From Bitcoin to Ethereum to Dogecoin to Tether, there are thousands of different cryptocurrencies out there, which can make it difficult when you’re new to the world of cryptocurrencies. To help you get your bearings, here are the 10 best cryptocurrencies to invest in based on their market cap, or the total value of all coins currently in circulation.
Best Cryptocurrencies to Buy Now
1. Bitcoin (BTC)
Market Cap: $1.1 Trillion
Annual Return: 122%
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. Like most cryptocurrencies, BTC runs on a blockchain, a ledger that records transactions distributed across a network of thousands of computers. Because additions to the distributed ledger must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept safe and secure from fraudsters.
The price of Bitcoin has skyrocketed as the cryptocurrency’s name has become household name. In May 2016, you could buy a single Bitcoin for around $500. As of September 10, 2024, the price of a single bitcoin is approximately $56,902. This represents a growth of $11,280
2. Ethereum (ETH)
Market Cap: $281.9 billion
Year-over-year Return: 47%
As both a cryptocurrency and a blockchain platform, Ethereum is a favorite among software developers because of its potential applications, such as so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
Ethereum has also experienced meteoric growth. From April 2016 to the end of September 2024, its price rose from around $11 to around $2,343, an increase of 21,196%.
3. Tether (USDT)
Market Cap: $118.4 billion
Annual Return: 0%
Unlike other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it is backed by fiat currencies like the U.S. dollar and the euro and hypothetically maintains a value equal to one of those denominations. In theory, this means that Tether’s value is supposed to be more consistent than other cryptocurrencies, and it is favored by investors wary of the extreme volatility of other currencies.
4. Binance Coin (BNB)
Market Cap: $75.8 billion
Annual Return: 150%
Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest cryptocurrency exchanges in the world. Since its launch in 2017, Binance Coin has expanded beyond simply facilitating trades on the Binance exchange. It can now be used for trading, processing payments, or even booking travel. It can also be exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.
In 2017, the price of BNB was only $0.10. By the end of September 2024, its price had increased to around $520, a gain of 519,478%.
5. Solana (SOL)
Market Cap: $62.6 billion
Year-over-year Return: 654%
Developed to help power decentralized finance (DeFi) uses, decentralized applications (DApps), and smart contracts, Solana runs on unique hybrid Proof-of-Stake and Proof-of-History mechanisms to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.
When it launched in 2020, SOL was priced at $0.77. By the end of September 2024, its price was around $133.83, a gain of 17,280%.
6. USD Coin (USDC)
Market Cap: $35.2 billion
Yearly Return: 0%
Like Tether, USD Coin (USDC) is a stablecoin, meaning it is backed by the U.S. dollar and targets a ratio of $1 to $1 USDC. USDC is powered by Ethereum, and you can use USD Coin to transact globally.
7. XRP (XRP)
Market Cap: $30.3 billion
Yearly Return: 13%
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on this network to facilitate exchanges of different types of currencies, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. As of September 10, 2024, its price has reached $0.54, an increase of 8,858%.
8. Dogecoin (DOGE)
Market Cap: $15.0 billion
Annual Return: 70%
Dogecoin was launched in 2013 as a joke, but quickly became a leading cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoins that can be created, making the currency susceptible to devaluation as supply increases.
In 2017, the price of Dogecoin was $0.0002. As of September 2024, its price is $0.10, up 51,329%.
9. Toncoin (TON)
Market Cap: $13.3 billion
Year-over-year Return: 211%
Originally developed as a layer-1 blockchain for the encrypted messaging platform Telegram, Toncoin was quickly abandoned before being picked up by the TON Foundation. The project’s name was even changed to “The Open Network” from its original name “Telegram Open Network,” both of which are referred to by their acronym: TON.
Toncoin, originally known as Gram, is the native token of TON. It is an application that allows users to buy, send, and store funds on TON’s incredibly fast and environmentally friendly network.
10. TRON (TRX)
Market Cap: $13.2 billion
Year-over-year Return: 96%
Like Solana, TRON is a blockchain designed to run smart contracts and other DeFi applications. TRX is the platform’s native cryptocurrency, which powers its proof-of-stake consensus algorithm.
TRON was founded in 2017 and TRX was initially valued at $0.0019 per token. At its peak in 2018, TRX reached $0.2245, a gain of 11,715% in a few months. TRX is currently valued at around $0.15.
*Market caps and prices are from coinmarketcap.com, current as of 08:31 UTC on September 10, 2024.
What are cryptocurrencies?
Cryptocurrency is a form of money that exists solely 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 held as an investment.
How does cryptocurrency work?
Cryptocurrencies are various forms of digital money that are typically based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist as “trustless” transactions. This means that there is no centralized authority overseeing transactions on a cryptocurrency’s blockchain.
Why are there so many cryptocurrencies?
Cryptocurrency is an emerging field with over 9,000 cryptocurrency projects in existence as of March 2024.
While some cryptocurrencies function as currencies, others are used to develop infrastructure. For example, in the case of Ethereum or Solana, developers build other cryptocurrencies on top of these platform currencies, creating even more possibilities (and cryptocurrencies).
How to Choose the Best Cryptocurrency to Invest In?
When choosing the best cryptocurrency to invest in, it is important to consider your individual goals, investment timeline, and risk profile, just as you would with any other investment. Additionally, you should conduct due diligence to ensure that any cryptocurrency project you are interested in is legitimate and secure.
In general, investors should consider the following when evaluating a cryptocurrency:
- Market cap
- Liquidity
- Security
- Use cases
When considering investing in cryptocurrencies, first consider the exchanges on which the token is listed. Tokens offered on major exchanges typically offer better liquidity, attracting larger investors and reaching a wider audience, which in turn increases the potential buyer base.
– Maksym Repa, Analyst at Symbolic Capital
How to Invest in Cryptocurrency?
You can buy cryptocurrencies through cryptocurrency exchanges, such as Coinbase, Kraken, or Gemini. Additionally, some brokerages, such as WeBull and Robinhood, also allow consumers to buy cryptocurrencies.rhow much does it cost to buy cryptocurrency?
The cost of buying cryptocurrency depends on several factors, including the cryptocurrency you are buying. Many small altcoins trade for a
fraction of a penny, while a single bitcoin will cost you tens of thousands of dollars. However, many brokers and exchanges now allow fractional trading, giving investors the opportunity to buy a portion of a cryptocurrency.
There are also often costs and fees associated with having a cryptocurrency wallet and/or an account on a cryptocurrency broker or exchange. Make sure you understand all the costs associated with buying and holding any cryptocurrency before investing.
If you buy and sell coins, it’s important to pay attention to the tax rules around cryptocurrencies.
Cryptocurrencies are considered capital assets, like stocks, rather than cash. This means that if you sell cryptocurrencies for a profit, you’ll have to pay capital gains tax. This is the case even if you use your cryptocurrencies to pay for a purchase. If you receive more value than you paid for them, you’ll have to pay tax on the difference.
