We know there are a lot of cryptocurrencies and that can be a little overwhelming. So we’re here to give you some great starter coins to invest in! We’ll cover the basics of why each currency is great for beginners and how they work.
Then we’ll dive into the details on some specific features they have that make them stand out from the crowd.
A Closer Look at the Best Starter Cryptos to Invest in
One of the big questions for anyone getting started with cryptocurrency is, “Where do I start?” It’s an important question to ask—and answer—because buying into crypto is an investment. You’ll want to know that you’re spending your money on a crypto that will be around for the long term, and that it’ll give you a good return when you decide to cash in on it.
The best crypto for beginners should have a relatively stable value and low transaction fees. The following are some of the most popular cryptocurrencies among beginners. There are many criteria that must be considered when deciding what crypto to invest in, such as the current crypto price market cap, future uses, and more.
Bitcoin – The Pioneer of Cryptocurrency
Bitcoin, the most popular cryptocurrency, is also the oldest and most widely used. It has been around since 2008. Bitcoin is decentralized, meaning there’s no central bank or authority that controls it. Instead, it relies on an open-source network of miners across the world who use powerful hardware to solve complex problems in order to validate transactions on its blockchain network.
Bitcoin is also most used in trading pairs such as BTCUSDT and many others in which investors can trade one cryptocurrency for another.
In addition to being the most secure cryptocurrency due to its proof-of-work algorithm (one that cannot be duplicated), Bitcoin is also liquid enough not only that you can buy one with cash today but also trade it with other cryptocurrencies without having to convert into fiat currency first (though there are some exchanges out there that offer this)
Ethereum – More Than Just a Coin
As the second largest crypto by market cap, Ethereum has been one of the most attractive blockchains for developers to build on. Whether you want to create a new token, create a new smart contract, or issue an ICO, Ethereum is a great place to start. Furthermore, Ethereum is a great pair for trading assets such as ETH/USDT.
Ethereum is a blockchain platform that enables developers to build and deploy decentralized applications. Ethereum allows you to write code that controls digital assets using smart contracts.
This means you can create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.
Bitcoin Cash – A Fork in the Road
If you’ve been following the news, you may have heard about Bitcoin Cash. Bitcoin Cash is a hard fork of Bitcoin that was created in August 2017. A hard fork is when a cryptocurrency splits into two separate cryptocurrencies.
In this case, it resulted from an argument over how best to scale Bitcoin so it could readily handle more transactions without slowing down or becoming too expensive for most people who want to use it as a means of payment (like cash).
Bitcoin Cash is still using the same blockchain technology and has many features that make it similar to Bitcoin. However, there are some important differences between the two cryptocurrencies:
- Bitcoin was created by Satoshi Nakamoto; no one knows who he/she/they really were
- Bitcoin Cash was created by miners and developers who did not agree with how Core planned on scaling up their network
Litecoin – A Versatile Alternative
Litecoin is a peer-to-peer cryptocurrency that has been around since 2011. It’s based off of Bitcoin, but it has various differences. This means it can be used for different purposes than Bitcoin can be used for; Litecoin is closer to being a payment system than just being an alternative currency like Bitcoin is.
One of the main reasons why it’s recommended for starters is because it’s so much easier to use than many other cryptocurrencies. If you’re just starting out with crypto, it’s best to use (or at least try) one that’s as similar to traditional banking as possible. One excellent part about litecoin is that you can buy it with regular currency and then spend it, instead of having to exchange your money for another cryptocurrency first.
Litecoin is one of the most popular coins on exchanges, which makes it an easy place to begin your crypto journey. You can buy Litecoin with fiat currency or bitcoin on exchange such as KuCoin or Coinbase. Because its value is so close to that of bitcoin, there are fewer risks than investing in something like Ethereum or Ripple. The fact that it’s also easier to convert into more established currencies than other cryptos is another plus for Litecoin.
Cardano – A Scientific Approach to Blockchain
Cardano is a decentralized, open-source blockchain platform that will allow complex programmable transfers of value in a secure and scalable fashion. Cardano is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a large global collective of expert engineers and researchers.
A big reason why Cardano would make a good first investment has to do with its approach to solving problems. One problem that many cryptocurrencies face is poor scalability. This means that cryptocurrency transactions take too long or cost too much—this problem gets worse as more people start using them, which can slow down transactions if not enough transactions can be handled at once.
Ripple – Swift and Cost-Effective Transactions
Ripple is a payment system that uses blockchain technology to process transactions. It is fast and easy way to transfer money anywhere around the world. The main advantage of XRP is that it is faster than other cryptocurrencies.
Ripple can process transactions in 4 seconds or less compared to 10 minutes with Bitcoin and 3.5 minutes with Ethereum. Another advantage of XRP is that it has very low transaction costs in comparison to other cryptocurrencies.
XRP solves the problem of slow cross border transfers by providing banks with on demand liquidity for cross border payments through their xRapid service. xCurrent however enables banks to offer real time messaging between banks and payment providers so they can settle transactions instantly while still having access to multiple exchanges through their partnership with R3.
Stellar – Revolutionizing Money Transfer
Stellar is a cryptocurrency that allows its users to send money anywhere in the world at almost no cost. This could mean revolutionizing how money moves around the globe, and even making banking services more accessible to people who are currently disenfranchised or underserved by banks.
By leveraging blockchain technology, Stellar can connect individuals, institutions, and payment systems into a decentralized global network. The result is a peer-to-peer platform for sending and receiving money in any pair of currencies, including dollars and euros, bitcoins and litecoins, or Argentine pesos and Nigerian nairas.
This flexibility makes Stellar a powerful tool for financial inclusion—in fact, it was originally founded to help create an infrastructure for low-income communities to leapfrog older financial systems and access the benefits of 21st century banking technology.
The Road to Informed Investments
Investing in cryptocurrencies isn’t one-size-fits-all; it requires careful consideration and research. The plethora of options available can be confusing, but remember, you have the power to choose what aligns with your investment goals and financial situation. Keep these points in mind as you explore the world of cryptocurrency investments:
- Diversity is Key: Don’t put all your eggs in one basket. Diversify your investments across different cryptocurrencies to mitigate risks.
- Stay Informed: The cryptocurrency landscape is ever-evolving. Keep up with news, trends, and technological advancements to make informed decisions.
- Risk Management: Cryptocurrency investments can be volatile. Only invest what you can afford to lose.
- Choose Reputable Platforms: When buying and trading cryptocurrencies, opt for reputable and secure platforms to protect your investments.
- Long-Term Perspective: Cryptocurrency investments might not yield quick returns. Adopt a long-term perspective and be patient.
Conclusion: Your Investment, Your Decision
In the world of cryptocurrency investments, there’s no one-size-fits-all strategy. The journey involves understanding your goals, researching options, and making decisions that align with your financial situation and risk tolerance. Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Cardano, Ripple, and Stellar present exciting opportunities for beginners. However, remember that your investment journey should be guided by your unique circumstances. Take the time to educate yourself, explore different options, and build a portfolio that reflects your investment philosophy. After all, the most important thing is investing in what makes sense for you.
References:
- Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System.
- Buterin, V. (2013). Ethereum White Paper: A Next Generation Smart Contract & Decentralized Application Platform.
- McCaleb, J., & Joyce, D. (2014). The Stellar Consensus Protocol: A Federated Model for Internet-level Consensus.
- Antonopoulos, A. M. (2014). Mastering Bitcoin: Unlocking Digital Cryptocurrencies.
- Wood, G. (2014). Ethereum: A Secure Decentralized Generalized Transaction Ledger.
- Ripple. (n.d.). XRP Ledger.
- Hoskinson, C. (2017). Cardano: A Blockchain Platform for the Decentralized Future.