Cryptocurrencies have taken the financial world by storm, offering exciting investment opportunities.
But with thousands of options, how do you choose the best crypto to buy for your portfolio?
We’ve got you covered with the top 10 best cryptocurrencies, ranked by market capitalization.
Let’s dive into the world of digital assets and explore their potential.
What you'll learn:
➤ Best Crypto to Buy
1️⃣ Bitcoin (BTC)
- Market cap: $670.6 billion
The OG cryptocurrency, Bitcoin, has seen remarkable growth, making it a household name. Starting at $500 in 2016, it has soared to $34,338 by October 2023, a 6,768% increase.
2️⃣ Ethereum (ETH)
- Market cap: $216.8 billion
Not just a cryptocurrency, Ethereum is a blockchain platform, known for smart contracts and NFTs. Its price has surged from $11 in 2016 to $1,802, an astounding 16,286% rise.
3️⃣ Tether (USDT)
- Market cap: $84.6 billion
A stablecoin backed by fiat currencies, Tether offers stability in the volatile crypto market. Its market cap is $84.6 billion.
4️⃣ Binance Coin (BNB)
- Market cap: $34.5 billion
Originally for trading on Binance, BNB has evolved into a multi-purpose cryptocurrency. Starting at $0.10 in 2017, it reached around $227 in October 2023, a gain of 227,211%.
5️⃣ XRP (XRP)
- Market cap: $32.3 billion
Created by the founders of Ripple, XRP facilitates exchanges between different currency types. It went from $0.006 in 2017 to $0.60 by October 2023, a 9,945% increase.
6️⃣ U.S. Dollar Coin (USDC)
- Market cap: $24.9 billion
Another stablecoin, USDC, backed by U.S. dollars, simplifies global transactions.
7️⃣ Solana (SOL)
- Market cap: $15.2 billion
Developed for DeFi, DApps, and smart contracts, SOL uses a hybrid proof-of-stake and proof-of-history mechanism. Its price grew from $0.77 to $36.14 by late October 2023, a 4,593% gain.
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8️⃣ Cardano (ADA)
- Market cap: $10.5 billion
Early adopter of proof-of-stake validation, Cardano aims for faster transactions and lower energy consumption. Its price went from $0.02 in 2017 to $0.30 by October 2023, a 1,387% increase.
9️⃣ Dogecoin (DOGE)
- Market cap: $9.8 billion
Originally a joke, Dogecoin gained prominence thanks to its dedicated community. Starting at $0.0002 in 2017, it reached $0.07 by October 2023, a 34,611% increase.
🔟 TRON (TRX)
- Market cap: $8.6 billion
A blockchain for smart contracts and DeFi, TRX was valued at $0.0019 per token at launch, reaching $0.10 by 2023.
➤ What’s Crypto?
Cryptocurrency is a type of currency that exists exclusively in digital form. Unlike traditional money, it doesn’t have a physical presence like coins or paper bills.
You can use cryptocurrencies to pay for goods and services online, much like using a credit card or cash, and they can also be held as an investment.
How Does Crypto Work?
Cryptocurrencies are essentially digital currencies that rely on a technology called blockchain. A blockchain is a decentralized ledger that records all transactions across a network of computers.
This technology ensures that transactions are secure, transparent, and tamper-proof because each transaction is verified and recorded by multiple computers in the network. There is no central authority overseeing these transactions, making cryptocurrencies “trustless.”
The very first cryptocurrency, Bitcoin, was created in 2009 by an individual using the pseudonym Satoshi Nakamoto.
It introduced the world to the concept of a decentralized digital currency, and since then, thousands of other cryptocurrencies have emerged, each with its own unique features and use cases.
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Why Are There So Many Crypto?
The cryptocurrency space is constantly evolving, with over 22,000 crypto projects in existence as of June 2023. This diversity arises from the different purposes that cryptocurrencies serve.
While some cryptocurrencies function as digital currencies for everyday transactions, others are designed to develop and support various infrastructure applications.
For example, platforms like Ethereum and Solana enable developers to create additional cryptocurrencies and build decentralized applications on top of their blockchains, leading to a proliferation of possibilities.
How to Invest in Crypto?
Some traditional online brokerages, such as WeBull and Robinhood, also offer the option to purchase cryptocurrencies.
It’s essential to conduct thorough research and understand the risks before investing, as the cryptocurrency market can be highly volatile.
How to Report Crypto on Taxes
When you buy and sell cryptocurrencies, it’s crucial to be aware of the tax implications. Cryptocurrency is treated as a capital asset, similar to stocks, rather than as cash.
If you sell cryptocurrency at a profit, you may be subject to capital gains taxes. This tax liability applies even if you use your cryptocurrency for purchases and receive more value in return.
➤ Best Crypto to Buy FAQ
Difference between crypto and stock trading?
Trading cryptocurrencies differs significantly from trading traditional stocks. Unlike stocks, owning cryptocurrency doesn’t grant you ownership in a company.
It’s more like exchanging one form of currency for another, and its value can be highly speculative and volatile. Cryptocurrency markets also operate 24/7, unlike stock markets with specific trading hours.
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Any crypto ETFs?
While there are ETFs that trade in Bitcoin futures, there are currently no ETFs that directly trade Bitcoin or other cryptocurrencies due to regulatory hurdles.
What are altcoins?
Altcoins are any cryptocurrencies other than Bitcoin. They represent a diverse array of digital currencies, each with its own unique features and use cases. Ethereum is one of the most popular altcoins.
Why is Bitcoin valuable?
Bitcoin’s value is partly attributed to its scarcity. With a maximum supply of 21 million coins and a controlled issuance process through mining rewards, it has gained value as a digital store of wealth.
Why is crypto important?
Cryptocurrencies have become important due to their potential to solve issues with traditional currencies.
Additionally, the technology behind cryptocurrencies, blockchain, has led to the development of various utility cryptocurrencies and innovative applications, expanding their importance beyond just digital money.
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➤ Final Thoughts
With cryptocurrencies offering such diverse investment opportunities, it’s essential to understand their potential and risks. Stay informed and make informed choices in the exciting world of digital coins.
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