8 Best Cryptocurrencies for Beginner Traders (2024)

December 5, 2023

The world of cryptocurrency is always growing, with new crypto businesses and assets launching every day. With more than 23,000 available cryptocurrencies, you can choose from a near-infinite number of digital assets to buy, trade, hold, and sell.

However, choosing the right cryptocurrency can be challenging if you’re new to the crypto ecosystem. The good news is that there are several tokens and coins that are suitable for beginners.

In this guide, we’ll cover nine of the best cryptocurrencies for beginner traders, as well as how to buy and safely store your assets.

How to Choose Your First Crypto Investment

If you’re considering investing in crypto, you’ve likely already done some risk assessment, come up with a plan for risk management, decided how much capital you are willing to invest, and have an appetite for the volatility of the crypto market.

But when choosing a specific cryptocurrency for your first investment, you can also consider the developers and infrastructure involved, the coin’s market cap, and the liquidity of a particular cryptocurrency.

Make sure that your first crypto investment is in an asset with a strong developer. Look for founders who have successfully brought other software ventures or digital assets to market, have a history of ethical business practices, and are involved in building strong protocols for the token.

A cryptocurrency’s market cap is a currency’s total value – that is, the value of all the coins that have been mined. If more coins are mined, market cap increases. If the price of each coin goes up, market cap will also increase. Large market caps generally mean a more stable, slower moving investment (though all cryptocurrencies see volatility, especially compared to the largest market cap stocks).

Finally, consider liquidity. 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.

Our list of best cryptocurrencies for beginners considers these factors.

1. Bitcoin (BTC)

Bitcoin was the world’s first decentralized, peer-to-peer (P2P) cryptocurrency, developed by an unknown person or organization called Satoshi Nakamoto. With 21 million available Bitcoins in circulation, it’s also the most popular cryptocurrency in the world.

Bitcoin has enjoyed substantial popularity in several countries, including the United States, Japan, El Salvador, Hong Kong, and France, here’s why:

  • Bitcoin uses cryptographic protocols and DeFi algorithms that make it difficult to counterfeit.
  • Bitcoin doesn’t require any sensitive information to send payments, reducing the chances of identity fraud.
  • A third party isn’t required to facilitate transactions, and funds are settled immediately without the risk of chargebacks, unlike credit cards.
  • Bitcoin can be converted to fiat currencies and retain most of its value, unlike other lesser-known cryptocurrencies.

2. Ethereum (ETH)

Ethereum is more than a cryptocurrency—it’s a technology used to power global payments, digital money, and blockchain applications. Because of its versatile structure, Ethereum is the second-most popular cryptocurrency after Bitcoin.

In addition to being a valuable cryptocurrency, Ethereum has its own blockchain network. This means you can create blockchain-based applications through smart contracts. Ultimately, Ethereum allows the development of smart contracts and decentralized applications (dApps) without dealing with:

  • Third-party control and interference
  • Excessive downtime
  • Fraud

3. Tether (USDT)

Tether is a cryptocurrency known as a stablecoin. Created by Tether Limited Inc. in 2014, Tether is the largest stablecoin in terms of market capitalization.

Traders can use Tether to transfer between different cryptocurrencies and fiat currencies. Tether is considered to be a reliable and stable cryptocurrency. However, it has been criticized for its lack of transparency about its alleged fiat reserves.

Nonetheless, Tether has received wide acceptance as an industry-leading stablecoin. As such, many investors believe Tether gives them a higher chance of securing profitable trades. The stablecoin’s high liquidity makes it a great investing option for people who want to curb a volatile crypto market.

4. Ripple (XRP)

XRP is a cryptocurrency and native token of Ripple. It was created by Chris Larsen and Jed McCaleb back in 2011. XRP is a pre-mined cryptocurrency, meaning that it only has a total supply of 100 billion tokens.

Once this supply is met, no more coins can be mined. This measure prevents Ripple from being affected by inflation, which could reduce the value of its tokens. XRP was developed to compete with Bitcoin’s huge market cap.

Compared to Bitcoin, XRP has:

  • Faster transaction times
  • Lower costs
  • Less energy consumption

5. US Dollar Coin (USDC)

US Dollar Coin is a stablecoin, meaning that it’s tied to another asset. In this case, that asset is the U.S. dollar. USDC is a digital asset that has a 1:1 value ratio with the U.S. dollar. Thus, buying a USDC is essentially like buying a digital dollar bill.

Since USDC is backed by tangible assets, they are highly valued by U.S.-regulated financial institutions. Because of its stability and transparency, USDC is considered to be one of the safest digital assets for beginner investors.

If you have low risk tolerance, it may be ideal to invest in USDC and avoid market volatility.

6. Solana (SOL)

Solana is an open-source blockchain platform. It was created in 2017 by Anatoly Yakovenko. Solana’s goal is to improve the performance of blockchain technology and simultaneously lower costs.

Solana is similar to Ethereum in design. However, with low transaction fees and high throughput, Solana may be a more scalable blockchain platform. In addition, Solana uses both proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms.

These technologies allow for high energy efficiency and faster speeds. If you’re concerned with using an environment-friendly cryptocurrency, Solana is a great option.

7. Cardano (ADA)

Cardano is a public, open-source blockchain platform. This decentralized platform uses PoS to achieve consensus and function and can process P2P transactions through its internal currency, ADA.

Cardano was created by Ethereum co-founder Charles Hoskinson. Here are the benefits of investing in ADA:

  • Cardano adopts a scientific approach that can ensure code quality and architecture.
  • ADA has high credibility in the blockchain industry.
  • Cardano is known for its peer-reviewed protocols and has a vibrant community.

Cardano was developed to advance the main tenets of blockchain technology: security, decentralization, and scalability.

8. Tron (TRX)

Tron is a blockchain-based and decentralized operating system. It 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. This currency is also known for its high transaction speeds and low energy consumption compared to other blockchain platforms.

How to Safely Buy and Store Your Cryptocurrency

When you’ve made your selection, the next step is deciding how you’ll buy and store your crypto assets. To keep your investments safe, we recommend the following tips.

Tips for Buying Cryptocurrency

If you’re a beginner to buying cryptocurrencies, these tips will help guide you through the purchasing process.

Choose a Reputable Cryptocurrency Exchange

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

The importance of choosing a trustworthy cryptocurrency brokerage cannot be overstated. Previously, FTX was known as a top-tier cryptocurrency exchange and even attracted the likes of world-class athletes like Tom Brady and Stephen Curry to promote their brand.

Eventually, the company was disbanded after it was revealed that CEO Sam Bankman-Fried illegally sifted FTX funds for his own personal ventures. You can avoid this devastation by siding with a trustworthy crypto exchange that has several years of experience in the crypto space.

Create an Account and Deposit Funds

Once you have chosen an exchange, you will need to create an account and deposit funds. You can deposit funds using a variety of methods, such as a bank transfer, credit card, or debit card. The best crypto exchanges provide a wide range of deposit and withdrawal options, especially if they’re catering to a worldwide audience.

Buy Your Cryptocurrency

Once you have deposited funds, you can buy your cryptocurrency. Most exchanges will allow you to buy cryptocurrency using your fiat currency (e.g., USD, EUR, GBP).

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

Withdraw Your Cryptocurrency to a Secure Wallet

Once you have bought your digital currency, you should withdraw it from the exchange to a secure wallet. This will help to protect your cryptocurrency from theft and hacking.

You can choose between using a hot or cold wallet. Either choice will provide you with secure login credentials to keep your funds safe. However, some crypto exchanges have a built-in crypto wallet to make these transactions easier.

Tips for Storing Cryptocurrency

Once you’ve purchased your cryptocurrencies, you’ll need a secure place to store them. Crypto wallets hold your assets, but there are two different types: cold and hot.

Here’s how they’re different:

Hot Wallets

Hot wallets are wallets that are connected to the internet. They are convenient to use, but they are also more vulnerable to hacking. You can think of a hot wallet as a digital financial solution, much like an online bank account.

When you place your cryptocurrencies in a hot wallet, they’re stored on a private and remote server. Again, some exchanges have built-in crypto wallets for their users.

While using on-exchange wallet technology is convenient for depositing and withdrawing your funds, you’ll have less control since the exchange owns the software.

Cold Wallets

Cold wallets are wallets that are not connected to the internet. They are more secure than hot wallets, since your funds aren’t held on a remote server, but they can be less convenient to use.

With hot wallets, if the server is compromised, your crypto investments can be stolen or lost. Cold wallets aren’t susceptible to online hacking, but they’re not the most user-friendly crypto solution.

Find Out How Alphapoint Can Help Today

Overall, beginner traders have an endless selection of cryptocurrencies to invest in. But different cryptocurrencies have varying transaction fees, volatility, architecture, and speed. So it’s important to consider all your options and choose the one that’s right for your needs and goals.

If your business wants to expand into the crypto exchange market and cater to beginner investors, you’ll need technology that enables crypto trading.

AlphaPoint has white-label crypto trading software available, and you can customize our technology to fit your business needs and clientele. To try our software for yourself, request a demo today.

*Disclaimer: The posts are not intended to be, and must not be taken as, a basis for any investment, legal, tax, or other regulatory decision; instead, all information, content, and materials available on this site are for general informational purposes only. AlphaPoint strongly recommends that you consult your own advisers as to legal, business, tax, and other regulatory-related matters

To access this resource, please provide a little info.

Complete the form below to view the document.

8 Best Cryptocurrencies for Beginner Traders (2024)

FAQs

What is the best cryptocurrency to invest in as a beginner? ›

Binance Coin has emerged as one of the most prominent cryptocurrencies in the digital market. It is a compelling choice to invest in out of the best cryptocurrency stocks for beginners due to its association with Binance exchange.

What crypto will boom in 2024? ›

Best Altcoins for Next Bull Run
CoinMarket CapitalizationCurrent Price
Cosmos (ATOM-USD)$8.94 billion$9.02
Kaspa (KAS-USD)$2.53 billion$0.1201
Stellar (XLM-USD)$3.92 billion$0.1072
Updated as of May 9, 2024
3 more rows
May 9, 2024

Which trading crypto is most profitable? ›

Most Profitable Crypto List
  • Dogeverse – Latest multi-chain coin with high-staking rewards and seamless interoperability.
  • WienerAI – AI meme coin with a high profit potential.
  • Slothana – Solana meme coin gaining huge popularity with over $10M raised.
May 9, 2024

Which crypto coin will give 1000x? ›

A Meme Coin with Potential

With the Bitcoin halving approaching, $SPONGE, $5SCAPE and $TUK have the potential to experience significant price increases.

What should a beginner learn in crypto? ›

A Beginner's Guide to Trading Crypto
  • DYOR - Do your own research. ...
  • Only invest what you can afford to lose. ...
  • Diversify your portfolio. ...
  • Understand the order book. ...
  • Undertake technical and fundamental analysis. ...
  • HODL through the dips. ...
  • Consider market cap, not just price. ...
  • Learn different trading strategies.
Nov 12, 2023

How much should I first invest in crypto? ›

Most financial experts recommend limiting crypto exposure to less than 5% of your total portfolio. Crypto is considered a high-risk asset class. Limiting allocation helps manage overall volatility and risk. Those new to crypto investing may start with 1% to 2% as an introduction.

Which crypto has the best future? ›

Top 10 Cryptos in 2024
CoinMarket CapitalizationCurrent Price
Ethereum (ETH)$359 billion$2995
Binance Coin (BNB)$85 billion$580
Solana (SOL)$72 billion$162
Ripple (XRP)$28 billion$0.51
6 more rows

How much will 1 Ethereum be worth in 2030? ›

By the end of 2030, the predicted Ethereum price could soar to a peak of $26,575.21. The current price of 1 Ethereum is $ 2,945.50003921.

What is the best crypto to buy right now? ›

With the basics out of the way, let's inspect these 30x potential cryptos in more detail.
  • Dogeverse ($DOGEVERSE) – Overall the Best Crypto to Buy Now.
  • Sealana ($SEAL) – New SOL-Based Meme Coin Surpasses $1 Million In Presale Funding.
  • Wiener AI ($WAI) – Dog-Themed Meme Coin With Insane Staking APY.
1 day ago

Which crypto will make you millionaire? ›

Bitcoin:

With institutional adoption on the rise and growing mainstream acceptance, Bitcoin remains a staple in any crypto portfolio. As a store of value and hedge against inflation, Bitcoin's scarcity and deflationary nature make it a compelling long-term investment for millionaire hopefuls.

Which coin is best for daily profit? ›

  • Overview: Crypto Day Trading.
  • Best Cryptos For Day Trading.
  • Bitcoin.
  • Ethereum.
  • Binance Coin.
  • Ripple (XRP)
  • Solana.
  • Factors Determining The Price Movement in Cryptos.

Which penny coin will explode in 2024? ›

So bitcoin is the best. And you can also also invest in Ethereum and Cardano. i think Shiba Inu and DogeCoin are penny coins. And these coins can explode in 2023 to 2024.

What is the most promising crypto under a dollar? ›

  • eTukTuk – Top Crypto Under $1 for Staking Benefits while Helping Reduce Air Pollution. ...
  • Shiba Inu (SHIB) – Dogecoin Alternative With Utility Across the Ecosystem. ...
  • Cardano (ADA) – Utility Token With Fast Transactions and Increasing Use Cases. ...
  • Tron (TRX) – Platform for Processing Safe and Reliable Global Transactions.

Which penny crypto to buy today for long term? ›

Dogecoin is one of the most popular penny crypto tokens in this space, with more than 3.5 million holders.

What is the best crypto buying platform for beginners? ›

Compare the Best Cryptocurrency Exchanges
CompanyTransaction Fees
Kraken Best for Low Fees & Experienced Traders0.00% to 0.40%
Coinbase Best for BeginnersVariable fees (Coinbase), 0.00% to 0.40% maker fee, and 0.05% to 0.60% taker fee per trade (Coinbase Advanced Trader)
Crypto.com Best Mobile App0.00% to 0.075%
4 more rows

What is the best crypto to invest below $1? ›

Ranked: Best Cryptocurrencies Under $1 to Buy in 2024
  • WienerAI (WAI) – AI-based crypto, available for a fraction of a cent.
  • 5th Scape (5SCAPE) – Utility token of a new virtual reality gaming ecosystem.
  • Sponge V2 (SPONGEV2) – New token version of a popular meme coin, over 170% staking APYs.

How do I start investing in crypto with little money? ›

For beginners wondering how to start, follow these five steps:
  1. Choose what cryptocurrency to invest in.
  2. Choose a reputable cryptocurrency exchange.
  3. Explore storage and digital wallet options.
  4. Decide how much to invest.
  5. Stay informed and manage your investments wisely.
May 1, 2024

What is the cheapest and best crypto to invest in? ›

Overall, Dogeverse is the best cheap crypto to buy right now. As the world's first multichain meme coin, Dogeverse is deployed across several major blockchains including Ethereum, BNB Chain, Polygon, Base, Avalanche, and Solana.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Ms. Lucile Johns

Last Updated:

Views: 5867

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Ms. Lucile Johns

Birthday: 1999-11-16

Address: Suite 237 56046 Walsh Coves, West Enid, VT 46557

Phone: +59115435987187

Job: Education Supervisor

Hobby: Genealogy, Stone skipping, Skydiving, Nordic skating, Couponing, Coloring, Gardening

Introduction: My name is Ms. Lucile Johns, I am a successful, friendly, friendly, homely, adventurous, handsome, delightful person who loves writing and wants to share my knowledge and understanding with you.