We all know that cryptocurrencies are the future of money. However, the market can be confusing for beginners who are just getting started. So what is the best cryptocurrency to buy if you want to invest in this space? In this article, we’ll explore some of the basics of beginner investing and how to choose a beginner cryptocurrency that’s right for your needs and risk profile.
What Are Beginner Cryptocurrencies?
Beginner cryptocurrencies are digital currencies that are relatively easy to trade, possess a lower market cap, and have a lower risk profile. These cryptocurrencies are designed to be less volatile and provide less exposure to risk.
For beginner investors, it’s important to find cryptocurrencies that are easy to use. If you’re new to the world of crypto and want to try your hand at investing, you should look for coins that are simple and straightforward. Some coins can be difficult or confusing for beginners because they have complex systems behind them–and these may not be worth your time unless you’re an experienced trader.
Factors to Consider When Choosing a Cryptocurrency
Level of risk associated with the currency
The level of risk associated with a currency is important to consider when making an investment decision. Cryptocurrencies are volatile and can fluctuate in price over short periods of time, so you want to make sure that your money is safe if things go south.
The three levels of risk are: high, medium and low.
High-risk currencies tend to have less market capitalization (market cap), which means there’s less money invested in them and therefore more volatility. If you’re looking for something that moves fast and furious but might not be around much longer, this could be the right choice for you.
Medium-risk currencies have more stable prices because they’re older coins with more stability built into their ecosystems over time–but they still have some fluctuations due to external factors such as regulations or hacks affecting their value as well as internal factors like new technology being developed by developers within these networks’ communities.
Low-risk cryptocurrencies can still experience some fluctuations due to external factors such as regulations or hacks affecting their values; however these fluctuations tend not be so significant because they’ve been around longer than newer ones on average.
No risk means no matter what happens externally with any given currency’s price fluctuations (or lack thereof), it’ll always remain worth 1 coin per unit regardless whether someone else sells theirs off later down the road tomorrow afternoon.
Market capitalization is the total value of a company’s outstanding shares, calculated by multiplying the current stock price by the number of shares outstanding. It’s a good indicator of the value of a company and can be used to compare companies even if they have different capital structures (such as common stock or preferred stock).
When it comes to cryptocurrencies, liquidity is one of the most important factors. Liquidity refers to how quickly you can convert an asset into cash. In other words, if you want to sell your cryptocurrency for fiat currency (like USD), how easy will it be?
It’s important for beginners because if you have no idea what you’re doing and buy something with low liquidity, then there won’t be many buyers when the time comes for them to sell their coins or tokens and get out of that investment before things go south–and believe me: they will go south at some point.
Trading volume is the amount of coins that are exchanged on a trading platform. It’s a good indicator of how popular and liquid a cryptocurrency is, which means you can use it to gauge whether or not you are investing in something safe.
To calculate the trading volume of any coin, you need to look at its 24-hour trading volume (or simply “24h”). This will give you an idea about how many people have bought and sold the cryptocurrency in question within 24 hours.
If this number is high enough compared with other cryptocurrencies, then it means there are plenty of buyers and sellers who interact with each other on an ongoing basis. Which makes sense because if there weren’t enough buyers or sellers available then no transactions would take place.
Best Beginner Crypto in 2023
Bitcoin is a decentralized digital currency that was created in 2009. It is the most valuable and profitable cryptocurrency, with a market cap of over $1 trillion. Bitcoin’s high liquidity and wide acceptance make it an excellent choice for beginners.
Ethereum is a decentralized blockchain platform that enables smart contracts and decentralized applications (DApps). It is the second most valuable cryptocurrency, with a market cap of over $247 billion. Ethereum’s high liquidity and well-established ecosystem make it a top choice for beginners. Its ETH price has taken off in popularity since its crowd sale as shown. It’s already being used by companies like Microsoft and IBM (including Smart Dubai) to build new decentralized applications and solutions—but there’s still plenty of room to run. Also, Ethereum is one of the often used crypto pairs such as ETH USDT because of its stability.
Binance Coin (BNB)
Binance Coin is the native cryptocurrency of Binance, the world’s largest cryptocurrency exchange. It has experienced significant growth over the years and is a top performer among cryptocurrencies. Its high liquidity, low transaction fees, and wide acceptance make it a suitable choice for beginners.
Cardano is a decentralized blockchain platform that enables smart contracts and DApps. It is designed to be more energy-efficient than other cryptocurrencies and has a high level of scalability. Its strong community, high liquidity, and low transaction fees make it a suitable choice for beginners.
Ripple is a real-time gross settlement system, currency exchange, and remittance network. It is one of the most popular cryptocurrencies due to its fast transaction speed and low transaction fees. Its wide acceptance and high liquidity make it a suitable choice for beginners.
Polkadot is a blockchain platform that enables cross-chain transfers of any type of data or asset. It is designed to provide scalability and interoperability between different blockchain networks.
We have covered the best cryptocurrencies to buy for beginner investors. The three options that we have listed above are great because they offer a good amount of liquidity and security, while also being relatively easy to access on exchanges like Binance or KuCoin. You should always do your own research before investing in any cryptocurrency, but these three coins are great starting points for anyone looking to get started with crypto investing.