The best crypto to invest in for beginners: a simple guide

Do you want to know what are the best currencies to invest in for beginners? Read our guide to reputable cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and more.

Dipping your toes into cryptocurrencies can be stressful, especially with so many options available. However, experts point out that starting with established and reputable digital assets can make the process smoother.

To help you get started, we've put together a beginner-friendly guide that highlights five of the best cryptocurrencies that beginners can invest in, taking into account their stability, market capitalization and growth potential.

Bitcoin (BTC)

Bitcoin is the oldest and most valuable cryptocurrency on the market, making it a solid choice for beginners. As of June 4, 2024, Bitcoin's market capitalization has exceeded $1.35 trillion, a number that represents more than half the value of the entire cryptocurrency market.

First-time cryptocurrency investors should consider Bitcoin as an investment option for the following reasons:

• Wide availability: Bitcoin is available on almost all cryptocurrency exchanges and many traditional brokerage platforms, making it a near-perfect cryptocurrency gateway for beginners.
• Increasing acceptance: More companies around the world are accepting Bitcoin for transactions, and it is even recognized as legal tender in countries like El Salvador and the Central African Republic (CAR).
• Strong growth potential: Recent developments, such as the launch of spot Bitcoin exchange-traded funds (ETFs), have sent Bitcoin prices soaring, even causing it to reach a new all-time high of $73,750 on March 14. Some experts have even predicted that the price of Bitcoin could reach over $1 million by 2030.

Bitcoin's well-established presence and continued growth make it an excellent starting point for new cryptocurrency investors. While the price of a single bitcoin may be a bit high for the average investor, it is possible to buy smaller portions of it at much lower prices.

Ethereum (ETH)

Although its market capitalization is more modest compared to Bitcoin, Ethereum is a powerhouse among altcoins and also a great choice for cryptocurrency newbies.

Technically known as Ether, this cryptocurrency is the second largest by market cap and has an important role in both the decentralized finance (defi) and decentralized applications (dapps) ecosystems.

For those wondering which cryptocurrencies are best for beginners, here are some reasons why Ethereum is a strong contender for your first cryptocurrency investment:

• Challenge dominance: As mentioned earlier, Ethereum is the backbone of many DeFi protocols and applications, which leads to high demand for Ethereum. These applications rely on Ethereum's blockchain to operate, making ETH an important part of the dapp and defi spaces.
• High total value unlocked (TVL): As of the time of writing, Ethereum holds the bulk of the total value locked (TVL) in various networks, indicating its widespread use and trust. TVL refers to the cumulative value of all crypto assets deposited in different defi protocols. for every Dab radarEthereum's current TVL is $89.01 billion, a number several times larger than its five largest competitors combined. A higher TVL value often means that more people are using the platform, which bodes well for the value of ETH in the future.
• Smart contracts: Ethereum also supports smart contracts, which are self-executing tokens with terms written directly into them. This feature allows for a wide range of decentralized applications and has made Ethereum one of the most popular blockchains for hosting decentralized applications.
• Continuous Improvement: The Ethereum network is constantly improving, with the recent upgrade to Ethereum 2.0 aiming to enhance scalability and security.

This means that Ethereum should be able to keep up with technological advances in the blockchain industry, which should keep the value of Ethereum at a stable level.

With the above in mind, settling on ETH for your first cryptocurrency investment shouldn't be a difficult choice.

BNP currency

BNB Coin, the native cryptocurrency of the Binance ecosystem, is another option when buying cryptocurrencies for beginners.

It may not have the same level of reputation and name recognition as the first two coins on our list, but it has managed to quietly establish itself as an important part of the broader cryptocurrency market.

This is why BNB should be considered among the best cryptocurrencies for beginners in 2024:

• Stable performance: Stability is key to any investment, and despite the volatility of the cryptocurrency market, BNB has shown consistent growth over the years. It was initially priced at $0.15 during the 2017 Initial Coin Offering (ICO) and has seen a significant rise since then. At the time of writing, BNB is priced at over $645 and has a market capitalization of $99.3 billion, making it the third largest non-stable cryptocurrency on the market.
• Controlled supply: With a maximum supply of 200 million and a current circulating supply of around 156 million, the value of BNB should benefit from this specific supply because it will create scarcity, which over time can help push the value of the coin higher.
• Utility symbol: BNB offers discounts on transaction fees on the Binance Exchange and is used across several blockchains within the Binance ecosystem. It facilitates trading on the Binance exchange, allowing users who hold BNB to enjoy reduced trading fees. Additionally, it can be used as collateral for margin trading, allowing users to leverage their positions and potentially boost their returns.

In addition to trading, BNB serves as the base currency for Binance's decentralized exchange, Binance DEX. Users can trade cryptocurrencies in a non-custodial manner, while maintaining full control of their assets.

BNB is also integrated into Binance's decentralized lending platform, Binance Lending, where users can lend and borrow cryptocurrencies while earning interest. Furthermore, BNB can be used to pay transaction fees on Binance Smart Chain (BSC), a high-performance blockchain developed by Binance.

All of these use cases in a dynamic and expansive ecosystem like Binance should help protect the value of BNB in ​​the long term, making it one of the best cryptocurrencies to buy right now for beginners.

Solana (Sunday)

Another coin that can be among the best cryptocurrency investments for beginners is Solana (SOL). Its price performance over the past year has been generally positive, with the coin's value increasing by more than 660% in that time, per Data From Queen Gekko.

The Solana blockchain also has several features that will ensure SOL's growing reputation in the cryptocurrency market and establish it as one of the largest coins in terms of significant value:

• Speed ​​and cost efficiency: Solana uses a unique Proof of History (PoH) mechanism, enabling it to process up to 50,000 transactions per second at a fraction of the cost of Ethereum.
• Scalability: Solana's high throughput and low fees also make it an attractive platform for decentralized app developers and users alike.
• Growing ecosystem: Solana has a thriving ecosystem of decentralized apps, NFT platforms, and Web3 games, which adds to its appeal. It is currently home to some of the most popular coins on the market, including Bonk (BONK) and Dogwifat (WIF).
• Environmental impact: Solana's Proof-of-Work (PoH) and Proof-of-Stake (PoS) models are less power-intensive than traditional Proof-of-Work (PoW) systems used by the likes of Bitcoin.

In the current world, where people care a lot about protecting the environment, cryptocurrencies with a low environmental footprint may be viewed more favorably, and it would make sense for first-time cryptocurrency investors to purchase such currencies.

Ripple (XRP)

Anyone looking for the best cryptocurrency to buy as a beginner should not ignore Ripple (XRP). The currency has been around since 2012 when it was created by Ripple to facilitate fast and cost-effective cross-border transactions.

It has steadily risen to become one of the most prominent digital assets in the cryptocurrency sector, with a current market capitalization of $29 billion.

At $0.5252, XRP is currently the most affordable cryptocurrency for beginners on our list. The current price is a massive 84.6% discount to XRP's all-time high of $3.40, and could serve to drive potential investors towards it.

Other factors that make XRP one of the best cryptocurrencies for beginners include:

• Fast transactions: XRP can handle up to 1,500 transactions per second, making it one of the fastest cryptocurrencies available.
• Low cost: XRP transactions are also cost-effective and do not require high energy consumption, unlike Bitcoin.
• Financial partnerships: Ripple has partnerships with major financial institutions such as MoneyGram and American Express, a factor that has enhanced its credibility and usage.
• Affordability: Trading at a lower price point, XRP is available to beginners with limited capital. This allows for potentially higher returns with a lower initial investment.

Final thoughts

When starting your cryptocurrency investing journey, it is essential to choose assets that offer stability, utility, and growth potential.

Although the list is not exhaustive, Bitcoin, Ethereum, BNB Coin, Solana, and XRP all offer unique advantages that can make them ideal options for beginners.

However, always remember to do your research and consider your risk tolerance before investing in any cryptocurrency. Despite their relative stability, the currencies mentioned above are also subject to periods of volatility, which could wipe out your investment.

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