If you're new in the crypto space, you've probably wondered what low-risk tokens you can invest in.
Well, in this video, we'll cover six low-risk tokens for beginners or new crypto-currency investors.
So, watch this video all the way through because most of the tokens we'll cover in this video, offer the biggest staking opportunities with big returns. You don't want to miss out.
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1: XRP
The first low-risk crypto you should invest in as a beginner is XRP.
XRP's consensus protocol verifies transactions. For a transaction to be accepted, it must be approved by a majority of the validators who evaluate it. As such, thanks to this mechanism, XRP can conduct transactions in seconds at a cheap cost and with minimum energy. This makes it one of the greener cryptocurrencies.
As well as being one of the best cryptos under $1, it has the potential to replace an inefficient and out-of-date international money transfer system. The fact that it has banking connections with over 200 financial institutions is encouraging. Moreover, any favorable changes in its legal standing might lead to a price hike.
During the 2017 bull run, XRP was one of the many digital currencies that produced healthy gains for investors – which hit an all-time high of $3.40. In May 2021, it again faired strongly, rising from under $0.9 to over $1.08 in a matter of weeks. However, since that all-time high, XRP has fallen by almost 75%. And its current price is $0.3
XRP has a market cap of over $16 billion at the time of this recording. Some XRP price predictions suggest it could hit a price as high as $4 by 2025. As such, at less than $1, it now represents a good entry point for new investors looking for cheap cryptocurrencies.
 
#2: Ethereum
And the next low-risk crypto you should invest in as a beginner is Ethereum.
The Ethereum ecosystem continues to grow by leaps and bounds, attracting both developers and investors. However, the world’s second-largest cryptocurrency initially deployed a proof-of-work consensus. This meant that in order to validate any transactions, computers had to perform complex tasks which demanded enormous energy as well as time.
However, as per a recent development upgrade, Ethereum has shifted to the PoS mechanism and thus – is now one of the best staking tokens to consider for generating passive income. That said, in order to start staking Ethereum by yourself, the requirements are somewhat high – not least because you will need to put up at least 32 ETH coins.
The easiest alternative to this would be to hold your Ethereum coins in a staking pool. In simple terms, this means that you lend your tokens for other validators to use. This way, you do not have to commit such a huge amount of ETH. In terms of the payouts, this will ultimately depend on the staking platform you choose and for how long you lock in your coins.
 
#3: Solana
And the next one is going to be Solana.
Solana is yet another DeFi token that was designed with scalability in mind. The blockchain facilitates quick transactions and low fees – which subsequently boosted its market performance in 2021. The price of Solana went from around $18 to over $100 in just one year.
Although the value of Solana has dropped since the beginning of 2022, the coin continues to hold its momentum among developers. When you stake this crypto asset, you can expect annual returns in the range of 7 to 11%, depending on the platform you choose.
 
#4: Polkadot
The next crypto is Polkadot.
Unlike the conventional PoS consensus, Polkadot is built on a nominated proof-of-stake mechanism. In this system, nominators back multiple validators as a show of faith in their behavior. And as such, if you choose a malicious validator, you are likely to incur a loss.
However, since being a delegator for Polkadot is cumbersome and comes with unfavorable requirements, many investors choose to be nominators or deposit their assets into staking pools. On top of this, Polkadot also pays out attractive token rewards. This is because the rewards are offered in proportion to the work and not to the size of the stake.
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#5: Binance Coin
Then, we have Binance Coin.
Binance coin BNB is designed to serve as the lynchpin of the Binance cryptocurrency exchange. It is used to pay for goods and services, settle transaction fees on BNB Chain, and participate in exclusive token sales.
BNB also has a starring role in the Binance Smart Chain, which is vying to become a rival to Ethereum, offering greater levels of scalability along with lower transaction fees.
Binance executes coin burns every quarter, a key part of BNB’s tokenomics, intended to promote deflation and help sustain BNB’s market value. There is a current circulating supply of 163 million coins, which is 99% of the maximum supply.
BNB has had an incredible run in the years since its ICO. The initial price per BNB token during the ICO was $0.15. An all-time high price of $691.80 so far was reached on May 10, 2021. That price increase equates to an increase of over 46,000%.
However, looking at the price chart, you can see that most of the price appreciation has occurred during 2 periods, the 2017 and 2021 bull markets. During the 2017 bull market, the price of BNB increased from around $1.50 to $25.20 for a gain of over 1600%. During the 2021 bull market, the price increased from approximately $35.00 to $691.80 for a gain of over 1,850%.
BNB experienced little price appreciation from early January 2018 through mid-2020 because of the cryptocurrency bear market. Following the peak on May 10, 2020, the price of BNB dropped by 69% over the next 2 weeks, hitting a low of $211.70 on May 23. Over the next 7 months, the price has slowly climbed back up near the all-time high, coming to within $23 of it on November 7.
Currently, BNB is rated #5 by market capitalization on CoinMarketCap, with a market cap of about $40 billion.
What do you think? Are you sold on BNB? The BNB tokens history is one of incredible growth, both in price and utility. If the Binance ecosystem can keep expanding, giving BNB tokens more use cases, then the price appreciation should follow. Also, the continued burning of BNB tokens should significantly help price appreciation. So, overall, BNB continues to be a good investment in the medium to long term.
#6: Avalanche
And the last crypto project is Avalanche.
Avalanche is a solid project with a good management team.
Avalanche has completed several successful fundraising rounds and has some big-name backers. Like several of its competitors, it's invested heavily in adoption and development through incentive programs and it has some strong projects in its ecosystem. It's a proof-of-stake crypto that has three blockchains running under the hood. It argues that this allows it to offer low-cost, speedy transactions without sacrificing security.
It's certainly in the race to become one of the lead smart contract platforms. The challenge is that many players are jostling for position and any of them could get hit by a security breach or as yet unknown technical issue. They could get overtaken by a crypto we haven't even heard of yet.
However, Avalanche is still good crypto to invest in for the long term. And the elements to consider are its ease of use, its highly regulated broker, and its low fees.
So, do you think these cryptos are good investments for beginners?
Let us know in the comments!
 
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