The vision for a multichain world became clearer than ever in 2021 as several newer networks saw rapid growth. While Ethereum has established a stronghold for DeFi and NFTs, it’s possible that other networks could grow by expanding to other use cases in the future. Three of the biggest winners of 2021 were Solana, BNB Chain and Polygon. As part of our belief in a multi-chain future, we included all three networks in The Crypto Starter Pack Collection.
token adopters take their first steps in the token universe.
DeFi is arguably the most complex niche in the token universe, but as it’s likely to remain central to the ecosystem for many years to come, it’s a good idea for new adopters to learn about it today. The Crypto Starter Pack educates people on the exciting alternative to traditional finance with the addition of two of the space’s top projects—the lending platform Aave and the decentralised exchange Uniswap.
The Crypto Starter Pack also features other projects that have become pillars of the token ecosystem. They include the domain naming service Ethereum Name Service and Chainlink, an oracle project that provides price data feeds for DeFi and other applications.
Finally, our Collection gives a nod to the meme coin trend. While meme coins have their risks, they have also helped introduce many people to tokens and nurtured passionate communities of enthusiasts. The Crypto Starter Pack features the original meme coin inspired by an early Internet sensation—Dogecoin.
Discover more
token.com aims to make tokens fun and accessible for everyone. As we expand the experience, we’re proud to present The Crypto Starter Pack to help newer token adopters. To learn more and start discovering tokens, head to the application now and check out the Collection.
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