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

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The article provides an overview of five cryptocurrencies that are considered good options for beginners in the crypto market. These coins are Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Ripple (XRP). Each coin has unique features, such as speed and cost efficiency, scalability, growing ecosystem, environmental impact, fast transactions, low cost, financial partnerships, and affordability. These coins offer stability, utility, and potential for growth. However, it’s important to remember that investing in crypto carries risk, and beginners should do their own research and consider their risk tolerance before investing. Additionally, the article answers some frequently asked questions about buying crypto for beginners.

For those new to investing in cryptocurrencies, discover which top-tier options, including Bitcoin (BTC) and Ethereum (ETH), are worth considering. Check out our comprehensive guide.

Beginning your journey into cryptocurrencies might seem intimidating given the multitude of choices available. Yet, seasoned advisors recommend commencing with trusted and renowned digital currencies to facilitate a more effortless experience.

For those just starting out, here’s a user-friendly guide featuring five top cryptocurrencies recommended for new investors. These selections are based on factors such as stability, current market worth, and prospects for future expansion.

Table of Contents

Bitcoin (BTC)

I, as an analyst, would put it this way: With a market capitalization surpassing $1.35 trillion as of June 4, 2024, Bitcoin holds the title of being the oldest and most valuable cryptocurrency available today. This significant value makes it an attractive option for beginners looking to invest in the crypto market. In fact, more than half of the entire crypto market’s worth is attributed to Bitcoin alone.

As a newcomer to crypto investing, I strongly recommend considering Bitcoin as part of your investment portfolio for several compelling reasons.

    Widespread availability: Bitcoin is available on nearly all crypto exchanges and many conventional brokerage platforms, making it a near-perfect gateway cryptocurrency for beginners.
    Growing acceptance: More businesses around the world are accepting BTC for transactions, and it’s 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 driven Bitcoin prices higher, even leading to it hitting a new all-time high price of $73,750 on March 14. Some experts have even predicted that the price of Bitcoin could reach over a million dollars by 2030.

As a researcher exploring the world of cryptocurrencies, I would argue that Bitcoin’s solid foundation and ongoing expansion make it an ideal starting point for new investors in this field. Although the cost of a single Bitcoin might be out of reach for some, purchasing smaller fractions of it provides more affordable entry points into this exciting market.

Ethereum (ETH)

Despite having a smaller market value than Bitcoin, Ethereum stands out as a formidable contender amongst alternative cryptocurrencies and an equally attractive choice for newcomers to the crypto world.

As a researcher delving into the intricacies of the cryptocurrency world, I can tell you that Ethereum, which is commonly referred to as Ether, holds the second-largest market capitalization in this domain. Its influence extends beyond the realms of mere digital currency, as it plays pivotal roles in both the Decentralized Finance (DeFi) and Decentralized Applications (dApps) ecosystems.

If you’re pondering which cryptocurrency is ideal for newcomers, consider giving Ethereum serious consideration as your initial crypto investment. Here’s why:

    Defi dominance: As stated previously, Ethereum is the backbone for many decentralized finance protocols and applications, which drives a high demand for ETH. These applications rely on Ethereum’s blockchain to operate, making ETH a crucial part of the dapp and defi spaces.
    High total value locked (TVL): As of the time of this writing, Ethereum holds the largest portion of the total value locked (TVL) in various networks, indicating its widespread use and trust.  TVL refers to the cumulative value of all the crypto assets deposited in various defi protocols. Per DappRadar, Ethereum’s current TVL stands at $89.01 billion, a figure that is several times more than those of its five biggest competitors combined. A high TVL often means that more people are using a platform, which should bode well for the value of ETH going forward.
    Smart contracts: Ethereum also supports smart contracts, which are self-executing codes with terms written directly into them. This feature allows for a broad range of decentralized applications and has made Ethereum one of the most popular dapp-hosting blockchains. 
    Continuous development: The Ethereum network is continually being improved, with the recent upgrade to Ethereum 2.0 aiming to enhance scalability and security. 

As a blockchain analyst, I would interpret this statement as follows: I believe that for Ethereum to maintain its value and relevance in the rapidly evolving blockchain industry, it is essential that Ethereum continues to advance technologically. This progress will help ensure a stable value for Ether (ETH).

Considering the context, selecting Ethereum as your initial cryptocurrency investment isn’t a difficult decision to reach.

BNB Coin

For newcomers looking to purchase cryptocurrencies, BNB Coin serves as a viable alternative within the Binance platform.

As a market analyst, I’d rephrase it this way: Although it doesn’t boast the same renowned status as the first two cryptocurrencies mentioned, it has steadily earned its significance within the wider crypto sphere.

Here’s why you should consider BNB among the best cryptocurrency for beginners in 2024:

    Stable performance: Stability is key for any investment, and despite the crypto market’s volatility, BNB has shown consistent growth over the years. It was initially priced at $0.15 during its 2017 ICO and has seen significant appreciation since then. At the time of writing, BNB was priced at more than $645 and had a market cap of $99.3 billion, making it the third-largest non-stablecoin cryptocurrency in 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 capped supply because it will create scarcity, which, over time, could help drive up the coin’s value.
    Utility token: BNB offers transaction fee discounts on the Binance Exchange and is used across multiple blockchains within the Binance ecosystem. It facilitates trading on the Binance exchange, allowing users who hold BNB to enjoy discounted trading fees. Additionally, it can be used as collateral for margin trading, allowing users to leverage their positions and potentially enhance their returns.

In addition to being used for trading, Binance’s native token BNB plays a significant role as the main currency in Binance Decentralized Exchange (DEX). By using this platform, traders can execute cryptocurrency transactions without relinquishing asset custody, preserving full control over their holdings.

BNB has multiple uses within the Binance ecosystem. It can be employed in Binance Lending, Binance’s decentralized lending platform, where users can lend or borrow cryptocurrencies while gaining interest. Additionally, BNB serves as a means to cover transaction fees on the Binance Smart Chain (BSC), a high-performance blockchain created by Binance.

As a crypto investor, I firmly believe that the diverse range of use cases within the Binance ecosystem significantly enhances its long-term value. These applications not only expand the platform’s potential but also serve as a protective factor for BNB. Therefore, for those just starting in crypto investing, I would strongly consider adding BNB to your portfolio.

Solana (SOL)

For those new to cryptocurrency investing, Solana (SOL) is another promising option to consider. According to information from CoinGecko, its price has seen substantial growth over the past year, surging by over 660%.

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

As a researcher studying the cryptocurrency market, I’ve discovered that the Solana blockchain offers several noteworthy characteristics that are contributing to its growing popularity and solidifying its position among the top coins by market capitalization. Some of these features include:

    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 dapp developers and users alike.
    Growing ecosystem: Solana has a thriving ecosystem of dapps, NFT platforms, and Web3 games, further enhancing its appeal. It is currently home to some of the most popular meme coins on the market, including Bonk (BONK) and Dogwifhat (WIF).
    Environmental impact: Solana’s PoH and proof-of-stake (PoS) models are less energy-intensive than traditional proof-of-work (PoW) systems used by the likes of Bitcoin. 

As a analyst focusing on the cryptocurrency market, I would emphasize the growing importance of environmental consciousness in today’s society. With increasing awareness of the ecological impact of certain cryptocurrencies, coins that boast a smaller carbon footprint are becoming increasingly attractive to investors. For those new to crypto investing, it is a wise choice to consider these eco-friendly options as part of your investment strategy.

Ripple (XRP)

For newcomers seeking top-tier cryptocurrencies, consider giving Ripple (XRP) a closer look. Launched in 2012 by Ripple Labs, this coin was designed to streamline international money transfers through swift and affordable processes.

The value of this digital asset has gradually increased, making it one of the most significant players in the cryptocurrency industry, currently worth $29 billion.

At a cost of $0.5252, XRP presents an affordable option for newcomers in the crypto market. This represents a substantial discount of 84.6% compared to its all-time high price of $3.40, making it an enticing prospect for potential investors.

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

Other factors that make XRP one of the best cryptos 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 like MoneyGram and American Express, a factor that has boosted its credibility and usage.
    Affordability: Trading at a lower price point, XRP is accessible to beginners with limited capital. This allows for potentially higher returns with a lower initial investment.

Final thoughts

As a cryptocurrency analyst, I would advise you to select coins that provide a solid foundation, serve practical purposes, and possess the capacity for significant expansion when embarking on your crypto investing adventure.

Among other options, Bitcoin, Ethereum, Binance Coin (BNB), Solana, and Ripple (XRP) offer distinct benefits that make them suitable contenders for newcomers to the cryptocurrency market.

It’s important to keep in mind that while the following cryptocurrencies have shown some level of stability, they still carry risk due to their volatile nature. Therefore, it’s crucial to conduct thorough research and assess your own risk tolerance before making any investment decisions.

FAQs

What are the best places to buy crypto for beginners?

For those new to the world of cryptocurrencies, there exist multiple accessible buying options, including Coinbase, Binance, and Kraken. These sites are known for their user-friendliness and extensive cryptocurrency offerings. Yet, it’s crucial to keep in mind that investing in crypto involves inherent risks. Thoroughly research each opportunity and consider consulting a financial advisor before making any decisions.

What is the best way to invest in cryptocurrency for beginners?

For newcomers to cryptocurrency investment, a common recommended strategy is purchasing and maintaining a varied collection of digital currencies for extended periods, disregarding temporary market swings. However, it’s crucial to invest only disposable funds and conduct extensive research or consult experts before making any investments. Keep in mind that the worth of investments may decrease as well as increase.

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2024-06-06 23:23