Are you interested in learning more about cryptocurrency investment? There are currently over 5,000 cryptocurrencies out there, with more created every day. With so many options it can be not easy to decide which ones to invest in.
Cryptocurrency is becoming increasingly popular as an investment option due to its potential for growth and return on investment. With crypto being a decentralized system, there is no single authoritative source to tell people which coins are the best investments.
Fortunately, there are experts who have done the research for us and compiled lists of what they believe are the top 10 crypto coins that investors should consider. In this article, we will be looking at the top ten best-performing cryptocurrencies according to market capitalization, liquidity, and trading volume. We will go over their key characteristics, benefits, and potential risks associated with each one.
Top Crypto Coin Bullet Points:
- There are over 5,000 cryptocurrencies available to invest in, making it difficult to decide which ones to pick.
- Expert researchers have compiled the top 10 cryptos that investors should consider according to liquidity, trading volume, and market capitalization.
- Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) are the top three coins that have seen tremendous growth and may provide advantageous returns on investment.
Top 10 Crypto Coins To Invest In Now
Are you looking to invest in cryptocurrency? With so many options available, it can be difficult to decide which ones to pick. Fortunately, experts have compiled a list of the top 10 crypto coins that investors should consider based on liquidity, trading volume, and market capitalization. In this article, we will go over the key characteristics, benefits, and potential risks associated with each one.
1. Bitcoin (BTC)
Bitcoin (BTC) is the original cryptocurrency created in 2009 by Satoshi Nakamoto. It runs on a blockchain, a ledger logging transactions distributed across a network of computers. Bitcoin has seen tremendous growth since its inception, with one Bitcoin being worth $500 in May 2016 and now being worth around $17,266 as of Jan 10, 2023 – a growth of 3,353%. 2021 has seen considerable institutional investment in BTC, led by Michael Saylor and MicroStrategy. This has made BTC considerably less volatile than other currencies, reaching a new all-time high of $48,670 with a market cap of $916 billion.
The success of Bitcoin (BTC) has been largely attributed to its decentralized nature and its ability to provide users with an alternative form of currency that is not subject to government regulation or manipulation. The blockchain technology used for BTC also allows for faster transaction times and lower fees than traditional banking systems. Furthermore, the use of cryptography ensures that all transactions are secure and immutable.
2. Ethereum (ETH)
Ethereum (ETH) is a cryptocurrency and blockchain platform that has become increasingly popular among developers for its potential applications. It has experienced tremendous growth since April 2016, increasing by 11,996% in price. Ethereum can be purchased on various exchanges and platforms, making it easily accessible to investors. Currently, ETH is the second-highest cryptocurrency ranked by market capitalization.
ETH is being used in NFT marketplaces and play-to-earn games, which could potentially benefit from the growth of these areas. On Nov 10th, 2020, ETH reached its all-time high and is currently only 19% below that price. This makes it an attractive investment option for those looking to capitalize on the potential of Ethereum’s technology and applications. With its current market capitalization and potential applications, Ethereum looks to remain a major player in the cryptocurrency space for years to come.
4. Binance Coin (BNB)
Binance Coin (BNB) is a utility cryptocurrency used to pay fees associated with trading on the Binance Exchange. It is the third-largest cryptocurrency by market capitalization and users can trade at a discount when using it as payment. Binance Exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world based on trading volumes. BNB has recently bounced off a $525 support area and is only 32% below its all-time high price.
BNB is the native token of one of the most popular cryptocurrency exchanges in the world, Binance. Users of BNB benefit from lower fees when using the exchange and its associated network, making it an attractive option for traders looking to maximize their profits. Additionally, BNB holders can use their tokens to participate in special events such as CEOs (Initial Exchange Offerings) or vote on important decisions related to the platform’s development. This makes it an attractive asset for investors looking to benefit from the growth of the Binance platform.
5. U.S. Dollar Coin (USDC)
USD Coin (USDC) is a stablecoin backed by U.S. dollars with a 1 USD to 1 USDC ratio. It is powered by Ethereum and can be used for global transactions, making it an attractive option for those looking to make international payments without the volatility of other cryptocurrencies. USDC was launched in 2018 by the Centre Consortium, which consists of Circle and Coinbase, making it a regulated stablecoin. As of Sep. 18, 2022, USD Coin has a market cap of $55.5 billion and a price per coin of $1.00, ranking fourth in market cap and trading volume.
The main advantage of using USDC is its stability as it is pegged to the U.S. dollar which makes it less volatile than other cryptocurrencies on the market. This makes it an ideal choice for those who want to make international payments without worrying about exchange rate fluctuations of currency devaluation risks associated with fiat currencies. Additionally, USDC offers low transaction fees compared to traditional payment methods, making it an attractive option for those looking to save money on international transfers.
6. XRP (XRP)
XRP is a digital currency created by the founders of Ripple, a digital technology and payment processing company. It can be used on the Ripple network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies. The price of XRP rose from $0.006 in 2017 to $0.35 on Jan. 10, 2023 – an increase of 5,715%. This makes it one of the most successful digital currencies in terms of price appreciation over the past few years.
The XRP Ledger uses a consensus mechanism called the XRP Ledger Consensus Protocol, which doesn’t use proof of work or proof of stake. This makes it more efficient than other blockchain networks that rely on these methods for consensus. On Sep. 18, 2022, XRP had a market cap of $19.6 billion and traded around $0.39, making it one of the largest digital currencies by market capitalization at that time. With its low transaction fees and fast transaction times, XRP is an attractive option for those looking to make international payments quickly and cheaply.
7. Binance USD (BUSD)
Binance USD (BUSD) is a stablecoin backed by the U.S. dollar, created by Paxos and Binance. It allows traders and crypto users to engage in transactions with other crypto assets while minimizing the risk of volatility. BUSD is approved and regulated by the New York State Department of Financial Services, making it a reliable form of digital currency for users looking for a more stable option than traditional cryptocurrencies. As of Sep. 18, 2022, BUSD had a market cap of $20.5 billion and was trading at $1.00 per coin, making it one of the most popular stablecoins on the market today.
BUSD has become increasingly popular due to its low volatility and ease of use when compared to other forms of digital currency such as Bitcoin or Ethereum. The coin can be used to purchase goods and services online or transferred between wallets without having to worry about price fluctuations like those seen with other cryptocurrencies. Additionally, BUSD can be used as collateral for loans or other financial products, making it an attractive option for those looking to access credit without having to use traditional banking services.
8. Cardano (ADA)
Cardano (ADA) is a decentralized, open-source, public blockchain that was founded in 2017 but development began in 2015 with help from an Ethereum cofounder. It is notable for its early adoption of proof-of-stake validation, which expedites transaction time and decreases energy usage and environmental impact. Cardano works like Ethereum to enable smart contracts and decentralized applications, which ADA powers.
Since its inception, the price of ADA has increased by 1,483%, from $0.02 to $0.32 as of Jan 10, 2023. This impressive growth has resulted in a current market cap of $18 billion for Cardano. With its innovative technology and potential for further growth, Cardano is an exciting cryptocurrency to watch in the coming years.
9. Dogecoin (DOGE)
Dogecoin (DOGE) is a cryptocurrency created in 2013 by two software engineers, Billy Markus and Jackson Palmer. It was originally created as a meme or parody cryptocurrency but has since seen a surge in popularity and value in 2021. Its market capitalization currently stands at $7.9 billion, with one DOGE valued at around $0.06. The coin uses an image of Shiba Inu as its avatar and is accepted as a form of payment by some major companies.
The surge in Dogecoin’s value and popularity was largely driven by Tesla CEO Elon Musk’s comments about the cryptocurrency in the early summer of 2021. However, the value of Dogecoin fell back dramatically in the second half of the year, despite continued interest from Musk and other celebrities such as Snoop Dogg and Gene Simmons. Despite this setback, Dogecoin remains one of the most popular cryptocurrencies on the market today, with many investors still seeing the potential for further growth in its value.
10. Polygon (MATIC)
Polygon (formerly Matic Network) is a leading cryptocurrency that has been gaining traction in the crypto space since its launch in 2017. It supports over 7,000 dApps and has seen an impressive 32,020% price increase since its inception. Currently, Polygon’s market cap stands at $7.4 billion, making it one of the most valuable cryptocurrencies in the world.
The main purpose of Polygon is to provide developers with a platform to build decentralized applications (dApps). It does this by providing users with a secure and scalable blockchain infrastructure that allows for faster transactions and lower fees than other blockchains. Additionally, Polygon offers tools such as Plasma Cash and Layer 2 solutions which make it easier for developers to create dApps on their platform. With these features, Polygon has become one of the most popular platforms for building dApps and continues to grow in popularity among developers and users alike.
What Is The Difference Between A Coin And A Token?
The main difference between a coin and a token is that coins are their own blockchain-based digital asset, while tokens are built on top of existing blockchains. Coins have their own independent blockchain and are used as a form of payment or store of value. Examples of coins include Bitcoin, Litecoin, and Ethereum. Tokens, on the other hand, are built on top of existing blockchains such as Ethereum and are used to represent a specific asset or utility.
Examples of tokens include ERC-20 tokens, which are built on the Ethereum blockchain and represent various assets such as loyalty points, digital art, and more.
How Can I Invest Safely In Crypto Coins?
Investing safely in crypto coins requires research and due diligence. Before investing, it is important to understand the risks associated with cryptocurrencies, such as price volatility and potential scams. Additionally, investors should be aware of the different types of coins available and their associated benefits and drawbacks.
When researching a coin, investors should look into its history, team members, roadmap, use cases, and any other relevant information. Additionally, investors should always be aware of the current market conditions and only invest what they can afford to lose. Finally, it is important to diversify investments across different coins and platforms.
Are Cryptos Legal To Buy And Sell?
Yes, cryptos are legal to buy and sell in most countries. However, it is important to check the local laws and regulations in your country before investing in cryptocurrencies. In some countries, there may be restrictions on buying, selling, or trading certain types of cryptos. Additionally, some countries may have taxes or other regulations that apply to crypto transactions.
It is also important to remember that cryptocurrencies are not backed by any government or central bank, so investors should be aware of the risks associated with investing in them.
Final Thoughts on Crypto Coins
In conclusion, cryptocurrencies have become increasingly popular in recent years as a form of digital asset. There are many different types of coins available, each with its own unique features and benefits. When investing in crypto coins, it is important to do research and understand the risks associated with them. Additionally, investors should be aware of the local laws and regulations that may apply to their investments. Finally, diversifying investments across different coins and platforms can help reduce risk and maximize potential returns.