In recent years, cryptocurrency has gained popularity as a kind of investing. More and more people are considering investing in cryptocurrencies due to their decentralised nature and huge potential returns
There are thousands of cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, which make it challenging to get started when you’re new to the field. These are the top 10 cryptocurrencies or the total market value of all the coins now in circulation, that may be worthwhile investing in to help you get started.
1. Bitcoin (BTC)
Bitcoin was the first and most famous cryptocurrency. Someone using the fake name Satoshi Nakamoto made it in 2009. Bitcoin runs on a network of thousands of computers that don’t have a single point of control. These computers keep a public record of all transactions, called the blockchain. This blockchain is protected by a cryptographic process called “proof of work.” In order to check transactions and get new Bitcoins as a reward, miners have to solve hard math problems. Bitcoin’s market cap is more than $350 billion, making it by far the biggest and most expensive cryptocurrency.
2. Ethereum (ETH)
Ethereum was released in 2015 as both a coin and a blockchain platform. It’s made to be more flexible and programmable than Bitcoin, so developers can build and run decentralised apps, or dApps, on top of its blockchain. Ether is Ethereum’s native currency. It is used to pay for operations and computing on the Ethereum network. With a market capitalization of more than $170 billion, Ethereum is the second-largest cryptocurrency after Bitcoin.
3. Tether (USDT)
Tether is a stablecoin, which is a type of cryptocurrency. Tether is intended to have a stable value that is tied to the US dollar. This is different from most cryptocurrencies, which can be very volatile and have big price swings. To do this, each Tether token is backed by a US dollar that is kept in storage. Because of this, Tether is often used as a way to keep value or make transactions easier without having to worry about price changes. Tether has a market cap of more than $66 billion, which makes it one of the biggest stablecoins in use.
4. Binance Coin (BNB)
Binance Coin is a coin that was made by Binance, a well-known exchange for cryptocurrencies. It is mostly used to pay for trading fees and other services on the Binance website, but it can also be used to book travel or make payments. Binance Coin is built on the Ethereum blockchain, and it is used to power Binance’s decentralised exchange, Binance DEX. The market capitalization of Binance Coin is more than $45 billion, which makes it one of the biggest cryptocurrencies in circulation.
5. XRP
Ripple, a company that works with blockchain technology and payments, made XRP, which is a type of money. XRP is made to make it easy to move money quickly and cheaply between different currencies, such as regular money and other cryptocurrencies. It is often used by banks and other financial institutions to send and receive money across borders. With a market cap of more than $18 billion, XRP is one of the biggest cryptocurrencies out there.
6. Cardano (ADA)
Cardano is a platform for blockchain that came out in 2017. It’s meant to be more scalable and use less energy than systems like Bitcoin and Ethereum, which came before it. Cardano uses a proof-of-stake consensus algorithm, which uses much less computing power than other cryptocurrencies’ proof-of-work consensus algorithms. The ADA cryptocurrency is the main currency of the Cardano platform. This platform is used to build and run decentralised apps. Cardano is worth more than $11 billion on the market.
7. Solana (SOL)
Solana is a blockchain platform that is meant to make decentralised apps run faster and better. It uses a unique consensus algorithm called “proof-of-history,” which lets it handle thousands of transactions per second while using much less energy than other blockchain systems. Solana’s main cryptocurrency is called SOL, and it is used to pay for transactions and computations on the Solana network. The market value of Solana is more than $33 billion.
8. Polkadot (DOT)
Polkadot is a blockchain tool with the goal of making the internet more connected. Its technology lets different blockchain networks talk to each other, which could help solve some of the scaling and compatibility problems that have been plaguing the crypto industry. The Polkadot network’s own cryptocurrency, DOT, is used to pay for activities and services within the ecosystem. Market cap: Over $29 billion
9. Dogecoin (DOGE)
Dogecoin began as a joke cryptocurrency in 2013, but it has since gained a huge following and some acceptance in the mainstream. People like it because it’s easy to use, doesn’t cost much to make a deal, and has been endorsed by famous people. Even though Dogecoin started out as a joke, it has turned out to be a somewhat risky investment. Its price changes are often driven by social media trends and speculation. Over $5 billion in market capitalization.
10. Avalanche (AVAX)
Avalanche is another blockchain platform that tries to solve the problems of scale and being able to work with other platforms. Its technology lets subnets be made that can handle transactions on their own but are still part of the bigger Avalanche network. AVAX is the Avalanche network’s native cryptocurrency. It is used to pay for activities and services within the ecosystem. Over $11 billion in market capitalization
Overall, investing in cryptocurrency can be risky and unpredictable. Before investing, it’s important to do a lot of studies and talk to a financial professional. Also, keep in mind that the cryptocurrency market is always changing and that the market capitalization and price of each coin can change quickly.
How to Buy Cryptocurrency
At first, buying cryptocurrency can seem hard, but it’s actually pretty easy once you know how it works. Here are the steps you need to take in general to buy cryptocurrency:
1. Choose a cryptocurrency exchange.
There are many cryptocurrency exchanges to choose from, so it’s important to do your research and find one that is reliable, safe and has the cryptocurrencies you want to buy. ARC Exchange, Coinbase, Binance, Kraken, and Gemini are all well-known platforms.
2. Set up an account:
Once you’ve chosen an exchange, you’ll need to set up an account by giving your personal information and proving who you are. Depending on the trade, this process can take anywhere from a few minutes to a few days.
3. Add money to your account:
You’ll need to add money to your exchange account before you can buy cryptocurrency. Most sites will let you pay with bank transfers, credit cards, debit cards, and sometimes even other cryptocurrencies.
4. Choose the cryptocurrency
you want to buy: Once you’ve added money to your account, you can choose the cryptocurrency you want to buy. Most platforms offer a wide range of cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and many others.
5. Place an order:
Once you’ve chosen the cryptocurrency you want to buy, you’ll need to place an order on the market. Most of the time, you have to say how many coins you want to buy and how much you are willing to pay for it.
6. Store your cryptocurrency:
Once your order is finished, the cryptocurrency will be in your exchange account. However, it’s usually not a good idea to leave your coin on an exchange for a long time because exchanges can be hacked. Instead, you should move your money to a safe digital wallet that you control.
It’s important to keep in mind that buying cryptocurrency comes with risks and that the prices can change quickly. Research is important, and you should only invest what you can stand to lose. To protect your cryptocurrency, it’s also a good idea to use two-factor authentication and other security steps.
