11 Best Cryptocurrencies To Invest In For Beginners According To Reddit
In this article, we discuss 11 best cryptocurrencies to invest in for beginners according to Reddit. If you want to see more crypto options for beginners, check out 5 Best Cryptocurrencies To Invest In For Beginners According To Reddit.
MarketVector's Smart Contract Leaders Index monitors prominent smart contract tokens like Ether, Dot, and Solana. As of 2023, the index has increased by 36%, surpassing even Bitcoin's growth of 33%. Additionally, Solana's token has experienced a significant rise of 76% this year. Bundeep Rangar, the CEO of Fineqia, an asset management company focused on cryptocurrency, predicts that the largest returns in the crypto market will come from smart contract tokens on platforms that support decentralized finance (DeFi) applications. According to BofA analysts, smart contract tokens and their blockchain-based applications are comparable to technology stocks that are considered growth stocks in the equity market.
Despite concerns about inflation, a tight labor market, and potential interest rate hikes by the Federal Reserve, the leading cryptocurrencies performed well in February. Among the top 10 cryptocurrencies based on market capitalization, Polygon (MATIC) was the most successful, with a gain of 6.6% in February. It should be noted that the increase in interest rates caused a "crypto winter" in 2022, which resulted in numerous industry bankruptcies and caused the prices of many popular cryptocurrencies to decline. However, things started to look better for the crypto world during the start of 2023.
Cryptocurrencies are decentralized, which means that they operate independently of any central authority or government. This makes them less susceptible to manipulation or interference by governments or other centralized entities. Similarly, they are secured by advanced cryptography, making them virtually immune to hacking and other cyberattacks. Cryptocurrencies also offer a level of anonymity that is not available with traditional payment methods. Additionally, cryptocurrencies have significantly lower transaction fees compared to traditional payment methods, which can help to reduce costs for businesses and consumers alike, with significant potential for growth and innovation in the future. Some of the best cryptocurrency stocks to invest in include Block, Inc. (NYSE:SQ), Intel Corporation (NASDAQ:INTC), and Apple Inc. (NASDAQ:AAPL). However, in this article we discuss the best cryptocurrencies for beginners. Investors can also check out 10 Best Cryptocurrencies to Invest In, 10 Best Cryptocurrency Stocks To Invest In, and 15 Companies That Accept Bitcoin as Payment.
Our Methodology
We scoured multiple Reddit threads and selected the 11 most popular cryptocurrencies suggested, owned, and supported by Redditors. These cryptocurrencies are also priced under $25 as of March 6, in order for beginners to easily trade in them. We have also mentioned the biggest firms which are backing faster crypto adoption.
Source: PixaBay
Best Cryptocurrencies To Invest In For Beginners According To Reddit
11. Chainlink
Chainlink, established in 2017, is a layer on top of blockchain that makes it possible for smart contracts to be connected worldwide. Using a decentralized network of oracles, Chainlink facilitates secure communication between blockchains and external data feeds, payment methods, and events. This enables complex smart contracts to access the important off-chain information they need to become the primary form of digital agreement. The Chainlink Network relies on a vast open-source community of individuals who provide data, operate nodes, develop smart contracts, conduct research, perform security audits, and perform other roles. The company emphasizes that all node operators and users who want to contribute to the network can participate in a decentralized manner.
Companies like Mastercard Incorporated (NYSE:MA) are encouraging quicker crypto adoption among users. On January 30, Mizuho analyst Dan Dolev raised the firm's price target on Mastercard Incorporated (NYSE:MA) to $405 from $380 and kept a Buy rating on the shares following the "solid" Q4 results.
According to Insider Monkey’s data, Mastercard Incorporated (NYSE:MA) was part of 139 hedge fund portfolios at the end of Q4 2022, compared to 146 in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.8 million shares worth over $2 billion.
Like Block, Inc. (NYSE:SQ), Intel Corporation (NASDAQ:INTC), and Apple Inc. (NASDAQ:AAPL), Mastercard Incorporated (NYSE:MA) is one of the best cryptocurrency stocks to invest in.
Baron FinTech Fund made the following comment about Mastercard Incorporated (NYSE:MA) in its Q4 2022 investor letter:
“Shares of global payment network Mastercard Incorporated (NYSE:MA) increased after reporting strong quarterly results, with 15% revenue growth and 13% EPS growth despite significant headwinds from currency movements and the suspension of operations in Russia. Payment volume grew 21% in local currency (excluding Russia) as consumer spending remained resilient and the international travel recovery continued as border restrictions were lifted. We continue to own the stock due to Mastercard’s long runway for growth and significant competitive advantages.”
10. Cartesi
Cartesi is a layer for executing application-specific rollups that includes a Linux runtime. The RISC-V virtual machine used by Cartesi enables developers to bring decades of open-source knowledge to blockchain applications, allowing them to build decentralized applications using their preferred libraries, compilers, and other well-established open-source tools. The CTSI token, which is used by Cartesi, has two main purposes – to facilitate protocol governance and to offer more convenience and speed to Cartesi DApps. Within the decentralized ecosystem created by the Cartesi Foundation, the CTSI token will enable community members to express their agreement or disagreement with community programs that stem from Cartesi Improvement Proposals (CIPs).
Alphabet Inc. (NASDAQ:GOOG) is one of the top crypto firms to invest in, as it permits enterprises to receive payments in cryptocurrency and invoice their clients using the ten most popular cryptocurrencies. During a recent discussion with an Artificial Intelligence (AI) specialist who highlighted the importance of quality data for large language AI models, Jefferies analyst Brent Thill noted that Alphabet Inc. (NASDAQ:GOOG) has a significant advantage in this area due to its use of Search, Chrome, and Android. Jefferies believes that Alphabet will gradually introduce significant advancements in AI, and that the recent drop in the stock is an overreaction, as the firm maintains a positive outlook on Alphabet's AI strengths. Jefferies reiterated a Buy rating and $130 price target on Alphabet Inc. (NASDAQ:GOOG) shares on February 10.
According to Insider Monkey’s Q4 data, 152 hedge funds were long Alphabet Inc. (NASDAQ:GOOG), compared to 156 funds in the prior quarter. Chris Hohn’s TCI Fund Management is the largest stakeholder of the company, with 54.5 million shares worth $4.8 billion.
Artisan Value Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q4 2022 investor letter:
“Our biggest detractors in Q4 included communication services sector holdings Alphabet Inc. (NASDAQ:GOOG) and Warner Bros Discovery (WBD). For Alphabet, Google’s parent company, growth has decelerated as advertisers have pulled back on digital ad spend following a COVID-driven acceleration as well as due to economic uncertainties. Longer term, Alphabet remains well positioned to win in multiple ways, whether in search, online video or in the cloud. We continue to see large profit pools for Alphabet in the early stages of monetization, along with the migration of advertising dollars away from traditional mediums, like TV, to online search and video. These factors give us confidence that Alphabet continues to have a long runway to grow revenue and profits. Additionally, management has returned capital to shareholders— another lever that can be used to increase the per share value of the business. We view Alphabet as one of the best businesses in the world, capable of expanding revenues at an above-average rate for years to come, with a bulletproof balance sheet and an average asking price. It’s a name we’ve held since 2015, and we believe Alphabet will continue to be a strong compounder of value in the future.”
9. MetisDAO
Metis is constructing a Layer 2 framework, Metis Rollup, that aligns with the principles of Optimistic Rollup. The goal is to create a user-friendly, highly scalable, cost-effective, and fully operational framework that supports the transfer of applications and businesses from Web 2.0 to Web 3.0. The protocol can scale to support a diverse range of applications, including NFT platforms, social platforms similar to Reddit, open-source developer communities, influencer communities, gaming communities, freelancer communities, crowdfunding, yield farming, DEX trading, and more. Metis aims to simplify the process of building DApps (decentralized applications) and DACs (decentralized autonomous organizations) on its platform to such an extent that individuals with no prior experience in blockchain technology can create them in a matter of minutes.
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a technology company that specializes in digital assets and focuses on cryptocurrency mining. The company is dedicated to the blockchain ecosystem and the creation of digital assets. It is one of the most crypto stocks to invest in.
On January 12, Christopher Brendler, an analyst at DA Davidson, reduced the company's price target for Marathon Digital Holdings, Inc. (NASDAQ:MARA) from $18 to $12. Despite this, he maintained a Buy rating on the shares. According to the analyst, Marathon's hashrate, along with its market share, is expected to surge in the first half of 2023 after several months of stagnant activity, as new capacity from its hosting provider becomes operational. Although the delay has dampened investor sentiment and weighed on the stock, Brendler believes that Marathon Digital Holdings, Inc. (NASDAQ:MARA)’s partnership with a publicly traded company has improved its visibility and is a significant positive that will also help the stock to revalue.
According to Insider Monkey’s fourth quarter database, 14 hedge funds were bullish on Marathon Digital Holdings, Inc. (NASDAQ:MARA), up from 8 funds in the prior quarter.
Here is what Horizon Kinetics 1st/2nd Quarter Interim Commentary has to say about Marathon Digital Holdings, Inc. (NASDAQ:MARA) in its Q1 2022 investor letter:
“Investors also tend to not give sufficient credit to the power of management to enhance or create additional value with such an asset. The commercialization of land requires considerable management expertise. This particular transaction involves two other parties that will build and operate up to 60 megawatts of bitcoin mining, which was stated could accommodate up to 2.0 Exahash of operational capacity. That is quite sizable. As a reference point, Marathon Digital Holdings (NASDAQ:MARA), which has a $1.0 billion stock market value, even after a year-to-date decline of 70%, had about 3.6 EH/s of capacity at year-end 2021, though it expects to reach 13.3 EH/s during this calendar year. The TPL venture is expected to begin operations in the fourth quarter of this year.”
8. Dogecoin
Dogecoin is a digital currency that is inspired by the famous "doge" Internet meme and has a Shiba Inu on its logo. It is an open-source cryptocurrency that was created in December 2013 by Billy Markus from Portland and Jackson Palmer from Sydney by forking Litecoin. The creators of Dogecoin envisioned it as a playful, lighthearted cryptocurrency that would appeal to a wider audience beyond the core Bitcoin community, as it was based on a dog meme. Additionally, Tesla CEO Elon Musk has expressed his affinity for Dogecoin by posting several tweets on social media. Dogecoin utilizes Scrypt technology and has a block time of 1 minute, distinguishing it from Bitcoin's proof-of-work protocol. Furthermore, Dogecoin's total supply is not capped, indicating that there is no maximum amount of Dogecoin that can be mined. Dogecoin's primary use case has been to serve as a tipping system on social media platforms such as Reddit and Twitter. The purpose of these tips is to reward users for creating or sharing valuable content.
Coinbase Global, Inc. (NASDAQ:COIN) is an American company that runs a platform for exchanging cryptocurrencies. It is one of the premier cryptocurrency stocks to buy. On February 22, Canaccord analyst Joseph Vafi maintained a Buy recommendation on Coinbase Global, Inc. (NASDAQ:COIN) but reduced the price target on the shares to $100 from $120. The analyst acknowledged that Coinbase is currently unprofitable, but highlighted the company's efforts to become profitable throughout the crypto cycle. Vafi also noted that Coinbase Global, Inc. (NASDAQ:COIN) has the potential to lead the way in various areas, including being a responsible corporate entity, and expressed confidence in the management's efforts to achieve these goals.
According to Insider Monkey’s Q4 database, 27 hedge funds were bullish on Coinbase Global, Inc. (NASDAQ:COIN), compared to 28 funds in the last quarter. Cathie Wood’s ARK Investment Management is the largest position holder in the company, with 9.18 million shares worth $325.20 million.
Here is what Miller Value Partners Opportunity Trust Fund has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2022 investor letter:
“Coinbase Global Inc. Ordinary Shares (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”
7. Solana
Solana is a blockchain project that provides decentralized finance (DeFi) solutions by leveraging the permission-less nature of blockchain technology. The Solana Foundation, headquartered in Switzerland, officially launched Solana in March 2020, although the idea and initial work began in 2017. The protocol is designed to enable the creation of decentralized apps (DApps) while improving scalability through a hybrid consensus model that combines proof-of-history and proof-of-stake.
Solana has gained popularity in the cryptocurrency community due to its exceptional speed of processing transactions on the blockchain. This is made possible by Solana's unique hybrid protocol that reduces validation times for executing smart contracts and transactions. Because of its remarkable processing speed, Solana has attracted interest from both institutional and individual investors. Solana's protocol aims to cater to a broad range of users, from small investors to large corporations. Additionally, Solana guarantees its customers that they will not be surprised by increased fees or taxes because the protocol is designed to have low transaction costs while maintaining scalability and fast processing.
Robinhood Markets, Inc. (NASDAQ:HOOD), a well-known discount brokerage application, offers its users the ability to purchase stocks, options, precious metals, and most recently, cryptocurrencies. It is one of the top cryptocurrency stocks to monitor. On February 9, Brian Bedell, an analyst at Deutsche Bank, increased the firm's price target for Robinhood Markets, Inc. (NASDAQ:HOOD) from $9 to $11 and maintained a Hold rating on the stock. The analyst characterized the company's Q4 results as "mixed," with solid cost management somewhat negated by slightly lower-than-anticipated revenue.
According to Insider Monkey’s fourth quarter database, 32 hedge funds were long Robinhood Markets, Inc. (NASDAQ:HOOD), up from 24 funds in the last quarter. Joshua Kushner’s Thrive Capital is a significant position holder in the company, with 20.4 million shares worth over $166 million.
Here is what Claret Asset Management has to say about Robinhood Markets, Inc. (NASDAQ:HOOD) in its Q4 2021 investor letter:
“Robinhood went public at $38 a share at the end of July of this year. After a one day decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”
6. The Sandbox
The Sandbox is a virtual world built on blockchain technology that was launched in 2011 by Pixowl. It enables users to create, buy, sell, and build digital assets in the form of a game. By using non-fungible tokens and decentralized autonomous organizations, The Sandbox creates a decentralized platform that encourages a vibrant gaming community. The platform's objective is to successfully integrate blockchain technology into mainstream gaming, and it concentrates on supporting a creative "play-to-earn" model that allows users to both create and play games. To enable transactions on the platform, The Sandbox has introduced the SAND utility token, which utilizes the power of blockchain technology.
CME Group Inc. (NASDAQ:CME), which operates financial derivatives exchanges, is one of the best cryptocurrency stocks to consider. On February 9, Brian Bedell, an analyst at Deutsche Bank, raised the firm's price target for CME Group from $200 to $218 and assigned a Buy rating to the shares. According to the analyst, the company's Q4 results were "quite solid," with revenue and interest income slightly exceeding expectations, and a more significant beat on adjusted expenses. Deutsche Bank noted that CME Group Inc. (NASDAQ:CME) has demonstrated pricing power by raising futures/options RPC, which will result in a revenue increase of around 4-5%. In combination with organic growth initiatives and trading volumes that can grow at a low-to-mid single-digit rate, the firm predicts that CME Group Inc. (NASDAQ:CME) can generate EPS growth of approximately 10% this year, up from a previous prediction of 3%.
Among the hedge funds tracked by Insider Monkey, 58 funds were long CME Group Inc. (NASDAQ:CME) at the end of December 2022, compared to 60 funds in the preceding quarter. GuardCap Asset Management is the largest position holder in the company, with 4 million shares worth $684.7 million.
In addition to Block, Inc. (NYSE:SQ), Intel Corporation (NASDAQ:INTC), and Apple Inc. (NASDAQ:AAPL), smart investors are piling into CME Group Inc. (NASDAQ:CME) for exposure to the crypto industry.
Baron Funds made the following comment about CME Group Inc. (NASDAQ:CME) in its Q3 2022 investor letter:
“CME Group Inc. (NASDAQ:CME) operates the world’s largest and most diversified derivatives marketplace. Shares fell 13% during the quarter (despite reporting strong average daily trading volume growth of 26% year-over year) due to concerns that EPS growth will slow in 2023 as the rate hike cycle comes to an end. We continue to own the stock due to CME’s strong competitive moats, its product breadth and liquidity depth, its durable growth characteristics driven by the secular shift from uncleared over-the-counter trading to exchange-traded futures, and tailwinds from the rising rate environment.”
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Disclosure: None. 11 Best Cryptocurrencies To Invest In For Beginners According To Reddit is originally published on Insider Monkey.
