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

Want to know which are the best coins to invest for beginners? Read our guide to reputable cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and more.

Dipping your toes into cryptocurrency can be overwhelming, especially when there are so many options. However, experts suggest that starting with well-established and reputable digital assets can make the process smoother.

To help you get started, we’ve compiled a beginner-friendly guide that highlights the five best cryptocurrencies for beginners to invest in, considering their stability, market cap, 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 cap exceeded $1.35 trillion; This figure represents more than half of the value of the entire crypto market.

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

Widespread availability: Bitcoin is available on almost all crypto exchanges and many traditional brokerage platforms, making it an almost perfect gateway cryptocurrency for beginners. Increasing acceptance: More and more businesses around the world are accepting BTC for transactions, and it is even accepted 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 pushed Bitcoin prices even higher, even reaching an all-time high price of $73,750 on March 14. He predicted that the price of Bitcoin could rise above one million dollars by 2030.

Bitcoin’s well-established presence and continued growth make it an excellent starting point for new crypto investors. While the price of one Bitcoin may be a bit high for the average investor, it is possible to purchase smaller amounts of Bitcoin at much lower prices.

Ethereum (ETH)

Despite having a much more modest market cap compared to Bitcoin, Ethereum is a powerhouse among altcoins and is a similarly great option for crypto newbies.

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

For those wondering which crypto is best for beginners, here are a few reasons why Ethereum is a strong contender for your first crypto investment.

Defi dominance: As mentioned earlier, Ethereum is the backbone of many decentralized finance protocols and applications, which drives the high demand for ETH. The operation of these applications is based on Ethereum’s blockchain, making ETH an important part of the dapp and defi spaces. High total value locked (TVL): As of this writing, Ethereum holds the largest portion of total value locked (TVL) across various networks, indicating its widespread use and trust. TVL refers to the cumulative value of all crypto assets deposited into various defi protocols. According to DappRadar, Ethereum’s current TVL stands at $89.01 billion, which is several times more than its five largest competitors combined. A high TVL generally means more people are using a platform, which bodes well for the value of ETH going forward. Smart contracts: Ethereum also supports smart contracts, which are self-executing codes into which conditions are written directly. This feature allows for a wide range of decentralized applications and has made Ethereum one of the most popular dapp hosting blockchains. Continuous development: The Ethereum network is constantly being improved, with the latest upgrade to Ethereum 2.0 aiming to increase scalability and security.

This means that Ethereum must be able to keep up with technological progress in the blockchain industry and keep the value of ETH at a stable level.

Considering the above, deciding on ETH for your first crypto investment shouldn’t be a daunting choice.

BNB Coin

BNB Coin, the native cryptocurrency of the Binance ecosystem, is another option when purchasing crypto 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 crypto market.

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

Consistent performance: Stability is key to any investment, and despite the volatility in the crypto market, BNB has shown consistent growth over the years. It was initially priced at $0.15 during the 2017 ICO and has since gained significant value. At the time of this writing, BNB was priced at over $645 and had a market cap of $99.3 billion, making it the third-largest non-stablecoin cryptocurrency on the market. Controlled supply: With a maximum supply of 200 million and the current circulating supply of approximately 156 million, the value of BNB should benefit from this limited supply as this will create scarcity over time, which can help increase the value of the coin. Utility token: BNB offers trading fee discounts on Binance Exchange and is used across multiple blockchains in the Binance ecosystem. It facilitates trading on the Binance exchange, allowing users with BNB to benefit from discounted trading fees. Additionally, it can be used as collateral for margin trading, allowing users to capitalize on their positions and potentially increase their returns.

Beyond trading, BNB serves as the primary currency for Binance DEX, Binance’s decentralized exchange. Users can buy and sell cryptocurrencies unattended, maintaining full control over their assets.

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

All of these use cases in an ecosystem as dynamic and broad as Binance’s will help maintain BNB’s value over the long term, arguably making it one of the best cryptos to buy now for beginners.

Solana (LEFT)

Another cryptocurrency that could potentially be among the best crypto investments for beginners is Solana (SOL). According to data from CoinGecko, price performance last year was generally positive, with the coin’s value increasing by more than 660% in that period.

Solana one-year price chart | Source: CoinGecko

Solana blockchain also has several features that will increase SOL’s reputation in the crypto market and make it one of the largest coins by large cap:

Speed ​​and cost efficiency: Solana uses a unique proof-of-history (PoH) mechanism that allows 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 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 increasing its appeal. It currently hosts 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 consume less energy than traditional proof-of-work (PoW) systems used by the likes of Bitcoin.

In today’s world, where people attach great importance to environmental protection, cryptocurrencies with reduced ecological footprints may be received more positively, and it would make sense for first-time crypto investors to purchase such coins.

Ripple (XRP)

Anyone looking for the best crypto to buy as a beginner should not overlook Ripple (XRP). The coin has been around since 2012, when Ripple created it to facilitate fast and affordable cross-border transactions.

With a current market valuation of $29 billion, it has become one of the most prominent digital assets in the crypto industry.

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

XRP One year price chart | Source: CoinGecko

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

Fast transactions: XRP can process 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 increases its reliability and usage. Affordable Price: 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 you begin your cryptocurrency investment journey, it is crucial to choose assets that offer stability, utility, and growth potential.

While not an exhaustive list, Bitcoin, Ethereum, BNB Coin, Solana, and XRP each offer unique advantages that can make them ideal choices for beginners.

But remember to always do your own research and consider your risk tolerance before investing in any cryptocurrency. Despite their relative stability, the cryptocurrencies mentioned above are also prone to periods of volatility that can destroy your investment.

FAQ What are the best places to buy crypto for beginners?

There are various platforms where beginners can purchase cryptocurrencies, such as Coinbase, Binance, and Kraken. These platforms are user-friendly and offer a variety of cryptocurrencies. However, you should remember that investing in crypto carries risks. Always do your own research and consider seeking advice from a financial advisor.

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

The best way to invest in cryptocurrency for beginners is to generally buy and hold a diversified portfolio of cryptocurrencies for the long term, regardless of short-term price fluctuations. However, it is important that you only invest the amount you can afford to lose and that you conduct thorough research or seek professional advice before investing. Remember, the value of investments can go down as well as up.