What Are Cryptocurrencies?
Cryptocurrency is a digital form of currency that enables online transactions without the need for intermediaries like banks. It can serve as both a means of payment and an investment opportunity. More than 20,000 cryptocurrencies are registered till December 2023, but this article will discuss the 12 best crypto for beginners.
How Does Cryptocurrency Work?
Cryptocurrencies operate on blockchain technology, providing a “trustless” environment without a central authority overseeing transactions.
Finding the Best Crypto for Beginners
Market capitalization, liquidity, community support, technology, and use-case scenarios determine a good starting point for beginners. Stay informed with cryptocurrency news to grasp market trends and fluctuations. Some of the best crypto for beginners are listed below:
Bitcoin (BTC)
Market Cap: $852.04 billion
Bitcoin, created in 2009 by Satoshi Nakamoto, is the pioneer in the cryptocurrency realm. Operating on blockchain technology, it employs a proof-of-work process for transaction security. With a staggering growth of 8,244% since May 2016, Bitcoin’s current price stands at approximately $45,579. Bitcoin has become the best crypto for beginners due to its market dominance. It will surely give you a good profit.
Ethereum (ETH)
Market Cap: $273.98 billion
Ethereum, a cryptocurrency and blockchain platform, is renowned for its smart contracts and NFT applications. Experiencing phenomenal growth, its price surged from about $11 in April 2016 to around $2,279.43 by December 2023, marking an increase of 20,054%. Because of its market dominance, Ethereum has become the second best crypto for beginners. Without a doubt, you’ll make a healthy profit.
Tether (USDT)
Market Cap: $91.28 billion
As a stablecoin, Tether (USDT) maintains value parity with fiat currencies, providing relative stability compared to other cryptocurrencies. It is backed by U.S. dollars and the Euro, with a market cap of $91.28 billion.
Solana (SOL)
Market Cap: $52.77 billion
Geared towards powering DeFi, DApps, and smart contracts, Solana utilizes a unique proof-of-stake and proof-of-history mechanism. Starting at $0.77 in 2020, SOL’s price reached around $124.31 by December 2023, showcasing a remarkable gain of 16,004.55%. Recently, a huge increase in the price of Solana made it the best crypto for beginners to invest.
Binance Coin (BNB)
Market Cap: $40.37 billion
Originally designed for Binance’s exchange platform, Binance Coin (BNB) has evolved into a versatile cryptocurrency. From its launch at $0.10 in 2017, BNB’s price has soared to approximately $266.68 by December 2023, marking an astounding gain of 253,440%. The huge market gain makes it one of the best crypto for beginners.
Ripple (XRP)
Market Cap: $34.25 billion
Developed by the founders of Ripple, XRP facilitates exchanges across different currency types. Starting at $0.006 in 2017, its price reached $0.63 by December 2023, marking a significant rise of 10,277%.
U.S. Dollar Coin (USDC)
Market Cap: $25.06 billion
USDC is backed by U.S. dollars as another stablecoin, aiming for a 1:1 ratio. Powered by Ethereum, USDC facilitates global transactions and boasts a market cap of $25.06 billion.
Cardano (ADA)
Market Cap: $22.02 billion
Cardano stands out for its early adoption of proof-of-stake validation, reducing transaction time and energy consumption. ADA, Cardano’s native coin, has experienced growth from $0.02 in 2017 to $0.62 by December 2023, marking a rise of 2,886%, making it the best crypto for beginners.
Avalanche (AVAX)
Market Cap: $22.02 billion
Avalanche has fast transaction speeds, low fees, and a substantial total value locked (TVL) in DeFi. A high TVL indicates the protocol’s popularity and the cryptocurrency’s adaptation rate.
Dogecoin (DOGE)
Market Cap: $13.41 billion
Initially created as a joke in 2013, Dogecoin gained prominence due to its dedicated community. With no limit on its creation, Dogecoin’s price surged from $0.0002 in 2017 to $0.10 by December 2023, marking an impressive increase of 48,010%.
Shiba Inu (SHIB)
Market Cap: $6.46 billion
Shiba Inu (SHIB) has swiftly gained popularity as a meme-inspired ERC20 token in the cryptocurrency community. Positioned as a relatively low-cost investment, SHIB holds the potential for significant returns. However, prudent investors must conduct thorough research before considering this investment opportunity. As the price of Shiba Inu is very low, your small investment will make you a good profit if it performs well in the market. So, that makes it the best crypto for beginners.
Polygon (MATIC)
Market Cap: $8.58 billion
Polygon (MATIC) is a prominent blockchain platform designed to empower developers to create decentralized applications (DApps). Noteworthy for its rapid transaction speeds and nominal fees, MATIC offers an attractive option for beginners seeking entry into the blockchain industry without substantial financial commitments.
Note: Market caps and pricing sourced from coinmarketcap.com, current as of 07:01 p.m. UTC on Dec. 25, 2023.
Conclusion
In summary, cryptocurrency offers a bounty of opportunities for beginners. By considering factors like security, ease of use, long-term potential, and conducting due diligence, beginners can make wise choices and embark on a fulfilling crypto journey.
Frequently Asked Questions (FAQs)
Which is the best crypto for beginners?
For beginners, the most advisable cryptocurrencies are those ranked within the top 50 in the market. Recognizing that these top coins boast significant trading volumes, which can contribute to favorable returns, is crucial. However, prudent decision-making should always be informed by a thorough analysis of market trends before finalizing any investment choices.
Should beginners get exposure to cryptocurrencies?
Yes, beginners should consider allocating some portion of their portfolio to cryptocurrencies. It diversifies the investment portfolio and contributes to a more democratic financial ecosystem.
Which crypto coins should a beginner buy?
Beginning with cryptocurrencies such as Bitcoin and Ethereum, which boast large market capitalization and strong demand, beginners are advised to start with cryptocurrencies.
What should beginners do during bearish markets?
For beginners yet to invest in cryptocurrencies, bearish markets present opportunities to enter at potentially lower prices. Existing crypto holders should avoid panic, focusing on holding their investments as long as financially feasible.
What is the best place for beginners to store crypto?
Regarding safeguarding your cryptocurrencies, crypto wallets stand out as the premier choice. Discover the epitome of secure storage and explore comprehensive insights into the best crypto wallets. Elevate your understanding of cryptocurrency storage and ensure the safety of your digital assets.
