When Cryptocurrency first surfaced in 2009, there were probably only a few individuals out there who believed it would thrive or at least be present after 14 years. However, 2022 has almost run its course and cryptocurrencies are still making their mark, some more prominent than others.
The increasing value of cryptocurrency makes individuals more than willing to invest and own them regardless of how volatile the line of business can be. This is not surprising as it is almost the same as the stock market.
However, if you have an interest in entering this line and have little or no experience, a little startup knowledge is best. Therefore, this article will cover our top 3 Cryptocurrencies for beginners. But first, let us consider what makes these currencies our top 3.
Amidst the renowned volatility of cryptocurrencies, there remain some that have made a name for themselves. These currencies are mainly characterized by a high exchange rate in fiat currencies.
In addition, seeing how they are popular and in high demand, they do not experience regular dips. Although obtaining this category of cryptocurrency would be expensive, it is a better shot for beginners.
All cryptocurrencies have some form of security measures in place. No doubt, no one would want to handle a cryptocurrency that is prone to security breaches and thefts. However, certain currencies provide better security for their users.
A beginner might have lesser knowledge of how to protect their device from hacking attempts. A currency with good security might help prevent thefts. For example, using a cold wallet keeps your private key offline and out of sight of hackers.
- Bitcoin (BTC)
Bitcoin ranks among the longest-standing cryptocurrencies. Among other cryptocurrencies, bitcoin has likely reached the highest number of countries. Although it has surfaced in several regions, not every government supports it.
Although a region like El Salvador accepts it as legal tender, and there are accounts of some governments trading with it, Bitcoin is banned in Nine countries. Fifteen countries have equally implied that the use of bitcoin in their territory is unwelcome.
However, it is no secret that since 2021, the value of bitcoin has been on the rise. From its initial value of $0 when it was founded in 2009, its value in the last parts of 2022 is estimated at $20,436.
- Ethereum (ETH)
Although Ethereum was developed seven years after Bitcoin, having other cryptocurrencies arrive in the market before it, ETH is a currency that is second only to BTC. However, certain individuals would rather settle for Ethereum than Bitcoin.
Although Bitcoin has a higher dollar value than Ethereum, ETH proves to have more feasible uses. Most people consider the services tied to the Ethereum blockchain. These services include smart contacts, NFTs (Non-fungible Tokens), and DeFi (Decentralized Finance). Although its current dollar value is $1,566, its add-ons make it of great value.
- Cardano (ADA)
Unlike Bitcoin and Ethereum which work with PoW (Proof-of-work) and PoS & PoW as consensus mechanisms respectively, the consensus mechanism that drives Cardano is strictly PoS (Proof-of-stake). Although it is an almost recent coin as it was developed in 2017, its stable release was in the early parts of 2022. Currently, ADA is equivalent to $0.40.
In general, large-capitalization (large-cap) currencies like BTC, USDT, ETH, and ADA are best for beginners. As we have reviewed in the course of this article, they carry lower risks. Bitcoin and Ethereum have a similar strong defense line to ensure their security. The consensus mechanism implemented in Cardano is one of the best and keeps it relatively secure.
With the right exchange, you will find that as a beginner, although it would cost a lot to acquire these currencies, dealing in them would prove to be more profitable and nearly suspense-free for you.