From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, making it overwhelming when you’re first getting started in the world of crypto. These are the top 10 cryptocurrencies based on market capitalization, or the sum of all coins in circulation, to help you get your bearings.
What Are Cryptocurrencies?
A cryptocurrency is a digital asset that can be traded freely, independent of a bank or centralized authority. There are currently 22,789 cryptocurrency projects active in the market, which accounts for the entire $1 trillion cryptocurrency market.
1. Bitcoin (BTC)
Bitcoin (BTC), the original cryptocurrency, was made in 2009 by an anonymous person or group. Like the majority of cryptocurrencies, BTC is powered by a blockchain, which is a distributed ledger maintained by a network of thousands of computers. Bitcoin is protected from fraudsters because updates to the distributed ledgers must be validated by resolving a cryptographic puzzle, a procedure known as proof of work.
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As it has become more well-known, the price of bitcoin has skyrocketed. One Bitcoin cost about $500 as of May 2016. As of Mar. 7, 2023, a single Bitcoin’s price was around $22,357. The growth there is 4,371%.
2. Ethereum (ETH)
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).
Additionally, Ethereum has grown incredibly. From April 2016 to the end of March 2023, its price went from about $11 to around $1,563, increasing 14,112%.
3. Ethereum Classic
Ethereum Classic is a fork of Ethereum and preserves the principle “Code is Law” to mean it facilitates individuals and organizations to execute smart contracts or coded business instructions that work on the blockchain with minimal human interference.
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Features:
- primarily mined with the GPU miners Ethminer, Claymore Miner, FinMiner, GMiner, and NBMiner. Cruxminer, GMiner, lolMiner, Nanominer, NBMiner, and OpenETC Pool, are also some of the software you can use to mine ETC.
- It is possible to mine the cryptocurrency using a number of pools, including Nanopool.org, 2Miners, Ethermine, f2pool, and P2pool, among others.
- can be mined on a VPS server as well.
- 3.2 ETC is the block reward for Ethereum Classic. Each block is created after every 10.3 seconds.
4. Binance Coin (BNB)
One of the biggest cryptocurrency exchanges in the world, Binance, accepts payments in the form of Binance Coin (BNB), a type of cryptocurrency. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Nowadays, it can be utilized for trading, processing payments, or even making travel arrangements. In addition, it is tradable or able to be traded for other cryptocurrencies like Bitcoin or Ethereum.
The cost of BNB was only $0.10 in 2017. Its price increased by 286,154% by late March 2023, reaching about $286.
5. ZCash
Zcash is another privacy coin that guarantees transaction confidentiality. It is possible to use transparent wallet addresses that are publicly viewable in terms of their data and history. Companies and organizations that desire transaction transparency and traceability can use these. People can use the shielded transaction types to safeguard their financial history and privacy.
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ZCash features a low fee of .0001 Zcash per transaction. Scientists from MIT, Technion, Johns Hopkins, Tel Aviv University, and UC Berkeley support the crypto.
Features:
- ASIC resistance. Can be mined best by GPUs using EWBF Zcash Miner Windows miner. Since it can be mined using CPUs, beginners can do so very affordably.
- Software for optimization in GPU mining includes Optiminer and EWBF Cuda. Use of an Android mining app, a console miner, and a GUI miner are also options.
- The best mining pool is the internal ZEC mining pool. Flypool, Nanopool, and Slushpool are some additional pools that can be mined.
- Block reward after every 75 seconds is 3.125 ZECs. 10 blocks are produced after every 2.5 minutes.
6. Xrp (xrp)
The digital technology and payment processing company Ripple was founded by some of the same founders as XRP, which can be used on that network to facilitate exchanges of various currency types, including fiat currencies and other significant cryptocurrencies.
The cost of XRP was $0.006 at the start of 2017. Priced at $0.37 as of Mar. 7, 2023, a rise of 6,139% had occurred.
7. Cardano (ADA)
Cardano (ADA), a cryptocurrency that entered the market somewhat later, is notable for having adopted proof-of-stake validation early on. By eliminating the competitive, problem-solving element of transaction verification in platforms like Bitcoin, this technique reduces energy consumption, speeds up transaction times, and has a smaller environmental impact. Cardano functions similarly to Ethereum in enabling smart contracts and decentralized applications that are powered by ADA, the native coin of the platform.
Compared to other significant crypto coins, the growth of the Cardano ADA token has been relatively muted. In 2017, ADA’s price was $0.02. Its price was $0.33 on March 7, 2023. This represents an increase of 1,533 percent.
8. Polygon (MATIC)
The cryptocurrency Polygon, formerly known as Matic Network, was established in 2017. It’s dubbed “blockchain network for Ethereum.” Perhaps this explains why MATIC supports more than 7,000 decentralized applications (dApps).
Since its initial release, Polygon has also grown incredibly. The initial price of MATIC when it first launched was $0.00263. Today MATIC trades at $1.14, a 43,228% gain.
Related: What Is Polygon
9. Dogecoin (DOGE)
A devoted community and innovative memes helped Dogecoin, which was infamously launched as a joke in 2013, grow into a well-known cryptocurrency. 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.
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In 2017, Dogecoin was worth $0.0002. By March 2023, its price was at $0.07, up 36,849%.
10. Binance USD (BUSD)
In order to create a cryptocurrency backed by the United States, Paxos and Binance founded the stablecoin known as Binance USD (BUSD). dollar. Paxos keeps some U.S. currency on hand to preserve this value. dollars equal to the total supply of BUSD. Like other stablecoins, BUSD enables traders and crypto users to transact with other crypto assets while reducing the risk of volatility.
Crypto FAQs
What Are Cryptocurrencies?
Cryptocurrency is a type of money that only exists 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 Trading Cryptocurrencies Differ from Trading Stocks?
Although cryptocurrencies can be used for investment, they are very different from more conventional investments like stocks. When you buy stock, you are buying a share of ownership of a company, which means you’re entitled to do things like vote on the direction of the company. You might also be compensated if that business declares bankruptcy after its creditors have been paid from the proceeds of its liquidated assets.
Buying cryptocurrency doesn’t grant you ownership over anything except the token itself; it’s more like exchanging one form of currency for another. You won’t receive anything after the fact if the cryptocurrency loses value.
There are several other key differences to keep in mind:
- Trading hours: Stock exchange trading only occurs between 9:30 am and 4:30 pm ET, typically Monday through Friday. Because cryptocurrency markets are open every day of the week, you can trade whenever you want.
- Regulation: Stocks are regulated financial products, which means that their finances are openly available and that a governing body verifies their credentials. By contrast, cryptocurrencies are not regulated investment vehicles, so you may not be aware of the inner dynamics of your crypto or the developers working on it.
- Volatility: There is risk involved when investing in stocks and cryptocurrencies; your money could lose value. Stock prices, however, typically fluctuate in response to the performance of the companies to which they are directly linked. Prices for cryptocurrencies are more speculative because no one is entirely certain of their value yet. As a result, they are much more sensitive to even the smallest events, like a celebrity’s tweet, and are more erratic.
Do You Have to Pay Taxes on Cryptocurrency?
If you buy and sell coins, it’s important to pay attention to cryptocurrency tax rules. Cryptocurrency is not treated as cash, but rather as a capital asset, similar to stocks. You must pay capital gains taxes if you sell cryptocurrency for a profit, so this is the case. Even if you pay for something with your cryptocurrency, this still applies. You will owe taxes on the difference if you sell it for more money than you paid for it.