Cryptocurrencies had a rough start to the year but came to their own in March when they were on a positive run. They continue their positive momentum for this month as well. It can be a bit confusing to decide which cryptocurrency to invest in, given the fact that there are thousands of them out there. To help you choose better, we have come up with a list of the top 5 cryptocurrencies. The list is solely based on the market capitalisation of cryptocurrencies. In other words, the total value of all the coins that are currently in circulation.
- Bitcoin (BTC):
It should not come as a surprise that bitcoin features in this list. It was created in 2009 by a person under the pseudonym Satoshi Nakamoto and is usually known as the original cryptocurrency. Bitcoin runs on the blockchain or a mechanism where transactions are logged across a wide network that has thousands of computers. Addition to the distributed ledger only takes place once you have solved a cryptographic puzzle. It is also known as proof of work and it keeps the system secure.
The market capitalisation of Bitcoin is $880 billion and in April 2022, a Bitcoin will cost you around $46,300. When you consider the price of $500 in May 2016, that’s a 9000% return on investment.
- Ethereum (ETH):
Ethereum is both a cryptocurrency as well as a blockchain platform. Because of its massive potential, it is a favourite among developers. Common examples include smart contracts that execute only when you meet certain conditions and NFT or non-fungible tokens.
The market capitalisation of Ethereum is $415 billion and in April 2022, you can buy Ethereum for $3,450. Its price in April 2016 was a mere $11, thereby giving returns of a staggering 31,000%.
- Tether (USDT):
Tether is a stable coin and slightly different from the other cryptocurrencies. It is backed by currencies such as USD and Euro. Because Tether is backed by real currencies, it is said to be a lot more consistent than some of the other cryptocurrencies. And investors who worry about the extreme volatility of cryptocurrencies will find Tether to be a better option.
The market capitalisation of Tether is over $79 billion.
- Binance Coin (BNB):
Binance is one of the largest cryptocurrency exchanges in the world. And you can use Binance coin to trade or pay fees on the platform. You can use Binance coin for processing payment, trading and even travel arrangements.
The market capitalisation of Binance Coin is over $68 billion.
- U.S. Dollar Coin (USDC):
U.S. Dollar Coin is similar to Tether, as it is a stable coin as well. It is backed by the USD and they expect to reach a ratio of 1 USD to 1 USDC. It is powered by Ethereum and you can use the cryptocurrency for global transactions.
The market capitalisation of the U.S. Dollar Coin is over $53 billion.
The above list of top 5 cryptocurrencies is based on their market capitalisation. You must eventually do your research before investing in any of them.
