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How to Invest in Cryptocurrency

In this guide, you will learn how to invest in cryptocurrency. You will learn about the best cryptocurrencies for beginners and the most beginner-friendly crypto exchanges, as well as the benefits and risks of investing in cryptos.

We will also provide you with a step-by-step guide on how to invest in cryptocurrency coins and share valuable tips on what to look for when searching for the best crypto investment.

Read on to learn everything you need to know about crypto investing for beginners.

How to Invest in Cryptos in 4 Quick Steps

The quick-fire guide below will teach you how to buy cryptocurrencies safely in the US right now. It outlines the process of buying Bitcoin and other top cryptos on eToro – an SEC-regulated crypto exchange that lets you invest in cryptocurrency assets for as little as $10.

  • Step 1: Open an account: Start by opening a free crypto trader account on eToro.com. You only need to provide the crypto brokerage with basic personal information.
  • Step 2: Fund the account: Deposit US Dollars into the approved eToro trader account. The crypto trading platform doesn’t charge a deposit fee, processes deposits instantly, supports popular payment options, and the minimum deposit limit is $10.
  • Step 3: Search for crypto: In the search box, enter the name or the ticker symbol of what you consider the best crypto to buy. Hit the “Trade” button to initiate the buy order.
  • Step 4: Invest in cryptocurrency: On the trading tab that appears, customize this trade by indicating how much you wish to invest in the crypto asset. Click “Open Trade” to execute the buy order. The crypto brokerage will immediately deposit the crypto into the exchange-based crypto wallet.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

Hereinbelow, we will provide you with a more detailed walkthrough of how to invest in cryptocurrencies in the US via eToro. But first, we tell you if cryptos are worth buying, where to buy them, and the best beginner-friendly cryptos to buy right now.

Cryptocurrency Investment Explained

Investing in cryptocurrencies is no different from investing in such other financial instruments as stocks. When investing in stocks, you start by creating an investor account with a stock brokerage through which you can buy and sell shares and stocks. Similarly, when investing in cryptocurrencies, you first need to create a trader account on a crypto trading platform.

Cryptocurrency Explained

Note, however, that there are different types of crypto trading platforms. The most common are centralized crypto exchanges like Binance or Coinbase. We also have crypto brokerages like eToro or Webull, decentralized crypto exchanges like Uniswap or Pancakeswap, and peer-to-peer trading platforms like Paxful and LocalBitcoin.

There are merits and demerits of investing via either. Vet these merits and demerits well when deciding on the best place to buy cryptos, register a crypto investor account with the preferred platform, fund this account with fiat or other cryptos, and start investing in what you consider the best future cryptos.

You will also need to invest in a safe crypto wallet. You need it to keep your crypto investment secure. And while there are different types of wallets – from mobile wallet apps for iPhone to exchange-based storage services, we recommend buying one of the more secure hardware wallets.

Types of Crypto to Invest in

The crypto verse sprouted to life after Bitcoin’s success. Since then, more than one million crypto assets have been launched, with the majority of these offering an investment opportunity. These can be grouped into different broad categories based on their use cases, mode of operation, governance structures, and more.

Here are the four most common types of crypto assets:

  • Fiat alternatives: Fiat alternatives refer to cryptocurrencies whose primary role is facilitating online payments. These are created to solve the many challenges facing fiat currencies –especially inflation and manipulation. Examples of such fiat alternatives are Bitcoin, Bitcoin Cash, Litecoin, Monero, and ZCash.
  • Utility tokens: Utility tokens refer to cryptocurrencies that are designed to facilitate transactions in a particular blockchain network. Examples of utility tokens are ETH (Ethereum), BNB (Binance Coin), ADA (Cardano), MATIC (Polygon), and SOL (Solana).
  • DeFi coins: DeFi cryptos refer to cryptocurrencies native to Decentralized Finance (DeFi) platforms. Decentralized Finance platforms, in this case, refer to programs or projects that offer such financial services as staking, yield farming, saving, liquidity mining, and more. Examples of DeFi coins include UNI (Uniswap), CAKE (PancakeSwap), AAVE (Aave), MKR (Maker), and COMP (Compound).
  • Stablecoins: Stablecoins refer to cryptocurrencies whose value is pegged to that of another commodity or fiat currency. As the name suggests, and unlike other virtual currencies, the value of stablecoins is fixed. They, therefore, aren’t investment assets but come in handy in helping investors preserve the value of their capital during periods of extreme market volatility. Examples of stablecoins are UST, USDC, BUSD, TUSD, and DAI.

Is Cryptocurrency a Good Investment?

Cryptocurrencies are a high-risk/high-reward investment. They have been the most lucrative asset of the last decade, outperforming all other financial instruments by multiple folds. In fact, the ROI of some of the best-performing digital assets like Bitcoin and Shiba Inu is in excess of 7000000%.

Best beginner crypto

Moving forward, they are expected to record equally thrilling price performance. Bitcoin is, for instance, expected to grow its value by more than 40x before 2030.

Note, however, that like all other investments, cryptocurrencies are not without risks. These investments are extremely volatile and the crypto market is wildly unpredictable. While most financial experts advise you to add cryptos to your portfolio, they will also caution you to only invest what you can afford to lose.

Factors to Consider When Deciding How Much to Invest in Crypto

Most beginner investors struggle with the question of how much to invest in cryptocurrencies. But as many financial experts will tell you, there is no standard minimum or maximum limits when it comes to crypto investing.

The amount is highly subjective, varying from one investor to another. When deciding what portion of your portfolio to convert to cryptos, we advise that you let this decision be influenced by the following factors:

Disposable income

One of the key factors influencing how much you invest in crypto has to be your disposable income. Given the highly volatile and unpredictable nature of the crypto industry, individuals operating on tight budgets may want to go slow on the portion of their income they dedicate to crypto investing.

Timeline

Invest as much as possible in resilient cryptos during a market dip. Avoid investing in cryptos at the height of a bull run when they are trading at peak prices.

Risk tolerance

How much you invest in cryptos should also be informed by your risk appetite. Beginners with low-risk tolerance levels should consider investing only what they can afford to lose in relatively stable assets like Bitcoin and Ethereum.

Trading experience

Inexperienced crypto investors should avoid high-risk investing strategies like active trading. Instead, they should practice HODLing and such other investing strategies as copy trading while they learn how to trade.

Understanding of the crypto market

Your understanding of the crypto market will also play a critical role in influencing how much you invest. Avoid committing large portions of your income to crypto if you don’t know how to analyze the markets, how to check the coin’s fundamentals, and aren’t sure how to interpret market entry and exit signals.

Investing goals

Your investing goals will also determine the crypto investment amount. Long-term HODLers can afford to invest small amounts in the best future cryptos with the expectation of steadily growing their capital over time.

Should I Invest in Cryptocurrencies? Top Benefits of Crypto Investing

In this section, we look at some of the top benefits of investing in cryptocurrencies. Here are a few reasons why you should buy Bitcoin and the best altcoins today.

Potential for lucrative gains

You stand to grow your capital by unimaginable rates when you invest in crypto. This asset class has already proven its lucrativeness after some assets rallied by more than a million percent in the past, with the expectation of mirroring these gains over the next few years.

Diversify portfolio

Cryptocurrencies are a perfect asset for individuals looking to diversify their portfolio. In fact, most financial experts will advise you to convert a small percentage of your portfolio to crypto.

Regular passive income

Multiple passive income-generating programs and tools have been introduced to the crypto-verse. These include staking, crypto lending, yield farming, and more. They are safe and pay higher interest/rewards than traditional investment vehicles.

Growing institutional investor interest

There is a growing institutional investor interest in cryptocurrencies. This is evidenced by spot Bitcoin ETF applications and the integration of cryptos as payment methods. This interest is expected to fuel the next crypto bull run, which makes today the best time to invest in these digital assets.

Hedge against inflation

The best cryptos to invest in also help you hedge your capital against inflation. They achieve this by maintaining an overall uptrending price action that has consistently beat the inflation rate.

What are the Risks of Investing in Cryptocurrency?

We have already mentioned that, like all other asset classes, crypto investing carries its fair share of risks. In this section, we look at the risks that you need to familiarize yourself with before investing in cryptocurrencies.

  • Volatility: Crypto prices fluctuate rapidly and unpredictably. For instance, it isn’t surprising for a crypto asset’s value to rally or dip by double-digit percentages in a few hours. Only invest in cryptos if you can stomach such volatility.
  • Cybersecurity threats: Every year, crypto assets worth billions are lost to cyber criminals through hacks, scams, and ransomware. As much as $10 Billion in the US in 2022. But there are a few precautions you can take to minimize the chances of losing your assets to scammers. These include investing in an ultra-secure hardware wallet, using strong passwords, and embracing multi-factor authentication.
  • Unregulated: The fact that the crypto industry is largely unregulated has made it a breeding ground for cybercriminals. Avoid putting your assets at risk by only using regulated and highly reputable exchanges and wallets.

Cryptocurrency Investment Strategies

If you’re new to the cryptocurrency investment market, then you may have heard various things about it already, such as how unpredictable it can be and how novice investors frequently lose money – both of which are, of course, completely true. However, they are also true of numerous other financial instruments. 

Investing can, however, be potentially very lucrative. But in order to start in the strongest possible position, there are a few basic strategies that novice investors can adopt when learning how to invest in cryptocurrency in 2021. 

Buy and forget

Known in the industry as HODLing, you can invest in cryptocurrency the same way as you would in stocks and shares – simply identify the token that you believe will increase in value over the long term and make your investment. 

Buy and hold crypto

The benefits of this should be fairly obvious. As we have noted above, Bitcoin started trading for less than a dollar a token in its early days, but at the time of writing a single Bitcoin is worth over $36,000. So as you can see, investing in cryptocurrency offers potential for significant returns if you are prepared to play the long game. 

HODLing differs from trading in that you will actually purchase the underlying asset. In other words, you own the cryptocurrency you are investing in, as opposed to trading a derivative. 

Averaging

Averaging is an established investment technique that isn’t particular to cryptocurrency. However, the fast-changing crypto markets make it highly suitable for new investors. 

Averaging involves splitting your capital across several, separate investments into a target asset. Effectively, this is a way to mitigate price volatility over time. The purchases are made at regular intervals, regardless of price movement. 

The advantage of averaging is that it reduces the chance of you investing at a bad time – something almost impossible to accurately predict in the crypto market. Averaging also sees you stick to an established plan and reduces the emotional component of investment – crucial for those new to the crypto market. 

Of course, the most significant disadvantage of averaging is that the price of an asset tends to climb over time, which means you stand to make a higher profit overall by investing a lump sum earlier on. But the idea here is to mitigate risk.

Diversification 

Any experienced trader knows that diversification is key to a successful portfolio. In a nutshell, diversification means spreading your investment capital across multiple assets. This can be achieved within and without the cryptocurrency market. 

For example, CNBC finance writer, Darla Mercado, advises that investors commit just 1% of their total investment capital to Bitcoin, thus gaining exposure to the market whilst minimizing risk through more conservative investments elsewhere. Similarly, tech investor Pondering Durian has invested less than 15% of available capital in the digital markets. 

How much of your capital you allocate to cryptocurrency investment will of course depend on how much risk you are prepared to take on. It’s also worth noting that you can diversify within the crypto sector. For example, BTC is a much more stable investment than Tellor, but the latter has plenty of potential for growth. As such, you can include both coins in your investment strategy, balancing the comparatively risky TRB against the ‘safe bet’ that is BTC. 

The Best Cryptocurrencies to Invest in Today

According to the CoinMarketCap, there currently are 1.8 million cryptocurrencies out there. Rummaging through these looking for the best cryptos to buy can be overwhelming, especially for novice investors. Our analysts have done the legwork and below, we discuss what they and the majority in the crypto community consider the best cryptocurrencies for beginners today:

1. Bitcoin (BTC) – Overall Best Beginner Crypto to Buy Right Now

Bitcoin is one of the most valuable digital assets in the world – with a market cap of more than $500 Billion. It was launched in 2009 and the price of one BTC coin only broke parity with the US Dollar in 2011. A decade later, Bitcoin had rallied by close to 69000X to set the current all-time high of $68,789 in November 2021.

Should I Buy Bitcoin Now

Moving forward, Bitcoin is expected to sustain its overall uptrending price action. Some optimists, like Cathie Wood and Balaji Srinivasan, have expressed their confidence in BTC’s ability to rally by more than 4000% before 2030 to hit $1 Million.

A few factors make Bitcoin one of the best digital assets to invest in for beginners. First, its resilience and hugely promising future have us convinced that it is not too late to buy Bitcoin. Secondly, several key developments around the Bitcoin network, such as the Bitcoin Ordinals technology and filing of Spot Bitcoin ETFs in the US, are yet to be priced in.

Not forgetting that the digital asset is expected to undergo a halving event in early 2024. These are expected to catapult Bitcoin’s price to unprecedented heights and possibly trigger the next crypto market bull run.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

2. Ethereum (ETH) – Best Beginner Crypto for Long Term Investing

Ethereum is the second most valuable cryptocurrency – with a current market cap of $200+ Billion. Launched in 2015, Ethereum hit the current all-time high of $4891 – more than 5 million percent above its introductory price.

Ethereum

Among the many factors making Ethereum a beginner-friendly crypto asset are its resilience, hugely promising future, growing adoption, and the sustainability of its blockchain technology. These, alongside the many developments taking place within the Ethereum blockchain network, are expected to push ETH’s price to unimaginable heights in the near future.

In fact, some optimists expect Ethereum to dethrone Bitcoin as the most valuable and most valuable crypto and most useful blockchain network before 2030.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

3. Cosmos (ATOM) – Best Future Crypto

Cosmos is one of the best future cryptos to invest in now because it seeks promises to revolutionize the crypto industry. It intends to achieve this by establishing an interoperable crypto verse via its Interblockchain Communication Protocol (ICP). This makes it possible for different blockchain technologies to communicate and share data seamlessly.

Cosmos Altcoin

The effectiveness of the ICP has cemented Cosmos’ position in the future of the crypto industry. It has also played a critical role in fueling the overall uptrending price action of the ATOM token. Moving forward, we expect more blockchains to integrate ICP. This, alongside growing retail and institutional adoption of blockchain technology, is expected to have a positive impact on ATOM’s price.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

4. Apecoin (APE) – Best New Crypto to buy for beginners

Apecoin is both a meme coin and a utility token for the popular BAYC and MAYC NFT projects. It is also the utility token to the Otherside metaverse. All these are massively popular and their developers are on course to develop a layer-2 blockchain mainnet dedicated to the Ape ecosystem.

ApeCoin

Apecoin is relatively new, having launched in March 2022 – at the height of the crypto market crash. While we recognize the volatility of meme coins, we still believe APE to be the best new coin to buy for beginners because it is yet to price in the many developments taking place on the APE network.

We also expect the revival of a few of the 2021 investment crazes, such as the meme coin, metaverse, or NFT investment frenzies. Either of these will have a huge positive impact on APE’s price. Such a promising future makes it the best beginner crypto to invest in over the medium term.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

5. Shiba Inu (SHIB) – Most Promising Altcoin to Buy Today

Shiba Inu is the most lucrative cryptocurrency of all time. Launched in August 2020, SHIB token price rallied by close to 9 million percent in the 14 months that followed to set the current all-time high of $0.000088 in October 2021.

Shiba Inu

Much of this preposterous value gain is attributable to its massive popularity, the meme coin craze, a rallying market, and close to a 50% cut in circulating supply thanks to Vitalik Buterin.

Today, Shiba Inu is still one of the most popular cryptocurrencies. It sells at a highly discounted price – more than 90% below the all-time high, and has been burning SHIB tokens aggressively. In addition to this, there have been monumental developments within the Shiba Inu ecosystem – culminating in the launch of Shibarium.

These, alongside a recovering market and possible revival of a meme coin craze, are some of the factors making Shiba Inu the most beginner-friendly crypto to buy before the next bull run.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

6. Presale Projects – Best Crypto Investment for 100X Gains

Beginner crypto investors looking to grow their investment 100X – possibly 1000X – should consider investing in the next cryptos to explode. Invest in highly potent crypto projects that are yet to launch.

To get started, register investor accounts with crypto altcoin exchanges that have the most vibrant crypto Launchpads. Alternatively, seek out ICO listing forums and identify the most promising new projects. Invest in these IEOs/ICOs for a chance to grow your capital to unexpected levels when these assets eventually blow.

Where to Invest in Cryptocurrency 

There are hundreds of crypto trading platforms operating in the world today. Vetting all these and finding the best crypto exchange in the US for beginners can be overwhelming for newbie investors.

To help kick off your crypto investing journey, our analysts have scoured the crypto market and vetted popular and highly reputable exchanges thoroughly. They eventually settled on the following as the best places to invest in cryptocurrency and some of the best altcoins today.

1. eToro – Overall Best Place to Invest in Cryptocurrency

Launched in 2007, eToro is one of the oldest and most reputable crypto brokerages in the world. It also helps that it is one of the most regulated crypto trading platforms, with operating licenses from the SEC in the USA, FCA in the UK, ASIC in Australia, and CySEC in Australia.

Among the factors that make it one of the most beginner-friendly crypto exchanges are user-friendliness, straightforward client onboarding process, convenience, and affordability. eToro is, for example, one of the few crypto trading platforms that lets you invest in cryptocurrency with PayPal.

Invest in crypto via etoro

eToro exchange also supports a wide range of conventional payment methods, including credit cards, debit cards, bank transfers, and eWallets like Skrill and Neteller. You only need $10 to start buying Ethereum and top altcoins on the platform and it maintains a fixed trading fee of 1% of the trade volume.

eToro is also popular because it supports a decent number of cryptocurrencies. Today, you get to interact with 70+ of what we consider the best cryptos to buy today, including Ethereum, Dogecoin, and Shiba Inu.

It, however, is the copy trading feature that makes eToro stand out among the best crypto exchanges. This lets both novice and expert traders earn passively on the platform. And you don’t just get to copy the trade settings of individual cryptos.

You can also copy smart portfolios if you are looking for a more diversified crypto basket. And you only need a balance of $200 to begin copy trading.

What we liked about eToro:

  • eToro is safe as it has never been hacked
  • It integrates a diverse range of highly advanced trading tools
  • eToro provides all platform users with a free demo account
  • eToro doesn’t charge a deposit processing fee
  • Has a highly responsive customer support team

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

2. Coinbase – Best Crypto Exchange for Beginners

Coinbase has been around since 2012. In addition to being the most successful of the oldest crypto exchanges, it is also one of the most regulated and reputable crypto apps. In fact, it is the only publicly traded crypto exchange in the world.

For years, Coinbase has been consistently voted the most beginner-friendly crypto exchange. This is partly due to its easy client onboarding process, straightforward crypto buying process, highly navigable interface, and support for all the most popular fiat payment options.

Coinbase crypto exchange

You can start investing in cryptocurrencies on Coinbase with as little as $2 while paying competitive and volume-based trading fees. These start from $0.99 to $1.99 for trades worth less than $200 and a fixed fee of 1.49% for any order above $201 – plus a 0.50% spread.

Through the Coinbase web or mobile app trading platforms, you get to interact with 200+ cryptos and 500+ pairs. The exchange also supports crypto deposits via ACH transfers, bank transfers, debit cards, credit cards, and ewallets like PayPal.

Importantly, Coinbase provides all its platform users with a free crypto wallet app for iOS and Android. It also boasts of an ultra-secure exchange-based wallet that holds 98% of client assets offline while insuring the remaining 2%.

What we liked about Coinbase:

  • Earn passively through staking and crypto lending
  • Earn free crypto on Coinbase through the Learn-to-Earn program
  • Coinbase provides clients with free crypto wallets
  • Coinbase appeals to both beginners and expert traders
  • Coinbase is highly secure and embraces two-factor authentication for trading accounts and wallets

3. Binance – Best Crypto Exchange for Low Fees and Liquidity

Binance is the largest and most liquid crypto exchange in the world. In 2022, the CZ-led crypto trading platform processed crypto trades worth more than $5 Trillion. It also hosts a large selection of cryptocurrencies – more than 350 and 700+ crypto pairs.

When using Binance, you can invest in crypto coins instantly, open a limit order, or use the integrated peer-to-peer trading platform. Like other top crypto exchanges, Binance has a smooth client onboarding process and a highly navigable interface.

Binance Crypto Exchange

Binance also maintains some of the lowest crypto trading fees. It is one of the few platforms that don’t charge a transaction fee when you buy Bitcoin with TUSD. All other crypto trades are subjected to a volume-based fee of between 0.1% and 0.012%. However, if you pay with BNB coins, you qualify for a 25% discount on fees.

Buying and selling cryptos on Binance P2P trading platform is free and you can use 700+ international payment methods.

You may also like Binance because it exposes you to multiple passive income-generating programs. These range from staking to simple saving before extending crypto borrowing, dual investing, and yield farming. You may also automate your trades using one of the highly effective bots integrated into the exchange.

Not forgetting that Binance is also home to one of the most vibrant token Launchpads, allowing you to invest in the next cryptos to explode early.

Binance is also a serious contender for the post of the best crypto exchange for beginners because of its commitment to the security of assets and client data. It doesn’t share personal client information with third parties.

Additionally, it provides users with a free crypto wallet that stores 90%+ of their assets offline. It is also the only exchange with a private insurance fund – SAFU – for its clients (currently worth more than $1 Billion).

What we liked about Binance:

  • Integrates multiple passive income-generating options
  • Committed to the safety of client funds via the $1 Billion SAFU
  • Multi-platform available on web and mobile app
  • Binance lets you trade cryptos, NFTs, derivatives (options and futures)
  • Binance exposes you to the fast-growing Web 3 ecosystem

4. Kraken – Safe and Regulated Exchange to Invest in Cryptocurrency  

Kraken is considered the most secure crypto exchange in the world because even though it has been around since 2011, it has never been hacked.

The same cannot be said of crypto trading platforms of equal stature. Some of the security measures embraced by Kraken to make it this safe include fortifying its systems and holding client assets in segregated offline vaults. The regulated crypto exchange was also the first large-cap exchange to publish its proof of reserve audit report.

Kraken crypto exchange

But the Kraken’s commitment to security is the only thing making it the most beginner-friendly crypto exchange. It also makes it here because it supports a decent selection of digital assets, more than 200 cryptos and 500+ pairs. It also makes it here because it lets you invest in cryptocurrency with credit cards, debit cards, and bank transfers.

We also liked Kraken because it lets you interact with multiple crypto-buying options. For starters, you may buy Bitcoin instantly on Kraken. You also have the option of opening a limit order. Lastly, you may use the Kraken dark pool. This is preferred by high-volume traders as it lets them invest in cryptocurrency coins pseudonymously.

Kraken is also beginner-friendly because it maintains highly competitive trading fees. You only need $10 to start buying cryptocurrencies on the platform. The trading fee is volume-based and ranges between 0.26% and 0.00%.

What we liked about Kraken:

  • Safe exchange
  • Kraken maintains a highly supportive customer support team
  • In addition to crypto, Kraken lets you invest in NFTs, margin trade, and interact with crypto futures
  • Buy cryptos instantly with cards on Kraken
  • Multi-platform exchange with highly responsive web and mobile app

5. Webull – Invest in Cryptocurrency with $1

A number of factors make Webull one of the best places to invest in cryptocurrency for beginners. First is the fact that it maintains a quick and straightforward account opening process. The brokerage doesn’t even have a minimum deposit limit and lets you start buying bitcoin and all the best altcoins with as little as $1. You also get to interact with 20+ top cryptocurrencies.

Buy Bitcoin on Webull platform

Unlike the rest of the crypto exchanges that we have discussed above, Webull only supports ACH and bank transfers. You cannot buy or invest in cryptocurrency assets with cards on Webull. On the flip side, though, Webull is the only crypto trading platform on this list that doesn’t charge crypto trading fees. You will only have to pay the market spread – starting from 1% – and the network fee.

We also like the fact that Webull is a multi-asset trading platform. This implies that in addition to crypto, you can diversify your portfolio to include such conventional assets as stocks, ETFs, and options. Fractional investing lets you buy any of these with as little as $1, commission-free.

The brokerage also offers retirement accounts, allowing you to open self-directed Traditional IRA, Roth IRA, or Rollover IRA accounts.

What we liked about Webull:

  • No crypto trading fees
  • Lets you in both crypto and conventional assets like stocks and ETFs
  • Highly responsive support team available 24/7
  • Buy crypto instantly with as little as $1 on Webull
  • Easy client onboarding and straightforward crypto-buying process

Best Penny Cryptocurrencies to Invest in Right Now

Penny cryptocurrencies refer to digital assets that are currently trading for less than $1. Today, there are thousands of cryptos that are yet to break parity with the dollar. Some of these have a hugely promising future thanks to such factors as a huge community of followers and the backing of a solid blockchain network.

Below, we discuss the best penny cryptos to buy today.

1. Ripple (XRP)

Ripple is a revolutionary blockchain network designed to replace SWIFT as the preferred communication and payment transfer tool for the global banking industry. It has already been adopted by countless financial institutions around the world.

Ripple XRP

Now that it recently won the case against the SEC in the US, its adoption rate is expected to blow, but so is the price of its XRP tokens. Analysts and the majority of investors in the crypto community are confident that XRP has only been trading below $1 because of the SEC case.

They, therefore, expect it to be one of the next cryptos to explode during the upcoming market rally. They expect it to price in the SEC win and the many developments that have taken place on the Ripple network since 2019.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

2. Cardano (ADA)

Cardano is one of Ethereum’s fiercest competitors. It is one of the most successful smart contract blockchains and was created to solve the scalability and gas fee challenges facing Ethereum. It, too, has a hugely promising future, which makes it one of the hottest cryptos to buy today.

Cardano

Among the factors that have it trading below $1 was its sluggish adjustment to different crypto developments. For example, even though it launched in 2017, the network only integrated the smart contract feature in the last quarter of 2021.

ADA was also late in integrating such crypto technologies as metaverse, meme coins, stablecoins, dApps, and DeFi that propelled other EVM-compatible machines like Solana and Avalanche to unprecedented heights during the last bull market.

However, we recognize that Cardano has been catching up – fast. During the 2022 bear market, its developers worked around the clock to integrate virtually all the popular crypto technologies into the network. This has most analysts convinced that ADA tokens are ready to explode and will be targeting a break above $1 as soon as the market starts recovering.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. 

Investing in Cryptocurrencies vs. Trading Cryptocurrencies

Reading through most crypto websites and journals, you will notice that the terms crypto ‘investing’ and ‘trading’ have constantly been used interchangeably. It, however, is important to know that the two refer to different approaches to interacting with digital currencies.

Crypto Investing

Crypto investing typically refers to the art of buying digital assets with no intention of selling them soon.

Also known as HODLing, it implies that you intend to hold on to these cryptos for a long period of time – more than one year. Long-term investors aren’t shaken by non-fundamental news and events that have no long-term implications on the asset’s price. Therefore, they aren’t closely monitoring market trends or news events.

Crypto Trading

Crypto trading may also be viewed as a short-term investing strategy. It involves buying a digital asset and selling it after a short while – typically after its value increases to lock in profits or value drops to avoid further losses.

In most instances, the period of time between buying and selling is highly subjective and may be a few minutes, hours, days, weeks, or even months. When active trading, you need to keep tabs on crypto market developments – watching out for news and events that trigger a value gain or price dip for your cryptos.

Is it Safe to Invest in Cryptocurrency Today?

Yes, it is safe to invest in cryptocurrencies today. A number of developments that have taken place in the crypto industry over the last decade have made crypto investing safe. For starters, there have emerged multiple highly reputable and regulated crypto exchanges and brokerages.

Secondly, a large number of crypto exchanges and brokerages offer insurance services to their clients. eToro, for example, covers client deposits for up to $1 Million, while Binance’s SAFU recently reached $1 Billion.

Thirdly, experts have come up with multiple ways of avoiding the many risks associated with crypto investing – or at least reducing their impact on your investment. One such way is the embrace of multi-factor authentication that keeps hackers at bay. Crypto education has also gone a long way in helping investors identify and avoid scams.

Lastly, there have been developed affordable and highly secure crypto wallets. Hardware wallets like Ledger and Trezor, for example, are quite reliable because they store the private keys for your digital assets offline.

How to Invest in Cryptocurrency for Beginners – Tutorial

This beginner’s guide on how to invest in cryptocurrency today will now conclude with a detailed walkthrough of how to purchase your first-ever digital asset.

eToro tops our list of the best places to invest in crypto for beginners. In this section, we will teach you how to buy and invest in any of the best digital assets supported on eToro.

The registration and crypto investing processes are straightforward, taking a few minutes, and you only need $10 to get started.

Step 1: Open a crypto account 

Open the eToro.com website on your browser. Alternatively, download the eToro crypto trading app on the App Store or Play Store. Hit the ‘Join Now’ icon on either platform and fill out the registration form that appears.

Sign up via etoro

This will only seek to capture your basic personal information, including your name and address, country of residence, age, income source, and trading experience. You will also need to come up with a unique username and strong password for this account.

Step 2: Verify your identity

eToro is a multi-regulated crypto brokerage that subjects all its clients to KYC checks. To complete the user registration, submit a picture of your government-issued identification document bearing the names used to create the trader account. eToro will notify you of account approval in an email within 24 hours.

Step 3: Deposit funds

Log in to the approved trader account and hit the “Deposit Funds” icon. A funding tab will pop up indicating all the payment methods available to you – depending on your country of residence. Choose one and follow the prompts to deposit at least $10.

Deposit funds on eToro

Step 4: Choose which cryptocurrency to invest in

After the deposit is reflected in your trader account, enter the name or ticker symbol for your favorite cryptocurrency. Then, hit the “Trade” button to initiate the investing process.

Step 5: Invest in cryptocurrency

Choose the ‘BUY’ option against the digital asset. A trading tab will pop up. Use it to customize this investment by indicating how much you intend to invest in the digital asset. Hit the “Open Trade” button to execute this trade. eToro will debit your cash balance and immediately deposit the private keys for the crypto you have just purchased in your exchange-based crypto wallet.

Buy Ethereum

Step 6: Set up crypto wallet

If you intend to move these digital assets to a third-party wallet or exchange, you will need to download eToro Money – a free mobile wallet app for iOS and Android given to all eToro traders.

eToro Wallet

Use the credentials created in Step 1 above to log in to the wallet app and link it with the trading account. Move your crypto from the trading app to the wallet, from whence you can transfer it to another exchange or wallet. Note that eToro charges a crypto transfer fee of 0.5% of the trade amount – capped at $50.

How to Sell Cryptocurrency

Selling cryptocurrencies on eToro is easy. Log back into the eToro trader account and hit the “Portfolio” icon. This will list all your trades on eToro. Choose the crypto you intend to liquidate and choose the ‘SELL’ option. Customize this sale on the trading tab that appears by indicating how many cryptos you wish to sell. Hit the “Open Trade” button to execute this sale.

eToro will immediately debit your crypto wallet and deposit the fiat equivalent in your cash balance. You may then use this cash to buy other cryptos or withdraw it via any of the supported payment options. 

Conclusion – How to Invest in Cryptocurrency for Beginners

To invest in cryptocurrency right now – the process takes just five minutes from start to finish.

You should, however, ensure that you do plenty of research so that you can decide on which cryptocurrency to invest in. You should also remember that digital currencies are volatile, so consider the risks involved before proceeding.

Ultimately, eToro offers the overall best place to invest in cryptocurrency in the US for its industry-leading fee structure, support for 60 digital assets, and the ability to deposit US dollars with no charge.

Want to start investing in crypto assets right away? Follow the step-by-step guide that we have outlined above. It shows you how to buy any crypto on the eToro crypto brokerage.

Author Checked Reviewed and Fact Checked by Kamal Masri, Crypto Writer and Investment Analyst.

eToro Exchange

  • Free Copy Trading of Professional Traders
  • Best Place to Invest in Cryptos
  • Minimum Deposit only $10
  • Open to US & Worldwide
Our Rating

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Cryptoassets are a highly volatile unregulated investment product.

FAQs on Investing in Cryptocurrency

What is the best way to invest in cryptocurrency?

The best way to invest in cryptocurrency is to use a debit or credit card - as your transaction will be processed securely and instantly. 

This guide has reviewed five of the best places to invest in cryptocurrency for 2024. With that said, we found that eToro is the overall best broker in this space for its strong commitment to regulation alongside its low-fee policy and support for debit/credit cards. eToro also offers one of the best apps to invest in cryptocurrency.

If you're a beginner and searching for the best crypto to invest in, then perhaps it might be wise to stick with established projects like Bitcoin, Ethereum, and XRP. However, there are thousands of other cryptocurrencies to choose from - so you should ensure that you conduct your own independent research.

Yes, cryptocurrencies are good investments because they have performed exceptionally well in the past. They are also good investments because they are expected to continue performing well in the foreseeable future. Importantly, they are good investments because they are safe.

It is simple. Start by creating a crypto trader account with a reputable exchange – like eToro. Verify your identity, fund this account, identify the crypto you wish to invest in, and hit the ‘BUY’ option.

Your preferred crypto exchange will set the minimum purchase amount for cryptos – such as $10 on eToro or $2 on Coinbase. You get to determine the maximum investment limit. To determine this amount, we ask that you consider such factors as your disposable income, crypto trading experience, and understanding of the crypto market.

Beginner-friendly cryptos are digital assets with a proven history of resilience. They are also expected to continue gaining value in the foreseeable future. Perfect examples of such cryptos are Bitcoin and Ethereum.

We consider eToro to be the most beginner-friendly exchange today because of its easy client onboarding process, straightforward crypto buying process, affordability, and security.

The best crypto to invest in right now should have two core qualities. First, it should be selling at a heavily discounted price. Secondly, there should be solid fundamentals suggesting that it will explode during the next market rally. Examples of such coins are Bitcoin, Shiba Inu, Ripple, Cardano, and Solana.

Yes, cryptocurrencies are the most lucrative asset class of the last decade, having outperformed all other financial instruments. The novel industry is expected to continue performing well, which means higher returns on your investment.