From bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the coins currently in circulation.
Guide to Top Cryptocurrency
Best Crypto To Buy Now
What Are Cryptocurrencies?
Pros and Cons of Cryptocurrency
How To Choose the Best Crypto To Invest In
How To Invest in Cryptocurrency?
How much does it cost to buy Cryptocurrency?
How To Report Crypto on Taxes
Crypto Frequently Asked Questions (FAQs)
Best Crypto To Buy Now
1. Bitcoin (BTC)
Market cap: $1.4 trillion
Year-over-year return: 97%
Created in 2009 by Satoshi Nakamoto, bitcoin (BTC) is the
original cryptocurrency. As with most cryptocurrencies, BTC runs on a
blockchain, or a ledger logging transactions distributed across a network of
thousands of computers. Because additions to the distributed ledgers must be
verified by solving a cryptographic puzzle, a process called proof of work,
bitcoin is kept secure and safe from fraudsters.
Bitcoin’s price has skyrocketed as it’s become a household
name. In May 2016, you could buy one bitcoin for about $500. As of Nov. 5,
2024, a single bitcoin’s price was around $69,415. That’s a growth of 13,783%.
Related: How To Buy Bitcoin
2. Ethereum (ETH)
Market cap: $296.5 billion
Year-over-year return: 29%
Both a cryptocurrency and a blockchain platform, Ethereum is
a favorite of program developers because of its potential applications, like
so-called smart contracts that automatically execute when conditions are met
and non-fungible tokens (NFTs).
Ethereum has also experienced tremendous growth. From April
2016 to the end of November 2024, its price went from about $11 to around
$2,462, increasing 22,283%.
Related: How To Buy Ethereum
3. Tether (USDT)
Market cap: $120.5 billion
Year-over-year return: 0%
Unlike some other forms of cryptocurrency, Tether (USDT) is
a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the
Euro and hypothetically keeps a value equal to one of those denominations. In
theory, this means Tether’s value is supposed to be more consistent than other
cryptocurrencies, and it’s favored by investors who are wary of the extreme
volatility of other coins.
4. Binance Coin (BNB)
Market cap: $81.4 billion
Year-over-year return: 124%
Binance Coin (BNB) is a form of cryptocurrency that you can
use to trade and pay fees on Binance, one of the largest crypto exchanges in
the world. Since its launch in 2017, Binance Coin has expanded past merely
facilitating trades on Binance’s exchange platform. Now, it can be used for trading,
payment processing or even booking travel arrangements. It can also be traded
or exchanged for other forms of cryptocurrency, such as Ethereum or bitcoin.
BNB’s price in 2017 was just $0.10. By late November 2024,
its price had risen to around $565, a gain of 564,581%.
Related: How To Buy Cryptocurrency
5. Solana (SOL)
Market cap: $77.7 billion
Year-over-year return: 309%
Developed to help power decentralized finance (DeFi) uses,
decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid
proof-of-stake and proof-of-history mechanisms to process transactions quickly
and securely. SOL, Solana’s native token, powers the platform.
When it launched in 2020, SOL’s price started at $0.77. By
late November 2024, its price was around $165.07, a gain of 21,337%.
6. U.S. Dollar Coin (USDC)
Market cap: $35.2 billion
Year-over-year return: 0%
Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s
backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by
Ethereum, and you can use USD Coin to complete global transactions.
7. XRP (XRP)
Market cap: $29.0 billion
Year-over-year return: -30%
Created by some of the same founders as Ripple, a digital
technology and payment processing company, XRP can be used on that network to
facilitate exchanges of different currency types, including fiat currencies and
other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. As of
Nov. 5, 2024, its price reached $0.51, equal to a rise of 8,393%.
8. Dogecoin (DOGE)
Market cap: $25.3 billion
Year-over-year return: 135%
Dogecoin was famously started as a joke in 2013 but rapidly
evolved into a prominent cryptocurrency thanks to a dedicated community and
creative memes. Unlike many other cryptos, there is no limit on the number of
Dogecoins that can be created, which leaves the currency susceptible to
devaluation as supply increases.
Dogecoin’s price in 2017 was $0.0002. By November 2024, its
price was at $0.17, up 86,051%.
9. TRON (TRX)
Market cap: $14.0 billion
Year-over-year return: 64%
Much like Solana, TRON is a blockchain designed to run smart
contracts and other DeFi applications. TRX is the platform’s native
cryptocurrency, which powers its proof-of-stake consensus algorithm.
TRON was founded in 2017, and TRX was initially valued at
$0.0019 per token. At its peak in 2018, TRX spiked as high as $0.2245, for a
gain of 11,715% in a matter of months. TRX is currently valued around $0.16.
10. Toncoin (TON)
Market cap: $11.8 billion
Year-over-year return: 99%
Originally developed as a layer-1 blockchain for Telegram’s
encrypted messaging platform, Toncoin was soon abandoned before being taken
over by the TON foundation. The project name was even changed to “The Open
Network” from its original name “Telegram Open Network,” both of which are
referred to by their acronym: TON.
Toncoin—first known as Gram—is the native token for TON. It
is an application that allows users to buy, send and store funds on TON’s
incredibly fast, environmentally friendly network.
*Market caps and pricing sourced from coinmarketcap.com,
current as of 9:31 a.m. UTC on Nov. 5, 2024.
What Are Cryptocurrencies?
Cryptocurrency is a form of currency that exists solely in
digital form. Cryptocurrency can be used to pay for purchases online without
going through an intermediary, such as a bank, or it can be held as an
investment.
How Does Cryptocurrency Work?
Cryptocurrencies are various forms of digital money that are
usually based on blockchain technology. Blockchain technology allows most
cryptocurrencies to exist as “trustless” forms of transactions. This means
there is no centralized authority overseeing the transactions on a
cryptocurrency’s blockchain.
Why Are There So Many Cryptocurrencies?
Cryptocurrency is an emerging area with more than 9,000
crypto projects in existence as of March 2024.
While some crypto function as currencies, others are used to
develop infrastructure. For instance, in the case of Ethereum or Solana,
developers are building other cryptos on top of these platform currencies, and
that creates even more possibilities (and cryptos).
Pros and Cons of Cryptocurrency
There are both pros and cons to investing in
cryptocurrencies. Some of the most common ones an investor might run into are:
Pros Cons
Decentralization
High energy usage associated with mining
Accessibility
Evolving government regulations
Potentially high returns
Price volatility
Transaction speed
Prevalence of scams and fraud
How To Choose the Best Crypto To Invest In
When choosing the best cryptocurrency to invest in, it is
important to consider your individual goals, investing timeline and risk
profile, just as you would with any investment. Additionally, you should do
your due diligence to make sure that any crypto project you are interested in
is legitimate and secure.
In general, investors should consider the following when
evaluating a crypto:
Market capitalization
Liquidity
Security
Use case
When exploring cryptocurrency investments, first consider
the exchanges where the token is listed. Tokens featured on major exchanges
generally offer better liquidity, attracting larger investors and reaching a
broader audience, which in turn increases the potential buyer base.
– Maksym Repa, analyst at Symbolic Capital
How To Invest in Cryptocurrency?
You can buy cryptocurrencies through crypto exchanges, such
as Coinbase, Kraken or Gemini. In addition, some brokerages, such as WeBull and
Robinhood, also allow consumers to buy cryptocurrencies.
How Much Does It Cost To Buy Cryptocurrency?
How much it costs to buy cryptocurrency depends on a number
of factors, including which crypto you are buying. Many small altcoins trade
for a fraction of a cent, while a single bitcoin will cost you tens of
thousands of dollars. However, many brokerages and exchanges now allow
fractional trading, offering investors the option to buy a portion of a
cryptocurrency.
There are also often costs and fees associated with having a
crypto wallet and/or an account on a brokerage or crypto exchange. Be sure that
you understand all of the costs associated with buying and holding any
cryptocurrency before you invest.
How To Report Crypto on Taxes
If you buy and sell coins, it’s important to pay attention
to cryptocurrency tax rules.
Cryptocurrency is treated as a capital asset, like stocks,
rather than cash. That means if you sell cryptocurrency at a profit, you’ll
have to pay capital gains taxes. This is the case even if you use your crypto
to pay for a purchase. If you receive a greater value for it than you paid,
you’ll owe taxes on the difference.
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