Cryptocurrencies have been some of the best-performing assets to invest in lately, For example, while the S&P 500 index has risen by about 90% in the past five years, Bitcoin has surged by over 3,400% in the same period. Other coins have done even better. In this article, we will look at the best cryptocurrencies that beginners should invest in.
Bitcoin (BTC)
Bitcoin is the best-known cryptocurrency globally. It was the first coin ever started and its total market cap has surged to over $800 billion. BTC is a good cryptocurrency for beginners because of the volume of material available about it.
Most importantly, BTC is usually the main driver for other digital coins. They tend to rise when Bitcoin rises and vice versa. Further, Bitcoin is offered by most online exchanges and brokers. It has also had a lot of success over the years as its price has risen from less than $1 to a peak of almost $70,000.
Ethereum (ETH)
Ethereum is a giant in the blockchain industry. It is a second-generation platform that has smart contract features. These tools make it possible for people to build other decentralized applications (dApps). Today, 80% of all blockchain projects have been built using Ethereum’s platform.
For example, in DeFi, popular platforms like AAVE, Curve, Maker, and Compound were all built using Ethereum. Similarly, in the non-fungible token (NFT) industry, Ethereum was used to build popular platforms like OpenSea and Axie Infinity. The same is true in the metaverse, where it was used to build Decentraland.
All this has happened at a time when Ethereum is facing strong competition from the likes of Solana, Avalanche, and Terra. As it moves to a proof-of-stake network, there is a possibility that its demand will keep rising.
Terra (LUNA)
Terra is another cryptocurrency to invest in by beginners. It is built using the Cosmos SDK and has been used in a number of ways. For example, developers have used Terra to build some of the biggest DeFi apps like Lido, Astroport, and Anchor Protocol.
At the same time, Terra has been used to build some of the top stablecoins in the world like Terra USD, which has a market value of $16 billion. In South Korea, Terra was used to build Chai, a leading money transfer company. Therefore, Terra will likely keep growing in the next few years.
Cosmos (ATOM)
Cosmos is a platform that is playing an important role in the blockchain industry. Its main goal is to use the Inter-Blockchain Communication (IBC) protocol to promote the communication of cryptocurrencies. It solves the challenge where most cryptocurrencies don’t communicate with one another.
Cosmos also has an SDK that has been used to build popular blockchain projects like Terra, ThorChain, and Osmosis. It also has a big stake in Gravity DEX, which is set to become independent soon. Therefore, there is a likelihood that Cosmos will keep growing in the coming decades. This makes it a good cryptocurrency to buy among beginners.
Chainlink (LINK)
Chainlink is a unique cryptocurrency that is good for both beginners and experienced traders. It is a blockchain project in the smart oracle industry. Its role is to make the blockchain work by enabling developers to link off-chain data to on-chain platforms.
As a result, its work is so important since most developers will always use its service. Chainlink has also become a leading player in the verifiable random number generator (VRF). VRF helps to promote security for blockchain platforms. Therefore, Chainlink is a good cryptocurrency for beginners because of its important role in the industry.
Dogecoin (DOGE)
Dogecoin is another cryptocurrency recommended to beginners. It is a coin whose goal is similar to Bitcoin in that it helps people send money. While DOGE was started as a joke, its role has become integral in the industry.
Its prominence has been because of Elon Musk, the wealthiest person in the world who has promoted it. Many people now use Dogecoin to make some transactions and even pay tips in hotels.
Dogecoin is a good cryptocurrency for beginners because of its cheap price and the fact that it has a long runway for growth. A single DOGE goes for $0.144, meaning that with just $100, one can buy 694 coins.
Cardano (ADA)
Cardano is a well-known cryptocurrency that is widely seen as a good alternative to Ethereum. It is a proof-of-stake platform that hopes to become the default place for developers to build their decentralized apps. While Cardano was founded in 2016, its smart contract features came only in 2021. In the past few months, the number of developers using the network has grown and there is a possibility that this trend will continue. This makes it a good buy for beginners.
Cronos (CRO)
Cronos is a relatively new blockchain project that seeks to become a favorite among developers. Its mainnet beta was launched in November 2021 and in a few months, the amount of activity has been rising. According to DeFi Llama, the network has a total value locked of over $4 billion. This is a substantial figure considering that it is now the biggest platform in its industry. Therefore, Cronos is a good investment because of its strong growth.
Filecoin (FIL)
Filecoin is a web3 platform that is seeking to disrupt the file storage industry. It is using decentralization to make it easy for people and companies to improve their storage needs. It uses people from around the world to provide their free storage. It then rewards them with the FIL token, which is now valued at over $4 billion. Filecoin is a good cryptocurrency foe beginners because of the real-world challenge it is solving.
Anchor Protocol (ANC)
Anchor Protocol is a leading DeFi platform built using Terra’s technology. It lets people deposit collateral and then take loans. It also allows people to make money by providing liquidity. In a few months, Anchor has over $18 billion in assets and the figure is growing. ANC is mostly used for governance and there is a likelihood it will keep growing.
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