Best Crypto to buy for beginners
As a beginning crypto investor, it can be overwhelming when you see that there are over 18,000 tradable cryptocurrencies at different providers. Which crypto should you invest in as a beginning crypto investor? And where can you buy crypto?
How do I start buying crypto?
Investing in Crypto is not that different from traditional investing. Before you start, you need to understand what your goals are, what the market trends are, and then who you want to do business with. In this case, the "who" refers to the crypto provider from whom you decide to buy crypto. Each provider offers its unique advantages, and you need to decide in advance what you expect from your provider.
It is important to know what your goal is with investing in crypto. What do you want to achieve? What strategy are you going to use while investing in crypto? What is your crypto exit strategy? In short, goals are important to know why you are doing it and how you are going to do it.
To find out what the market developments are, you can keep an eye on the latest crypto news. There are also sites like CoinMarketCap where you can follow the price developments of the crypto market.
Which crypto should I buy first?
If you're new to the crypto world, chances are the range of cryptocurrencies on offer is overwhelming and you're wondering which cryptocurrencies are best to buy. The market currently has over 18000 cryptocurrencies traded daily, each with a unique price, history and potential.
You have probably heard of Bitcoin or Ethereum. These two coins a responsible for about 85% of the current market, which means demand is high. These two cryptocurrencies are the most common investments for most traders. Like all cryptocurrencies, they still have the potential to grow rapidly. Thanks to their large market share, they are also unlikely to collapse within a few days. Investing in Bitcoin and Ethereum is therefore a relatively safe option.
If you are more risk averse and feel secure, you can choose to invest in one of the smaller altcoins out there. Altcoin is the term used to describe a cryptocoin that is not Bitcoin. Examples include Solana, Ripple, Cardano and even Ethereum is considered an altcoin. These coins have a lower market capitalisation than Bitcoin, meaning there is still room to grow, but also that they are more volatile. As always, be sure to research these coins before investing. These altcoins are often developed for very specific purposes, ranging from payment tokens, stablecoins, to utility tokens.
These projects often start as an alternative to an existing coin. After Bitcoin, we saw the rise of Ethereum and Litecoin. After the development of Litecoin, we saw Dogecoin. Alternatives with similar but improved features as Ethereum have been popping up more and more in recent years. The most notable are currently Solana and Avalanche. Altcoins can be very volatile. Therefore, research the purpose and technology of the coin before you decide to invest in it. Also understand that the coin can quickly fall and rise in value.
Where should I buy crypto?
Once you have decided which cryptocurrency you would like to buy, you need to choose where to make the investment. Crypto buying has been made easy for beginners thanks to the number of online crypto services and brokers that have been developed to simplify the process. But when you have to choose between crypto services or exchanges, there are numerous factors that can help you choose the best crypto provider for you. For example, service fees, good customer service or reviews are important factors to look at.
A crypto exchange is a platform usually aimed at experienced users, so it is not always the easiest way to introduce yourself to the world of crypto trading. Crypto services or brokers, on the other hand, are a reliable, protected and user-friendly option for novice investors. Of course, this does come with a bit of a cost, with the cost of transaction fees being one of the few drawbacks to this method. Platforms like Anycoin Direct will likely make your first crypto experience enjoyable. There is, of course, the consideration of centralised services and decentralised exchanges (DEX), both of which have their considerations to consider. But that will be covered in more detail in another video.
How much crypto should I buy with little money?
Deciding what is the best crypto to buy with little money depends on your personal investment plan. Some rules apply to all investments. You should always do research, make sure you can handle the risk, and most importantly, never invest more than you can afford to lose. There is always risk involved in investing and you need to make sure that, if things go wrong, you are not in financial trouble.
A popular investment strategy is Dollar Cost-Averaging, or DCA. This is a strategy to invest periodically, regardless of cost. This helps to reduce the impact of market volatility. Another popular investment strategy is market timing. In market timing, you wait for good entry points, such as a market drop or a positive announcement from the coin's management.
What is the best crypto to invest in?
Today, crypto investing for beginners has been made easier than ever! There has been a growth in online crypto services that not only allow you to invest quickly and easily, but also help you decide what is the best crypto to invest in. These platforms offer you the chance to buy directly and often provide you with storage options, such as wallets or vaults linked to your account.
They will also likely give you data on how each coin has performed, making it easier for you to decide which is the best crypto to buy. Once you feel comfortable with what you're investing in, you can start investing in cryptocurrency within minutes! Of course, it is wise to make decisions based on your own research. Important considerations are:
- Is there a clear roadmap;
- Are the expectations being met;
- Do they stand out from other coins;
- What are the price movements in previous years?
- Are the founders trustworthy?
