Top 6 Cryptocurrencies for Newcomers: Cryptocurrencies are digital currencies based on blockchain technology that is not governed by the government or any central agency. In the previous decade, cryptocurrencies have gained traction, grown in popularity, and become a more viable investment alternative for people and businesses.
You’re unlikely to know which cryptocurrency is the finest and where to invest if you’re new to crypto. With over 6000 cryptocurrencies to choose from, finding the best one with the most growth potential might be difficult. Given its popularity and consistent growth – despite market volatility – Bitcoin is an obvious crypto investment. There are, however, numerous more cryptocurrencies with great growth potential that you may invest in.
We’ll go through some of these cryptocurrencies which are the perfect investments for beginners in this article.
1. Bitcoin, for starters (BTC)
- Market cap: Over $846 billion
BTC will continue to be the most valued and profitable cryptocurrency for a long time. Bitcoin has a significantly greater price, market volume, and market cap than other cryptocurrencies. Despite the fact that there are hundreds of different coins on the market, bitcoin still accounts for over 40% of the crypto market capitalization, making it an excellent investment choice for both novices and specialists.
Furthermore, some businesses already accept bitcoin as payment for products and services, making it a sound investment. For example, Visa accepts BTC, and Tesla said in February that it had invested $1.5 billion in BTC and would accept it as a form of payment for its vehicles. In addition, big banks are beginning to include BTC transactions in their offerings.
2. Ethereum (ETH)
- Market cap: Over $361 billion
ETH differs from BTC in that it isn’t only a cryptocurrency; it may also be used by network developers to generate their own coins. It is well ahead of other digital currencies while having a far lower market value than bitcoin. As a consequence, both novice and experienced crypto traders may earn from it.
According to the essayontime.co.uk website, ETH arrived on the crypto market several years after hundreds of other cryptocurrencies but has far exceeded them owing to its unique technology.
3. Cardano (ADA)
- Market cap: Over $33 billion
Because this bitcoin network has a smaller footprint, it is more desirable as an investment choice for a variety of reasons. To begin with, unlike the considerably bigger bitcoin network, the Cardano network takes far less energy to process transactions. As a result, transactions are not only quicker but also less expensive. The platform also promises to be more secure and versatile, with the network’s development being constantly improved to stay ahead of hackers.
4. Tether (USDT)
- Market cap: Over $79 billion
Tether is a stablecoin, which means it is backed by fiat currencies like U.S. dollars and the Euro and theoretically maintains a value equal to one of those denominations, in contrast to some other types of cryptocurrencies. As a result, investors who are cautious of the severe volatility of other coins choose Tether because its value is theoretically expected to be more stable than that of other cryptocurrencies.
5. Binance Coin (BNB)
That is one of the few cryptocurrencies to achieve its high after 2017 — a year in which many cryptocurrency values surged to their peaks, then plateaued before falling again. Unlike many other cryptocurrencies, however, Binance Coin has continued to rise steadily since 2017. This coin’s continuous and stable performance, as stated by an assignment writing service, is one of the reasons it is regarded as a safe investment option because it has fewer risks.
XRP is a cryptocurrency that may be used on that network to allow trades of many currency kinds, including fiat currencies and other significant cryptocurrencies. It was developed by some of the same founders as Ripple, a digital technology and payment processing firm.
XRP was worth $0.006 at the start of the year 2017. Its price increased by more than 12,600% to $0.80 as of March 2022.
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The low cost of this cryptocurrency appeals to investors for various reasons, the most important of which is its low cost. This coin, on the other hand, has demonstrated that its value can climb steadily over time and that there is still space for expansion.
Coinbase, one of the world’s leading cryptocurrency exchange platforms, also accepts and trades this coin. Another factor that makes it a desirable investment is its accessibility.