For beginners, the ideal cryptocurrencies are characterized by low volatility, substantial market caps, and, where relevant, a high total value locked. A few of these coins include: bitcoin (BTC), ethereum (ETH) and litecoin (LTC).
Written by: Anatol Antonovici | Updated June 10, 2024
Reviewed by: Mike Martin
Fact checked by: Ryan Grace
Table of Contents
🍒 tasty takeaways
For beginners, the best cryptocurrency investments are those with substantial market capitalizations, high trading volumes, and robust liquidity.
Bitcoin accounts for about 50% of the entire crypto space, while Ethereum accounts for 50% of decentralized finance (DeFi) – making these two the most popular cryptocurrencies for a beginner’s portfolio.
Highly volatile and less utility-driven memecoins, such as Dogecoin, are excluded due to their unpredictability and lack of real-world applications.
- Great cryptos for beginners include: BTC, ETH, LTC, LINK, ADA, BNB, MATIC, AVAX, SOL
🍒 To invest in some of the coins on our list, you’ll need a self-custody crypto wallet. tastycrypto offers self-custody wallets in the form of mobile apps and a browser extension
Summary
| Name (Symbol) | Market Cap | TVL | Staking |
|---|---|---|---|
| Bitcoin (BTC) | $1.4 trillion | $1.2 billion | No |
| Ethereum (ETH) | $443.3 billion | $64.5 billion | Yes |
| Solana (SOL) | $74.6 billion | $4.6 billion | Yes |
| Litecoin (LTC) | $6 billion | $4.9 million | No |
| Chainlink (LINK) | $9.4 billion | $25.6 billion | No |
| Cardano (ADA) | $15.8 billion | $248 million | Yes |
| BNB Coin (BNB) | $95.6 billion | $6 billion | Yes |
| Polygon (MATIC) | $6.5 billion | $934.7 million | Yes |
| Avalanche (AVAX) | $12.9 billion | $835.2 billion | Yes |
| XRP (XRP) | $27.8 billion | - | No |
| Uniswap (UNI) | $6.2 billion | $6.1 billion | Yes |
What Are Cryptocurrencies?
Cryptocurrencies, which are digital assets, use blockchain technology as their foundational structure. This technology is characterized by a decentralized network that is maintained through a peer-to-peer consensus algorithm. This allows network participants to independently validate and record transactions without the need for a central authority.
The absence of a centralized governing body and the lack of intermediaries in the operation of cryptocurrencies differentiates them from traditional financial assets (TradFi) like fiat currencies, stocks, or commodities.
Some blockchain networks, such as Ethereum (ETH), are equipped with the smart contract feature. This enables developers to create applications that are entirely governed by code. These are referred to as decentralized applications or dapps. These applications operate independently of a central control.
Crypto Coins for Beginners
Cryptocurrencies can be complex and volatile, making them challenging for crypto beginners in investing or trading. However, this shouldn’t discourage you from exploring the crypto world. Blockchain technology is becoming increasingly important, and starting early can give you an edge.
For those new to this space, it’s best to begin with more stable and well-established digital assets, characterized by large market capitalizations, high trading volumes, and, when applicable, high total value locked. These criteria generally indicate a safer entry point into cryptocurrencies.
The cryptocurrency market now offers user-friendly applications and services, with platforms like tastytrade and tastycrypto being ideal for beginners to purchase and store crypto. These tools provide an accessible way to start your journey into crypto assets.
Let’s now look at a chart comparing our 9 cryptos for beginners and then dive into the individual coins. Remember, crypto is very volatile, so start small.
Crypto Coins Performance: 6-Months
Source: TradingView
Secure Your Crypto With Self-Custody
When you store you crypto in a self-custody wallet, you don’t have to trust that an exchange is acting in your best interest. This is because you are the only party privy to your private key, or seed phrase.
Here are some additional benefits you get when you choose to self-custody your digital assets with tastycrypto:
- In-App Swap: Trade BTC, ETH, and 1,000+ tokens
- Generate Yield in DeFi: Stake, lend, and become your own market maker
- NFTs: Buy, sell, and view NFTs in-app
tastycrypto offers both iOS and Android self-custody wallets – download yours today! 👇
1. Bitcoin (BTC)
- Symbol: BTC
- Market Cap Rank: #1
- TVL: $1.2b
- Staking: No
Bitcoin is the oldest and the largest cryptocurrency by market cap, with its valuation exceeding $1 trillion as of mid-February 2024, according to Coinmarketcap data. This crypto coin represents the first use case of blockchain, and it is responsible for the emergence of the crypto industry that we know today.
As a beginner, you should know that the entire crypto market follows BTC – when it gains bullish momentum, altcoins (all coins that aren’t bitcoin) tend to increase as well, and vice versa.
While Bitcoin is highly volatile, it tends to be more balanced than the rest of the coins. Worth noting is the upcoming 2024 bitcoin halving event, which many believe will be bullish for BTC.
2. Ethereum (ETH)
- Symbol: ETH
- Market Cap Rank: #2
- TVL: $64.5 billion
- Staking: Yes
Ethereum (ETH) is the second-largest cryptocurrency by market cap and the largest blockchain network offering the smart contract feature. It enables developers to build dapps and other tokens on top of it.
The demand for Ethereum, technically called ether, is driven by its popularity across the DeFi ecosystem. Many DeFi apps use Ethereum as their underlying infrastructure.
The image below illustrates the total value locked (TVL) across different networks, which represents the amount of cryptocurrency tied up in various blockchains and protocols. The higher the TVL, the more people use that platform/network. It’s noteworthy that Ethereum accounts for the largest portion of this value, highlighting its dominant role in the sector.
Source: DeFiLlama
Ethereum is also the most popular blockchain building Web3 and minting NFTs (non-fungible tokens). Additionally, you can stake your ETH to earn extra income on your investment.
3. Solana (SOL)
- Symbol: SOL
- Market Cap Rank: #5
- TVL: $4.6 billion
- Staking: Yes