Best Crypto for Beginners 2026 - How to Start Investing
You want to get into crypto but don’t know where to start. Bitcoin, Ethereum, altcoins, DeFi, NFTs — it’s overwhelming. This guide cuts through the noise and gives you a clear, actionable plan.
Step 1: Choose an Exchange
For beginners, we recommend these three:
| Exchange | Why | Min Deposit | Link |
|---|---|---|---|
| Coinbase | Easiest to use, most secure | $1 | Sign Up → |
| Binance | Lowest fees, most coins | $10 | Sign Up → |
| Kraken | Great security + education | $10 | Sign Up → |
Our recommendation: Start with Coinbase. Once you’re comfortable, add Binance for lower fees.
Step 2: Which Cryptocurrencies to Buy
Tier 1 — Core Holdings (60-80% of portfolio)
- Bitcoin (BTC) — Digital gold. The safest crypto bet. Start here.
- Ethereum (ETH) — The platform most crypto apps are built on.
Tier 2 — Established Altcoins (15-30%)
- Solana (SOL) — Fast, cheap transactions. Growing ecosystem.
- Chainlink (LINK) — Connects real-world data to blockchain.
Tier 3 — High Risk/Reward (5-10% max)
- Newer projects, meme coins, DeFi tokens
- Only invest what you can 100% lose
What NOT to Buy as a Beginner
- Random coins shilled on social media
- Anything promising “guaranteed returns”
- Coins with no clear use case or team
Step 3: How Much to Invest
The golden rules:
- Never invest more than you can afford to lose — crypto can drop 50%+ in weeks
- Start small — $50-$500 is plenty to learn
- Dollar-cost average (DCA) — Buy a fixed amount weekly/monthly instead of all at once
- Keep an emergency fund — 3-6 months expenses in cash before investing
Step 4: Security Basics
Exchange Security
- Enable 2FA (Google Authenticator, not SMS)
- Use a unique, strong password
- Enable withdrawal address whitelisting
- Be cautious of phishing emails
Hardware Wallets (for larger amounts)
If you hold more than $1,000 in crypto, consider a hardware wallet:
- Ledger Nano X (~$80) — Most popular, Bluetooth enabled
- Trezor Model T (~$70) — Open source, touchscreen
“Not your keys, not your coins” — if the exchange gets hacked, you lose your crypto. A hardware wallet puts you in full control.
Common Beginner Mistakes
🚫 FOMO buying — Don’t buy because the price is pumping. That’s usually the worst time. 🚫 No exit strategy — Know when you’ll take profits BEFORE buying. 🚫 Overtrading — Every trade has fees and tax implications. Buy and hold beats day trading for 90% of people. 🚫 Ignoring taxes — Crypto gains are taxable in most countries. Track everything from day one. 🚫 Trusting influencers — They’re often paid to promote coins. Do your own research. 🚫 Using leverage — Beginners + leverage = liquidation. Stay away until experienced.
Understanding Crypto Taxes
In most countries, you owe taxes when you:
- Sell crypto for fiat (USD, EUR, etc.)
- Trade one crypto for another (BTC → ETH is a taxable event)
- Use crypto to buy goods/services
- Earn crypto (mining, staking, airdrops)
Tools we recommend:
- Koinly — automatic tax reporting
- CoinTracker — integrates with most exchanges
FAQ
How much money do I need to start?
Most exchanges let you start with $1-$10. We recommend starting with $50-$100 to learn.
Is crypto a good investment in 2026?
Crypto has historically outperformed most asset classes over 4+ year periods, but with extreme volatility. Only invest what you can afford to lose.
Should I buy Bitcoin or Ethereum first?
Bitcoin if you want the safest option. Ethereum if you want exposure to the broader crypto ecosystem. Many investors hold both.
When is the best time to buy crypto?
Nobody can time the market consistently. Dollar-cost averaging (buying a fixed amount regularly) is the best strategy for most people.
How do I cash out crypto to my bank?
Sell your crypto on the exchange for USD/EUR, then withdraw to your bank account. Most exchanges process within 1-3 business days.