In the past decade, cryptocurrencies have become the most successful investment option in the world. People have made thousands of dollars from the little amounts they invested early on. The earliest cryptocurrency, Bitcoin, has grown more than 7,500% of its initial value. Similar has been the case with the cryptocurrencies that people invested in, in the earlier days. The process of investing isn’t complicated; you just need to choose a trusted platform and invest in your crypto. The tricky part is choosing which currency you are going to be investing in.
Read below for which crypto you should invest in and why especially for beginners.
What Should Be The Focus For A Beginner When Investing In Cryptocurrency?
There are two things that beginners in cryptocurrency fall for fake or unsafe platforms and the wrong crypto. Many platforms claim that they are safe and all transactions are protected. While various sites claim such things, the issue arises in their terms and conditions and how they aren’t responsible for the protection of your data. Instead of being a victim of fake and unsafe platforms, later on, you should check beforehand whether other investors trust the platform and if they have mentioned that the transactions are protected or not on their terms and conditions. If you need information on this you can check the platforms like https://bitqs.online/.
The second thing beginners need to watch out for is the crypto they invest in. Beginners make the mistake of diving into the pool of various cryptocurrencies and solely choosing the crypto on the basis of the short gains. Different cryptocurrencies in the market show rapid fluctuations, and once you have invested in them, they can stay low or go up without any pattern. To understand their graph, you need proper knowledge of cryptocurrencies.
It is why beginners should opt for small investments in different cryptocurrencies instead of going in for significant investments. It would help them study the graph of the various cryptocurrencies and have higher chances of gaining more from these investments.
Top 6 Cryptocurrencies For Beginners
Instead of searching and asking around what cryptocurrency a beginner should invest in, you should closely look at the growth and market cap of the cryptocurrency. The market cap of crypto tells you more about the scope and the value of the total market of that crypto, or in general words, it is the full value of that crypto coin. The growth of that coin also depends on the market cap to a great extent. Below is a list of the top 6 cryptocurrencies that are beneficial for beginners for learning as well as investing purposes.
Bitcoin is the earliest cryptocurrency that came into existence back in 2009. It runs on one of the most secure and stable networks- blockchain. When investing in bitcoin, all transactions occur based on ledger lodgings. They are spread through an immaculate system and enhanced with supreme protection. All ledgers need verification by solving puzzles, which keeps them safe from fraudsters. Also, out of all the cryptocurrencies, only bitcoin offers the most liquidity.
In the last quarter, bitcoin saw a gradual drop in the overall market cap. It started from over $50,000 and ended at $38,000.
Ethereum is known for being the best crypto in the market for transaction purposes. Few companies have even started transacting in this currency because of its stability and safety. It has one of the fastest networks and even has support from various banks and powerful software. After bitcoin, it is the second largest cryptocurrency in the world. The previous quarter started from over $4,000 and ended at around $2,500.
Binance is known as one of the largest known trading platforms in the world. On the basis of this platform, the Binance coin was introduced not too long ago. With this coin, you can do transactions on this platform and pay any fee comfortably. It is widely used for trading, payment processing, and even for booking travel arrangements. Out of all the cryptos, the Binance coin has had the highest growth of 410,000% since its launch.
Terra is one of the best blockchain platforms for beginners. This platform is full of stablecoins and keeps a balance between the transaction of the two coins. LUNA is used to mine more Terra stablecoins, and they further work in sync on the basis of demand and supply.
Users are encouraged to sell the coins of one of the cryptos to grow the other currency, and this happens vice versa. It forms a profit and gains transaction with the user, giving more scope for better returns. From when it was released, LUNA had a growth of more than 14,000% with a market cap of more than $34 billion.
Ripple is well known for being a digital technology and payment process company. XRP got created such that you can freely use it on the Ripple platform without any security or data issues. With XRP, you can do any transaction on this platform, whether fiat or crypto. From its first release in 2017, its price has grown more than 12,500%, with a market cap of over $37 billion.
At present, Cardona is a third-generation crypto. It has the same technology as bitcoin and Ethereum but is better. It has solely developed on the fact that it is improving the technology first introduced by those two cryptocurrencies. It primarily works on increasing the transaction speed and using less energy as much as possible. It inherits most of its features from bitcoin and Ethereum and gets powered by its base coin ADA.
From its first launch in 2017, it has increased by nearly 5,000%, with a market cap of more than $33 billion. As it’s an early crypto and has significant potential for growth, ADA is the best crypto to invest in at the moment irrelevant of whether you are a beginner or not.
Trading and crypto have been challenging tasks for many, not because cryptocurrencies are confusing but because people do not want to understand graphs. If you start with small steps, it won’t take long for you to know how to study and predict charts, which would further help you invest in cryptocurrency. It is why beginners should focus on cryptos that have enough data to learn, like Bitcoin and Ethereum. Only some cryptos like ADA have the potential for significant growth in the future that one should invest in, even if they are a beginner.