The best crypto to invest in for beginners: a simple guide
Want to know what 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 feel overwhelming, especially with so many options out there. However, experts suggest that starting with well-established and reputable digital assets can make the process smoother.
To help you get started, we have compiled a beginner-friendly guide highlighting five of the best cryptocurrencies for beginners to invest in, considering their stability, market value, and potential for growth.
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 representing over half of the entire crypto market’s value.
First-time crypto investors should consider Bitcoin as an investment option because of the following reasons:
Bitcoin’s established presence and continuous growth make it an excellent starting point for new crypto investors. While the price of one Bitcoin might be a bit high for the average investor, it is possible to buy smaller portions of it for much lower prices.
Although having a much more modest market capitalization compared to Bitcoin, Ethereum is a powerhouse among altcoins and a similarly great option for crypto beginners.
Technically known as Ether, this cryptocurrency is the second largest by market cap and has a significant role in both the decentralized finance (defi) and decentralized applications (dapps) ecosystems.
For those wondering which crypto is best for beginners, here are a few reasons why Ethereum should be a strong contender for your first crypto investment:
It means Ethereum should be able to keep up with technological progress in the blockchain industry, which should keep the value of ETH at a steady level.
With the above in mind, settling on ETH for a first crypto investment should not be a daunting choice to make.
BNB Coin, the native cryptocurrency of the Binance ecosystem, is another choice when buying 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:
Beyond trading, BNB serves as the primary currency for Binance’s decentralized exchange, Binance DEX. Users can trade cryptocurrencies in a non-custodial manner, maintaining complete 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. Furthermore, BNB can be used to pay transaction fees on the Binance Smart Chain (BSC), a high-performance blockchain developed by Binance.
All these use cases in an ecosystem as dynamic and expansive as Binance’s should help safeguard BNB’s value in the long term, arguably making it one of the best crypto to buy now for beginners.
Another coin that could potentially be among the best crypto investments for beginners is Solana (SOL). Its price performance over the last year has generally been positive, with the coin’s value increasing by more than 660% in that time, per data from CoinGecko.
The Solana blockchain also boasts several features that should ensure SOL’s growing reputation in the crypto market and establish it further as one of the largest coins by capitalization:
In the current world, where people are big on environmental protection, cryptocurrencies with reduced ecological footprints may be viewed more favorably, and it would make sense for first-time crypto investors to buy such coins.
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 cost-effective cross-border transactions.
It has steadily risen to become one of the most prominent digital assets in the crypto sector, with a current market valuation of $29 billion.
Priced at $0.5252, XRP is currently the most affordable crypto for beginners on our list. The current price is a whopping 84.6% discount on XRP’s all-time high price of $3.40 and could serve to nudge prospective investors towards it.
Other factors that make XRP one of the best cryptos for beginners include:
When starting your journey into cryptocurrency investment, it’s essential to choose assets that offer stability, utility, and potential for growth.
While not an exhaustive list, Bitcoin, Ethereum, BNB Coin, Solana, and XRP each provide unique advantages that can make them ideal choices 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 coins mentioned above are also prone to periods of volatility, which could wipe out your investment.
There are several platforms where beginners can buy cryptocurrencies, such as Coinbase, Binance, and Kraken. These platforms are user-friendly and offer a variety of cryptocurrencies. However, you must remember that investing in crypto carries risk. Always do your own research and consider seeking advice from a financial advisor.
The best way to invest in cryptocurrency for beginners is often buying and holding a diversified portfolio of cryptocurrencies for the long term, regardless of short-term price fluctuations. However, it’s important to only invest what you can afford to lose and to do thorough research or seek professional advice before investing. Remember, the value of investments can go down as well as up.