From Bitcoin and Ethereum to Dogecoin and Tether, thousands of different cryptocurrencies can make it overwhelming when you first get started in the crypto world. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the currently circulating coins.
What Are Cryptocurrencies?
A cryptocurrency is a digital asset based on blockchain technology that can circulate without the centralized authority of a bank or government. As of August 27, 2024, more than 8,000 cryptocurrencies are in the market, representing a $2.21 trillion market capitalization.
1. Bitcoin (BTC)
Market cap: $1.25 trillion
YTD: 142.52%
Created in 2009 by Satoshi Nakamoto, bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, bitcoin is kept secure and safe from fraudsters.
Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy one bitcoin for about $500. As of August 27, 2024, a single bitcoin is $63,065.
2. Ethereum (ETH)
Market cap: $323.42 billion
YTD: 63.00%
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).
Ethereum has also experienced tremendous growth. From April 2016 to the end of July 2024, its price went from about $11 to around $3,409, increasing 30,893%. As of August 27, 2024, the ETH price is $2,687.
3. Tether (USDT)
Market cap: $118.05 billion
YTD: 0.06%
Unlike other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning fiat currencies back it like U.S. dollars and the Euro and hypothetically keep a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of different coins. As of August 27, 2024, the price of USDT is $1.00.
4. Binance Coin (BNB)
Market cap: $81.11 billion
YTD: 157.00%
Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing, or booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.
BNB’s price in 2017 was just $0.10. By late April 2024, its price had risen to around $560, a gain of 560,394%. As of August 27, 2024, BNB is trading at $555.70.
5. Solana (SOL)
Market cap: $73.94 billion
YTD: 682.23%
Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.
When it launched in 2020, SOL’s price started at $0.77. By late July 2024, its price was around $156.62, a gain of 20,241%. As of August 27, 2024, Solana is trading at $158.64.
6. U.S. Dollar Coin (USDC)
Market cap: $34.53 billion
YTD: -0.02%
Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions. As of August 27, 2024, USDC is trading at $0.9998.
7. XRP (XRP)
Market cap: $33.34 billion
YTD: 12.73%
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. As of May 2, 2024, it reached $0.52, a rise of 8,497%. As of August 27, 2024, XRP is trading at $0.5922.
8. Dogecoin (DOGE)
Market cap: $15.45 billion
YTD: 68.37%
Developed initially as a layer-1 blockchain for Telegram’s encrypted messaging platform, Toncoin was soon abandoned before being taken over by the TON foundation. The project name was even changed to “The Open Network” from “Telegram Open Network,” both referred to by their acronym: TON.
Toncoin—first known as Gram—is TON’s native token. It is an application that allows users to buy, send, and store funds on TON’s incredibly fast, environmentally friendly network. As of August 27, 2024, DOGE is trading at $0.1061.
9. TRON (TRX)
Market cap: $14.06 billion
YTD: 109.87%
The Tron Foundation launched TRON in 2017. It is a decentralized blockchain-based operating system. At first, the tokens were ERC-20-based and developed on ETH, but a year after its launch, they moved to their own network.
The TRON software supports smart contracts, dApps, and various blockchain systems. The crypto platform uses a transaction model similar to Bitcoin (BTC). As of August 27, 2024, TRX is trading at $5.38.
10. Toncoin (TON)
Market cap: $13.64 billion
YTD: 109.84%
Developed initially as a layer-1 blockchain for Telegram’s encrypted messaging platform, Toncoin was soon abandoned before being taken over by the TON foundation. The project name was even changed to “The Open Network” from “Telegram Open Network,” both referred to by their acronym: TON.
Toncoin—first known as Gram—is TON’s native token. The application allows users to buy, send, and store funds on TON’s high-speed, environmentally friendly network. As of August 27, 2024, TON is trading at $5.38. It moved from 8th to 10th position after Telegram founder Pavel Durov was arrested for investigation over allegations on his app, like drug trafficking and distribution of child sexual abuse images.
What Are Cryptocurrencies?
Cryptocurrency is a form of currency that exists solely 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 Cryptocurrency Work?
Cryptocurrencies are various forms of digital money, usually based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist as “trustless” transactions, which means no centralized authority oversees the transactions on a cryptocurrency’s blockchain.
Why Are There So Many Cryptocurrencies?
Cryptocurrency is an emerging area with over 9,000 crypto projects as of March 2024.
How To Choose the Best Crypto To Invest In
When choosing the best cryptocurrency to invest in, it is essential to consider your individual goals, timeline, and risk profile, just as you would with any investment. Additionally, it would help if you did your due diligence to ensure that any crypto project you are interested in is legitimate and secure.
In general, investors should consider the following when evaluating crypto:
Market capitalization
Liquidity
Security
Use case
“When exploring cryptocurrency investments, first consider the exchanges where the token is listed. Tokens featured on major exchanges generally offer better liquidity, attracting larger investors and reaching a broader audience, increasing the potential buyer base,” says Maksym Repa, an analyst at Symbolic Capital.
How To Invest in Cryptocurrency?
You can buy cryptocurrencies through crypto exchanges like CoinDCX, WazirX, or Coinswitch.
How To Report Crypto on Taxes
If you buy and sell coins, paying attention to cryptocurrency tax rules is essential.
Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means you’ll have to pay capital gains taxes if you sell cryptocurrency at a profit. This is the case even if you use your crypto to pay for a purchase. If you receive a more excellent value for it than you paid, you’ll owe taxes on the difference.
