The constant evolution of cryptocurrencies adds new businesses and digital assets every day. With over 23,000 cryptocurrencies, you have nearly unlimited options to buy, trade, hold, or sell.
This might be too much for newcomers; however, a few cryptocurrencies are good enough for first-timers.
In this guide, we’ll explore the best cryptocurrencies for beginners that are ideal to start your crypto journey.
How to Choose Your First Cryptocurrency to Invest in?
You are probably ready to jump into crypto investments if you have already weighed up the risks, developed a risk management strategy, calculated how much you’re willing to invest, and are prepared to handle the volatility of the market.
Based on the team behind this cryptocurrency, the market capitalization of the coin, and also the liquidity of the coin, select your first cryptocurrency.
For your first investment in the top rated cryptos for beginners, look at a good team behind a cryptocurrency. The idea is to select currency founded by people experienced in launching other software projects or digital assets; with a proven history of working ethically and regularly building robust protocols for their tokens.
A cryptocurrency’s market cap indicates the total value of coins mined. The sum of these values is represented by the total market cap. So, growing market cap equals more mineable coins; if coin prices increase individually, its market cap goes up; the higher market cap signals a more stable. Hence, slower-moving investment, all cryptocurrencies are rather volatile unless they are amongst the better-known ones as compared with top-tier stocks.
Finally, the liquidity. The more traders are there, the more trades happen, the more support across different decent exchanges, and the easier to buy and sell, hence making the investment more stable.
List of the Best Cryptocurrencies for Beginners
1. Bitcoin (BTC)
Bitcoin, the world’s first decentralized, peer-to-peer (P2P) cryptocurrency, was created by an anonymous entity known as Satoshi Nakamoto. And its total supply is limited to 21 million Bitcoins, making it the world’s most widely used currency.
Bitcoin – one of the top cryptocurrencies for beginners is popularly used in most countries, especially in the United States, Japan, El Salvador, Hong Kong, and France. This is partly because of:
- It uses cryptography protocols and decentralized finance algorithms to make forgery almost impossible.
- This flushes out sensitive personal information to send Bitcoin payments and therefore decreases identity fraud risk.
- The transactions settle directly between parties without involving a third party, therefore settling directly, without chargebacks just like with credit cards.
- Much of the value of bitcoin is expressed in fiat currencies with stability relatively rare in more obscure cryptocurrencies.
2. Ethereum (ETH)
After Bitcoin, Ethereum is in second place for being the best cryptocurrency suitable for beginners. It is not just cryptocurrency but powerful technology for payments around the world, digital money, and so many more blockchain applications. Its flexibility has made it the most popular cryptocurrency besides Bitcoin.
Other than being a cryptocurrency, Ethereum has its blockchain network. This feature allows one to develop applications on the blockchain using smart contracts. Primarily, Ethereum offers users the functionality of smart contracts, and these go a long way to support dApps, though it would bypass issues like:
- Third-party control and interference
- Excessive downtime
- Fraud
3. Tether (USDT)
Tether is a well-known cryptocurrency and is analyzed as a stablecoin. This was introduced by Tether Limited Inc. in 2014. With time it has grown to become the largest stablecoin by market capitalization and is also one of the best cryptos for beginner investors.
Traders usually utilize Tether to shift between different cryptocurrencies and traditional fiat currencies. It’s valued for its reliability and stability in the volatile world of crypto. Though, Tether has gone through various criticisms for not being transparent enough about its assumed fiat reserves.
Even after that, Tether is the most accepted stablecoin in the world. The liquidity of many investors goes high, which means there’s a lot of chance to make profitable trading with this coin, and it attracts one who has the intention to navigate such unpredictable crypto markets.
4. Ripple (XRP)
Ripple (XRP) is known to be the digital currency that powers the Ripple network. It was created by Chris Larsen and Jed McCaleb in 2011, XRP attracts attention as its pre-mined, meaning there’s a stable supply of 100 billion tokens. Once all these tokens are in flow, creation is stopped. This approach helps protect XRP from inflation, preserving its value over a period.
XRP was tailored to challenge Bitcoin’s dominance in the crypto market. Contrary to Bitcoin, XRP provides faster transaction speeds, lower fees, and uses crucially less energy.
5. US Dollar Coin (USDC)
The US Dollar Coin (USDC) is a form of stablecoin, which states that it is attached to another asset in such cases, it’s the U.S. dollar. Each USDC is equivalent in value to one U.S. dollar, this makes it a digital version of a dollar bill.
USDC has actual assets backing it, and this reliability has seen full acceptance among US-based financial institutions, making it emerge as the one of the most preferred cryptocurrency for beginner investors owing to stability and transparency.
If you have a thing for low-risk investments, USDC will turn out to be a good option for you, because it helps in avoiding the ups and downs of the market.
6. Cardano (ADA)
Cardano is an open-source, public blockchain and platform for decentralization. In this chain, proof of stake, or PoS, has been used; it allows the network to work with native currency ADA through P2P transactions.
Founded by Charles Hoskinson, one of the co-founders of Ethereum, Cardano has presented various reasons why one might consider investing in ADA:
- Basing Cardano’s development on very thorough scientific research – so high-quality code and architecture.
- Highly Credible: ADA has credibility in the blockchain sector regarding its dependence and reliability.
- Peer-reviewed protocols: Cardano utilizes peer-reviewed protocols, which makes its reputation great.
- There’s also an active community of supporters and developers on the platform.
- The three core blockchain principles for which Cardano was designed are scalability, security, and decentralization.
How to Keep Cryptocurrency Safe?
Cryptocurrency exchanges are prone to theft or hacking, so losing or forgetting your access codes to your account means losing your investment. Thus, it is worthy of keeping safe your cryptocurrencies.
If you buy crypto through a broker, it will go into a crypto wallet associated with the exchange. If you do not like the exchange or feel your assets need to be safer, you can move those assets to another hot or cold wallet.
- Hot wallets: These are those wallets that are actually on internet-connected devices like tablets, computers, or phones. They are very handy but risky because they are always online and can be stolen.
- Cold wallets: USB drives or hard drives provide excellent security since they’re not online and not connected to the internet. There’s a risk, however, in losing the keycode or experiencing device failure, with permanent loss of access to your cryptocurrency.
Depending on your exchange and your transfer, it may also cost a small fee to move your cryptos off of the exchanges.
Conclusion
In conclusion, it is seen that even though cryptocurrency isn’t managed everywhere, it has become a popular investment option. If you are a beginner and looking to invest in crypto, it’s crucial to select your coins carefully, keeping your financial goals in mind. Thus, we have listed some of the best cryptocurrencies for beginners helping you choose a relatively steady and stable option for you.