There are way too many crypto coins and tokens in the market today to wrap your head around, especially if you are just getting to know this sphere. If you are new to this, start slow and get to know the ten current best cryptos with this guide from the ChangeHero team.
What Are Cryptocurrencies?
Cryptocurrencies are digital assets that generally work thanks to a decentralized network, usually a blockchain. A decentralized network, in turn, means that it is not controlled by a single entity like a financial institution or government but instead maintained by a distributed network of nodes.
Being digital, most cryptocurrencies exist purely in the digital form, as numbers in a ledger. Owning cryptocurrencies actually refers to the ability to make transactions with the assets on balance. It is possible only with the encryption key pair: public key, also known as the blockchain address and private key. This is why one of the prime principles when using crypto is to keep your private keys safe and secure.
Bitcoin was the first cryptocurrency to start the phenomenon. However, its design was deliberately limited, and to provide alternatives for users to choose from, developers started creating other alternative coins, or altcoins for short. Today, various analytics platforms estimate the total number of cryptocurrencies to be anywhere between 14 thousand to 2.4 million different assets.
The value of crypto assets is estimated with the same method as stocks: by multiplying the circulating supply by the current cryptocurrency prices. The resulting metric is called market capitalization (cap) and gives investors and traders a rough idea of the total value of a cryptocurrency’s outstanding supply. They are then ranked and sorted by the market cap, and next, we will introduce you to the current top cryptos that account for the most value in the market.
What is Bitcoin (BTC)?
Bitcoin (BTC) is the first and most well-known cryptocurrency, created in 2009 by an unknown person or group of people with the pseudonym Satoshi Nakamoto. It is a decentralized digital currency that operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.
Bitcoin transactions are verified by network nodes through cryptography and immutably recorded. Blockchain technology ensures transparency and security, as well as prevents double-spending. You can use Bitcoin for online purchases, as investment, and to transfer value across borders.
One of the key features of Bitcoin is its limited supply, with only 21 million bitcoins that can ever be mined. This scarcity is believed to contribute to its value and popularity as a store of value and hedge against inflation.
Even as the largest cryptocurrency by market capitalization, Bitcoin’s price is known for its volatility, fluctuating based on market trends, demand, and supply. Despite this, BTC has gained widespread adoption and acceptance as a novel asset class and payment method worldwide.
What is Ethereum (ETH)?
Ethereum (ETH) is a decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (DApps). It was proposed by Vitalik Buterin in late 2013 and went live in 2015. Ethereum’s native cryptocurrency is called Ether (ETH), which is used to facilitate transactions and pay for computational services on the network.
One of Ethereum’s key innovations is smart contracts, which are self-executing programs that let the terms of the agreement be directly translated into code. This enables the automation of complex agreements and transactions, still without intermediaries with increased efficiency and transparency.
Smart contracts led to the creation of decentralized applications (DApps): applications that run on a blockchain network instead of a centralized server. Thanks to blockchain tech, they are believed to achieve greater security, censorship resistance, and data immutability.
By now, Ethereum has a thriving ecosystem with many use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), and tokens, i.e. crypto assets that work on top of existing blockchains. Its flexibility, programmability, and security have made it a popular platform for developers and entrepreneurs looking to work in the blockchain space.
What is Tether USD (USDT)?
While some tokens work like cryptocurrencies, some tokens are backed by real-world assets such as fiat currencies. This type of crypto asset is called stablecoins because their value corresponds to the value of the underlying asset, essentially making them blockchain-based substitutions for it. It is no surprise that the third most popular crypto is a dollar-backed stablecoin.
Tether (USDT) is a popular stablecoin that aims to maintain a 1:1 peg with the US dollar. Since 2014, Tether Limited has issued and managed USDT tokens, backed by USD and USD-convertible assets. This backing is intended to keep the price stable and mitigate the volatility commonly associated with other cryptocurrencies like Bitcoin and Ethereum.
USDT serves as a reliable medium of exchange and store of value within the crypto ecosystem, offering users a way to hedge against market fluctuations without needing to convert their holdings back to fiat. As a stablecoin, USDT is widely used for trading on various cryptocurrency exchanges, as well as for transferring funds quickly and securely.
Despite its popularity, Tether has faced scrutiny and controversy regarding the transparency of its reserves and allegations of market manipulation. However, it remains one of the most widely traded and utilized stablecoins in the crypto space, playing a crucial role in facilitating liquidity and stability for traders and investors.
What is BNB?
BNB, previously known as Binance Coin, is the cryptocurrency that originated in the Binance exchange ecosystem. Binance has been one of the largest and most popular cryptocurrency exchanges. Launched in 2017 through an initial coin offering (ICO), BNB was initially created to discount trading fees for Binance users. However, after the migration to its own blockchain, its use cases have since expanded.
As a utility token on Binance, BNB offers benefits to its holders, such as discounted trading fees, participation in token sales on Binance Launchpad, and access to various services and features within the Binance ecosystem. BNB has also gained widespread adoption beyond the Binance platform, even being accepted as a form of payment with select merchants and services.
BNB is a massive success story in terms of value appreciation, becoming a billion-dollar asset in a matter of months. It started as a utility token with a strong use case and only became more useful and valuable as Binance grew exponentially. Binance regularly conducts token burns, removing a portion of BNB tokens permanently from circulation. Burns are supposed to increase the scarcity and potentially drive up the token’s value.
What is Solana (SOL)?
Solana (SOL) is a high-performance blockchain platform designed to provide fast, secure, and scalable dApps and crypto-native projects. Launched in 2020, Solana aims to address the scalability issues faced by many blockchain networks, especially Ethereum. Its key features include a high throughput of up to 65,000 transactions per second, low transaction fees, and fast confirmation times, making it ideal for applications that require high-speed and low-cost transactions.
Solana uses a proof-of-stake consensus mechanism called Proof-of-History (PoH) along with a Byzantine Fault Tolerance (BFT) consensus algorithm to achieve its high performance and scalability. This architecture allows Solana to process transactions in parallel, without worrying about network congestion or high fees. Users and developers alike appreciated the improvements enough to create a robust ecosystem of simple and complex apps, fungible and non-fungible tokens, and more.
As a native cryptocurrency of the Solana network, SOL plays a crucial role in securing the network through staking, participating in governance decisions, and paying transaction fees. SOL has gained significant attention and adoption within the crypto community, making it a mainstay in the list of top cryptos.
What is USDC?
USDC is another stablecoin pegged to the US dollar on a 1:1 basis, meaning each USDC token is backed by one US dollar or equivalent held in reserve. Launched in 2018 by the Centre Consortium, a collaboration between Coinbase and Circle, USDC provides a reliable and transparent digital representation of the US dollar that can be used for various blockchain-based applications and transactions. As a stablecoin, USDC aims to maintain a stable value relative to the US dollar, making it a popular choice for users seeking to avoid the price volatility common to cryptocurrencies.
USDC operates on multiple blockchains, including Ethereum. The stablecoin has gained widespread adoption across different decentralized finance (DeFi) platforms, digital asset exchanges, and payment applications due to its liquidity, stability, and regulatory compliance. In contrast to USDT, USDC is audited regularly to ensure full transparency and maintain trust among users.
What is XRP?
XRP is a digital asset and cryptocurrency that facilitates fast and cost-effective cross-border payments and remittances. Created by Ripple Labs in 2012, XRP is designed to be a bridge currency for seamless and efficient value transfer across different fiat currencies and payment networks. Unlike many other cryptocurrencies, XRP does not rely on blockchain mining for transaction validation. Instead, XRP transactions are processed through a consensus protocol that significantly reduces transaction times and fees.
One of the key features of XRP is its scalability: it can handle thousands of transactions per second, making it a practical solution for large-scale financial institutions and payment processors. Ripple, the company behind XRP and its main adopter, has established partnerships with banks and financial institutions worldwide to leverage XRP for real-time settlement and liquidity management.
XRP is a long-standing altcoin and has remained among the top cryptocurrencies for the most part. It is propped up by a strong narrative that its utility can make it an alternative to fiat currencies and help achieve global adoption. On a less ambitious scale, there is another reason XRP has found popularity as an investment: in 2021, the US Securities and Exchange Commission (SEC) sued Ripple executives over XRP but the defendants settled the case.
What is Dogecoin (DOGE)?
Dogecoin (DOGE) is a popular cryptocurrency that quite literally started as a joke and established a phenomenon known as meme coins. Since 2014, it has grown into a significant player in the digital asset space. Created in 2013 by software engineers Billy Markus and Jackson Palmer, Dogecoin features the friendly Shiba Inu dog from the “Doge” meme as its logo and mascot. Initially conceived as a fun and light-hearted alternative to Bitcoin, Dogecoin quickly gained a dedicated community of supporters who appreciated its approachable and inclusive nature.
In terms of technology, Dogecoin is based on the same underlying technology as Litecoin, utilizing a proof-of-work consensus mechanism for transaction validation. While not designed for scalability or advanced smart contract functionality, Dogecoin remains a popular choice for tipping, charitable donations, and general-purpose transactions due to its fast transaction speeds and low fees.
What is TRON (TRX)?
TRON (TRX) is a blockchain-based platform that provides another alternative blockchain with smart contract capabilities. Initially, it aimed to build a decentralized internet by enabling content creators to interact directly with consumers without intermediaries. Founded by Justin Sun in 2017, TRON was pitched as a digital content creation and distribution platform, with dApps being the main use case.
TRON can also boast improved scalability and lower transaction costs. The platform uses a delegated proof-of-stake consensus mechanism (dPOS), allowing users to relegate their participation in the network’s governance and decision-making processes to representatives.
TRON’s native cryptocurrency, TRX, plays a central role in powering the platform’s ecosystem, facilitating transactions, incentivizing network participants, and serving as a medium of exchange within the TRON network.
What is Toncoin (TON)?
Finally, the most recent addition to the top cryptos is Toncoin, also known as TON (which stands for Telegram Open Network). Back in 2017, it started development as the native cryptocurrency to be used within the Telegram messaging app.
However, TON faced regulatory challenges and delays in its development, ultimately leading to the project being abandoned in May 2020. Despite the official closure, the open-source code for the TON project was picked up by the community and continued as an independent The Open Project.
TON kept the architectural basis with BFT consensus that enabled the scalability required for a project of this scale without compromising security. By today, it has come full circle and was introduced into the Telegram app ecosystem to enable crypto-powered features for millions of users worldwide.
Conclusion
Of course, the world of cryptocurrencies has a lot more to offer than its top ten. However, these coins and tokens represent the best and most valuable applications of blockchain technology, so they should definitely be on your radar.
Read more news and guides by the ChangeHero team in our blog! If you want to get updates, follow ChangeHero on social media: X, Facebook, Reddit, and Telegram.
Disclaimer
This article is not a piece of financial advice. When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment.
Always make sure to stay informed and be aware of those risks. Consider investing in cryptocurrencies only after careful consideration and analysis and at your own risk.
