It might be daunting when you’re just starting started in the world of cryptocurrency since there are dozens of different cryptocurrencies to choose from, ranging from Bitcoin and Ethereum to Dogecoin and Tether.
Although Bitcoin was a trendsetter, ushering in a wave of cryptocurrency-based decentralized peer-to-peer networks, it has also established itself as the de facto standard for cryptocurrencies, spawning an ever-growing army of followers and spinoffs.
To assist you in getting your bearings, here is a list of the top ten cryptocurrencies ranked by market capitalization, which is defined as the total value of all of the coins that are presently in circulation.
What is Cryptocurrency?
If you read this article you are probably familiar with cryptocurrency, but for those who don’t know, an explanation is following. Cryptocurrency is digital money that is not administered by a central entity, such as a government, but rather by individual users.
As an alternative, it is based on blockchain technology, with Bitcoin being the most widely used cryptocurrency. In order to keep up with the growing popularity of digital money on Wall Street, more and more solutions are becoming accessible.
There are about 8,900 cryptocurrencies available on the market at the moment. Despite the fact that bitcoin may be used to make purchases, the majority of people see it as a long-term investment. However, because of the volatility of cryptocurrencies, investing in them may be dangerous, so it’s crucial to understand what you’re getting yourself into before you invest. Without further due, check out our list for the best cryptocurrencies and the best performing cryptocurrencies in 2022.
Binance Coin (BNB)
Known as the Binance Coin, it is a kind of cryptocurrency that can be used to trade and pay fees on Binance, which is one of the biggest cryptocurrency exchanges on the planet.
Since its introduction in 2017, Binance Coin has grown to serve a purpose more than just conducting transactions on Binance’s cryptocurrency exchange platform. It may now be utilized for a variety of tasks such as trade, payment processing company, potential applications and even organizing trip plans. It may also be traded or swapped for other cryptocurrencies, such as Ethereum or Bitcoin, depending on the market conditions.
By February 1, 2022, it has increased to over $377 from its low point of $0.10 in 2017. This is a gain of nearly 377,000 percent from 2017.
Terra (LUNA)
Terra is a blockchain-based payment mechanism for stablecoins that is based on the maintenance of a balance between two different forms of digital assets. Terra-backed stablecoins, such as TerraUSD, are cryptocurrencies whose value is related to the value of real-world currencies. Luna, its counterbalance, is responsible for the operation of the Terra platform and the production of more Terra stablecoins.
Terra stablecoins and Luna stablecoins function together in response to supply and demand: As soon as the price of a stablecoin increases beyond the value of its linked currency, users are encouraged to burn their Luna in order to generate more of the stablecoin in question. Similarly, when the value of Luna declines in relation to its base currency, users are encouraged to burn their Terra stablecoins in order to generate more Luna. As the Terra platforms become more widely used, the value of Luna increases as well.
Luna’s price has climbed about 8,000 percent from its inception on Jan. 3, 2021, when it was $0.64, and is now worth $51.39, a little over a year later.
Solana (SOL)
Solana is a cryptocurrency that was created to assist in the powering of decentralized finance (DeFi) applications, decentralized applications (DApps), and smart contracts. It operates on a hybrid proof-of-stake and proof-of-history mechanism that allows it to process transactions quickly and securely. The platform is powered by SOL, which is Solana’s native coin.
SOL’s pricing began at $0.77 when it was first introduced in 2020. By February 1, 2022, the price had risen to over $100, representing an increase of almost 13,000 percent.
Ethereum (ETH)
Unlike Bitcoin, Ethereum is more than a cryptocurrency in that it is also a digital asset class. As a network, it also facilitates the creation of new digital currencies, which may be distributed over the Ethereum network. While Ethereum is considerably behind Bitcoin in terms of market capitalization, it is also well ahead of its rivals.
Despite the fact that it was launched many years after several other cryptocurrencies, it has greatly outperformed its expected position in the market as a result of its innovative technology, and it is today the second-largest cryptocurrency behind Bitcoin.
Despite the fact that Ethereum makes use of blockchain technology, it only has one “lane” for the purpose of executing transactions. When the network is overloaded, investing in Ethereum may take longer to complete as a result of the increased traffic. Aside from that, transaction costs are extremely expensive, hitting a peak of $71.72 in May 2021, according to CoinMarketCap.
An attack on Ether in 2016 that took advantage of a security hole resulted in the theft of more than $50 million worth of the cryptocurrency.
Cardano (ADA)
It is based on the ethereum blockchain and other top cryptos to an extent. We must admit that previous cryptos provided much help to establishing a lot of what we see today. Due to the fact that the Cardano network has a smaller footprint, it appeals to investors for a variety of reasons. The energy required to conduct a transaction using Cardano is less than that required by a bigger network such as Bitcoin.
It uses less energy for a larger transaction time, which is remarkable. Newer features and other digital technology are constantly added to this network. As a result, transactions are completed more quickly and at a lower cost. Cardano released a “hard fork” last year, which is an update that adds new functionality — in this instance, the ability to apply smart contracts — to the cryptocurrency.
Cardano also promises to be more versatile and safe than other cryptocurrencies. It is constantly improving its development in order to keep one step ahead of hackers.
Investing in Cardano may be risky and similar to investing in dogecoin 2021. Cardano may not be able to compete with bigger cryptocurrencies, even if its network is improved significantly. Because there are fewer adopters, there are fewer developers. Most investors, on the other hand, want to see a high adoption rate, thus this is not tempting to them. The platform has ambitious aspirations, but there are concerns about whether it will be able to achieve its full potential.
XRP (XRP)
Ripple’s founders came up with the idea for XRP, which stands for “digital payment processing business.” It functions in a similar way to a cryptocurrency PayPal, allowing for the exchange of both crypto and fiat money. It is currently experiencing a growing demand.
It is investing extensively in non-fungible token initiatives that are based on the XRP Ledger, which is a public blockchain, according to the company. According to Inside Bitcoins, this investment shows that Ripple is establishing itself as another “Ethereum killer.”
According to the Securities and Exchange Commission and some other major companies, Ripple and two of its executives violated the Securities Act of 1933 by raising more than $1 billion in unregistered digital asset security offering in December 2020. If it is implied that XRP is a security, rather than a currency, this might have ramifications not just for XRP, but also for other cryptocurrencies.
Polkadot (DOT)
Cryptocurrencies may utilize any number of blockchains; Polkadot (and its namesake coin) intends to combine them by constructing a cryptocurrency network that links the many blockchains, allowing them to function together more effectively.
Since Polkadot’s introduction in 2020, it has had rapid growth, which may have a significant impact on how cryptocurrencies are handled in the future. Between September 2020 and February 1, 2022, the price of bitcoin increased by almost 565 percent, from $2.93 to $19.49.
U.S. Dollar Coin (USDC)
USD Coin (USDC) is a digital stablecoin that is tied to the value of one dollar in the United States. A user transfers US dollars to the bank account of the coin’s issuer. A USD Coin smart contract is used by the issuer in order to generate the corresponding number of USD Coin.
USD Coin (USDC), like Tether, is a stablecoin, which means it is backed by U.S. dollars and strives to achieve a 1 USD to 1 USDC exchange rate. USDC is powered by Ethereum, and you may use USD Coin to make international purchases and payments.
Tether (USDT)
It is a stablecoin with a price fixed to one dollar in the United States. Tether (USDT) is a blockchain-based cryptocurrency whose tokens in circulation are backed by an equal number of United States dollars, making it a stablecoin.
Tether, in contrast to certain other kinds of cryptocurrency, is a stablecoin, which means that it is backed by fiat currencies such as the United States dollar and the Euro and, in theory, maintains a value equivalent to one of those denominations.
In principle, this implies that Tether’s value should be more constant than that of other cryptocurrencies, making it a popular choice among investors who are concerned about the severe volatility of other cryptocurrencies.
Bitcoin (BTC)
The original cryptocurrency and the first one on the crypto scene. Bitcoin (BTC) is the first crypto, before TerraUSD stablecoin, Ethereum, and all of these. It has been created in 2009 by an anonymous individual using the pseudonym Satoshi Nakamoto.
Additionally, from being the first-ever cryptocurrency, Bitcoin also became the first that CME Group Inc. BTC, like the majority of cryptocurrencies, is based on a blockchain, which is a distributed ledger that records transactions over a network of thousands of computers. Proof of work is used to ensure that new entries to distributed ledgers are validated by the solution of a cryptographic problem.
This ensures that Bitcoin remains secure and protected against fraudsters. Bitcoin’s value has risen as the cryptocurrency has gained widespread recognition. In May 2016, a Bitcoin could be purchased for around $500. As of February 1, 2022, the price of a single Bitcoin has risen to moreover $38,000. But this is not Bitcoins time highs still. That is an increase of around 7,600 percent. Another increase in crypto value was when Tim Cook announced that he personally owns some cryptocurrencies.
The Bottom Line
The World of Crypto is booming from late December. Risks are still visible when investing, however it is truly a gold mine. The crypto market had the worst January in 2022 in terms of value. A lot of it was wiped from the market which lead to enormous decreases.
Blockchain platform-based cryptocurrencies, which operate on decentralized networks, let users to conduct peer-to-peer financial transactions and enter into contractual agreements. The use of a trusted third-party mediator such as a bank, monetary authority, court or judge is not required in either scenario.
This has the potential to destabilize the current financial system and democratize the financial sector, among other things. As a result of new technologies and a total market value of more over $1.75 trillion, the cryptocurrency field has developed dramatically in the previous decade, reaching unprecedented proportions. It is worth mentioning also that retail giants such as Under Armour, announced partnership with Decentraland.
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