Best Cryptocurrencies for Beginners: A Simple Guide

Want to know what coins are best for beginners to invest in? Read our guides on reputable cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and more.

Dipping your toes into cryptocurrency can feel overwhelming. Especially since there are so many options. However, experts suggest that starting with a well-established and reputable digital asset can make the process smoother.

To help you get started, we’ve put together a beginner-friendly guide that highlights the five best cryptocurrencies for beginners to invest in, taking into account 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 capitalization exceeded $1.35 trillion, accounting for 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 cryptocurrency exchanges and many existing brokerage platforms, making it almost the perfect gateway cryptocurrency for beginners.
• Increased water solubility: More and more businesses around the world are accepting BTC for transactions, and countries such as El Salvador and the Central African Republic (CAR) are also recognizing it as legal tender.
• strong growth potential: Recent developments, such as the launch of a spot Bitcoin exchange-traded fund (ETF), have boosted the price of Bitcoin, even hitting an all-time high of $73,750 on March 14. Some experts believe that the Bitcoin price could surpass $1 million by 2030.

Bitcoin’s established presence and continued growth make it a great starting point for new cryptocurrency investors. The price of one Bitcoin may be slightly high for the average investor, but smaller portions can be purchased for a much lower price.

Ethereum (ETH)

Although it has a much smaller market capitalization than Bitcoin, Ethereum is a powerhouse among altcoins and is an equally great option for cryptocurrency beginners.

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

If you’re wondering which cryptocurrency is best for beginners, here are some reasons why Ethereum should be a strong contender for your first cryptocurrency investment.

• DeFi dominance: As mentioned earlier, Ethereum is the backbone of many decentralized finance protocols and applications, which drives demand for ETH. These applications operate using Ethereum’s blockchain, making ETH an important part of the dapp and defi space.
• High Total Value Locked (TVL): At the time of this writing, Ethereum holds the largest portion of total value locked (TVL) across various networks, indicating widespread usage and trust. TVL represents the cumulative value of all cryptocurrency assets deposited in various DeFi protocols. According to DappRadar, Ethereum’s current TVL stands at $89.01 billion, several times more than its five largest competitors combined. A high TVL often means more people are using the platform, which should bode well for ETH’s value going forward.
• smart contract: Ethereum also supports smart contracts, which are self-executing code 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 Dapp hosting blockchains.
• continuous development: The Ethereum network is continuously improving, having recently been upgraded to Ethereum 2.0 with the goal of strengthening scalability and security.

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

With the above in mind, deciding to make your first cryptocurrency investment in ETH shouldn’t be a difficult choice.

BNB Coin

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

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

Here’s why you should consider BNB among the best cryptocurrencies for beginners in 2024.

• stable performance: Stability is the key to any investment, and despite the volatility of the cryptocurrency market, BNB has shown steady growth over the years. It was initially priced at $0.15 during its ICO in 2017 and has seen a significant rise since then. As of this writing, BNB’s price is over $645 and its market cap is $99.3 billion, making it the third-largest non-stablecoin cryptocurrency on the market.
• controlled supply: With a maximum supply of 200 million and a current circulating supply of approximately 156 million, the value of BNB will benefit from this limited supply. This is because it can create scarcity that can help increase the value of the coin over time.
• utility token: BNB provides trading fee discounts on the Binance exchange and is used on several blockchains within the Binance ecosystem. Facilitates trading on the Binance exchange, allowing users holding BNB to enjoy discounted trading fees. It can also be used as collateral for margin trading, allowing users to leverage their positions and potentially improve profits.

In addition to trading, BNB serves as the base currency on Binance DEX, Binance’s decentralized exchange. Users can trade cryptocurrencies non-custodially while maintaining full control of their assets.

BNB is also integrated into Binance’s decentralized lending platform, Binance Lending, which allows users to 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 help protect the value of BNB in ​​the long term, making it arguably one of the best cryptocurrencies for beginners to buy right now.

Solana (SUN)

Another coin that could be the best cryptocurrency investment for beginners is Solana (SOL). Data from CoinGecko shows that price-performance over the past year has been generally positive. During that period, the coin’s value increased by more than 660%.

The Solana blockchain also boasts several features that will enhance SOL’s reputation in the cryptocurrency market and position it as one of the largest coins by capitalization.

• Speed ​​and cost-effectiveness: Using a unique Proof of History (PoH) mechanism, Solana can process up to 50,000 transactions per second at a fraction of the cost of Ethereum.
• scalability: Solana is an attractive platform for both dapp developers and users due to its high throughput and low fees.
• Ecosystem growth: Solana has an active ecosystem consisting of dapps, NFT platforms, and Web3 games, which further enhances 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 existing proof-of-work (PoW) systems used by Bitcoin and others.

In today’s world, where people are very concerned about protecting the environment, cryptocurrencies with a reduced ecological footprint 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 coin has been around since 2012, when Ripple created it to facilitate fast and cost-effective cross-border transactions.

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

With a price of $0.5252, XRP is currently the cheapest cryptocurrency for beginners on our list. The current price is a whopping 84.6% discount to XRP’s all-time high of $3.40 and could help attract potential investors to XRP.

Other factors that make XRP the best cryptocurrency for beginners include:

• fast transaction: XRP can process up to 1,500 transactions per second, making it one of the fastest cryptocurrencies.
• low cost: XRP transactions are cost-effective and, unlike Bitcoin, do not require high energy consumption.
• financial partnership: Ripple has partnerships with major financial institutions such as MoneyGram and American Express, increasing its reliability and usage.
• Economics: Trading at lower prices, XRP is accessible even to beginners with limited capital. This allows you to potentially earn higher returns with a lower initial investment.

final thoughts

When beginning your cryptocurrency investment journey, it is important to choose assets that offer stability, utility, and growth potential.

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

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

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