Which Cryptocurrency Is Best for Beginners?
Cryptocurrency has been around for a while now. Many investors have made a killing during this period and many are jumping on the bandwagon. However, a number of beginners don’t know where to start in terms of which cryptocurrency they should invest in.
This guide aims to provide an insight to which cryptocurrency you should invest in. Well, without any further delay, dive in and find out.
Beginners should select Bitcoin for their start because this is the oldest cryptocurrency in the market and if you’ve heard of cryptocurrency, you’ve probably heard about Bitcoin more like a brand. In fact, it still holds market dominance with a 40% market cap. By the close of 2017, the price of Bitcoin was at an all-time high of $20,000.
This was a great rise considering the price of $76 when it first hit the market in 07.09.13. However, in the first two months of 2018 Bitcoin dropped to $6,000.
This drop was a result of the first drop to half its price, $10,000, leading to a massive panic among investors. However, if you purchased Bitcoin in February 2018 when the prices were low, you have made a killing by now.
Investing in Bitcoin
If you are a beginner and thinking about Investing in Bitcoin requires you to keep up with the latest trends and news in Bitcoin. That includes the prices that will guide you on the best time to buy. For example, when the prices drop, that’s the best time to buy Bitcoin.
Nevertheless, Bitcoin is a great investment, although it will depend on how much faith and trust you have in it. If your faith in the investment is weak, then the best advice is to stay away.
In addition, you can find this comparison for Canada on cryptohead.io
With a market capitalization of about $70 billion, Ethereum’s price at the end of 2017 stood at more than $720, which is a positive sign for beginners to consider investing in this digital currency. As 2018 started, the price shot to more than double the price which also marked the highest price of Ethereum, $1,423.
At that point, the market cap rose to a staggering $138 billion. Before 2018, Ethereum made a growth of around 3000% to make it the second largest cryptocurrency after Bitcoin.
Below are some key pointers if you’re a beginner looking to invest in Ethereum
- In May 2016, Ethereum got an investment worth $150 million. This saw the price go up to $14.80 in May 2016 from only a dollar 5 months before.
- A month later on June 18th, Ethereum was hacked and about $60 million in Ether was stolen. As a result, the prices dropped to $9.96 from the highest it had been which was $21.52.
Despite the setback, Ethereum offers more than digital currency. Developers can create cryptocurrencies using Ethereum’s platform which can be used for businesses. This means you don’t have to start from scratch.
Investing in Ethereum
According to blockchain expert Julian Hosp, Ethereum’s market cap could go up to $200 billion before the end of 2018. This means the price could double to $2,000.
With a growth of a whopping 36,000%, Ripple has every right to be called a top performing cryptocurrency and one of the best choices for beginners to invest, at least in 2017. This saw its price rise from $0 to $2.4. However, 2018 has seen all cryptocurrencies drop and Ripple is no exception. Its prices dropped to $0.908.
By market cap, Ripple holds the third spot when it comes to the largest cryptocurrency with about $35 billion in market cap.
Despite its lows, Ripple shows a glimmer of hope thanks to various renown financial institutions using its technology. Some of them include Santander, American Express and JP Morgan. In addition, Ripple is also working with China’s Lian Lian International, Saudi Arabia Central Bank, and other banks all over the globe.
Litecoin is another good choice for beginner which completes this list and just like other cryptocurrencies, it showed massive growth by posting an 8,000% rise. This is from about $4 at the start of 2017 to about $358 by close of the same year. However, like the rest of the cryptocurrencies, its price fell to $110 in February.
With a market cap of $11 billion, Litecoin closes the list as the 5th largest cryptocurrency. Due to its close relations with Bitcoin, many investors have shown interest and it should be one to watch out for in 2018.
Litecoin was built to improve on Bitcoin in 2011. Using the Litecoin network completes a transaction 4x faster than Bitcoin and the maximum Litecoin is set at 84 million which is 4 times more than Bitcoin.
An interesting improvement is the Lightning Network. This network improves transactions by increasing the speed. After the Lightning Network is fully operational, the price of Litecoin is expected to rise.
There you have it. The best cryptocurrencies for beginners. Remember cryptocurrencies are like any other investment, there are risks involved and it’s best to start out with small amounts of money. What’s more, you need to ensure you have the right knowledge regarding the type of cryptocurrency you would like to invest in.