There are thousands of different cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, making it quite intimidating when you’re first starting out in the world of cryptocurrencies. Here are the top 5 cryptocurrencies based on market capitalization.
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What are cryptocurrencies?
Cryptocurrencies are digital assets that may be traded freely, independent of a bank or centralised government. They are made to make transactions quick, easy, and inexpensive. Cryptocurrencies operate on a blockchain, which is a distributed ledger that records transactions across a system of many computers. The first cryptocurrency, Bitcoin (BTC), was developed in 2009 by an unknown creator.
Several cryptocurrencies exist, such as Binance Coin (BNB), Dogecoin, Tether, and U.S. Dollar Coin (USDC). Cardano (ADA), Polygon (MATIC), Fight Out Remarkable Token Presale (FGHT), and DigiToads are among the top cryptocurrencies of 2023. (TOADS). Due to the daily emergence of new ICOs, altcoins, and DeFi coins, the cryptocurrency market is growing more competitive.
There are currently 23,171 cryptocurrency projects active, making up the entire £954 billion cryptocurrency market.
These cryptocurrencies are listed in order of their market capitalization, which measures the combined worth of all coins in circulation.
1. Bitcoin (BTC)
Capitalization: £438.8 billion
In 2009, Bitcoin (BTC), the first cryptocurrency, was created by Satoshi Nakamoto. BTC operates on a blockchain, which is a shared ledger shared among a network of thousands of computers and keeps track of transactions, like the majority of other cryptocurrencies. Due to the requirement for modifications to the distributed ledgers to be verified by solving a cryptographic problem, also known as proof of work, Bitcoin is kept secure and protected from fraudsters.
For roughly £370 in May 2016, one Bitcoin could be purchased. On April 4, 2023, the cost of one Bitcoin was around £22,694. The growth there is 6,034%.
Image source- CNBC
2. Ethereum (ETH)
Capitalization: £179.7 billion
Programmers love Ethereum, a cryptocurrency and blockchain platform, because of its potential uses, such as so-called “smart contracts” that automatically execute when specific conditions are met and non-fungible tokens (NFTs).
Cryptocurrency has also grown incredibly fast. Its price increased by roughly 18,545% from about £8 to about £1,492 between April 2016 and the start of April 2023.
Image Source- Ethereum.org
3. Tether (USDT)
Capitalization: £64 billion
Stablecoins like Tether (USDT) are backed by fiat currencies. Unlike some other types of cryptocurrencies, it is convertible into U.S. dollars and euros and theoretically always retains a value equivalent to one of those denominations.This implies that, in principle, the value of Tether should be more stable than that of other cryptocurrencies.
Image source- CNBC
4. Binance Coin (BNB)
Capitalization: £39.3 billion
One of the largest cryptocurrency exchanges in the world, Binance, accepts payments using the digital asset known as Binance Coin (BNB). Since its debut in 2017, Binance Coin has developed, and it now performs more functions than only allowing transactions on Binance’s exchange platform. It can now be used for trade, handling payments, or even making travel arrangements. It can also be exchanged for or converted into other cryptocurrencies like Bitcoin or Ethereum.
In 2017, it only cost less than 10p. By April 2023, the price had increased to over £249.
Image source- Binance
5. US Dollar Coin (USDC)
Capitalization: $26.6 billion
USD Coin (USDC), a stablecoin that aims for a 1 USD to 1 USDC ratio and is backed by U.S. dollars, is similar to Tether. To complete cross-border transactions, use USD Coin, which is powered by Ethereum.
Image Source- Trading View
Due to the daily emergence of new ICOs, altcoins, and DeFi coins, the cryptocurrency market is growing more competitive.