BTC $96648.5
LTC $98.961
SOL $184.851
DASH $36.7396
XMR $190.87
ETH $3360.51
ADA $0.909251
There are thousands of cryptocurrencies, from Bitcoin and Ethereum to Dogecoin and Tether, and when you're just beginning to dive into the world of cryptocurrencies, the sheer number of them can be overwhelming. To help you make sense of it, here are the 10 best cryptocurrencies to invest in based on market cap, or the total value of all coins currently in circulation.
Created by Satoshi Nakamoto in 2009, Bitcoin (BTC) is the first cryptocurrency. Like most cryptocurrencies, BTC is based on the blockchain, a ledger of transactions distributed across a network of thousands of computers. Transactions added to the distributed ledger must be validated by solving cryptographic puzzles called "proof-of-work," which keeps Bitcoin safe from fraudsters.
As Bitcoin gained prominence, its price skyrocketed. In May 2016, a single Bitcoin could be purchased for about $500. As of May 7, 2024, 1 Bitcoin will be worth about $63,540, an increase of 12.608%.
Ethereum, a cryptocurrency and blockchain platform, is popular among app developers due to its potential features such as smart contracts and non-functioning tokens (NFTs) that are automatically executed when certain conditions are met.
Ethereum is also experiencing tremendous growth. From April 2016 to the end of May 2024, its price rose from $11 to $3,072, or 27,829%.
Unlike other types of cryptocurrencies, Tether (USDT) is a stablecoin, which means that it is backed by fiat currencies such as the U.S. dollar and the euro, and pretty much maintains the same value as one of those fiat currencies. In theory, this means that the value of Tether is more stable than other cryptocurrencies, which is attractive to investors who fear the high volatility of other coins.
Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on Binance, one of the world's largest cryptocurrency exchanges. Since its launch in 2017, Binance Coin has expanded its scope beyond just facilitating trading on the Binance exchange platform. It can now be used to trade, process payments, and book airline tickets. It can also be traded or 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 May 2024, it rose to $592, or 591,883%.
Designed to support decentralized finance (DeFi), decentralized applications (DApps), and smart contracts, Solana is powered by 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 was priced at $0.77. At the end of May 2024, the price was around $154.97, an increase of 20.026%.
USD Coin (USDC), like Tether, is a US dollar backed stablecoin and seeks a ratio of 1 USDC to 1 dollars. USDC is powered by Ethereum, and USD coins can be used for global transactions.
Created by the same founders as Ripple, a digital technology and payment processing company, XRP can be used to facilitate the exchange of various types of currencies on this network, including fiat and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. As of May 7, 2024, the price was $0.54, an increase of 8.835%.
Dogecoin is known to have emerged in 2013 as a joke, but quickly became a well-known cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoin that can be created, so its value easily falls as supply increases.
In 2017, the price of Dogecoin was $0.0002$. In May 2024, the price was $0.16, an increase of 78.273%.
Originally developed as the underlying blockchain for the Telegram cryptocurrency messaging platform, Toncoin was soon abandoned and then acquired by the Ton Foundation. The name of the project was also changed from the original "Telegram Open Network" to "Open Network," both of which are referred to by the acronym TON.
Toncoin, originally known as Gram, is the native token of TON. It is an application that allows users to buy, send, and store funds on the incredibly fast and eco-friendly TON network.
Cardano (ADA) is a bit of a latecomer in the cryptocurrency space, but it stands out for being one of the early adopters of Proof of Stake validation. This method speeds up transaction times, reduces energy consumption and environmental impact, and removes the competitive aspect of dealing with the hassle of validating transactions on platforms like Bitcoin. Cardano also supports smart contracts and decentralized applications like Ethereum, and its own ADA coin supports them.
Cardano's ADA token has seen relatively modest growth compared to other major cryptocurrencies. In 2017, the price of ADA was $0.02. As of May 7, 2024, the price is $0.45, an increase of 2.154%.
Cryptocurrency is a form of money that exists only in digital form. Cryptocurrencies can be used to pay for online purchases without intermediaries, such as banks, or held for investment purposes.
Cryptocurrencies are various forms of digital money, usually based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist in the form of proof-of-stake transactions, which means there is no centralized authority controlling transactions on the cryptocurrency blockchain.
Cryptocurrencies are an emerging field, with over 9,000 cryptocurrency projects as of March 2024.
Some cryptocurrencies function as currencies, while others are used to develop infrastructure. For example, Ethereum or Solana create more opportunities (and cryptocurrencies) when developers create other cryptocurrencies based on these platforms.
When choosing the best cryptocurrency to invest in, it's important to consider your personal goals, investment horizon, and risk tolerance, just like with any other investment. You should also do your due diligence to make sure that the cryptocurrency projects you are interested in are legitimate and safe.
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