Beginners quickly notice the sheer number of cryptocurrencies available in the crypto market. Since the creation of Bitcoin, there has been a surge in the number of cryptocurrencies. There are more than 21 thousands of cryptocurrencies currently available on CoinMarketCap. These cryptocurrencies range from standard cryptocurrencies like Ethereum (ETH) to memecoins like Shiba Inu (SHIB).
With so many cryptocurrencies to choose from, newbie crypto traders might find it difficult to select good ones. Therefore, we have curated a list of coins that will ease your transition into the cryptocurrency market.
Top Cryptocurrencies for Beginners
Several factors determine how safe a coin is, all of which should be taken into account. One is market capitalization, which indicates the value of coins already mined. The higher the market cap, the safer a coin is. Another factor to consider is the cryptocurrency’s volatility. All cryptocurrencies are notorious for their volatility, but some are more prone to price fluctuations than others. Here are some cryptocurrencies that are recommended for beginners.
- Bitcoin (BTC)
Bitcoin has established itself as the leading cryptocurrency. This doesn’t mean it’s perfect. However, you’ll hardly find a cryptocurrency to buy with as many overall benefits as bitcoin. Bitcoin has a market cap of $367.52 billion and is currently valued at $19,156, so offers the most liquidity. This and its accessibility make Bitcoin one of the great choices for novice traders.
- Litecoin (LTC)
This is the silver to bitcoin’s gold, and it is a good choice for beginners since there is a strong correlation between Litecoin’s price movement and that of bitcoin. Litecoin is also much cheaper than bitcoin, making it an excellent option for those with little investment capital. It is a speedier and more efficient alternative to bitcoin, but it still relies on the Proof-of-Work mechanism that bitcoin uses.
Litecoin has a market cap of $3.69 billion and it has a price of $52 per coin. It is one of the oldest cryptocurrencies after Bitcoin and has an excellent track record, putting it on the list of best cryptos for beginners.
- Ethereum (ETH)
Ethereum follows closely behind Bitcoin as one of the top cryptos for beginners, mostly because of its use in NFTs and the metaverse. It is the second largest cryptocurrency in terms of market cap, at over $160 billion, and it is currently valued at $1,300 per coin. Unlike Litecoin and bitcoin, Ethereum uses a Proof-of-Stake consensus mechanism which is more efficient, faster, and more scalable.
- Bitcoin Cash (BCH)
In 2017, there was a bitcoin fork due to some disagreements on how bitcoin was being used. The result of the fork was Bitcoin Cash, created to improve the speed and processing power of the existing mechanism. The transaction rates are much faster than Bitcoin; this is a favourable trait which might make it more acceptable in the future. BCH has a unit price of $105 and a market cap of $2 billion.
- Cardano (ADA)
Cardano is a coin with a lot of potential, yet it comes very cheaply. Like Ethereum, Cardano also uses a Proof-of-Stake consensus mechanism, but it is more eco-friendly than bitcoin and ethereum; this might increase its value in the future. The team behind the Cardano project is highly experienced, and they also focus on peer-reviewed research in their development. Cardano has a market capitalization value of $12 billion and a unit price of $0.35.
The Takeaway
The coins listed above are some of the best cryptocurrencies that novices can purchase to get a head start in the cryptocurrency market. However, this is not an exhaustive list. There are other additional coins that are ideal for new traders. Here’s one piece of advice: do your research before investing; learn everything you can about a cryptocurrency so you can make informed judgments.
