If You Only Have $500, These are the Cryptocurrencies You Should Consider
5 Cryptocurrencies to have on your watch list as a beginner.
These are the cryptocurrencies you should consider if you don’t have a lot of money. Trust, I’ve been there and my first investment was about $100 when I first bought Bitcoin a few years ago.
Today, not everyone can afford to buy a full Bitcoin, Ethereum, or another cryptocurrency because their prices have increased.
This year, a lot of new people have joined and buying cryptocurrencies either on Coinbase, Robinhood, PayPal, and other exchanges. There are hundreds of cryptocurrency exchanges to buy crypto that is available today.
For this, I’ll use Coinbase which is easy to use. You can use Coinbase Pro for lower fees. Either option is a good choice to get started.
The cryptos I am recommending are cryptocurrencies that I also own. These are not meant to be a day trade to make fast money in a day or two.
I don’t day trade for two reasons.
1. In the US, the taxes are normally higher than if you held your cryptocurrencies for less than a year.
2. Day trading requires a lot more time for you to review charts, follow the price swings, and following your cryptos.
When you invest, you can take a little more hands-off and not have to use a lot of time after you have bought your cryptocurrencies. This doesn’t mean you need to ignore the market completely but you will not have to be focused minute by minute on the price movements.
If you only have $500, these are the five cryptocurrencies you should consider buying:
- Bitcoin
- Ethereum
- Cardano
- Chainlink
- Sushiswap
These are the best cryptos to consider right now and available on the Coinbase platform.
Bitcoin (BTC) $35,554.36
When starting out, you should have Bitcoin in your portfolio. You can consider Bitcoin as the gold in the cryptocurrency market. Bitcoin was the first cryptocurrency ever created by Satoshi Nakamoto in 2009.
Shortly after the creation, Satoshi disappeared. No one knows who he is or who they are. Many people have speculated on who Satoshi is. No one has officially been verified as Satoshi Nakamoto.
Bitcoin makes up 10% of your portfolio. There are a total of 21 million Bitcoin that will ever be created.
The two main groups that own Bitcoin are Bitcoin Whales and major companies.
Bitcoin Whales are cryptocurrency investors who personally own several thousand Bitcoins. Recently, many companies such as MicroStrategy, Tesla, and PayPal, have started to buy Bitcoin for their holdings. The number of available Bitcoin is slowly decreasing.
Bitcoin and other cryptocurrencies are based on the scarcity of the number of cryptocurrencies that are available. Unlike the dollar which can be printed as long as the printing machines are working, there is no end to their creation. With Bitcoin, there is a limit on how many can be created.
Ethereum (ETH) $2,687.14
Ethereum is the second-largest cryptocurrency by market cap. This cryptocurrency was launched in 2015. Ethereum is an open-source blockchain-based decentralized software platform used for its cryptocurrency.
Many cryptocurrencies are hosted on Ethereum’s blockchain. Over 40 of the top 100 cryptocurrencies were launched on the Ethereum network. Ethereum is a main link into the cryptocurrency space which also includes Non-fungible tokens (NFTs).
Several companies are using Ethereum and its blockchain technology to improve their business. Forbes estimates that $2.9 billion will be spent on blockchain technology. Over 100 companies are exploring ways to integrate blockchain into their systems. Several companies include Amazon, JP Morgan, and Microsoft.
Ethereum makes up 30% of your portfolio.
Cardano (ADA) $1.66
Cardano has a lot of potential in the cryptocurrency space. After years of development, Charles Hoskinson and his team want to help change the world with this cryptocurrency and help the unbanked.
Hoskinson previously worked with Vitalik Buterin on Ethereum until he left to create Cardano.
Cardano makes up 20% of your portfolio.
Chainlink (LINK) $26.79
Chainlink wants to empower smart contracts in transactions. Chainlink is working to fill the gap that older cryptocurrencies cannot solve.
Chainlink helps with smart contracts that are becoming an important part of the cryptocurrency space.
Chainlink makes up 20% of your portfolio.
SushiSwap (SUSHI) $10.93
Sushi is a Defi (Decentralized Finance) protocol that is community driven. With Sushi, users can take part in the passive income DeFi tools such as liquidity providing, staking, and yield farming.
SushiSwap makes up 20% of your portfolio.
Recap of the cryptocurrencies
These were the cryptocurrencies covered if you have $500 to buy. Based on where the market cycle is, these are the cryptocurrencies I would buy.
- Bitcoin (BTC) — 10% or $50
- Ethereum — 30% or $150
- Cardano — 20% or $100
- Chainlink — 20% or $100
- Sushiswap — 20% or $100
If we were earlier in the cycle, I would be heavier on Bitcoin. Since October, Bitcoin has risen a good amount and may even 2X or 3X from here. I feel confident Ethereum will see bigger gains over Bitcoin for the remainder of the year.
If you were buying cryptocurrencies today as a beginner, what five cryptocurrencies would you buy?
Note: The article was written in conjunction with BitFlex FinTech, a blockchain consulting firm. You can follow them on YouTube and Twitter.
This article contains affiliate links and the writer may receive a commission if you use the link. This will not incur any additional fees for you.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
Check out our new platform 👉 https://thecapital.io/
https://twitter.com/thecapital_io