Best Cryptocurrency to Invest in for Beginners: A Simple Guide

Do you want to know which 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 overwhelming, especially with so many options available. However, experts suggest that starting with well-established and reputable digital assets can make the process easier.

To help you get started, we've compiled a beginner's guide that highlights five of the best cryptocurrencies for beginners to invest in, considering their stability, market value, and growth potential.

<h2 class="wp-block-heading" id="bitcoin–btc“>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 exceeded $1.35 trillion, a figure that represents more than half of the total cryptocurrency market value.

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

• Wide availability: bitcoin is available on almost all crypto exchanges and many mainstream brokerage platforms, making it a nearly perfect entry cryptocurrency for beginners.
• Growing acceptance: More businesses around the world are accepting btc 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 lifted bitcoin prices, even leading it to reach a new all-time high price of $73,750 on March 14. Some experts have even predicted that the price of bitcoin could surpass $1 million by 2030.

bitcoin's established presence and continued growth make it a great starting point for new cryptocurrency investors. While the price of one bitcoin may be a little high for the average investor, it is possible to purchase smaller portions at much lower prices.

<h2 class="wp-block-heading" id="ethereum–eth“>ethereum (eth)

Although it has a much more modest market capitalization compared to bitcoin, ethereum is a powerhouse among altcoins and an equally excellent option for crypto beginners.

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

For those wondering which crypto is best for beginners, here are some reasons why ethereum should be a strong contender for your first cryptocurrency investment:

• defi domain: As stated above, ethereum is the backbone of many decentralized financial protocols and applications, driving high demand for eth. These applications rely on the ethereum blockchain to function, making eth a crucial part of the dapp and defi spaces.
• High Total Value Locked (TVL): At the time of writing, ethereum holds the majority of the total value locked (TVL) on various networks, indicating its widespread use and trust. TVL refers to the cumulative value of all crypto assets deposited in various defi protocols. By DappRadar, ethereum's current TVL stands at $89.01 billion, a figure that is several times larger than its five largest competitors combined. A high TVL often means that more people are using a platform, which should bode well for the value of eth in the future.
• Smart contracts: ethereum also supports smart contracts, which are self-executing codes with terms written directly into them. This feature enables a wide 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 and the recent upgrade to ethereum 2.0 aims to improve scalability and security.

It means that ethereum should be able to keep up with technological progress in the blockchain industry, which should keep the value of eth at a stable level.

Taking the above into account, deciding on eth for a first cryptocurrency investment should not be a daunting choice.

BNB Coin

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 crypto market.

Here's why you should consider BNB 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 its 2017 ICO and has seen significant appreciation since then. At the time of writing, BNB was priced at over $645 and had 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 limited supply because it will create scarcity, which, over time, could help increase the value of the coin.
• Utility tab– BNB offers discounted transaction fees on the Binance Exchange and is used on 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 improve their returns.

Beyond trading, BNB serves as the primary currency for Binance's decentralized exchange, Binance DEX. Users can trade cryptocurrencies without custody, maintaining full control over their assets.

BNB is also integrated into Binance's decentralized lending platform, Binance Lending, where users can lend and borrow cryptocurrencies while earning interest. Additionally, 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 an ecosystem as dynamic and expansive as Binance's should help safeguard the value of BNB in ​​the long term, possibly making it one of the best cryptocurrencies to buy now for beginners.

Solana (SUN)

Another coin that could potentially be among the best cryptocurrency investments for beginners is Solana (SOL). Its price behavior over the last year has been generally positive, with the currency's value increasing by more than 660% in that time, for data from CoinGecko.

The Solana blockchain also boasts several features that should ensure SOL's growing reputation in the cryptocurrency market and further establish it as one of the largest coins by capitalization:

• Speed ​​and profitability: Solana uses a unique proof of history (PoH) mechanism, allowing it to process up to 50,000 transactions per second at a fraction of the cost of ethereum.
• Scalability: Solana's high performance and low fees also make it an attractive platform for both dapp developers and users.
• 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 consume less energy than traditional proof-of-work (PoW) systems used by companies like bitcoin.

In today's world, where people care a lot about protecting the environment, cryptocurrencies with reduced ecological footprints may be viewed more favorably, and it would make sense for first-time cryptocurrency investors to purchase such coins.

Ripple (XRP)

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

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

Priced 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 price of $3.40 and could serve to push potential investors towards it.

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

• Quick 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 profitable and do not require high energy consumption, unlike bitcoin.
• Financial associations: Ripple has partnerships with major financial institutions such as MoneyGram and American Express, a factor that has boosted its credibility and usage.
• Affordability: Trading at a lower price, 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 journey into cryptocurrency investing, it is essential to choose assets that offer stability, utility, and growth potential.

While not an exhaustive list, bitcoin, ethereum, BNB Coin, Solana, and XRP offer unique advantages that can make them ideal options for beginners.

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

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