As a newcomer in the crypto world, you should understand that there is no one-size-fits-all approach to deciding which cryptocurrency is the best for you. Risk appetite of one individual will not be the same as that of another. It is therefore imperative to do your own research before you test the waters. Specific coins are more suited to specific requirements like, for investors, day traders, or app developers. So, if you can acquire a deeper understanding of the different types of cryptos you will be able to make an informed decision.
Best 4 crypto investments for first-time investors:
You will find more than 6000 cryptos out there; so, picking out one with the best growth potential can be a challenging task. You need to choose a crypto backed by a robust and active community of developers. It is better to choose a currency which can be split into sub-units as that ensures flexibility in transactions. Whether supply of the crypto is limited or unlimited can impact how it is used and how it will affect the whole economy. Besides, when choosing cryptos to invest in, you should also look at the transaction speed and transaction costs.
- Bitcoin (BTC): The “king of crypto” continues to hold its position even after more than a decade of its launch. Bitcoin’s market cap, trading volumes, and prices continue to be far superior to that of other cryptos. Despite the existence of many other cryptos and altcoins, Bitcoins still make up 40% of the total market cap. One of the other reasons for the massive growth of Bitcoin is the advent of trading bots have automated the bitcoin trading process and enabled users to easily generate passive income. With trading bots like cryptosoft, anyone can start crypto trading without prior experience or in-depth knowledge in trading. Because its main purpose is to help traders in a better and improved way. But still, it’s advisable to check cryptosoft review 2022 before getting involved with the platform. This is why beginners should not hesitate to invest in the Bitcoin. Besides, Bitcoin’s mainstream adoption seems to be on track; this is good news for Bitcoin holders as they can now pay for goods and services using cryptos.
- Ethereum (ETH): Ethereum differs from Bitcoin because it is more than a crypto. Developers can use Ethereum to form their own cryptos. Ethereum may be second to the Bitcoin in terms of market cap, but it still remains far ahead of other digital coins. This is why it is a reliable and profitable investment option for crypto trading beginners. What makes Ethereum unique and appealing is its groundbreaking technology; this is why it continues to be on the list of the most sought-after cryptos even though it was launched much later.
- XRP: Ripple, a digital payment firm, came up with the XRP token to be a crypto payment system facilitating exchanges between cryptos and fiat money. Ripple even allows other cryptos to be exchanged through its network. This has been responsible for Ripple’s astronomical growth in recent years, making it only third to Bitcoin and Ethereum in terms of market cap. Many banks have started using this network for executing banking functions.
- Binance Coin (BNB): This crypto achieved its peak in 2017, a time when many cryptos reached record highs as the year was bullish. However, most of the other cryptos that had soared during this time went onto stagnate afterwards, and many had their prices plummeting. But, the Binance Coin surprisingly continued to be on an upward trajectory. It is this stable and consistent performance that makes it a safe bet for beginners who cannot afford to take too many risks.
Here are the top four cryptos that you can consider putting your money in; before investing, it is recommended you research the crypto’s whitepaper and stay updated with the latest news and happenings in the crypto world. Crypto investments are always risky; so, never invest more than you can afford to lose.