Summary

The article provides guidance for beginners on selecting cryptocurrencies for investment, emphasizing established coins like Bitcoin and Ethereum, while also mentioning a variety of altcoins with potential for growth.

Abstract

The article "The Best Cryptocurrencies to Buy as a Complete Beginner" offers insights into cryptocurrency investment strategies for newcomers. It suggests that a beginner's portfolio should be anchored by Bitcoin, which should constitute at least 50% of the investment, due to its pioneering status and limited supply. Ethereum, the second-largest cryptocurrency, is recommended to make up around 30% of the portfolio, given its widespread use and the business interest it has garnered from major companies. The author advises against focusing solely on cheap cryptocurrencies, advocating instead for a balanced approach that includes a diversity of cryptocurrencies to mitigate risk. The article also touches on the speculative nature of some cryptocurrencies, like Dogecoin, and the importance of not over-investing in altcoins that could be delisted from exchanges. While not providing specific investment advice, the author shares their opinion on several promising altcoins and emphasizes the importance of long-term investing using the dollar cost averaging method.

Opinions

The author believes in a balanced investment approach, combining established cryptocurrencies with a selection of altcoins.
Bitcoin is considered the "gold" of cryptocurrencies and should be the foundation of a beginner's investment portfolio.
Ethereum's technology and adoption by major companies make it a valuable addition to an investment portfolio.
Investors should be cautious with altcoins, as they can be delisted from exchanges and are generally more speculative.
Dogecoin is viewed as highly speculative and not suitable for a long-term investment strategy.
The author promotes long-term holding and dollar cost averaging as prudent investment strategies in the cryptocurrency market.
The article implies that while diversification is key, investors should not spread their investments too thin across too many cryptocurrencies.

The Best Cryptocurrencies to Buy as a Complete Beginner

Cryptocurrencies you should have in your portfolio.

Cryptocurrency image by WorldSpectrum from Pixabay

If you are just getting into cryptocurrencies, these are the top cryptocurrencies you should have in your portfolio. You want reliable and trustworthy cryptocurrencies to have in your holdings.

You may be tempted to buy the cheap cryptocurrencies and expect to see a big return. When you do this, you are leaning more on the speculation side rather than the investing side of the market.

Personally, I am a long-term investor and buy and hold my investments. An easy way to buy a cryptocurrency is using the dollar cost average method.

This means you buy cryptocurrencies on a routine basis such as weekly or monthly.

Some cheap cryptocurrencies can see big gains.

Bitcoin.

If you plan to be in the market for a few years, you should first start off with Bitcoin. You can consider Bitcoin as the gold of 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 or they are. Many people have speculated on who Satoshi is. No one has officially been verified as Satoshi Nakamoto.

Bitcoin should be at least 50% of your portfolio. There are a total of 21 million Bitcoin that will ever be created.

Worldwide there are only 19.6 million millionaires. Not every millionaire will be able to own one Bitcoin since several Bitcoin Whales and companies already own several.

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.

Alternative Currencies

Every cryptocurrency that is not named Bitcoin is called an alternative currency or altcoin. There are thousands of cryptocurrencies that are on the market and available for you to own.

Personally, I don’t believe in owning many of them. Some of these cryptocurrencies could fail and they have.

The more you invest in this market, you have to be careful not to have too much money invested in some of the altcoins. You never know when a cryptocurrency exchange removes or delists the token from its platform.

Some of the altcoins will do well, but even some popular cryptocurrencies have been delisted on various exchanges. One, for example, is XRP which is currently in a legal battle with the United States government.

A few people believe XRP will win but many exchanges removed the cryptocurrency from its platform.

Ethereum

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.

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 should make up at least 30% of your portfolio.

Other cryptocurrencies to consider

I won’t go into specific detail on other cryptocurrencies.

Due to the nature of the cryptocurrency market, it is good to have a diversity of cryptocurrencies since they will all move at different times. Many of these are still very affordable with the possibility to go higher.

VeChain

Cardano

DigiByte

Uniswap

ChainLink

Polkadot

1 Inch

Binance Coin

I have not covered all the altcoins but ones that I believe have a lot of promise to increase in price in the near future. My information is my best guess and not to tell you to buy these and hope they will make you millions. This is just a possibility these cryptocurrencies will increase.

Final thoughts

You may have noticed I didn’t mention Dogecoin. This cryptocurrency is a meme coin and highly speculative.

If you want to put some money into Dogecoin, then go ahead. The danger of investing in this cryptocurrency is the price could quickly drop.

With the majority of my cryptocurrencies, I invest in them. With Dogecoin, I trade the cryptocurrency. Basically, I buy and sell this cryptocurrency frequently to take in my profits.

As for the future of Dogecoin, no one really knows. When Elon Musk tweets about Dogecoin, the price tends to rise.

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Tom Handy is a top writer on Medium, former Quora writer, and father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1 and Life is Like a Game.

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.

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