Buying Cryptocurrency
- Newbie Guides

What is the Best Cryptocurrency to Buy? Check Out This Newbie Guide

I’ll be honest with you:

“I’m NOT a fortune teller who can tell you which exact cryptocurrencies to buy and profit from.”

Chances are, you’re someone who’s looking to make money by investing in digital coins. And by investing, I mean buying the coin, holding it, and selling it at a higher price.

However, cryptocurrencies like Bitcoin, Ethereum, and Litecoin are more than just investment vehicles for generating wealth. Once you understand their wonders, they’ll be an important part of your life as well.

But don’t worry, I’m not breaking my promise. I will share with you my personal picks of cryptocurrencies to buy, which I’ll base from a set of guidelines for determining a good cryptocurrency.

All of these information, you can find by reading this full article.

 

What is a Cryptocurrency Anyway?

Encryption

Part of being successful in investing is having a good understanding of cryptocurrency, so let’s talk about that first.

A cryptocurrency is a form of digital currency that is protected by cryptography, which is a process of encrypting codes to secure transactions. What’s great with cryptocurrency is that it’s “decentralized”, meaning there’s no big boss controlling the currency.

That is, no banks, government regulations, and authorities can control this technology!

Transactions of cryptocurrencies are stored in a public ledger called the blockchain. Instead of banks keeping record of all the transactions (done privately), a network of nodes validates transactions to create a “block” in the blockchain.

By the way, these nodes can be run by anyone who wishes to do so. But instead of regulations, complex mathematical algorithms are being used to run the network.

Watch this interactive video I saw on YouTube to learn the basics:

If you’re totally new, this subject can be overwhelming to you. That’s why I recommend reading newbie-friendly guides (or videos) to help you with the basic terminologies (I’ll make one in the future).

 

What Makes a Good Cryptocurrency Investment?

Having understood the basics, let’s move on to the guidelines for choosing a cryptocurrency to buy. You want these fundamental properties to exist in whatever you’re buying or you’ll risk losing your money in the process.

1. Security/Privacy – I think this is an obvious one, because you don’t want your hard-earned money to be lost due to a weak system. Also, you want to remain anonymous as you acquire and store cryptocurrencies.

Do proper research on the crypto exchange you’ll be spending your hard-earned money with. Read the white paper of the said investment to learn how the developers are protecting their users.

2. Strong Community – Creators of cryptocurrencies are very much involved with the online (and offline) community. Check if they run social media platforms like Facebook and Twitter, or forums and Q & A sites such as Reddit and Quora and see if there’s live interaction in there.

Also, go to the official website of the cryptocurrency (normally .org or .com) and get a feel of their interface. If you think something’s not right and looks unprofessional, then you have a reason to be skeptical.

3. Unique Benefits – No cryptocurrency is created equal. Every one of them has a distinct feature the reason why they’re worth pursuing. You can see this through the developers’ white paper, which describes what the cryptocurrency is all about.

When you invest in one of them, think about how the digital asset is going to impact the world. Some Altcoins specialize in certain things such as faster transactions, easier mining, or more privacy for the user. This should help you decide on which cryptos to invest in.

 

My Top Picks for Buying Cryptocurrency

I’ll now reveal my list of top cryptocurrencies to invest and be a part of.  By the way, this list follows no particular order and shouldn’t be taken as an investment advice. After all, no one can precisely predict the future of these currencies.

 

1. Bitcoin (BTC)

Bitcoin Mini Logo Labelled as the “gold” of cryptocurrency, Bitcoin should be a no-brainer investment to make. Despite the rumours and issues affecting this asset, Bitcoin will continue to dominate the industry especially with its great track record (and high market price).

You can see the proof in the growing number of businesses accepting bitcoin payments. It’s so mainstream and secure that companies are willing to take transactions and trust that the system will be virtually immune to adversaries.

 

2. Ethereum (ETH)

Ethereum Mini Logo It is a platform that provides “smart contracts” and the ability to create powerful apps to use in business. Purchasing this cryptocurrency will give you a unit called Ether, which is the fuel that runs the Ethereum network.

Ethereum is gaining popularity in the market, with some saying that it’s way better than Bitcoin in many ways. It’s so powerful that you can even start a cryptocurrency using the Ethereum blockchain.

 

3. Litecoin (LTC)

Litecoin Mini Logo

If Bitcoin is the gold standard, then Litecoin is considered as the “silver” of cryptocurrency. The difference is that Litecoin features faster confirmation times and larger transaction volume than Bitcoin. Likewise, mining an LTC block is 4 times faster than in Bitcoin (2.5 versus 10 minutes).

Surely, this Altcoin is one you should consider investing in. It has a secure system, great community, and a healthy performance in the market.

 

4. Ripple (XRP)

 Ripple Mini LogoRipple is a currency that is favoured by banks and some payment services. Unlike Bitcoin that only handles 7 transactions per second, Ripple can transact at an astonishing rate of 1,500 transactions per second and is therefore efficient.

Also, XRP has a 5-year track record, which makes it a very reliable system to use. That’s why you should consider this digital coin and try investing in it.

 

5. Dogecoin (DOGE)

 Dogecoin Mini LogoIt’s one of the cryptocurrencies that have a great community, as well as great cryptographic features. DOGE can actually be “merge-mined”, meaning you can mine it along with other coins like Bitcoin and Litecoin. This creates better efficiency and greater financial rewards.

Not only that, it also participates in charitable acts such as funding a NASCAR racer (w/ the Dogecar), supporting athletes in 2014 Sochi Olympics, and raising money to solve Kenya’s water crisis.

 

In the End, You Have to Do Your Research

These are the 5 great cryptocurrencies that’s worthy of investing in. I’m sure with 100’s of them in the marketplace, one can actually research for more digital coins and see potential assets that would do great in the long-term.

Here’s my advice for you: Go out there, explore, and learn everything you can about cryptocurrencies. Do your due diligence until you’ve built an intuitive sense of which coins are worth investing and which ones are not.

But of course, if you can’t do that now, then I suggest looking at the top picks I suggested and start learning more about them.

 

Anyways, I wish you good luck with choosing your first cryptocurrency. Which cryptos do you plan to invest in? Throw in some comments below and let’s talk about it.

2 thoughts on “What is the Best Cryptocurrency to Buy? Check Out This Newbie Guide

  1. Hello Dominic,

    Thank you a lot for sharing this information about cryptocurrencies with me. Actually today is my first time of hearing this word. I have heard something about Bitcoin (BTC), but rest of the list you provided look new to me.

    As you mentioned, cryptocurrency is a digital form of currency that is protected by Cryptography. And if I got you right these are well secured form of currencies based on encryption, although they are not under the control of any bank or any government regulation.

    So my question is, which of the digital currencies you listed in this post will you recommend to me? And how can I best invest it to be able benefit from it?

    I will really appreciate your reply.

    1. I like Ethereum, because it has the potential to overtake Bitcoin with its functionalities. Of course, the other coins are a great bet. Even the ones I haven’t included in the list can also be considered as good investments (such as NEO, Monero, and IOTA).

      Whichever you choose, it’s important to have sufficient knowledge in the ones you’re buying. Good luck and I hope you delve into the crypto world (anyone can learn it, not just techies).

Leave a Reply

Your email address will not be published. Required fields are marked *