Analysts are increasingly advising new cryptocurrency investors to start with established digital assets such as Bitcoin, even as many retail traders show interest in cheaper and more speculative coins.
Recent market reports from analysts and financial firms describe Bitcoin as the most stable entry point in crypto because of its size, institutional backing, and long-term performance history. But for the average Nigerian investor, the discussion is less about buying a full Bitcoin and more about finding practical ways to protect savings, access digital dollars, or grow small investments.
Bitcoin traded near $79,600 on Friday after falling about 1.8% over 24 hours. At that price, a full Bitcoin remains out of reach for most local retail investors. However, crypto platforms allow users to buy small fractions of Bitcoin with naira.
A May 7 report by The Motley Fool compared Bitcoin with XRP and concluded that Bitcoin remains “the safer choice” for beginners because of its large market share and growing institutional support.
Financial analyst Lyle Daly wrote that Bitcoin’s scale means its performance often “correlates with the market as a whole,” while institutional investment has given the asset “a higher floor than it used to.”
The report noted that Bitcoin exchange-traded funds approved in the United States since January 2024 now manage about $109 billion in assets.
Smaller cryptocurrencies such as XRP often attract younger traders because they appear cheaper to buy. XRP traded near $1.39 on Friday and continues to gain attention for its use in international payments through Ripple’s financial network.
Ripple says XRP can help banks process cross-border transfers faster and at lower cost. The company has signed partnerships with hundreds of financial institutions globally, though analysts note that many partners reportedly use Ripple’s payment infrastructure without directly using XRP itself.
Unlike in some Western markets where crypto is mainly treated as an investment asset, digital currencies in Nigeria are also widely used for practical financial needs.
Many users rely on stablecoins such as Tether to:
- store value in dollars,
- receive freelance payments,
- pay international business partners,
- and reduce exposure to naira volatility.
The global crypto market declined on Friday amid tensions between the United States and Iran.
Alongside Bitcoin’s decline:
- Ethereum fell to around $2,279.
- BNB dropped to roughly $639.
- Monero declined more than 4%.
- Bitcoin Cash also moved lower.
At the same time, gold-backed digital assets gained value:
- PAX Gold rose about 0.46%.
- Tether Gold increased roughly 0.42%.
APA Economics said investors were moving “away from risky assets toward safe-haven instruments.”
Some global financial institutions believe Bitcoin is gradually becoming a mainstream store of value similar to gold.
Analysts at JPMorgan said on Friday that Bitcoin is increasingly taking market share from gold as investors look for protection against inflation and currency debasement.
According to the bank, there were strong inflows into US spot Bitcoin ETFs, which reportedly attracted nearly $1.7 billion over five consecutive trading sessions through Wednesday.
JPMorgan also pointed to aggressive buying by Strategy, formerly MicroStrategy, which remains the largest corporate holder of Bitcoin globally.
The company currently owns more than 818,000 BTC valued at over $65 billion. JPMorgan estimated that Strategy could purchase another $30 billion worth of Bitcoin during 2026 if current buying continues.
The bank said Strategy “appears to have re-accelerated its bitcoin purchases in April.”
Other firms remain cautious.
Goldman Sachs recently raised its forecast for gold prices to $5,400 per ounce by year-end, arguing that gold remains less volatile during periods of economic stress.
Supporters continue to point to Bitcoin’s fixed supply (21 million BTC maximum supply). However, critics say that Bitcoin has experienced several price declines greater than 50% since 2017.
In a nutshell,
- Bitcoin is widely viewed as the most established cryptocurrency,
- Ethereum remains important for blockchain applications and digital finance,
- XRP continues to attract traders looking for lower-priced alternatives,
- while stablecoins remain central for savings and payments.
