For a beginner trader with a starting capital of $100, choosing between Bitcoin, Ethereum, or Binance Coin (BNB) can be challenging. Each cryptocurrency offers unique opportunities and risks.
1. Bitcoin (BTC):
Bitcoin is the most established cryptocurrency with the largest market capitalization. It is often considered a "safe" choice in the volatile world of digital currencies. For a beginner, investing in Bitcoin might provide some level of stability, as it is less prone to extreme fluctuations compared to smaller, newer coins. However, because of its high value, a $100 investment would yield a very small fraction of a Bitcoin, and the potential for short-term gains might be limited.
2. Ethereum (ETH):
Ethereum is more than just a cryptocurrency. It powers decentralized applications (dApps) and smart contracts, making it essential for many blockchain projects. Ethereum has historically experienced higher percentage growth compared to Bitcoin, which could make it attractive for a beginner trader. With $100, a trader could potentially see higher returns, though Ethereum can also be more volatile, especially during periods of high network usage.
3. Binance Coin (BNB):
BNB is the native token of Binance, one of the largest cryptocurrency exchanges in the world. BNB has a practical use case as it offers discounts on trading fees and is used in various Binance services. Binance also burns a portion of BNB periodically, which can contribute to long-term price appreciation. For a beginner, BNB offers the advantage of being tied to a functional platform with ongoing growth, and the price per token is generally more affordable compared to Bitcoin or Ethereum.
Conclusion:
For a beginner with $100, it might be wise to diversify the investment across all three: Bitcoin for stability, Ethereum for growth potential, and BNB for its practical use and future value. This strategy could help balance the risks and rewards in the volatile cryptocurrency market.