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What’s the Best Crypto to Buy First?

By Evan Jones10/05/2023

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If you’re new to the cryptocurrency sector, it can be hard to pick a digital asset to buy first. There are literally thousands to choose from, each of which has its own purpose, but there certainly are many of those thousands that will fail in the long term.

Which crypto asset to buy first is actually a fairly simple question and answer, but instead of just telling you to buy Bitcoin (BTC) first, we’ll give you all the reasons why it’s the best digital asset to buy first. We’ll also provide you with an alternative idea. Let’s jump in.

Why Bitcoin is Best

The reason that Bitcoin is the best digital asset to buy first when you enter the sector boils down to three main things: the number of trading pairs available, the sheer accessibility of buying Bitcoin, and its liquidity. Let’s break down each below.

Accessibility

Bitcoin is the largest digital asset by market cap, making up nearly 50% of the entire market. Bitcoin is also the biggest cryptocurrency that has been deemed to NOT be a security by the SEC and other financial regulatory bodies. The latter point means that essentially every single cryptocurrency platform in every country that allows cryptocurrencies has Bitcoin available to buy.

In contrast, many of these same platforms have delisted assets that were named as securities by the SEC in their lawsuits of Binance and Coinbase. Additionally, small cap assets are much harder to find on platforms than Bitcoin, and can often entail much higher trading fees, withdrawal fees, and will likely have very few funding methods available, meaning you may have to use a method that incurs high fees.

Bitcoin is often available to buy directly with your local fiat, making it easy to buy without losing a lot in exchange rates.

Trading Pairs

Since Bitcoin is the largest digital asset by market cap, and is extremely accessible, it also has the most trading pairs of just about any cryptocurrency. It can be traded for almost any digital asset you want on a cryptocurrency exchange, in addition to often having direct trading pairs with fiat currencies for additional benefit. This means that by buying Bitcoin you can almost certainly trade it for another digital asset directly without having to trade it for something like a stablecoin first. 

Conversely, many other digital assets, even ones in the top 10 by market cap, have many less trading pairs available on exchanges. Assets like Ripple (XRP), Cardano (ADA), and Solana (SOL) are all unlikely to have trading pairs available apart from Bitcoin, USDT, and if you’re lucky, some fiat. This means that if you bought these assets first, but then wanted to trade them for another asset, you’d first have to trade them for BTC or a stablecoin before then swapping that for the asset you want. This incurs multiple trading fees and reduces profitability. Whereas as mentioned earlier, if you had Bitcoin you can just swap it directly for the asset you want in a single trade. 

Liquidity

As you might expect because it’s the largest asset by market cap, Bitcoin is also one of the most liquid assets with trading volumes in the billions everyday. This means that it’s easy for you to cash out or trade Bitcoin for another asset should you choose to do so. 

In contrast, if you buy a small market or less liquid asset, you may not be able to sell it easily, or you may have to sell it under market value. For the most part, you should always be able to get market value for your Bitcoin, making it an ideal asset to buy first.

Stablecoins Aren’t a Bad Option Either

If you like Bitcoin but don’t like its current price, another alternative is to buy stablecoins first. Something like USD Tether (USDT) or USD Coin (USDC) has similar benefits to Bitcoin. This is because they also have a large number of trading pairs available, they’re available on almost all major and minor cryptocurrency trading platforms, and they have some of the highest liquidity of any digital asset.

You can buy stablecoins as your first crypto and then swap them for a non-stable asset such as Bitcoin when it reaches a price you like. Similarly, if you bought Bitcoin and are worried about its price dropping, you can swap it into stablecoins and then buy back in at a lower price point if it does in fact drop.

Closing Thoughts

Though buying your first digital assets may seem like a difficult decision, it really shouldn’t be. When you consider all of the factors that make something a good investment asset, Bitcoin ticks all the boxes when it comes to accessibility, trading pairs, and liquidity. Stablecoins are a worthy alternative for similar reasons, but when it comes down to it, Bitcoin is called the king of crypto for a reason.

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Evan Jones

Author

Evan entered the crypto scene in 2017, attracted to the many disruptive possibilities that blockchain could have on current world systems. He has a keen interest in decentralized services, payment processing, and viable NFT use cases such as event ticketing. He spends his days writing with his dog Kobe under his feet, if not on his lap.

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