I know a lot of beginning crocheters often wonder what kind of yarn is best for different projects.  In this post I'm going to talk about what is good for baby and toddler projects. 

I like to use acrylic but you have to realize a lot of acrylic is stiff at first so there are 2 ways to get around this.  The skein without label can be put in a lingerie bag (tube type) tied tight and washed or when you are done with the project wash it in cold water with fabric softener and put it through the dryer on low heat.  The latter is my preference.   I also use Lion Brand Babysoft, Lion Brand Jiffy, Caroun One Pound - this is an acrylic yarn but I have found it is softer than others, Bernat Baby Sport, Vanna's Choice.  Vanna's Choice is 100% acrylic but is super soft.  The last type I use is Simply Soft.

I do not use 2 types of yarn ever:  Wool because baby skin is very sensitive and wool can be itchy and irritating to some.  The other is anything like Homespun where the yarn is really fuzzy because we all know how baby's like to put things in their mouth and who wants a mouth full of fuzz.

Other yarns that you can use for your baby and toddler projects are:
Cotton of any kind
Bernat Baby Blanket
Bernat Softee
Redheart Baby Steps
According to Knit Like a Granny these are the best yarns:
Best yarn for Baby
Redheart Gumdrop

I'm sure there are more but these are the ones I am familiar with and some can be pricey but my recommendation and the only time I ever get yarn is on sale whether I need it or not.  LOL