The term "blue chip" was coined by Oliver Gingold, an employee of Dow Jones, in 1923. Initially, it referred to stocks that traded at $200 or more per share. The name "blue chip" drew inspiration from the color scheme of poker chips, where blue chips held the highest value compared to white and red chips.
However, the meaning of blue-chip stocks has evolved over time. Presently, blue-chip stocks are not solely defined by their high share prices. Instead, they are stocks of companies that are widely regarded as high-quality and financially stable, having established a strong reputation and track record of performance.
Similarly, certain cryptocurrencies have formed strong reputations throughout the short yet eventful history of the digital asset industry. Assets that are most commonly included into this category are bitcoin (BTC) and ether (ETH). Blue-chip cryptos have the biggest appeal for risk-averse investors, especially those looking to enter the space. Some benefits that blue-chip cryptos offer are:
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Large market cap (usually more than $50 billion)
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High liquidity
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Lower volatility compared to many other digital assets
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Institutional adoption
That said, blue-chip tokens are not immune to the market’s inherent volatility. Still, normally these coins do not lose as much value as most other cryptocurrencies when the digital asset market goes down.
