What Cryptocurrencies to Buy for Beginners

For beginners, it's essential to start with cryptocurrencies that have a strong track record of stability and growth. Bitcoin is a popular choice, having been around since 2009 and widely accepted as a form of payment.

One of the most well-established cryptocurrencies is Ethereum, which has a large and active community of developers working on its ecosystem. It's also the second-largest cryptocurrency by market capitalization.

If you're new to cryptocurrency investing, it's crucial to start small and diversify your portfolio to minimize risk. Consider investing in a mix of established cryptocurrencies like Bitcoin and Ethereum.

Cryptocurrencies come in a variety of forms, each with its own unique characteristics and uses.

There are several types of cryptocurrencies, including Bitcoin, which is the most well-known and widely accepted, and Ethereum, which is known for its smart contract capabilities.

Altcoins, such as Litecoin and Dogecoin, offer faster transaction processing times and lower fees compared to Bitcoin.

Consider the developers and infrastructure involved in a cryptocurrency, as a strong developer can make a big difference in the asset's success.

Look for founders who have a history of successfully bringing other software ventures or digital assets to market, and have a track record of ethical business practices.

A cryptocurrency's market cap is its total value, which can increase if more coins are mined or if the price of each coin goes up.

Large market caps generally mean a more stable, slower-moving investment, although all cryptocurrencies see volatility.

Consider liquidity, which refers to the ease of buying and selling a currency. Currencies with more traders, frequent trades, and support across various reputable exchanges will be easier to move and may be a more stable investment.

A strong developer, large market cap, and good liquidity can all contribute to a more stable and successful investment.

Altcoins are a diverse group, but some key characteristics can help you identify the best ones for your portfolio.

Look for altcoins with a strong developer, someone who has successfully brought other software ventures or digital assets to market and has a history of ethical business practices.

A large market cap generally means a more stable, slower moving investment, though all cryptocurrencies see volatility, especially compared to the largest market cap stocks.

Currencies with more traders, more frequent trades, and support across a range of reputable exchanges will be easier to move and may be a more stable investment.

Consider investing in altcoins with a strong developer, a large market cap, and high liquidity.

Tokens come in various forms, each serving a unique purpose. They're not just meant to be used as money, but rather to represent a stake in a project or provide a specific function.

One example of a token is a security token, which is linked to the value of a company or project, similar to stocks. Tokens like Storj and Namecoin have a particular use case, allowing people to share files across a decentralized network or providing a decentralized Domain Name System (DNS) service.

Smart Contract Platform tokens, on the other hand, are used to pay for the costs of using a network, similar to tolls on a highway. They're paid by users to the participants responsible for maintaining the network, in return for access to applications and services.

Infrastructure tokens, like Cosmos and Polkadot, focus on interoperability, linking multiple blockchains or projects together. They're considered a type of Smart Contract Platform token.

Utility tokens, like Binance's BNB token, can be used to pay for products or services on a network. They can also function as a reward to users for contributing to the network or unlock a network's utility.

Polkadot (Dot) is a decentralized platform that enables interoperability between different blockchain networks. It allows for the transfer of assets and data between these networks, creating a more connected and seamless experience for users.

Polkadot was founded in 2017 by a team of experienced developers, including Dr. Gavin Wood, who also co-founded Ethereum. They aimed to create a platform that would enable the integration of different blockchains, increasing their usability and versatility.

Polkadot's native cryptocurrency is called DOT, and it's used to secure the network and participate in governance decisions. The total supply of DOT is capped at 1 billion, with a portion allocated to the foundation and the rest available for public sale.

Polkadot's architecture is based on a novel consensus algorithm called NPoS (Nominated Proof of Stake), which offers a more energy-efficient and scalable solution compared to traditional proof-of-work algorithms. This allows for faster transaction processing and lower fees.

A crypto wallet is a digital storage space for your cryptocurrencies, similar to a traditional wallet for cash. It's where you hold your virtual assets.

There are two main types of crypto wallets: hot wallets and cold wallets. Hot wallets are connected to the internet, making it easy to transfer funds quickly and access your money online.

Cold wallets, on the other hand, store your cryptocurrencies offline in physical devices like specially designed USBs. This type of storage is considered safer and more secure for long-term storage.

You can choose between a hot wallet and a cold wallet based on your needs. If you're an active trader, a hot wallet might be the better choice. If you're looking for a safer, more secure storage option, a cold wallet could be the way to go.

Ethereum is the second largest cryptocurrency after Bitcoin, represented by the Ether token, and it supports an array of different applications and digital assets, such as non-fungible tokens.

Ethereum functions in a similar way to Bitcoin and other cryptocurrencies, but it switched to a greener operating system in 2022 requiring less computers and energy.

This change makes Ethereum a more sustainable option for investors looking to reduce their environmental impact.

Bitcoin (BTC) is a peer-to-peer decentralized digital currency that allows users to transact with each other without an intermediary or third party. This is made possible through its revolutionary blockchain technology.

Bitcoin's digital nature makes it easy to transfer globally, and the cost of sending it across borders is often much lower than international bank transfers. In many unbanked countries, Bitcoin is the preferred method of sending remittances due to its low cost and ease of use.

Bitcoin's limited supply of 21 million coins means it's also used as a store of value, earning it the nickname "digital gold." This comparison is due to its fixed supply schedule and scarcity.

Bitcoin's popularity can be seen in countries like the United States, Japan, El Salvador, Hong Kong, and France. Here are some reasons why:

Ethereum (ETH) is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to be built and run without downtime, fraud, control, or interference from a third party.

Founded in 2015 by developer Vitalik Buterin, Ethereum is an open-source blockchain that validates and records transactions, empowering users and developers to take an active role in its growth.

Ethereum's killer program is smart contracts, which simplify trade between parties and auto-execute the terms of an agreement without the need for an intermediary.

The Ethereum network uses ether, its platform-specific cryptographic token, which is used for various purposes, including paying validators who stake their coins for their work on the blockchain.

Ethereum completed its transition to the proof-of-stake (PoS) validation method in September 2022, making it less energy-intensive and more efficient.

As of October 6, 2024, Ether's market cap was around $294 billion, with a trading price of approximately $2,436.

Here are some key features of the Ethereum network:

Binance Coin (BNB) is a utility cryptocurrency that operates as a payment method for trading fees on the Binance Exchange. It's the fourth-largest cryptocurrency by market capitalization.

Those who use BNB as a means of payment can trade at a discount, which is a great incentive for users.

BNB's blockchain is also the platform on which Binance's decentralized exchange operates. The Binance Exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world.

As of October 6, 2024, Binance Coin had a market capitalization of $82.70 billion, with one BNB valued at around $567.00.

BNB can be used to pay for goods and services within and outside of the network. It's also used to pay network gas fees on Binance's smart contract blockchain, BNB Chain.

Here are some of the useful functions of BNB on the BNB Chain:

BNB was created in 2017 and has wide uses today.

Solana (SOL) is an open-source blockchain platform designed to support decentralized applications (dApps).

Founded in 2017, Solana was created by Anatoly Yakovenko with a goal to improve the performance of blockchain technology and lower costs.

Solana performs many more transactions per second than Ethereum, making it a more scalable blockchain platform.

Launched in 2017, Solana's price has risen tremendously, with a market capitalization of $68.4 billion and a value of around $145.95 on Oct. 6, 2024.

Solana uses a unique hybrid consensus model of Proof of Stake (PoS) and Proof of History (PoH) mechanisms, which supposedly addresses the issue of time agreement among validator nodes.

The PoH model records a digital timestamp of all incoming transactions, effectively speeding up the PoS confirmation process.

SOL is the native token on the Solana network and is used for making or sending transactions, interacting with smart contracts, or for staking.

Solana has faced issues with multiple outages, network restarts, and other problems, but it remains a heavyweight asset considering its market cap.

With almost 3,000 developers continuing to progress the network, Solana is a great option for those concerned with using an environment-friendly cryptocurrency.

Trading at around $145.95 on Oct. 6, 2024, Solana's native token SOL is a great investment opportunity for those looking to diversify their cryptocurrency portfolio.

XRP is the native token for the XRP Ledger, which was created by Ripple in 2012 as a payment system.

The XRP Ledger uses a unique consensus mechanism called the XRP Ledger Consensus Protocol, which doesn't rely on proof-of-work or proof-of-stake.

On October 6, 2024, XRP had a market cap of about $30.2 billion and traded around $0.53.

The XRP Ledger servers compare transactions and conclude whether they are candidates for entry into the ledger.

Client applications sign and send transactions to the ledger servers, who then send the transaction candidates to validators.

Validators work to agree that the servers got the transactions right and record the ledger version.

Dogecoin is a cryptocurrency that started as a joke in 2013, created by two software engineers, Billy Markus and Jackson Palmer. It uses an image of the Shiba Inu as its avatar.

Dogecoin's market capitalization was $16.46 billion as of October 6, 2022, making it the eighth-largest cryptocurrency at the time. One DOGE was valued at around $0.11.

The coin's popularity surged in 2021 after an endorsement by Elon Musk, and it experienced a price pump several times during and after his tweets about Dogecoin.

Tron (TRX) is a blockchain-based operating system that uses delegated PoS protocols and smart contracts to function and maintain a consensus algorithm.

Tron has built a reputation as one of the blockchain industry's most reliable cryptocurrencies.

Its native token, TRX, is used to pay for on-chain transactions and as a payment method on exchanges, with a current value of $0.15 and a market cap of $13.38 billion as of October 6, 2024.

Anyone holding TRX can apply to become a Super Representative, someone with the authority and obligation to validate transactions and create new blocks for the blockchain.

TRON's consensus mechanism is a tweaked version of Ethereum's proof-of-stake called designated proof-of-stake (DPoS), where the network votes in the super reps.

TRON has since transitioned to serving as a decentralized financial application platform, with a focus on giving developers a way to create dApps through tokenization and dApps.

TRON purchased BitTorrent, a popular file-sharing program, and integrated it into the TRON blockchain in 2018, further expanding its capabilities.

Ton is a cryptocurrency with a unique history. It was originally developed by the Telegram team.

In 2020, the project faced significant challenges, including a lawsuit from the Securities and Exchange Commission. The charges were related to an unregistered security offering.

Ton's development continued under the TON Foundation, led by Dr. Nikoli Durov, Pavel Durov's brother. He took over the project after the Telegram team abandoned it.

As of October 6, 2024, Ton traded at $5.27. This price is a reflection of the cryptocurrency's market performance at that time.

Cardano (ADA) is an "Ouroboros proof-of-stake" cryptocurrency created using a research-based approach by engineers, mathematicians, and cryptography experts. This rigorous process has earned Cardano high credibility in the blockchain industry.

Cardano was co-founded by Charles Hoskinson, one of the five initial founding members of Ethereum, after he left the project due to disagreements over its direction. He went on to help create Cardano, which has been dubbed an "Ethereum killer" due to its capabilities.

Cardano's blockchain was created through extensive experimentation and peer-reviewed research, with the team behind the project writing over 120 papers on blockchain technology across various topics. This research is the backbone of Cardano.

Cardano aims to be the world's financial operating system by establishing DeFi products similar to Ethereum's, with a long way to go regarding DeFi applications. On October 6, 2024, Cardano had the eleventh-largest market capitalization at $12.32 billion.

Here are some key features of Cardano:

Cardano has been around since 2017 but began development back in 2015 with help from an Ethereum cofounder.

Buying your cryptocurrency is a straightforward process. Most exchanges allow you to buy cryptocurrency using your fiat currency, such as USD, EUR, or GBP.

You can buy a variety of digital assets on a crypto exchange, including Bitcoin and Ethereum.

Your fiat currency will be swiftly converted into cryptocurrency after you make a purchase. This is a common practice on most exchanges.

You can buy all kinds of digital assets, such as Altcoins, Litecoin, Solana, and Ripple, on a crypto exchange.

Stablecoins are designed to be resistant to volatility, with their price remaining stable, inline with the asset it’s pegged to. This makes them a great option for investors who want to avoid the price fluctuations that often come with other cryptocurrencies.

Tether (USDT) is one of the largest stablecoins in terms of market capitalization. Created by Tether Limited Inc. in 2014, it's considered to be a reliable and stable cryptocurrency. However, it has been criticized for its lack of transparency about its alleged fiat reserves.

USD Coin (USDC) is another stablecoin pegged 1:1 to the U.S. Dollar, launched in September 2018. Each dollar of USDC is backed by a U.S. Dollar which exists as a mix of cash and Treasury bonds. Its reserves are regularly and publicly reviewed by an external accounting firm with their findings published monthly.

Stablecoins are often used for cashless everyday transactions and as a store of value due to their relative stability. They're also used as vehicles to take profit or wait-out the market for the next opportunity.

To safely buy and store your cryptocurrency, it's essential to consider the different types of wallets available. A crypto wallet is a place where investors hold their cryptocurrency, storing virtual assets much like a traditional wallet holds cash.

There are two types of crypto wallets: hot and cold. Hot wallets are connected to the internet, making them more accessible for quick transfers and easy access. Cold wallets, on the other hand, are physical devices that store crypto offline, typically for safer and longer-term storage.

Before buying cryptocurrency, it's crucial to research and understand the different options available. Beginner traders have an endless selection of cryptocurrencies to invest in, but each has varying transaction fees, volatility, architecture, and speed.

To make an informed decision, consider the following factors:

By understanding these factors and choosing the right wallet for your needs, you can safely buy and store your cryptocurrency.

Stablecoins are designed to be resistant to volatility, with a market value pegged to a stable asset like the US Dollar. Their price is intended to remain stable, inline with the asset it’s pegged to, so you shouldn't see significant price variation.

Tether (USDT) was one of the first and most popular stablecoins, launched in 2014, and is the largest stablecoin in terms of market capitalization. It has a market cap of $119.70 billion and a per-token value of $0.999.

Tether's price is tied directly to the U.S. dollar, with developers claiming to hold one U.S. dollar (or an equivalent) for every circulating USDT. This system allows users to more easily make transfers from other cryptocurrencies back to U.S. dollars.

USD Coin (USDC) is another stablecoin pegged 1:1 to the U.S. Dollar, launched in September 2018. Each dollar of USDC is backed by a U.S. Dollar which exists as a mix of cash and Treasury bonds.

Stablecoins like Tether and USDC have been used by nationals in economically volatile countries to shield them from rampant inflation. They are considered to be reliable and stable cryptocurrencies, although Tether has been criticized for its lack of transparency about its alleged fiat reserves.

Binance USD (BUSD) is a centralized stablecoin based on Ethereum, and is the second coin on this list from the Binance cryptocurrency exchange. It is designed to be resistant to volatility, with a market value pegged to a stable asset like the US Dollar.

A crypto exchange is the digital platform where investors can buy, sell and trade cryptocurrencies. Similar to traditional investing, a crypto exchange acts as a brokerage where people can transfer traditional money, like pounds or dollars, from their banks into cryptocurrencies like Bitcoin or Ethereum. Most transactions are accompanied by fees.

There are many different cryptocurrency exchanges available, so it's essential to choose one that is reputable and secure. Some popular exchanges include Coinbase, Binance, and Kraken.

You can buy all kinds of digital assets on a crypto exchange, such as Bitcoin, Dogecoins, Altcoins, Ethereum, Litecoin, Solana, and Ripple. After you buy a cryptocurrency, your fiat currency will be swiftly converted.

Here are some popular cryptocurrency exchanges to consider:

Remember, most exchanges will allow you to buy cryptocurrency using your fiat currency, such as USD, EUR, or GBP.