Getting started in the world of crypto might be overwhelming for many individuals. With thousands of different options for cryptocurrencies, it becomes daunting to differentiate and realize the value of each.
From Bitcoin to Ethereum to tether and dogecoin, each owns its distinct worth and market capitalization. We will discuss these cryptocurrencies but first, let’s understand what they are and how they work.
What Is Cryptocurrency
This is a digital form of money that is solely used for the trading of digital assets. They are used for online purchases so there is no need to go through a third party or intermediary such as a bank. They are typically decentralized and are secured via large computer networks. Apart from trading, they can also be held for investment purposes.
Digital trading is trending and for its digital transformation cryptocurrency has also emerged with more than 22,000 crypto projects last year in June 2023. Although the United States government is taking an enhanced role in overseeing crypto spaces its market is still a Wild West. The assets faced a notable downfall for the year 2022 while 2023 remained volatile so one should not put a significant amount of money than they can afford to lose.
Apart from their function as an electronic currency, they are also used to develop infrastructure. Developers use other cryptos on top of these platform currencies like Ethereum or Solana to generate possibilities for creating more cryptos. They also foster the economy of the creator like designers, artists, and builders in the metaverse by monetizing their work for a living. It fuels the engine of the metaverse by enabling seamless ownership of virtual assets and powering virtual economies.
For an in-depth article dedicated to this topic, you can read College Evently for information on Cryptocurrency.
How It Works
Crypto-currencies are based on blockchain technology which are the decentralized distributed ledgers. Each of these coins is a unique entry with its worth. They act as a public transparent record of all the transactions to ensure security and traceability without the need for an intermediary or central authority. Just like NFTs mining, they are also created through mining.
Newly minted coins are received as a reward for adding new blocks to the chain by solving complex mathematical puzzles and verifying transactions.
One of the most popular and highlighted coins that everyone has heard of is Bitcoin. It also has the privilege of being the very first Cryptocurrency to hit the digital market. But there are thousands of other coins that you might have not heard of or are not familiar with.
Here, we are discussing the top 10 cryptocurrencies following their market capitalization or total dollar value of the coins in existence.
These are the original Crypto coins that were created in 2009 and still stand at the first position in the digital market with a market capacity of $894.8 billion. They are secure from fraud and scams because their transactions are run on a blockchain. Its price has skyrocketed because of its popularity. It was noted to be $500 in 2016, while the price for this year, 2024, with a growth of 9,036%, was reported at around $45,680.
This is the first altcoin or alternative to bitcoin. Launched in 2015, it stands second on the list of famous Crypto coins. Its potential applications include smart contracts or dApps, making it a favorite of program developers. This concept was first introduced by them. Smart contracts are the codes that can run decentralized applications. It faced tremendous growth from 2016 to 2024, with a price increase of 21,656%. Its current potential is $287.6 billion.
Backed by fiat currencies like U.S. dollars and the Euro, Tether (USDT) is a stablecoin with an anchored price of $1 per coin. It keeps a hypothetical value equal to one of those denominations. With its value being too consistent and stable, it is favored by investors. It has a trading volume of $91.8B
It was created by Ripple in 2012. It is an alternative to the Society for Worldwide Interbank Financial Telecommunications (SWIFT), which is a global payment network. Ripple claims to be faster, more streamlined, and cheaper than SWIFT. It is useful for cross-border transactions.
The capped worth of XRP is $34.1 billion.
USD Coin (USDC)
It is a stablecoin backed by the United States dollar. It aims for 1 USD to 1 USDC ratio. Powered by Ethereum, it can be used to complete global transactions. It has a potential of $24.7B.
With a liquidity of $221 Billion, Cardano was launched in 2017. Designed to be flexible, scalable, and sustainable it is a blockchain platform that is used for running smart contracts.
Launched relatively recently, it delivers two protocols: low transaction fees and fast transaction speed. It is the fastest and most secure blockchain with smart contracts and decentralized apps. It has a valuation of $15.2B.
It was created as a joke in 2013 after a run-up in Bitcoin. Unlike other Crypto-currencies that limit the number of coins in existence, DOGE provides you with an advantage of unlimited issuance. It has reached $13.2 billion in 2024.
It has a price of $86.60 with a worth of $37 billion. Relatively new, it was launched in March 2020 to help power decentralized finance (DeFi) uses, smart contracts, and decentralized apps (DApps). Started at $0.77 it now stands around $112.39.
Binance Coin (BNB)
It was introduced as a currency to pay and trade on the largest crypto exchange platform called Binance. It was launched in 2017 at just $0.10 but by Jan 2024 it had risen to around $317. Apart from trading on Binance, it is now used for booking travel arrangements and payment processing.