From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you first start out in the cryptocurrency world. To help you get your bearings, these are the top 10 cryptocurrencies by market capitalization, or the total value of all coins currently in circulation. As a beginner in crypto, you are unlikely to know which cryptocurrency is the best and which one to invest in. There are more than 6000 cryptocurrencies, so choosing the best one with high growth potential can be an arduous task.
When it comes to investing in cryptocurrency, Bitcoin is an obvious choice given its popularity and steady growth, even with frequent market volatility. However, there are many other cryptocurrencies that you can invest in with high growth potential as well. BTC remains the most valuable and profitable of all cryptocurrencies, which will be the case for a long time. The price, market volume and market capitalization of bitcoin are much higher than those of other cryptocurrencies. Despite the fact that there are thousands of other coins on the market, bitcoin still accounts for more than 40% of the cryptocurrency market capitalization, making it an ideal investment option for beginners and cryptocurrency experts.
Ripple also invested heavily in non-fungible token projects using the general ledger of XRP, a public blockchain. Many experts claim that this investment places Ripple in the position of being an “Ethereum killer”. Although the hype around this currency is not as much as it once was, it is still a strong digital currency that is attracting several investors. Dogecoin is another crypto that has been gaining traction lately. Unlike Bitcoin, which has a limited supply of coins, Dogecoin has no limits.
As a result, something that started as a joke has become a cryptocurrency with several supporters and investors, including celebrities and billionaires, in particular Elon Musk. This is a stable coin, so it is quite unique among other cryptocurrencies. Stablecoins are backed by fiat currencies such as the euro or the US dollar. This means that if an investor buys 1 Tether coin, it will have the same value as 1 fiat currency (backing the currency). Theoretically, what this means is that Tether will have a more stable value than other cryptocurrencies that suffer from market volatility.
This shift in the world of cryptocurrencies, from brand to specific values and protocols, represents a decisive moment for the industry that is still fighting for widespread recognition. The emergence of non-fungible tokens and DeFi applications also indicates that people are moving away from Ethereum, the second most popular currency, towards alternatives that offer lower fees and better speeds. Ethereum is moving from a proof-of-work consensus mechanism to a proof-of-stake one in the coming months that could tip the market in its favor. The details of each cryptocurrency are mentioned along with a discussion around the top companies working in the sector to provide readers with a bit of context for their investment decisions. Polkadot is another crypto worth considering when investing in cryptocurrency. It is a cryptocurrency network that enables distributed computing.
This works because the Polkadot network consists of a central relay chain that coordinates the parachutes. Parachains allow developers to create chains for special purposes, for example social media, fintech and other tasks. These parachains are attached to the central relay chain and can interact with each other. The Polkadot network also includes on-chain governance, allowing users to have more say in the future development of the network.
The network also includes non-forking updates. Cardano is another cryptocurrency worth considering when investing in crypto. It is a public blockchain ecosystem that has just started offering smart contracts. Compared to other prominent coins that have had this ability for years, Cardano is a new player in the arena.
Frederik Gregaard, CEO of the Cardano Foundation, recently said that they focused on ensuring “maximum adoption and maximum utility in reaching people in developing countries”. This means that Cardano is one of the first currencies with a focus on specific needs of developing countries. Chainlink is another cryptocurrency worth considering when investing in crypto. It is used by the Chainlink network which aims to optimize smart contracts by offering reliable high-quality data sources to companies so they can use that information to base billions of dollars worth contracts on.
These sources can range from information on financial markets to weather and even sports results. Smart contract applications within blockchain world generally rely on different data sets for real-world data validation and typically use Oracle networks for this purpose. When it comes to investing in cryptocurrency as a beginner there are many options available but these five cryptocurrencies stand out due to their potential for growth and stability: Bitcoin (BTC), Ripple (XRP), Dogecoin (DOGE), Tether (USDT) and Ethereum (ETH). Each one has its own unique features and advantages but all offer investors an opportunity to diversify their portfolios and benefit from potential gains.