From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can scare you when you start the world of crypto.
To help you get your bearings, here are the top 10 cryptocurrencies based on their market capitalization – the sum total of all currencies at the moment.
What are Cryptocurrencies?
A cryptocurrency is a digital asset that can run without the central control of a bank or government.
Today, there are 23,171 cryptocurrency projects out there representing a total crypto market of £954 billion.
The UK’s financial regulator, the Financial Conduct Authority, has repeatedly issued warnings about the risks faced by those investing in cryptocurrency, saying that all funds are subject to invest when losing everything. Cryptocurrency trading in the UK is unregulated and has no set payment system.
1. Bitcoin (BTC)
- Market cap: £438.8 billion
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. Like most cryptocurrencies, BTC runs on a blockchain, or a ledger that is shared across a network of thousands of computers. Because the integration of directories must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is protected and safe from fraud.
The price of Bitcoin has increased due to its becoming a household name. In May 2016, you could buy one Bitcoin for around £370. On 4 April 2023, the price of Bitcoin will be around £22,694. That is a growth of 6,034%.
2. Ethereum (ETH)
- Market cap: £179.7 billion
A cryptocurrency and a blockchain platform, Ethereum is a favorite of project developers due to its practical applications, such as so-called smart contracts that automatically execute when conditions are met and including non-fungible tokens (NFT).
Ethereum has also seen significant growth. From April 2016 to the beginning of April 2023, its price went from about £8 to about £1,492, increasing by about 18,545%.
3. Contact (USDT)
Unlike some other cryptocurrencies, Tether (USDT) is a stablecoin, which means it is backed by fiat currencies like US dollars and the Euro and hypothetically holds a value equal to any other. of those denominations. In theory, this means that Tether’s value will be more consistent than other cryptocurrencies, and investors should be aware of the high volatility of other currencies.
4. Binance Coin (BNB)
- Market cap: £39.3 billion
Binance Coin (BNB) is a cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its inception in 2017, Binance Coin has expanded beyond facilitating transactions on Binance’s exchange platform. Now, it can be used for trading, payment processing or booking travel arrangements. It can be bought or exchanged for other types of cryptocurrency, such as Ethereum or Bitcoin.
In 2017 it was priced at less than 10p. By April 2023, its price had risen to around £249.
5. US Dollar (USDC)
- Market value: £26.1 billion
Like Tether, USD Coin (USDC) is a stablecoin, which means it is backed by US dollars and assumes a ratio of 1 USD to 1 USDC. USDC is powered by Ethereum, and you can use USD Coin to complete international transactions.
6. XRP (XRP)
- Market cap: £20.64 billion
Created by one of the co-founders of Ripple, a digital technology and payment processing company, XRP can be used on the network to facilitate the exchange of various currencies, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was £0.004. On April 4, 2023, its price reached £0.40, corresponding to an increase of about 9,889%.
7. Dogecoin (DOGE)
- Market cap: £11.3 billion
Dogecoin started gaining popularity as a joke in 2013 but quickly transformed into a serious cryptocurrency thanks to a dedicated community and creative memes. Unlike other cryptos, there is no limit to the number of Dogecoins that can be created, leaving the currency to be reduced as the supply increases.
The price of Dogecoin in 2017 was £0.00016. In April 2023, its price was at £0.08, up 50,636%.
8. Cardano (ADA)
- Market cap: £11.07 billion
Next to the crypto trend, Cardano (ADA) is known for its early embrace of proof-of-stake. This method eliminates transaction time and reduces energy consumption and environmental impact by removing the competitive, problem-solving process of verifying transactions on platforms such as Bitcoin. . Cardano also works like Ethereum to enable smart contracts and decentralized applications, ADA, its virtual currency, powers.
Cardano’s ADA token has low growth compared to major cryptos Cardano’s ADA token has low growth compared to major cryptocurrencies. In 2017, the cost of ADA was around 1.5p. On 4 April 2023, its price was at £0.32. This is an increase of about 112%.
9. Polygon (MATIC)
- Market cap: £8.1 billion
Founded in 2017, Polygon—also known as Matic Network—is a very popular crypto. It’s called “Ethereum’s Internet of blockchains.” That’s why MATIC supports more than 7,000 decentralized applications (dApps).
Polygon has also seen significant growth since its inception. Today MATIC trades at £0.90.
10. Solana (SOL)
- Market cap: £6.5 billion
Developed to support the use of decentralized finance (DeFi), decentralized apps (DApps) and smart contracts, Solana runs on a proof-of-stake and historical proof-of-work mechanism to make it faster and hold. SOL, Solana’s original brand, powers the platform.
At the start of 2020, the price of SOL starts at £0.57. At the end of April 2023, its price was around £16.68, a gain of around 2,827%.
* Market caps and prices are from coinmarketcap.com, current as of April 4, 2023.
What are crypto currencies?
Cryptocurrency is a form of money that exists only in digital form. Cryptocurrency can be used to pay for online purchases without going through an intermediary, such as a bank, or it can be treated as an investment.
How is trading cryptocurrencies different from stocks?
Do you have to pay tax on cryptocurrency?
Are there cryptocurrency exchange-traded funds (ETFs)?
How do you buy crypto?