Cryptocurrency Top 10 Coins: Crypto Portfolio 2024

02, Apr - BLOG

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can be overwhelming when you're just starting to familiarize yourself with the world of cryptocurrencies. To help guide you, here are the top 10 best cryptocurrencies to invest in based on their market capitalization or the total value of all coins currently in circulation.

Top 10 cryptocurrencies to buy

1. Bitcoin (BTC)

Market capitalization of $1.3 trillion

Created in 2009 by Satoshi Nakamoto, bitcoin (BTC) is the oldest cryptocurrency in the world. Like many other cryptocurrencies, BTC is powered by blockchain technology, or a decentralized system for recording transactions distributed across a network of thousands of computers. Because adding entries to the distributed ledger must be validated through solving a cryptographic problem known as proof-of-work, bitcoin provides a high level of fraud protection.

The price of bitcoin has risen dramatically over time as it has become universally known. In May 2016, it was roughly $500 for a single bitcoin. But by March 19, 2024, the price of one bitcoin had increased to about $63 780. This represents an increase of 12 656%.

2. Ethereum (ETH)

It has a market capitalization of $396.7 billion

Being both a cryptocurrency and a blockchain platform, Ethereum is liked by software developers because of its potential applications, such as so-called smart contracts that automatically execute when conditions are met and non-functional tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to the end of March 2024, its price went from about $11 to $3 304, an increase of 29 935%.

3. Tether (USDT)

It has a market capitalization of $103.6 billion

Unlike some other cryptocurrencies, Tether (USDT) is a stablecoin, meaning that it is backed by fiat currencies such as U.S. dollars and euros and, hypothetically, retains a value corresponding to one of these denominations. This implies that the value of Tether should be more stable than other cryptocurrencies, and therefore it is preferred by investors who fear significant volatility in the cryptocurrency market.

4. Solana (SOL)

Market capitalization of $81.3 billion

Designed for use in decentralized finance (DeFi), decentralized applications (DApps), and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanism for fast and secure transaction processing. SOL, Solana's proprietary token, powers the platform.

At launch in 2020, SOL's price was $0.77. By the end of March 2024, its price was around $183.10, i.e. an increase of 23 679%.

5. Binance Coin (BNB)

Market capitalization of $77.7 billion

Binance Coin (BNB) is a form of cryptocurrency that can be used to conduct trades and pay fees on Binance, one of the largest cryptocurrency exchanges in the world. Since its launch in 2017, Binance Coin has expanded its capabilities beyond simply supporting transactions on the Binance platform. It can now be used for trading, payment processing, and even for booking travel. It can also be exchanged for other types of cryptocurrencies such as Ethereum or bitcoin.

In 2017, the price of BNB was only $0.10. By the end of March 2024, its value has risen to around $520, which corresponds to an increase of 519.590%.

6.  XRP (XRP)

Market capitalization of $32.8 billion

Developed by the same founders as Ripple, XRP specializes in digital technology and payment processing. It can be used on the Ripple network to exchange various types of currencies, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. By March 2024, its value had risen to $0.60, an increase of 9 868%.

7. United States Dollar Coin (USDC)

It has a market capitalization of $31.3 billion

Like Tether, USD Coin (USDC) is a stablecoin, meaning it is backed by U.S. dollars and seeks a ratio of $1 U.S. to $1 USDC. USDC is powered by Ethereum, and you can use USD Coin for global transactions.

8. Avalanche (AVAX)

Market capitalization of $22.3 billion

Avalanche provides two key features: high transaction speeds and low transaction fees. In addition, AVAX has a significant total blockchain value (TVL), or the amount of money frozen in decentralized finance. TVL is the total value of cryptocurrency assets deposited in a decentralized finance (DeFi) protocol such as staking, lending, or liquidity pools.

A high TVL indicates the popularity of the protocol and the rapid adaptation of a particular cryptocurrency. Avalanche is currently priced at $59.

9. Cardano (ADA)

Market capitalization of $22.1 billion

A somewhat late entrant to the crypto scene, Cardano (ADA) is notable for its early adoption of proof-of-stake validation. This method speeds up transaction times, reduces energy consumption and environmental impact, eliminating the competitive, problematic aspect of transaction validation in platforms like bitcoin. Cardano also works like Ethereum, allowing for the creation of smart contracts and decentralized applications that ADA, its native coin, supports.

The growth of Cardano's ADA token has been relatively modest compared to other major crypto coins. In 2017, the price of ADA was $0.02. As of March 19, 2024, its price was $0.62. That's an increase of 3 012%.

10. Dogecoin (DOGE)

It has a market capitalization of $19.0 billion

Dogecoin, initially seen as a joke in 2013, soon turned into a significant cryptocurrency thanks to an active community and original memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoin that can be issued, putting the currency at risk of devaluation as supply increases.

In 2017, the price of Dogecoin was $0.0002. By March 2024, its price had risen to $0.13, an increase of 66 140%.

Cryptocurrency Frequently Asked Questions (FAQs)

Q: What is the difference between trading cryptocurrencies and trading stocks?

A: Investing in cryptocurrencies has a number of differences from traditional investments such as stocks. When you buy shares, you become a shareholder of the company, which gives you the right to participate in voting and receive dividends. If the company goes bankrupt, you can also receive a portion of the liquidation of assets.

Buying cryptocurrency doesn't give you any rights to anything other than the currency itself; it's more like exchanging one currency for another. If the price of the cryptocurrency goes down, you don't lose anything.

Q: Are there any other key differences?

A: Stock trading hours are limited to exchange hours, typically 9:30am-4:30pm ET, Monday through Friday. Cryptocurrency markets never close, so you can trade 24 hours a day, seven days a week.

Stocks are regulated by a regulatory body that verifies their legitimacy, and their financial statements are publicly available. In contrast, cryptocurrencies are not regulated, so you may not know about the inner workings or developers working on them.

Volatility: stocks are linked to companies and usually react to their performance. Cryptocurrency prices are more speculative and are influenced by factors such as news or celebrity opinions.

Q: Are there any cryptocurrency exchange-traded funds?

A: To minimize the risk of losing money in cryptocurrency investments, there are exchange-traded funds that trade both bitcoin futures and the actual price. However, choosing the right fund depends on a number of factors, including your risk level and investment objectives.

Q: What are altcoins?

A: Altcoins are all cryptocurrencies other than bitcoin. For example, Ethereum is one of the most popular altcoins.

Q: Why is bitcoin valuable?

A: One factor in bitcoin's value is its scarcity. The maximum supply of bitcoin is limited to 21 million coins, and there are already more than 19 million coins in circulation.