Congratulations! You’re already a good investor by asking about the kind of cryptocurrencies to start investing with as a beginner.
Very few people try to learn first before they start earning, and that tells me you’re going to be a successful crypto investor.
But before we answer the above question, let’s first talk about…
How to invest in crypto
Cryptocurrencies are highly volatile and their prices can go up or down by significant percentage points (900% to 90% or more) in one day.
As a result, like most successful investments, it’s always best to invest in crypto for the long term. The “buy and HODL” strategy has been proven to be the most profitable way to invest in crypto.
Buying and holding for years, like 3 to 10 years on average, is usually the ideal timeframe before you consider selling and booking profits.
Of course, the above depends on your “profit target” and how soon it takes the coins you bought to reach it (if ever).
So as a beginner, first, you must avoid actively trading crypto. You will be played and dumped under the bridge by bots and savvy whales.
Then, find some of the best cryptocurrencies to buy now and HODL for as long as it takes for you to make life-changing money or until you reach your profit target with them.
The kind of cryptocurrencies to start investing with as a beginner
The cryptocurrency market is still very young and constantly evolving. Hundreds of coins and tokens are being created every month, and over 90% of them will die within 1 to 3 years or less.
How do you identify the ones worth betting your money on over the long term and HODL away to wealth?
The sad news is that you don’t know which will survive or make you rich.
But you can easily identify the ones with the highest probabilities of surviving and thriving over the long term.
These include the:
1. The market leaders
In every industry or even market segment, there are clear leaders blazing the trail and setting the pace.
They’re usually the pioneers or first-movers or projects with the most innovative and visionary team.
In crypto, the clear market leaders are Bitcoin (BTC) and Ethereum (ETH) —at least for now. And these are the kinds of cryptocurrencies you should start investing with.
They’re less volatile than most because they have deep liquidity and large market capitalizations, so market manipulators cannot easily pump and dump their prices.
However, they would likely make you the least profit compared to the low cap coins and tokens that manage to excel.
I suggest you start with the market leaders because you will have more peace of mind with them, especially in a bear market.
Plus they have stood the test of time and proven to be more reliable for over a decade when other projects are dying after a week or 3 months.
Furthermore, it’s good to start with a solid foundation and take your time to study a few of the promising low cap and relatively new tokens in the market vying for your attention.
How to do your own research and make great crypto investment decisions
2. The solution or service providers
Find and invest in projects that are solving real-life problems or offer valuable products and services that people use and pay for every day.
Even if their prices aren’t doing so well right now, it’s always a good idea to invest in these projects.
Because over time, the market will become more mature and money will flow from shitcoins into projects offering real value.
The kind of projects in this category include:
- Decentralized exchanges
- Crypto banks such as centralized exchanges and crypto lending and borrowing platforms
- Smart contract platforms
- Crypto media and social networks
As long as the cryptocurrency market continues to exist, the services of these would be in demand.
Therefore, look for projects in these market categories with the best fundamentals and invest in as many of them as you can, based on your portfolio size.
Click here to learn how to perform the fundamental analysis of any cryptocurrency project all by yourself
You can also check out our analysis category page to read the fundamental analysis of some projects we’ve covered.
If you didn’t find one for a project you’re interested in learning about you can also request an article by writing to us or in our Telegram group.
In summary, find those low cap coins solving real problems with innovative and creative products, have a highly skilled and committed team, and invest in them.
The kind of cryptocurrencies I like to invest in and why.
I have been in the crypto market since 2017. Over this period, I have lost more money than I’m willing to admit and learned some valuable lessons along the way.
One of the biggest lessons I’ve learned is that resistance is futile. Just HODL and chill.
Trading and trying to time the market or gamble your way to wealth is a waste of your time and money. It’s not investing.
Furthermore, in addition to the factors mentioned above, I love to invest in projects with:
- Low caps ($1 to 100 million): They have a lot more rooms to grow for me to make a significant profit from them.
- Fixed supply: I don’t invest in tokens with unlimited supply, at least not for long term HODL. Limited and low supply coins are the most attractive to me.
- Deflationary: I love tokens with a deflationary feature, most especially, those with already low and fixed supply with regular buybacks and burn programs.
- Multiple-use cases: The more use cases a coin has, the greater its demand and the higher the price can go.
- Staking: Like you, I love passive income, and staking is one of the best ways to earn passive income with your existing crypto while you HODL. I like projects with especially single-token staking features.
- Reflections: Like staking above, I love tokens I can just HODL in my wallet and earn regular rewards automatically credited to my wallet just for holding the tokens. This includes reflection tokens such as DMAX.
These features help me filter out the best from the good and refine my list of the best cryptocurrencies to buy and HODL.
Starting your crypto investment on the wrong foot could set you up for major losses and frustrations.
As such it’s important you learn the kind of cryptocurrencies to start investing with and develop a personalised investment strategy that suits your unique situation and goals.
In this post, we’ve discussed how investing in market leaders and projects solving real-life problems is the best way to start.
Furthermore, we’ve identified holding as the safest and most profitable investment strategy to adopt as a beginner.
In addition, I’ve shared with you other features you should look out for in an ideal cryptocurrency project.
What kind of cryptocurrencies are you investing in? Share with us in the comments section below.
Never walk alone! Join us on noise.cash and Telegram where we talk crypto all day with other passionate and knowledgeable crypto investors.