Best 12 Cryptocurrencies You Must know
Investing in cryptocurrencies allows some people to invest in some fantastic and promising technology that will be the future. The prospect of making easy money only inspires some.
Whatever your motivation for getting started with cryptocurrency, you’ll learn a lot from this blog entry and will be able to easily purchase your first cryptocurrency of choice, learn how to do your studies when selecting tokens other than those offered on Coinbase, and properly store your coins.
Cryptocurrency. I’m sure you’ve been wondering, How do I begin with virtual currency? I wanted to create a simple and easy-to-follow guide to getting started. We will learn about Top Cryptocurrency you must know to invest in.
What Is Cryptocurrency?
Simply put, cryptocurrency is a type of digital asset that is distinguished by secure transactions via cryptography. Bitcoin was the first decentralised cryptocurrency and arguably the most well-known.
Bitcoin was founded on blockchain technology, and its main selling point was its decentralisation as opposed to a centralised banking system. This provided a measure of anonymity and security.
Many other alternative cryptocurrencies (also known as altcoins) have been created on the blockchain and similar technologies since Bitcoin. These alternative cryptocurrencies can be used for a variety of purposes. There’s Ethereum, for example, which has smart contract functionality.
Phew! In a nutshell, that is cryptocurrency. There’s a lot more, but that would require a separate series of posts.
Top 12 Cryptocurrencies
Cryptocurrencies are designed to be used for payments, transmitting value (similar to electronic currency) across a decentralised community of nodes. Many altcoins (those that are not bitcoin or ether) are classified in this way and sometimes are referred to as valuation tokens.
Also there are block chain technology tokens that serve a purpose other than money. A token issuance as part of the initial coin offering (ICO) that represents a stake in a block chain technology or decentralised finance (DeFi) project is one example. If the tokens are connected to the company’s value or endeavour, they are referred to as security tokens (as in securities like stocks, not safety).
1. Bitcoin (BTC) – The first digital currency remains at the top of the cryptocurrency charts, though its dominance is waning slightly. Bitcoin’s market cap was around $550 billion a year ago, accounting for more than 60% of the total crypto market. With a nearly $1 trillion market cap today, Bitcoin accounts for only about 40% of the total market.
2. Ethereum (ETH) – Ethereum has maintained its second-place ranking on the charts. Ethereum, which some regard as the silver to Bitcoin’s gold, was the first cryptocurrency to implement smart contracts. These tiny pieces of code exist on the blockchain and allow other applications or cryptos to be built.
First-mover Ethereum hosts most applications, but it suffers from network problems and high transaction fees. It is scheduled to finish an upgrade to Eth 2 next year to address some of these issues. However, several other programmable cryptos are gaining traction and meanwhile.
3. Binance Coin (BNB) – This year has seen significant growth for the Binance exchange token, BNB. It’s a utility token that allows Binance customers to save money on trading fees, but it also powers the Binance Smart Chain, along with several other programmable blockchains. Binance has had some regulatory issues this year, but it hopes to put them behind it by 2022.
4. Tethering (USDT) – Tether, the stablecoin, has lost some ground this year. In February, the New York Attorney General’s office forbade USDT in the state. Its investigation revealed that Tether, which seems to have enough cash on hand to support all of the USDT it issued, was not always willing to help the coin. Authorities remain sceptical of Tether’s reserves, especially the amount held in relatively brief debt. This is one of the reasons why we’re likely to see more stablecoin regulatory oversight next year.
5. Javier Solana (SOL) – Solana has risen to the top of the cryptocurrency charts this year due to its lightning-fast processing speed and low transaction fees. Developers and investors flocked to the potential Ethereum alternative, propelling the coin to new highs. Solana was up more than 11,000% since the beginning of the year at the time of writing.
6. XRP (XRP)- It’s surprising that XRP, or Ripple, hasn’t dropped, even more this year as it fights an SEC lawsuit. Many crypto exchanges in the United States no longer trade XRP, but the token is still traded internationally. Ripple is a digital payment system based on blockchain aimed at the financial services industry. The SEC took action against Ripple at the end of 2021, accusing it of operating as an unregistered security.
Securities are regulated by the SEC and must adhere to different rules than most cryptocurrencies, which are currently classified as commodities. The outcome of the lawsuit will have ramifications for the entire cryptocurrency market. If the SEC is successful, it may go after several other cryptocurrencies that it believes should be registered as securities.
7. Cardano,(ADA) – Cardano had a volatile year. In anticipation of the launch of smart contract functionality, it crept into the top three cryptos by market cap in August. Cardano takes a systematic approach to development, which means that its smart contract rollout was later than many other tokens. However, it appeared that it was a case of “buy the rumour, sell the news.” The market reaction to the launch was underwhelming, and Cardano fell a few spots in the year’s final months.
8. US Dollar Coin (USDC) – USD Coin is yet another stablecoin tied to the US dollar. The Centre consortium, Coinbase and Circle, which are founding members, launched it. USDC has tried to position it’s own as a much more clear proposal than Tether, and there are still concerns about the coin’s underlying technology.
9. Terra (LUNA) – Terra is a worldwide digital payment system that relies on what is known as algorithmic stablecoins. These are pegged to numerous fiat (traditional) currencies, such as US dollars or euros, and the LUNA token is part of a process that maintains price stability.
10. Avalanche (AVAX) – Avalanche, some other cryptographic protocol platform that people see as a potential Ethereum alternative, rounds out our top ten list. The most likely scenario is that three of the six smart contract platforms will emerge ahead of the pack, which include several of the cryptocurrencies on this list.
11. Polkadot – Several of the learning lessons by digital currencies over the last century are applied, with benefits that might help it monopolise the environment. It interacts well with others, costs less to transact, and moves faster, which is the developing crypto finance sector’s dream.
12. Dogecoin – This coin was created as a meme/joke, and even the co-founder is taken aback by it. Its value skyrocketed due to celebrity endorsement, but experts say its nature ensures that it will not skyrocket again in the future.
Which Cryptocurrencies were dropped from the top 12?
Bitcoin and Ethereum have continuously occupied the top two positions on the charts. However, the rest of the top 12 is continuously changing landscape. As one coin rises in value, another may fall further down the list. It’s a great reminder that virtual currencies can cause economic loss as well as continues to gain, ’ve purchased in a panic and you’re worried about missing out.
These coins were among the top 12 on January 1st, but they no longer rank as high:
- Litecoin (LTC)
- Polka dotted (DOT)
- Bitcoin Cash (BCH)
- Linking Chains (LINK)
Cryptocurrency is a fast-paced world, and research is essential if you want to stay ahead of the competition. Don’t buy one of several top 12 tokens because of how much it has risen in value this year. Instead, look for coins that will be in the top ten next year – or even the next decade.
Buy and sell virtual currencies on an exchange recommended by experts.
There are hundreds of platforms all over the world ready to provide you with access to thousands of cryptocurrencies. And, in order to find the one that’s right for you, you’ll need to decide which features are most important to you.
To assist you in getting started, our independent experts have sifted through the options to bring you some recommendations.
Summary
Starting with cryptocurrency is an exciting prospect. However, as many unlucky investors have discovered, doing so without proper guidance can result in significant losses, leading some to conclude that crypto is a scam.’
This article aimed to provide the best cryptocurrency for beginners guide. Hopefully, the majority of the top cryptocurrencies will live up to their potential and eventually reward early investors like you.