A straightforward guide to the top cryptocurrency for novice investors

Curious about the top cryptocurrencies for beginners to invest in? Dive into our comprehensive guide featuring well-known digital assets like Bitcoin (
BTC
), Ethereum (
ETH
), and more.
Venturing into the world of cryptocurrency can be daunting, given the plethora of options available. However, experts recommend starting with established and trustworthy digital currencies to make the process more seamless.
To ease your entry into the crypto market, we’ve put together a beginner-friendly manual showcasing five of the best cryptocurrencies for novice investors to consider. These selections are based on factors like stability, market value, and growth potential.
Bitcoin (BTC)
As the oldest and most valuable cryptocurrency in existence, Bitcoin is a reliable choice for beginners. With a market capitalization exceeding $1.35 trillion as of June 4, 2024, Bitcoin represents over half of the entire crypto market’s value.
First-time crypto investors should view Bitcoin as an attractive investment due to the following reasons:
1. Broad availability: Bitcoin is accessible on almost all crypto exchanges and many traditional brokerage platforms, making it an ideal starting point for beginners.
2. Increasing acceptance: Businesses worldwide are adopting BTC for transactions, and certain countries like El Salvador and the Central African Republic (CAR) recognize it as legal tender.
3. Strong growth potential: Recent milestones, such as the introduction of spot Bitcoin exchange-traded funds (ETFs), have propelled Bitcoin prices higher, culminating in a new all-time high of $73,750 on March 14. Some experts even forecast that Bitcoin’s price could surpass a million dollars by 2030.
Given Bitcoin’s established presence and ongoing growth, it serves as an excellent introduction to the crypto space for new investors. While the price of a single Bitcoin may seem steep for the average investor, fractional purchases are possible at much lower prices.
Ethereum (ETH)
Although Ethereum has a more modest market capitalization compared to Bitcoin, it is a dominant force among altcoins and a compelling choice for crypto beginners.
Referred to as Ether, this cryptocurrency is the second largest by market cap and plays a crucial role in the decentralized finance (defi) and decentralized applications (dapps) ecosystems.
Here are a few reasons why Ethereum stands out as a strong contender for a first crypto investment:
1. Defi dominance: Ethereum underpins numerous decentralized finance protocols and applications, driving a high demand for ETH. Its blockchain is integral to the operations of these applications, positioning ETH as a vital component of the dapp and defi sectors.
2. High total value locked (TVL): Ethereum boasts the largest share of the total value locked (TVL) in various networks, signifying widespread adoption and trust. With a current TVL of $89.01 billion, Ethereum’s dominance far surpasses that of its top five competitors combined. A high TVL typically indicates increased platform usage, which bodes well for ETH’s future value.
3. Smart contracts: Ethereum supports smart contracts, enabling self-executing codes with predefined terms. This feature facilitates a wide array of decentralized applications, making Ethereum a favored blockchain for hosting dapps.
4. Continuous development: The Ethereum network undergoes constant enhancements, with the recent upgrade to Ethereum 2.0 focusing on scalability and security. This ensures that Ethereum can keep pace with technological advancements in the blockchain industry, maintaining ETH’s value at a steady level.
Considering these factors, opting for ETH as a first crypto investment should be a relatively straightforward decision to make.
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BNB Coin
BNB Coin, the native cryptocurrency of the Binance ecosystem, presents another compelling option for novice crypto investors.
While it may not boast the same level of reputation as the aforementioned coins, BNB has quietly established itself as a significant player in the broader crypto market.
Here’s why BNB should be among the top cryptocurrencies for beginners in 2024:
1. Stable performance: Amidst the crypto market’s volatility, BNB has demonstrated consistent growth over the years. Initially priced at $0.15 during its 2017 ICO, BNB has since appreciated significantly. At the time of writing, BNB traded at over $645 with a market cap of $99.3 billion, making it the third-largest non-stablecoin cryptocurrency.
2. Controlled supply: With a maximum supply of 200 million and a circulating supply around 156 million, BNB’s value stands to benefit from its capped supply, creating scarcity that could drive up the coin’s value over time.
3. Utility token: BNB offers transaction fee discounts on the Binance Exchange and is utilized across multiple blockchains within the Binance ecosystem. It facilitates trading on the Binance exchange, allowing BNB holders to enjoy reduced trading fees. Additionally, BNB can serve as collateral for margin trading, enabling users to amplify their positions and potentially enhance returns.
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Beyond trading, BNB serves as the primary currency for Binance’s decentralized exchange, Binance DEX. Users can trade cryptocurrencies in a non-custodial manner, retaining control over their assets.
BNB is also integrated into Binance’s decentralized lending platform, Binance Lending, where users can lend and borrow cryptocurrencies while earning interest. Furthermore, BNB can be utilized to pay transaction fees on the Binance Smart Chain (BSC), a high-performance blockchain developed by Binance.
Given its diverse utility within the expansive Binance ecosystem, BNB’s value is likely to remain safeguarded in the long run, positioning it as one of the top cryptocurrencies for beginners to consider.
Solana (SOL)
Another cryptocurrency that holds promise as a top investment for beginners is Solana (
SOL
). Over the past year, SOL has exhibited positive price performance, with its value surging by over 660%, according to data from CoinGecko.


Solana one-year price chart | Source: CoinGecko
The Solana blockchain boasts several features that contribute to SOL’s growing reputation and solidify its position as one of the leading cryptocurrencies by market capitalization:
1. Speed and cost efficiency: Leveraging a unique proof-of-history (PoH) mechanism, Solana can process up to 50,000 transactions per second at a fraction of Ethereum’s cost.
2. Scalability: Solana’s high throughput and low fees make it an attractive platform for dapp developers and users.
3. Growing ecosystem: Solana hosts a thriving ecosystem of dapps, NFT platforms, and Web3 games, enhancing its appeal to users. Notably, it accommodates popular meme coins like Bonk (
BONK
) and Dogwifhat (
WIF
).
4. Environmental impact: Solana’s PoH and proof-of-stake (PoS) models are less energy-intensive compared to traditional proof-of-work (PoW) systems utilized by Bitcoin, appealing to environmentally-conscious investors.
In today’s environmentally-conscious climate, cryptocurrencies with reduced ecological footprints may garner greater favor among investors, making SOL a sensible choice for beginners.
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Ripple (XRP)
Ripple (
XRP
) is another noteworthy cryptocurrency that beginners should consider as a top investment. Introduced in 2012 by Ripple to facilitate rapid and cost-effective cross-border transactions, XRP has emerged as one of the prominent digital assets in the crypto sphere, boasting a market valuation of $29 billion.
Priced at $0.5252, XRP is currently the most affordable crypto for beginners on our list, offering a substantial 84.6% discount from its all-time high price of $3.40.


XRP One-year price chart | Source: CoinGecko
Key factors that position XRP as one of the best cryptocurrencies for beginners include:
1. Fast transactions: With the capacity to handle up to 1,500 transactions per second, XRP ranks among the swiftest cryptocurrencies available.
2. Low cost: XRP transactions are cost-effective and do not entail high energy consumption, setting it apart from Bitcoin.
3. Financial partnerships: Ripple has forged alliances with major financial institutions like MoneyGram and American Express, enhancing its credibility and utility.
4. Affordability: Trading at a lower price point, XRP is accessible to beginners with limited capital, enabling potential higher returns with a modest initial investment.
Final thoughts
Embarking on your cryptocurrency investment journey calls for selecting assets that offer stability, utility, and growth potential.
While these five cryptocurrencies – Bitcoin, Ethereum, BNB Coin, Solana, and XRP – present unique advantages for novice investors, it’s crucial to conduct thorough research and assess your risk tolerance before diving into the market. Despite their relative stability, these coins are susceptible to periods of volatility that could impact your investment.
FAQs
What are the best platforms for beginners to buy cryptocurrencies?
Popular platforms like Coinbase, Binance, and Kraken cater to beginners looking to purchase cryptocurrencies. These user-friendly exchanges offer a variety of digital assets. However, remember that crypto investments carry risks, so conduct your own research and consider seeking advice from a financial advisor.
What is the optimal approach for beginners to invest in cryptocurrencies?
For beginners, the best strategy often involves acquiring and holding a diversified portfolio of cryptocurrencies for the long term, regardless of short-term price fluctuations. It’s essential to invest only what you can afford to lose and conduct thorough research or seek professional guidance before making any investment decisions. Keep in mind that the value of investments can fluctuate, potentially leading to losses.
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