All You Need to Know About Low-Volatility Coins for Beginners 

As a beginner, it can be quite confusing to decide which cryptocurrency to buy. There are plenty of options to choose from, but it is important to choose one that is secure and reputable. Low-volatility coins are said to be a safe and smart option for beginners, as they minimize the risk of capital loss and emotional stress. Before entering the crypto world, it is crucial to know the basics, risks, and potential. Indeed, the world of cryptocurrency is expanding with new coins launching every day. However, which is the best option to choose from among them for beginners? Well, let us find out about that more in this review. 

Which are the Best Low-Volatility Coins for Beginners?

Choosing the right cryptocurrency can be challenging, especially for newcomers to the crypto ecosystem. If you are planning to invest in crypto, you might have already done some risk assessment, a plan for risk management, and probably decided how much capital you are willing to invest. However, when choosing a specific cryptocurrency as a beginner, there are other factors to consider, such as the developers and infrastructure involved, liquidity of the cryptocurrency, and the coin’s market cap. Ensure your first crypto investment is in an asset with a strong developer.

Market cap is also another thing to consider, as it represents a currency’s current value. Thus, if more coins are mined, it leads to an increase in the market cap. Lastly, consider liquidity, because currencies with more traders mean more frequent trades. Thus, it supports a range of reputable exchanges, making it easier to move and may be a more stable investment. 

Here are some of the beginner-friendly, low-volatility coins: 

Bitcoin (BTC):

As you may know, Bitcoin was the world’s first decentralized, peer-to-peer (P2P) cryptocurrency. It was developed by an unknown person/organization known as Satoshi Nakamoto. This coin happens to be one of the most popular cryptocurrencies worldwide, with 21 million available Bitcoins. It is a great choice for beginners as it offers a hedge against inflation, thereby protecting wealth and purchasing power.

Bitcoin is known to reduce the risk of identity fraud, as it does not require any sensitive information to send payments. Since Bitcoin utilizes cryptographic protocols and DeFi algorithms, it is challenging to counterfeit. Note that, unlike credit cards, a third party won’t be required to facilitate the transactions, and funds will be settled quickly without the risk of chargebacks. 

Tether (USDT):

Tether, also known as a stablecoin, was created by Tether Limited Inc. in 2014. This coin is said to be the largest stablecoin in the market capitalization. Traders can utilize Tether to make transactions between different cryptocurrencies and fiat currencies. Even though Tether is considered a reliable and stable cryptocurrency, it has often been criticized for its lack of transparency regarding its alleged fiat reserves. However, this cryptocurrency has received wide acceptance as an industry-leading stablecoin. This is why plenty of investors believe that Tether gives them a higher chance of securing profitable trades. Additionally, its high liquidity makes it a great investment option, especially for those who want to mitigate the volatility of the cryptocurrency market. 

Ethereum (ETH):

Ethereum (ETH) is considered more than a cryptocurrency and is said to be a technology used to power digital money, global payments, and blockchain applications. Due to its versatile structure, it happens to be the second-most popular cryptocurrency after Bitcoin. Along with being a valuable cryptocurrency, Ethereum has its own blockchain network. This is the reason why investors can create blockchain-based applications through smart contracts. What stands out about Ethereum is that it allows the development of smart contracts and decentralized applications without having to deal with fraud, excessive downtime, or third-party control and interference. 

Solana (SOL):

Solana is an open-source blockchain platform that was created by Anatoly Yakovenko in 2017. It aims to improve the performance of blockchain technology while lowering costs. Apparently, Solana and Ethereum have the same design. However, when it comes to low transaction fees and high throughput, Solana happens to be a more scalable blockchain platform. Additionally, it uses both proof-of-stake (PoS) and proof-of-history (PoH) consensus mechanisms, which allow for high energy efficiency and faster speeds. If you are someone who is worried about using an environmentally friendly cryptocurrency, then Solana is a great option for you. 

Cardano (ADA):

Cardano was developed by Charles Hoskinson, the co-founder of Ethereum. Regarding Cardano, it is a public, open-source blockchain platform that uses PoS to achieve consensus and function. It can process P2P transactions through its internal currency, ADA. It is an ideal choice for beginners, as it offers many benefits, including high credibility in the blockchain industry, peer-reviewed protocols, and a vibrant community. Additionally, Cardano adopts a scientific approach that ensures code quality and architecture. Note that this cryptocurrency was developed to advance the tenets of blockchain technology, which are decentralization, security, and scalability. 

US Dollar Coin (USDC):

Note that the US Dollar Coin is a stablecoin, which means it is tied to another asset. In this case, the asset happens to be the U.S. dollar. Since USDC is a digital asset with a 1:1 value ratio to the U.S. dollar, purchasing it would be equal to buying a digital dollar bill. Understand that the USDC is backed by tangible assets, which is why it is highly valued by U.S.-regulated financial institutions. It is because of the transparency and stability, the USDC is considered the best and safest option for beginners. In case you have low risk tolerance, it is best to invest in this cryptocurrency to mitigate market volatility. 

Ripple (XRP):

XRP is a cryptocurrency and native token of Ripple that was created by Chris Larsen and Jed McCaleb in 2011. It is said to be a pre-mined cryptocurrency, which means it only has a total supply of 100 billion tokens. Note that once the supply is met, no more coins can be mined. This measure is what prevents this cryptocurrency from being affected by inflation, which could lead to a reduction in the value of its tokens. Understand that XRP was developed to compete with Bitcoin’s huge market and compared to Bitcoin, XRP has lower costs, less energy consumption, and faster transaction times. 

Conclusion: 

For beginners, cryptocurrency can be complex and volatile. It often makes it challenging for new traders in investing or trading. Since Blockchain technology is increasingly important, it is a primary reason why it is best to start early. Understand that for beginners, it is always best to begin with more stable and well-established digital assets. Look for those characterized by large market capitalization and high trading volumes. Indeed, there are plenty of options to choose from, but be aware of the risks associated with it since crypto is highly volatile.