Crypto Millionaire’s Top 3 Tips for Beginners — Ignore Them at Your Own Risk

3 Essential Tips for New Crypto Investors from a VC Who Backed Ethereum Early

Meet Jake Brukhman — A Crypto Veteran with a Decade of Experience

Jake Brukhman isn’t just another crypto enthusiast. He’s a computer scientist, a former Amazon engineer, and a Wall Street professional who went on to co-found CoinFund, one of the first venture capital firms dedicated entirely to cryptocurrency.

Over the last 10 years, Brukhman has seen crypto evolve from a niche experiment to a trillion-dollar industry. CoinFund even invested in Ethereum when it was just $0.60—today, it trades near $4,000.

In a recent interview on Fortune’s Crypto Playbook podcast, Brukhman shared three powerful tips for anyone entering the crypto market for the first time. These insights are simple, practical, and rooted in hard-earned experience.

Tip 1 — Stick to the Big Names

Why Beginners Should Avoid Small, Unproven Coins

Brukhman’s first piece of advice: don’t chase every new crypto project. Stick with major cryptocurrencies that have a proven track record.

“As a new participant just entering the space, it is absolutely much safer to stick with the big names,” Brukhman explained. “You’re not going to go wrong if you are investing in Bitcoin or Ethereum. These projects have been around for over 10 years and have strong, well-established communities and ecosystems.”

By focusing on well-known assets, investors can benefit from crypto’s growth without taking on unnecessary risks from scam coins or overly volatile new tokens.

Tip 2 — Look for Responsible Token Management

How Guardrails Protect Your Investment

During the ICO boom of 2016, many blockchain founders rushed to sell millions of tokens to retail investors and then abandoned their projects—causing token prices to crash.

Today, Brukhman says the industry has matured. Legitimate projects now include governance measures to protect investors, such as:

• Releasing tokens gradually over several years

• Aligning founder and investor incentives

• Transparent token distribution plans

Brukhman notes that 90% of CoinFund’s investments go into projects with these protective structures. For new investors, this is a key filter to avoid rug pulls and pump-and-dump schemes.

Tip 3 — Avoid Projects with Fully Anonymous Founders

Why Transparency Matters

Crypto was originally built to protect user privacy, and Bitcoin’s mysterious creator, Satoshi Nakamoto, is still anonymous. But Brukhman warns that Satoshi is the rare exception—most anonymous founders turn out to be fraudsters.

While some founders use pseudonyms or limit their public presence, Brukhman’s firm always verifies exactly who they are dealing with before investing.

“We’ve never invested in something with a purely anonymous founder,” Brukhman said. “We never found a project where it was so important that we should take that risk.”

For newcomers, this means: always research the team behind a project. If you can’t find out who they are—or if they refuse to reveal themselves—it’s best to walk away.

Why These Tips Matter More Than Ever

A Safer Path into a High-Risk Market

Crypto offers massive opportunities, but it’s still a volatile and risky space. Brukhman’s advice is essentially about risk management:

• Big names like Bitcoin and Ethereum give exposure to upside while avoiding most scams.

• Responsible token management ensures that founders can’t dump their holdings and leave.

• Transparent founders increase accountability and reduce the chance of fraud.

Following these three rules won’t eliminate all risk, but it will dramatically reduce the chances of losing your money in shady projects.

Jake Brukhman has spent a decade in crypto, invested in one of the world’s most valuable blockchains at pennies, and built a venture capital firm dedicated to digital assets. His three tips—stick with proven coins, choose projects with strong governance, and avoid anonymous founders—are simple yet powerful guidelines for anyone entering the crypto market.

If you’re new to the space, these principles can help you navigate the hype, avoid scams, and focus on building long-term wealth in a market that’s still evolving every day.

Disclaimer: The above press release has been provided by a third party. We do not verify or endorse the content and will not be responsible for any inaccuracies, claims, or damages arising from the same.