There are dozens of different cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, which might be bewildering for someone who is just beginning their journey into the world of cryptocurrency. The following is a list of the top ten cryptocurrencies, or the total value of all the coins that are now in circulation, according to their market capitalization. This can help you gain your bearings.
1. Bitcoin (BTC)
Market cap: $758.9 billion
Bitcoin, often known as BTC, is the first cryptocurrency ever created. It was created in 2009 by Satoshi Nakamoto. Bitcoin operates on a blockchain, which is a distributed ledger that records transactions and is spread over a network of thousands of computers. This is similar to the majority of cryptocurrencies. As a result of the fact that any modifications to the distributed ledgers need to be validated by solving a cryptographic problem, a procedure that is known as proof of work, Bitcoin is protected against counterfeiters and other fraudulent activities.
As Bitcoin has become more widely known, its price has soared to unprecedented levels. To purchase one Bitcoin in May of 2016, the price was around $500. As of the 23rd of January, 2024, the price of a single Bitcoin was around $38,709. At such rate, the increase is 7,642%.
2. Ethereum (ETH)
Market cap: $263.1 billion
Ethereum, which is both a cryptocurrency and a blockchain platform, is a favorite among programmers because to the possible applications it offers. Some examples of these applications include non-fungible tokens (NFTs) and so-called smart contracts, which are contracts that automatically execute themselves when certain circumstances are satisfied.
A huge amount of growth has also been witnessed by Ethereum. An increase of 19,800% occurred in its price between April 2016 and the end of January 2024, when it moved from around $11 to almost $2,189.
3. Tether (USDT)
Market cap: $94.8 billion
What sets Tether (USDT) apart from other types of cryptocurrencies is that it is a stablecoin. This means that it is backed by fiat currencies such as the United States dollar and the Euro, and it maintains a value that is equivalent to one of those denominations. Investors who are concerned about the severe volatility of other coins are likely to choose Tether since, in principle, this indicates that the value of Tether is expected to be more stable than the value of other cryptocurrencies.
4. Binance Coin (BNB)
Market cap: $43.9 billion
ss
The Binance Coin (BNB) is a sort of cryptocurrency that may be used on Binance, which is one of the most prominent cryptocurrency exchanges in the world, for the purpose of trading and paying fees. Since its inception in 2017, Binance Coin has evolved beyond its original purpose of only enabling transactions on the exchange platform that Binance operates. At this point, it may be used for trade, the processing of payments, and even the preparation of trip plans. Trading or exchanging it for other cryptocurrencies, such as Ethereum or Bitcoin, is another option for acquiring this cryptocurrency. In the year 2017, the price of BNB was just $0.10. Its price has increased to almost $293 by the end of January 2024, representing a gain of 293,123%.
5. Solana (SOL)
Market cap: $34.9 billion
Designed to facilitate the operation of decentralized finance (DeFi) applications, decentralized applications (DApps), and smart contracts, Solana is powered by a one-of-a-kind hybrid proof-of-stake and proof-of-history mechanism that enables it to conduct transactions in a safe and expedient manner. The Solana platform is powered by SOL, the native token of Solana.
The price of SOL began at $0.77 when it was first introduced in the year 2020. Its price has increased by 10,376% by the end of January 2024, reaching around $80.66.
6. XRP (XRP)
Market cap: $27.3 billion
XRP, which was developed by a number of the same founders as Ripple, a firm that specializes in digital technology and payment processing, may be used on that network to allow exchanges of other sorts of currencies, including fiat currencies and other significant cryptocurrencies. The price of XRP was $0.006 at the beginning of the year 2017. The price of it hit $0.50 as of January 23, 2024, which is equivalent to an increase of 8,277%.
7. U.S. Dollar Coin (USDC)
Market cap: $25.6 billion
The USD Coin (USDC) cryptocurrency, much like Tether, is a stablecoin, which means that it is backed by U.S. dollars and strives to achieve a ratio of 1 USD to 1 USDC. Ethereum serves as the driving force behind USDC, and you may use USD Coin to carry out transactions all around the world.
8. Cardano (ADA)
Market cap: $16.1 billion
Cardano (ADA), which came to the crypto market somewhat later than other cryptocurrencies, is remarkable for its early use of proof-of-stake validation. By eliminating the competitive and problem-solving part of transaction verification in platforms such as Bitcoin, this strategy reduces the amount of energy used and the effect on the environment, therefore reducing the amount of time it takes to complete a transaction. In addition, Cardano functions similarly to Ethereum in that it enables smart contracts and decentralized apps, which are powered by ADA, the native token of Cardano. Cardano's ADA token has had growth that is very moderate in comparison to those of other major cryptocurrency currencies. The price of ADA was $0.02 in the year 2017. Before the 23rd of January, 2024, the price of it was $0.46. There has been a rise of 2,181% in this.
9. Dogecoin (DOGE)
Market cap: $11.0 billion
Dogecoin is a cryptocurrency that went from being a joke in 2013 to being a significant cryptocurrency in a short amount of time owing to a community that is committed to it and memes that are innovative. The fact that there is no cap on the total amount of Dogecoins that may be produced, in contrast to the majority of other cryptocurrencies, makes the currency vulnerable to depreciation as the supply of the cryptocurrency grows.
In 2017, the price of a single Dogecoin was $0.0002. As of January 2024, its price has increased by 38,309%, reaching $0.08.
10. Avalanche (AVAX)
Market cap: $10.3 billion
Fast transaction speeds and cheap transaction fees are two of the most crucial benefits that Avalanche offers. A robust total value locked (TVL), also known as the amount of money placed in decentralized finance, is another asset that AVAX has. In the context of decentralized finance (DeFi) protocols, such as staking, lending, or liquidity pools, the total value of crypto assets that have been deposited is referred to as the TVL.
A high TVL is indicative of the frequency with which a specific cryptocurrency is adopted as well as the popularity of a particular protocol. At the moment, the cost of Avalanche is $28.
The market capitalizations and prices were obtained from coinmarketcap.com and are accurate as of the 23rd of January, 2024 at 2:31 p.m.
What Are Cryptocurrencies?
A kind of money that is only available in digital form is referred to as cryptocurrency. If you want to make purchases online without going through a middleman like a bank, you may use cryptocurrency to pay for them. Additionally, you can use cryptocurrency as an investment.
How Does Cryptocurrency Work?
The term "cryptocurrency" refers to a variety of applications of digital currency that are often founded on blockchain technology. The technology known as blockchain makes it possible for the majority of cryptocurrencies to function as "trustless" types of transactions. Therefore, there is no centralized authority that is responsible for monitoring the transactions that take place on the blockchain of a cryptocurrency. Satoshi Nakamoto, a computer programmer who did not reveal his identity, is credited with creating Bitcoin in 2009, which is the world's first cryptocurrency.
Why Are There So Many Cryptocurrencies?
When June 2023 rolls around, there are more than 22,000 cryptocurrency projects already in existence, making cryptocurrency a burgeoning field. Although some cryptocurrencies are utilized as money, others are put to use in the construction of infrastructure. For example, in the case of Ethereum or Solana, cryptocurrency developers are developing more cryptocurrencies on top of these platform currencies, which results in the creation of even more options (and cryptocurrencies).
How to Invest in Cryptocurrency?
Cryptocurrency exchanges, such as Coinbase, Kraken, or Gemini, are an excellent place to purchase cryptocurrency. To add insult to injury, customers are able to purchase cryptocurrencies via some brokerages, such as WeBull and Robinhood.
How to Report Crypto on Taxes
It is essential to pay attention to the tax regulations that pertain to cryptocurrencies if you engage in the buying and selling of coins. The cryptocurrency market is seen as a capital asset, similar to stocks, rather than a form of money. It follows that you will be required to pay taxes on capital gains if you sell cryptocurrencies at a profit. This is the case regardless of whether or not you use your cryptocurrency to pay for a transaction. In the event that you obtain a higher value for it than what you paid for it, you will be required to pay taxes on the difference.