Cryptocurrency Explained: Top 10 Coins & How to Invest Safely
Curious about cryptocurrency? Here’s a simple breakdown of the top 10 coins and essential tips for safe investing.
- Bitcoin (BTC): The Original Crypto
- Market Cap: $758.9 billion
- Created in 2009 by Satoshi Nakamoto, Bitcoin is the pioneer in the crypto world. It’s a secure digital currency running on a blockchain, making transactions transparent and fraud-resistant.
- Ethereum (ETH): More Than a Coin
- Market Cap: $263.1 billion
- Ethereum is not just a cryptocurrency but also a platform for developers. It introduces smart contracts and NFTs, driving its growth from $11 in April 2016 to around $2,189 in January 2024.
- Tether (USDT): Stability in the Crypto World
- Market Cap: $94.8 billion
- Tether is a stablecoin, backed by fiat currencies. Ideal for those cautious about crypto volatility, Tether aims to maintain a value equal to traditional denominations.
- Binance Coin (BNB): Beyond Trading
- Market Cap: $43.9 billion
- Originally for Binance trading, BNB has expanded its use to payments, travel bookings, and more. Starting at $0.10 in 2017, it soared to $293 by January 2024, a remarkable 293,123% increase.
- Solana (SOL): Powering DeFi and DApps
- Market Cap: $34.9 billion
- Designed for decentralized finance (DeFi) and decentralized apps (DApps), Solana boasts quick and secure transactions. SOL, its native token, saw an impressive growth from $0.77 to $80.66 in just a few years.
- XRP (XRP): Ripple’s Currency
- Market Cap: $27.3 billion
- Developed by Ripple, XRP facilitates currency exchanges on its network. Starting at $0.006 in 2017, its price reached $0.50 by January 2024, marking an 8,277% increase.
- U.S. Dollar Coin (USDC): Stable and Global
- Market Cap: $25.6 billion
- Similar to Tether, USDC is a stablecoin backed by the U.S. dollar. Powered by Ethereum, it facilitates global transactions with a 1:1 ratio to USD.
- Cardano (ADA): Eco-Friendly and Efficient
- Market Cap: $16.1 billion
- Known for early adoption of proof-of-stake, Cardano minimizes energy usage. ADA, its native coin, witnessed a modest growth from $0.02 in 2017 to $0.46 in January 2024.
- Dogecoin (DOGE): The Memeful Surprise
- Market Cap: $11.0 billion
- Originating as a joke, Dogecoin gained prominence with a dedicated community. From $0.0002 in 2017, it skyrocketed to $0.08 in January 2024, marking a 38,309% increase.
- Avalanche (AVAX): Speedy and Low-Fee Transactions
- Market Cap: $10.3 billion
- Offering fast transaction speeds and low fees, Avalanche is gaining popularity. With a current price of $28, it’s known for its high total value locked (TVL) in decentralized finance.