Cryptocurrencies are digital or virtual currencies that are secured by cryptography. They are decentralized, meaning they are not controlled by any central authority such as a government or bank. In recent years, cryptocurrencies have grown tremendously in both value and popularity. However, with over 10,000 different cryptocurrencies in existence, it can be overwhelming for beginners to know where to start.

In this article, we will explore the top 10 cryptocurrencies that are ideal for beginners to invest in or use.

The cryptocurrency market has boomed since Bitcoin first emerged in 2009. While Bitcoin is still the most popular and valuable cryptocurrency, many new cryptocurrencies have been introduced that aim to improve upon Bitcoin in various ways or target specific use cases.

When getting started with cryptocurrency investing, it is best to stick to the major, more established cryptocurrencies that have large market capitalizations (market caps) and good liquidity. These attributes generally make them easier to buy, sell, and trade.

Top 10 Cryptocurrencies for Beginners

Here are the top 10 cryptocurrencies for beginners:

Top 10 Cryptocurrencies for Beginners

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Tether (USDT)
  4. USD Coin (USDC)
  5. Binance Coin (BNB)
  6. XRP (XRP)
  7. Cardano (ADA)
  8. Solana (SOL)
  9. Terra (LUNA)
  10. Dogecoin (DOGE)

Below we’ll explore each of these top cryptocurrencies in more detail including what gives each coin its value and real-world use cases.

How to Use Top 10 Cryptocurrencies for Beginners

Now let’s look at how these top 10 cryptocurrencies can be used, whether for investing, transactions, or other purposes.

1. Bitcoin (BTC)

As the original cryptocurrency, Bitcoin is used primarily as a store of value, investment asset, and medium of exchange. Some of the ways Bitcoin is used include:

  • Buying and holding Bitcoin as a long-term investment
  • Making peer-to-peer Bitcoin payments for goods and services
  • Transferring money quickly and cheaply across borders
  • Converting local currencies into Bitcoin to preserve wealth

Bitcoin continues to be the most widely adopted and traded cryptocurrency globally. It has scarcity built-in as there will only ever be 21 million Bitcoins created.

2. Ethereum (ETH)

Ethereum is a decentralized blockchain platform that runs smart contracts. It is the second largest cryptocurrency. Uses for Ethereum include:

  • Paying transaction fees to use decentralized apps and services built on Ethereum
  • Staking Ethereum to earn rewards and help validate transactions
  • Fundraising by issuing new crypto tokens on the Ethereum blockchain
  • Developing and deploying decentralized applications and protocols

Ethereum enables new types of decentralized apps in areas like finance (DeFi), gaming, insurance, prediction markets, fundraising, governance, and more.

3. Tether (USDT)

Tether is a stablecoin, meaning it aims to maintain a value equal to one US dollar. Tether is used to:

  • Hedge against volatility in the crypto markets
  • Quickly move money between exchanges and wallets
  • Store value in a US dollar-backed asset when unsure of market conditions

Being pegged to the US dollar gives Tether much more price stability relative to other cryptocurrencies. However, it also fluctuates minimally in value.

4. USD Coin (USDC)

USD Coin is a stablecoin backed by US dollars, similar to Tether. Its uses include:

  • Lending and borrowing with interest in DeFi protocols
  • Send payments and remittances
  • Take collateralized loans and more from DeFi protocols
  • Pay transaction fees on blockchains like Ethereum

As a regulated stablecoin, USDC offers increased transparency compared to Tether. It is also supported on many different blockchains.

5. Binance Coin (BNB)

Binance Coin is the native token of the Binance cryptocurrency exchange platform. Some ways it is used:

  • Paying trading fees on the Binance exchange
  • Staking BNB to earn interest
  • Using BNB for crypto payments and transfers
  • Participating in initial exchange offerings on Binance

Binance Coin offers reduced trading fees on the popular Binance exchange. It also fuels the Binance Smart Chain.

6. XRP (XRP)

XRP is a cryptocurrency optimized for fast, affordable cross-border payments. Uses include:

  • Transfer money between exchanges
  • Make international wire transfers through payment providers
  • Facilitate currency trades and international settlements
  • Move funds between different wallets or exchanges quickly

XRP settles transactions in just 3-5 seconds and fees are extremely low, making it useful for these scenarios.

7. Cardano (ADA)

Cardano is a blockchain platform built for scalability and sustainability. Its native ADA token has uses such as:

  • Staking ADA to earn rewards and help validate transactions
  • Paying fees to use applications and services on the Cardano network
  • Governance voting on Cardano development proposals
  • Send ADA payments, similar to sending money digitally

Cardano aims to rival Ethereum but with greater scalability, interoperability, and sustainability through its proof-of-stake consensus mechanism.

8. Solana (SOL)

Solana is a high-speed blockchain focused on scalability. Uses for its SOL token include:

  • Staking SOL to help validate transactions and earn rewards
  • Paying fees for using apps and services on Solana
  • Governance voting on the Solana network
  • Transacting and sending payments in SOL tokens

Solana can process 50,000 transactions per second and has low fees, making it attractive for DeFi, NFTs, payments, and more.

9. Terra (LUNA)

Terra is a blockchain payment platform and stablecoin network. LUNA has uses such as:

  • Staking and delegating LUNA for governance of Terra
  • Minting Terra’s UST stablecoin by burning LUNA
  • Paying gas fees for using apps built on Terra
  • Serving as an investment and store of value

The two main cryptocurrencies of Terra are LUNA and UST. Together they offer a price-stable currency and governance token.

10. Dogecoin (DOGE)

Dogecoin is one of the earliest meme coins. Although created as a joke, it now has practical uses such as:

  • Tip content creators and tipping on social media
  • Make charitable donations and gifts
  • Purchase goods from merchants accepting DOGE
  • Trading and exchanging into other crypto assets

Dogecoin has one of the largest and most active communities in crypto that use DOGE for payments, tips, and more.

Examples of Using Top Cryptocurrencies

Here are some real-world examples of how these top cryptocurrencies are being used today:

Bitcoin – El Salvador adopted Bitcoin as legal tender in 2021. Citizens can use Bitcoin to make purchases, send remittances, and pay for everyday needs.

Ethereum – Decentralized finance (DeFi) apps such as lending, borrowing, trading, and more are largely built on Ethereum using smart contracts and ETH for fees.

Tether – Traders use Tether to quickly move money between cryptocurrency exchanges during times of high volatility.

USD Coin – On platforms like Compound, users can lend USDC to gain interest or borrow USDC using collateral.

Cardano – The Ethiopian government is utilizing Cardano blockchain technology to create a national student identification system.

Solana – Solana’s low fees and fast speeds have attracted developers to build thousands of decentralized apps and NFT projects using SOL.

Terra – Users stake LUNA or mint UST stablecoins to earn yields as high as 19.5% on Anchor Protocol.

XRP – Money transfer companies like MoneyGram utilize Ripple’s technology and XRP cryptocurrency for faster cross-border payments.

Binance Coin – Trading volumes on Binance exchange frequently surpass $50 billion per day, with many traders paying fees in BNB.

Dogecoin – The community routinely raises funds for charities and other causes using DOGE, such as sponsoring service dogs.

FAQs About Top 10 Cryptocurrencies

What are the main benefits of the top cryptocurrencies for beginners?

The main benefits of the top cryptocurrencies for beginners are that they are well-established, have good liquidity, and lots of available resources to learn about them. They are easy to acquire from most crypto exchanges. Many also have practical real-world use cases beyond just investment value.

Are the top 10 cryptocurrencies safe investments?

The top cryptocurrencies are relatively safe long-term investments compared to smaller cap coins. However, crypto prices can still be volatile, so it’s best not to invest more than you can afford to lose. Taking security measures like using hardware wallets is also recommended.

How do I choose which cryptocurrency to buy as a beginner?

When choosing a cryptocurrency as a beginner, consider its market cap, liquidity, community support, and real-world use cases. Focus on the top 10 by market cap first. Study what problem each coin aims to solve. And only invest money you can afford to lose in case of price declines.

What is the best cryptocurrency exchange for beginners?

Some of the most beginner-friendly cryptocurrency exchanges are Coinbase, Gemini, Kraken, and Crypto.com. These make it easy to get started by supporting bank account transfers, having little to no trading fees, and offering educational resources.

How do I store my cryptocurrency securely as a beginner?

Storing crypto securely requires proper wallet security. For small amounts, a software wallet like Exodus or Coinbase Wallet works. For larger holdings, use a hardware wallet like Ledger or Trezor for optimal security. Avoid keeping coins on an exchange wallet long term.

Can I make money with cryptocurrency as a beginner?

Yes, beginners can make money with cryptocurrency by utilizing strategies like dollar cost averaging, holding long term, staking coins, learning technical analysis, and more. The crypto market is highly volatile though, so only invest what you can afford to lose.

Conclusion

In conclusion, the top 10 cryptocurrencies highlighted in this guide provide beginners with a solid starting point. They offer liquidity, community support, and practical use cases. Consider the intended use, security, risk vs reward profile, and invest only what you can afford to lose when first getting started in crypto. Use exchanges catered to beginners and store holdings in secure wallets tailored to your needs.