Investing in cryptocurrencies is always difficult for beginners. They are always confused about the “best cryptocurrency to buy right now.”
But the truth is — there’s no single best cryptocurrency to invest in 2021. There are various cryptocurrencies available in the market with lucrative investment opportunities.
If you are a beginner who is looking for the next big cryptocurrency to buy, you’ve reached the right place. Today, I will share the five best cryptocurrencies to invest in for beginners. I consider these cryptocurrencies as safe investments with solid teams behind them.
I will talk about each virtual currency, team, liquidity, price volatility, and other details. In the end, you will be able to understand cryptocurrencies and can also decide which one you should buy. So, without any further ado, let’s get started..!!
Disclaimer: There are some countries where bitcoin is not considered legal tender. So before investing in it, you should check the local laws and legality of buying/investing in bitcoin in your country.
Best Cryptocurrencies to Invest For Beginners
Bitcoin is often referred to as the king of cryptocurrencies. It’s the most popular currency in the crypto space. Though Bitcoin is the only cryptocurrency whose founder is still unknown to everyone, it acts as a peer-to-peer, global and digital currency.
The creator of Bitcoin is known as Satoshi Nakamoto and surprisingly that’s the only thing people know about him or her. There is a lot of speculations about the founder but still, Bitcoin is the most invested cryptocurrency in the world.
Bitcoin has the highest liquidity among all cryptocurrencies. It makes Bitcoin a perfect option to invest in for beginners. You won’t face any problem in buying or selling bitcoin. There will be always someone who is looking for the deals you offer.
Bitcoin is considered one of the most stable cryptocurrencies. I am not saying it’s not volatile but it would require huge capital for someone to manipulate the price.
Bitcoin is based on a Proof of Work (PoW) system i.e consensus algorithm in a Blockchain network used to authenticate transactions and produce new blocks to the chain. In this system, crypto miners compete with each other in the network to complete transactions and get rewarded.
Initially, the block reward was 50 BTC per block which get halves every 210,000. This results in decreasing inflation over time. On the other hand, the supply is limited: only 21 million coins will ever be mined. But as we know, with increasing demand, the price should rise substantially.
Bitcoin is still the best cryptocurrency for both beginners and advanced investors. Or at least, I suggest you not invest in any cryptocurrency without investing in Bitcoin.
Must Read: 8 Best Cryptocurrency News Apps You Should Install
Ethereum is another popular cryptocurrency based on smart contracts, a computer protocol designed to digitally facilitate, verify, or enforce the negotiation or performance of a contract. It also allows developers to build decentralized mobile and desktop applications on top of the blockchain.
Ethereum is founded by Vitalik Buterin, a young cryptocurrency expert along with Joseph Lubin, co-founder of Ethereum and Consensys, a software development studio known for creating decentralized Ethereum apps (dApps) in Newyork. The thousands of tokens run on the Ethereum network and also encouraged the initial coin offering(ICO) movement.
This cryptocurrency also standing high in terms of liquidity. It generally ranked at second or third position and so you won’t face any problem in buying and selling Ethereum.
Ethereum has a large team and community and so if you are looking for long-term investment, the chances of price staying stable are good.
The number of Ether available in the market is higher than Bitcoin and other cryptocurrencies. But always remember that the decentralized applications ecosystem runs on Ethereum. This means a large number of companies or individual developers may require Ether for their smart contracts and launch their applications.
Ethereum is one of the hottest cryptocurrencies to invest in 2020. It’s not only the leader of smart contracts but also popular for its applications and innovations it provided the World.
Litecoin is one of the popular cryptocurrencies that came into existence just after Bitcoin. It is developed using the source code of Bitcoin but launched with some major enhancements. Litecoin eliminates some well-known limitations of Bitcoin and known as one of the fastest cryptocurrencies available today.
Talking about the team, Litecoin is created by Charlie Lee, an experienced computer scientist also working as the Director of Engineer at Coinbase. His brother Bobby Lee, founded BTC China, one of the largest exchanges. Now, let’s see the liquidity and price volatility of Litecoin.
Litecoin has a very good liquidity profile since its creation. It also has a large market capitalization and won’t cause any issue while buying or selling it.
The price volatility of a cryptocurrency depends on many things. But the Litecoin is stable as compared to other virtual coins with higher risks and smaller market capitalization and communities.
The Litecoin blockchain is capable of handling higher transaction volume than others. It’s because Litecoin has frequent block generation and network that supports a large number of transactions without a need to modify the software in the future. Initially, Litecoin started with a block reward of 50 LTC which is now decreased to 25 LTC.
Litecoin is one of the most trusted cryptocurrencies to invest in for both beginners and experienced investors in 2020.
4. Binance Coin (BNB)
Binance Coin is not a virtual currency like others on our list. It’s a utility token whose value comes from the available demand for this token. The more useful the token will be, the more will be the demand and hence more value. In terms of trade volume, BNB is one of the fastest-growing cryptocurrencies in 2019. As it’s used to pay for exchange transactions, Binance is also considered among the fastest growing exchanges in the world.
BNB is created by Changpen Zhao, who is currently the CEO of Binance and has a proven record of achieving success in Binance with of help of his enthusiastic team.
Binance coin comes within the top ten on Coinmarketcap with growing volume. It’s one of the most liquid cryptocurrencies right now.
Despite having consistent growth, Binance has a volatile price graph. The price was multiplied by 3 in early 2019 due to the falling market. It may go up or down in the future but volatility is high.
BNB offers interesting trading fee discounts for users holding this currency. Users get 50% discounts in the first year, 25% in the second year, 12.5% third, 6.75% fourth, and zero later on.
A total of 200,000,000 BNB were issued via an ICO at $0.10 per coin. Binance uses 20% of its profits each quarter to buy BNB tokens back and burn them until the amount of this token is reduced to by half. The team behind this cryptocurrency also planning to launch a decentralized exchange which will definitely increase the usage of BNB.
If you already own popular coins like BTC and ETH and looking to diversify your portfolio, you can consider investing in BNB having a solid business history and an experienced team.
5. Basic Attention Token (BAT)
Basic Attention Token or BAT is another utility token used to tip content creators and others doing something useful on the Internet. This token is commonly utilized in the Brave Browser.
According to coinmarketcap, BAT is generally present within the top 40 most traded coins but liquidity is not stable.
If we see its trend in 2018 and 2019, the pricing seems to be quite consistent. While most of the other coins were facing degradation, BAT’s price remained within the same region. And, this may be a good sign of healthy growth in the future.
Currently, there are 1.5 BAT tokens exist in the market and it will stay this way. If demand grows, the price valuation should also increase.
BAT has been the hottest cryptocurrency in 2018 and 2019. As the Internet browsers’ industry has a huge potential, it may have a bright future where it would get the chance again to outperform most other cryptocurrencies.
These were some of the safe investment options for beginners. I have noticed many beginners who want to invest in cryptocurrencies just look at the price volatility and other details of coins. They don’t bother about knowing the team, and according to me, it’s a mistake.
Whether you’re a beginner or advanced cryptocurrency investor, you should always do extensive research. It will help you predict the future of a bitcoin and diversify your portfolio with the least risk. If you know any other good cryptocurrencies for beginners, do let us know in the comments below.