12 most common cryptocurrency kinds

 

The most well-known cryptocurrency is Bitcoin, but there are literally thousands of other choices when it comes to these digital currencies. However, Bitcoin always makes the news. In fact, cryptocurrency alternatives to Bitcoin known as "altcoins" are sometimes regarded as a "also ran."

Even while Bitcoin may have been the first significant cryptocurrency to enter the market when it initially appeared in 2009, many others have since grown to be very successful, if not nearly as significant as the original.

The largest cryptocurrencies are listed below based on the market capitalization, also known as market cap, which measures the total dollar worth of all coins in circulation. (Data as of January 13, 2023 is from CoinMarketCap.com.)

Cryptocurrencies with the highest market caps

1. Bitcoin (BTC)

Price: $19,143

Capitalization: $369 billion

Since it was the first cryptocurrency, Bitcoin is still the coin that most people think of when discussing virtual money. The currency made its debut in 2009, according to its enigmatic creator, Satoshi Nakamoto, and has since experienced a roller-coaster of a ride. The cryptocurrency didn't enter the public consciousness, nevertheless, until 2017.

2. Ethereum (ETH)

Price: $1,414

Capitalization: $173 billion

The second term you're most likely to remember in the cryptocurrency world is Ethereum, the moniker for the cryptocurrency platform. The money, ether, can be used in the system for a variety of tasks, but Ethereum's smart contract feature contributes to its popularity.

3. Tether (USDT)

Price: $1.00

Capitalization: $66 billion

The price of Tether is fixed at $1 per coin. This is due to the fact that it is a stablecoin. In the case of Tether, the value of a given asset is linked to the value of the stablecoin. 

Tether frequently serves as a bridge when traders switch between cryptocurrencies. They stick with Tether rather than switching back to dollars. However, some individuals worry that Tether uses a short-term type of unsecured debt rather than being securely backed by dollars held in reserve.

4. BNB (BNB)

Price: $286.53

Capitalization: $46 billion

One of the biggest cryptocurrency exchanges in the world, Binance, has its own coin called BNB. Although Binance Coin was initially designed as a token to pay for discounted transactions, it is now being used to make payments and buy a variety of goods and services.

5. USD Coin (USDC)

Price: $1.00

Capitalization: $44 billion

Similar to Tether, USD Coin is a stablecoin whose value is fixed to the US dollar and so should not change. The creators of the currency claim that it is backed by completely reserved assets or those with "equal fair worth," and that these assets are kept in accounts with supervised U.S. institutions.

6. XRP (XRP)

Price: $0.3712

Capitalization: $19 billion

XRP, formerly known as Ripple, was established in 2012 and provides a means of making payments in a variety of different fiat currencies. Cross-border transactions can benefit from ripple, which uses a trustless approach to make payments easier.

7. Binance USD (BUSD)

Price: $1.00

Capitalization: $16 billion

Binance USD is a stablecoin backed by the dollar that the leading cryptocurrency exchange created in collaboration with Paxos. The New York Department of Financial Services oversees the 2019 launch of Binance USD. On top of the Ethereum blockchain, BUSD functions.

8. Cardano (ADA)

Price: $0.3275

Capitalization: $11 billion

The cryptocurrency framework that underpins the ada coin is called Cardano. Cardano, which was developed by the Ethereum co-founder, also makes use of smart contracts to facilitate identity management.

9. Dogecoin (DOGE)

Price: $0.08004

Capitalization: $11 billion

Dogecoin gets its name from an online meme that features a Shiba Inu dog and was first made as a joke following the run-up in Bitcoin. Dogecoin features unrestricted issuance, in contrast to many other digital currencies that cap the number of coins that can be produced. It can be used to send money or make payments.

10. Polygon  (MATIC)

Price: $0.9008

Capitalization: $8 billion

A cryptocurrency called Polygon scales up Ethereum and focuses on being available to folks who are building digital apps. It was founded in 2017 and went by the moniker Matic before changing to Polygon in 2021.

11. Solana, (SOL)

Price: $16.60

Capitalization: $6 billion

Solana is a more recent cryptocurrency that was introduced in March 2020. It boasts of the quickness with which transactions are completed as well as the overall durability of its "web-scale" platform. The total number of coins that can be issued in the SOL currency is 480 million.

12. Litecoin (LTC)

Price: $83.98

Capitalization: $6 billion

One of the first alternative currencies was Litecoin, which was founded in October 2011. In an effort to be more helpful as a cryptocurrency focused on payments, Charlie Lee, a Google software developer, created Litecoin with the goal of outperforming Bitcoin in terms of transaction speeds.

Conclusively:

Those who are speculating in these digital assets should not invest more money than they can afford to lose because the cryptocurrency market is a Wild West (even if the U.S. government is planning to play a more active role in regulating the crypto industry). Much of 2022 saw downward pressure on crypto assets, and trading has remained erratic at the beginning of 2023. It's also crucial to keep in mind that individual investors frequently trade against extremely experienced competitors, making it a risky experience for beginners.