The world of cryptocurrency can be daunting, with thousands of different cyptocurrencies to choose from. However, if you’re looking to invest in the crypto market, it’s essential to know which cryptocurrencies are worth considering.
Generally, the market capitalisation or the total value of all the coins currently in circulation is an excellent indicator of a cryptocurrency’s worth.
Based on this criterion, here are Forbes‘ top five cryptocurrencies to invest in.
Bitcoin (BTC)
This is the original cryptocurrency which was created in 2009 by Satoshi Nakamoto. Its market capitilsation is $1.4 trillion with 150% year-over-year return.
Bitcoin, like most cryptocurrencies, operates on a blockchain, a ledger logging transactions across thousands of computers. Its additions are verified through a cryptographic puzzle called proof of work, ensuring its security against fraudsters.
Its price has spiked significantly, from $500 in May 2016 to $70,603 as of April 9, 2024, marking a growth of 14,021%.
Ethereum (ETH)
With a market capitilsation of $434.8 billion and a 95% year-over-year return, Ethereum — both a cryptocurrency and a blockchain platform — is a favoured by program developers for its potential applications, including smart contracts and non-fungible tokens (NFTs).
Ethereum surged 32,822% from April 2016 to April 2024, from $11 to $3,621.
Tether (USDT)
Tether has a market capitilsation of $107.1 billion with a 0% year-over-year return. It is a stablcoin, backed by fiat currencies like US dollars and the Euro, ensuring its value remains equal to those currencies.
This means Tether’s valus is believed to be more consistent than other cryptocurrencies, appealing to investors who are cautious about the extreme volatility of other coins.
Binance Coin (BNB)
With a market capitilsation of $87.3 billion and a year-over-year return of 87%, you can use Binance Coin to trade and pay fees on Binance, one of the largest crypto exchanges in the world.
Binance Coin, launched in 2017, has expanded beyond facilitating trades on Binance’s exchange platform to include trading, payment processing, and travel booking.
It can also be traded for other cryptocurrency forms like Ethereum or bitcoin.
BNB’s price rose by 583,519% from $0.10 in 2017 to around $584 by late April 2024.
Solana (SOL)
Solana, which has a a market capitilsation of $78.1 billion and a year-over-year return of 767%, was developed to help power decentralized finance (DeFi) uses, decentralised apps (DApps) and smart contracts.
Solana utilises a hybrid proof-of-stake and proof-of-history mechanism for swift and secure transaction processing, powered by its native token, SOL.
SOL’s price began at $0.77 in 2020 when it was launched, and reached around $175.36 by late April 2024, a 22,674% increase.
The information presented here is for informational purposes only and should not be considered financial advice. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional.
