With over 15,000 cryptocurrencies in existence, choosing where to start is overwhelming. Most of those tokens are worthless — some are outright scams. This guide cuts through the noise and focuses on the assets that have survived multiple market cycles and have real utility, along with the reasoning behind each.
Tier 1: The Foundation (Lowest Relative Risk)
Bitcoin (BTC)
Bitcoin is the original cryptocurrency, created in 2009. It has the longest track record, the largest market cap, and the most institutional adoption. Its fixed supply of 21 million coins makes it the most common "store of value" play in crypto.
- Why beginners like it — simplest to understand, most liquid, most widely accepted, perceived as safest crypto bet.
- Trade-off — limited programmability. You can't build apps on Bitcoin the way you can on Ethereum.
- Historical context — BTC has dropped 50%+ five times since 2010. Each time, it recovered to new highs. Past performance doesn't guarantee future results, but survival through cycles matters.
Ethereum (ETH)
Ethereum is the programmable blockchain that powers DeFi, NFTs, DAOs, and most of the crypto ecosystem. If Bitcoin is digital gold, Ethereum is the digital economy.
- Why beginners should know it — if you're earning crypto on RentAHuman, you're using the Ethereum ecosystem. Understanding ETH helps you understand your own payments.
- Trade-off — more complex than Bitcoin, no hard supply cap (though post-Merge issuance is very low).
For a detailed comparison, see our Bitcoin vs Ethereum guide.
Tier 2: Established Ecosystems
Stablecoins (USDC, USDT, DAI)
Stablecoins are pegged 1:1 to the US dollar. They don't appreciate like BTC or ETH, but they're essential tools:
- USDC — issued by Circle, fully backed by cash and US Treasuries, regularly audited. The safest stablecoin for most users.
- USDT (Tether) — largest stablecoin by volume. Less transparent reserves than USDC, but deeply liquid.
- DAI — decentralized, overcollateralized stablecoin. Not controlled by any single company.
Solana (SOL)
A high-speed blockchain focused on throughput and low fees. Processes thousands of transactions per second at fractions of a cent. Strong ecosystem of DeFi and consumer applications.
- Strengths — very fast, very cheap, growing developer ecosystem, strong retail adoption.
- Risks — has experienced multiple network outages, more centralized than Ethereum, closely associated with FTX in its early days (which hurt trust in 2022).
What About Altcoins and Memecoins?
Beyond the established projects above, you'll encounter thousands of smaller tokens — altcoins, memecoins, and DeFi tokens. Some are legitimate projects with real utility. Many are not. We cover these in detail in our altcoins and memecoins guide.
A reasonable beginner allocation: 60–80% in BTC and ETH, 10–20% in established altcoins (SOL, stablecoins), and 0–10% in speculative positions. The speculative portion should be money you're genuinely okay with losing.
How to Evaluate Any Coin
Before buying any cryptocurrency, ask:
- What problem does it solve? — if the answer is "it might go up," that's speculation, not investing.
- Has it survived a bear market? — most tokens created in a bull market don't survive the next bear market.
- Who is building it? — identifiable team, active GitHub, regular development updates.
- How is the token distributed? — if insiders hold most of the supply, the price can be manipulated.
For a deeper framework, see our token legitimacy checklist.
Ready to buy? Our step-by-step purchasing guide walks you through the process. And make sure you understand the difference between a coin and a token before you dive deeper.