It might be daunting for someone new to the crypto world to wade through the thousands of cryptocurrencies, such as Bitcoin, Ethereum, Dogecoin, and Tether. If you’re looking for a starting point, here are the ten most valuable cryptocurrencies you should consider investing in by market capitalization (the sum of all the coins in circulation).
What Are Cryptocurrencies?
Cryptocurrencies are digital or virtual currencies secured by cryptography, so they cannot be counterfeited or double-spent easily. Cryptocurrencies differ from the traditional fiat currencies that are printed by central banks (the government), as they use decentralized networks built on blockchain technology which are distributed across multiple computers. The first-known and most widely used cryptocurrency, Bitcoin, which appeared in 2009 under the pseudonym Satoshi Nakamoto, stands apart from the rest. Although they allow faster, borderless, and privacy-secure transactions, these digital money alternatives are highly volatile and susceptible to regulation. Other typical cryptocurrencies are Ethereum, famous for its smart contract development, and Solana and Cardano, among the newest ones.
Top 10 Cryptocurrency
Bitcoin
- Market cap: $1.3 trillion
- Year-over-year return: 136%
Satoshi Nakamoto created the first cryptocurrency, Bitcoin (BTC), in 2009. Blockchain, a distributed ledger that records transactions over a network of computers, is the foundation of Bitcoin and most cryptocurrencies. To be included in the distributed ledgers, Bitcoin is protected from fraudsters because one must solve a cryptographic puzzle known as proof of work.
As Bitcoin has gained widespread recognition, its price has soared. One bitcoin was worth around $500 in May 2016. On April 25, 2024, the cost of one bitcoin was about $64,427. A growth rate of 12,785% is that.
Ethereum
- Market cap: $385.5 billion
- Year-over-year return: 73%
Ethereum, a cryptocurrency and blockchain platform, is popular among programmers due to its many possible uses, such as non-fungible tokens (NFTs) and smart contracts that execute automatically when certain conditions are satisfied.
Ethereum’s value has also skyrocketed. Its price increased 28,605% from $11 in April 2016 to $3,158 at the end of April 2024.
Tether
- Market cap: $110.4 billion
- Year-over-year return: 0%
As a stablecoin, Tether (USDT) is supported by fiat currencies like the US dollar or the Euro and, in theory, maintains a value equal to one of those denominations, unlike certain other types of cryptocurrency. In principle, this means that Tether’s value should be more stable than other cryptocurrencies, which is why it’s popular among investors who fear the coins’ excessive volatility.
Binance Coin
- Market cap: $90.5 billion
- Year-over-year return: 85%
Binance is one of the biggest cryptocurrency exchanges in the world, and its users can trade and pay fees using their cryptocurrency, Binance Coin (BNB). The original purpose of Binance Coin, launched in 2017, has now been broadened beyond enabling trades on Binance’s exchange platform. Trading, money processing, and even organizing travel arrangements are now possible with it. You can also buy and sell it for Bitcoin and Ethereum, two other popular cryptocurrencies.
In 2017, the price of BNB was a meagre $0.10. By the end of April 2024, it had increased by 613,003%, reaching approximately $613.
Solana
- Market cap: $66.4 billion
- Year-over-year return: 610%
Solana is a blockchain platform that supports decentralized applications (DApps), smart contracts, and decentralized finance (DeFi). It uses a hybrid proof-of-stake and proof-of-history mechanism to securely and swiftly process transactions—a platform powered by Solana’s native cryptocurrency, SOL.
When it debuted in 2020, SOL’s initial price was $0.77. By the end of April 2024, it had increased by 19,159%, reaching approximately $148.30.
U.S. Dollar Coin
- Market cap: $33.2 billion
- Year-over-year return: 0%
In the same vein as Tether, USD Coin (USDC) is a stablecoin that seeks to maintain a 1:1 ratio with US dollars. You can use USD Coin to make global transactions powered by Ethereum.
XRP
- Market cap: $29.0 billion
- Year-over-year return: 15%
Ripple is a digital technology and payment processing firm that created XRP. On that network, users can swap fiat currencies and other major cryptocurrencies for XRP.
The starting price of XRP in 2017 was $0.006. As of April 25, 2024, the price had increased 8,676% to $0.53.
Dogecoin
- Market cap: $21.9 billion
- Year-over-year return: 95%
Despite its infamously comedic origin story, Dogecoin quickly became a significant cryptocurrency in 2013 owing to its enthusiastic user base and innovative memes. Unlike many other cryptocurrencies, the depreciation of Dogecoins could be caused by a rise in supply because there is no cap on their creation.
Dogecoin’s price was $0.0002 in 2017. It had increased by 75,904% by April 2024, when it was $0.15.
Toncoin
- Market cap: $18.9 billion
- Year-over-year return: 141%
Before the TON foundation’s acquisition, Toncoin was created as a layer-1 blockchain for Telegram’s encrypted messaging application. However, it was quickly abandoned. From its original acronym, TON, the project was renamed to “The Open Network” (a departure from its original name, “Telegram Open Network”).
The native TON token is Toncoin, previously known as Gram. In addition, The TON software facilitates the purchase, transfer, and storage of cash over the TON network, which is extremely quick and ecologically benign.
Cardano
- Market cap: $16.8 billion
- Year-over-year return: 24%
Adopting proof-of-stake validation was an early feature of Cardano (ADA), a cryptocurrency that entered the market later. In addition, by eliminating the competitive, problem-solving element of transaction verification in systems like Bitcoin, this strategy shortens transaction times, reduces energy usage, and lessens environmental impact. Like Ethereum, Cardano’s native token ADA enables intelligent contracts and decentralized apps.
In addition, The ADA cryptocurrency, issued by Cardano, has grown slower than most other prominent cryptocurrencies. The price of ADA was $0.02 in 2017. Its price was $0.47 on April 25, 2024. A 2,266% rise, that is.
Related: What Is ADA Crypto Price Prediction?
FAQS
How do I start investing in cryptocurrencies?
Begin by researching reputable cryptocurrency exchanges, such as Coinbase or Binance, where you can buy, sell, and store digital assets. Consider starting with a small amount to get familiar with the process and understand the risks involved.
What is the difference between Bitcoin and Ethereum?
Bitcoin is primarily a digital currency used as an alternative to traditional money, whereas Ethereum is a platform for decentralized applications (DApps) and smart contracts. Ethereum’s blockchain is more adaptable, allowing developers to build applications beyond just currency transactions.
Why are cryptocurrencies so volatile?
Cryptocurrencies are relatively new and less regulated than traditional financial markets, which can lead to rapid price changes. Additionally, factors like market speculation, regulatory news, and global economic events impact their prices.
Are stablecoins like Tether safer investments?
Stablecoins are designed to be less volatile as they are pegged to fiat currencies like the U.S. dollar. While they offer more stability, they are not risk-free, as they can still face regulatory challenges and depend on their underlying assets for value.
