## Why "First-Order" Cryptos Attract Cautious Investors



The term "blue-chip" dates back to 1923, when Oliver Gingold, a professional at Dow Jones, used it to describe stocks trading at $200 or more. The expression is directly inspired by poker chips: among the three colors used (blue, white, and red), blue chips always represented the highest value. Although the definition has evolved over time, today it refers to shares of reputable companies that have overcome market challenges and display undeniable financial strength.

### The blue-chip crypto: a logical transposition to the digital sector

In the world of cryptocurrencies, this logic naturally applies. Some digital assets have built an unshakeable reputation over the years, despite the sector's characteristic volatility. Bitcoin (BTC) and Ether (ETH) are at the forefront of this blue-chip crypto category, benefiting from global recognition and increasing institutional adoption.

### Characteristics that define a first-order token

To be classified as a first-order cryptocurrency, an asset must exhibit several distinctive traits:

- A **market capitalization** generally exceeding $50 billion USD
- Significant **liquidity** facilitating transactions without difficulty
- **Volatility** considerably lower than that observed in most other digital assets
- Growing acceptance at the institutional level

### The appeal for risk-averse investors

These characteristics explain the particular interest that cautious investors have in first-order cryptos, especially those considering entering the digital asset market. While these tokens are not completely immune to market fluctuations, they generally retain their value better than other cryptocurrencies during correction periods.

### An asset without guarantees

It remains crucial to emphasize that the established reputation and notoriety of a blue-chip crypto never guarantee future performance. Constant vigilance and regular monitoring of sector developments are essential for making thoughtful and informed investment choices.
BTC1,43%
ETH0,9%
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