The world of cryptocurrency is always navigate to this website growing, with new crypto businesses and assets launching every day. With more than 23,000 available cryptocurrencies, you can choose from a near-infinite number of digital assets to buy, trade, hold, and sell.
However, choosing the right cryptocurrency can be challenging if you’re new to the crypto ecosystem. The good news is that there are several tokens and coins that are suitable for beginners.
In this guide, we’ll cover nine of the best cryptocurrencies for beginner traders, as well as how to buy and safely store your assets.
How to Choose Your First Crypto Investment
If you’re considering investing in crypto, you’ve likely already done some risk assessment, come up with a plan for risk management, decided how much capital you are willing to invest, and have an appetite for the volatility of the crypto market.
But when choosing a specific cryptocurrency for your first investment, you can also consider the developers and infrastructure involved, the coin’s market cap, and the liquidity of a particular cryptocurrency.
Bitcoin (BTC)
Bitcoin was the world’s first decentralized, peer-to-peer (P2P) cryptocurrency, developed by an unknown person or organization called Satoshi Nakamoto. With 21 million available Bitcoins in circulation, it’s also the most popular cryptocurrency in the world.
Bitcoin has enjoyed substantial popularity in several countries, including the United States, Japan, El Salvador, Hong Kong, and France, here’s why:
Bitcoin uses cryptographic protocols and DeFi algorithms that make it difficult to counterfeit.
Bitcoin doesn’t require any sensitive information to send payments, reducing the chances of identity fraud.
A third party isn’t required to facilitate transactions, and funds are settled immediately without the risk of chargebacks, unlike credit cards.
Bitcoin can be converted to fiat currencies and retain most of its value, unlike other lesser-known cryptocurrencies.
- Ethereum (ETH)
Ethereum is more than a cryptocurrency—it’s a technology used to power global payments, digital money, and blockchain applications. Because of its versatile structure, Ethereum is the second-most popular cryptocurrency after Bitcoin.
In addition to being a valuable cryptocurrency, Ethereum has its own blockchain network. This means you can create blockchain-based applications through smart contracts. Ultimately, Ethereum allows the development of smart contracts and decentralized applications (dApps) without dealing with:
Third-party control and interference
Excessive downtime
Fraud
- Tether (USDT)
Tether is a cryptocurrency known as a stablecoin. Created by Tether Limited Inc. in 2014, Tether is the largest stablecoin in terms of market capitalization.
Traders can use Tether to transfer between different cryptocurrencies and fiat currencies. Tether is considered to be a reliable and stable cryptocurrency. However, it has been criticized for its lack of transparency about its alleged fiat reserves.
Nonetheless, Tether has received wide acceptance as an industry-leading stablecoin. As such, many investors believe Tether gives them a higher chance of securing profitable trades. The stablecoin’s high liquidity makes it a great investing option for people who want to curb a volatile crypto market.
- Ripple (XRP)
XRP is a cryptocurrency and native token of Ripple. It was created by Chris Larsen and Jed McCaleb back in 2011. XRP is a pre-mined cryptocurrency, meaning that it only has a total supply of 100 billion tokens.
Once this supply is met, no more coins can be mined. This measure prevents Ripple from being affected by inflation, which could reduce the value of its tokens. XRP was developed to compete with Bitcoin’s huge market cap.
Compared to Bitcoin, XRP has:
Faster transaction times
Lower costs
Less energy consumption
- US Dollar Coin (USDC)
US Dollar Coin is a stablecoin, meaning that it’s tied to another asset. In this case, that asset is the U.S. dollar. USDC is a digital asset that has a 1:1 value ratio with the U.S. dollar. Thus, buying a USDC is essentially like buying a digital dollar bill.
Since USDC is backed by tangible assets, they are highly valued by U.S.-regulated financial institutions. Because of its stability and transparency, USDC is considered to be one of the safest digital assets for beginner investors.
If you have low risk tolerance, it may be ideal to invest in USDC and avoid market volatility.
- Solana (SOL)
Solana is an open-source blockchain platform. It was created in 2017 by Anatoly Yakovenko. Solana’s goal is to improve the performance of blockchain technology and simultaneously lower costs.
Solana is similar to Ethereum in design. However, with low transaction fees and high throughput, Solana may be a more scalable blockchain platform. In addition, Solana uses both proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms.
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