Crypto 101: The Most Popular Coins to Invest In
The cryptocurrency world is rapidly growing, and with it, the variety of digital currencies that investors can choose to transfer their fiat money into. From Bitcoin and Tether to Dogecoin and Ethereum, there are hundreds of cryptocurrencies on the market right now, making choosing between them a tough choice for those just starting in the crypto world.
To a beginner, it can be easy to look at the popularity that digital coins such as Dogecoin or Shiba Inu attract and think they’re sitting at the top of the cryptocurrency world. However, this is not always the case. The actual representation of a digital currency’s worth is determined by market capitalization, otherwise known as the number of coins currently in circulation.
Some of the most popular alternative currencies based on market capitalization are Bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS. To help you avoid confusion, this article aims to outline several of the most circulated cryptocurrencies to make your investment choices more informed and hopefully maximize your investment costs.
A household name for non-crypto enthusiasts and non-crypto enthusiasts alike, Bitcoin is the original alternative currency created by Satoshi Nakamoto in the early twentieth century and remains a go-to investment for all crypto fans. As of this writing, the current market capitalization of the world’s first-ever digital currency rests at around $737 billion, with the cost of each coin being at $38,880.
As of now, there are over nineteen million Bitcoins in existence; which number changes every ten minutes when new blocks are mined. Due to these statistics, various theories exist about Bitcoin remaining one of the top cryptocurrencies indefinitely, with the other digital currencies falling behind.
Second to Bitcoin only in market capitalization is Ethereum (ETH), launched in 2015 by Vitalik Buterin and Joe Lubin. As a stand-alone platform, Ethereum is best known for its native currency named Ether, ETH, or Ethereum. Ethereum has become widely used among developers to build applications and other cryptocurrencies using smart contracts, blockchain technology, and other applications.
As of this writing, Ethereum’s (ETH) market capital rests at around $336 billion, with the average price per ETH being around $2,772 – placing it second behind Bitcoin. Although Bitcoin and Ethereum have many similarities, both digital currencies have different limitations and long-term goals, which causes so much division between the two. Additionally, Ethereum plans to implement an incentive system that awards those with the most significant ETH.
Commonly, most crypto enthusiasts hold both ETH and Bitcoin so that their eggs aren’t in one basket. With the new technology of converting cryptocurrencies using crypto-exchange platforms such as Paxful, investors can convert ETH to BTC easily without spending additional money on conversions.
As well as allowing users to convert ETH to BTC, their website is full of crypto-related resources to help novice and seasoned traders alike. Consider using their platform next time you convert ETH to BTC and follow their blog for more crypto-related topics or contact a team member directly for more specific enquires.
Unlike other alternate currencies on our list, Tether differs from Bitcoin and Ethereum since it is backed by fiat currencies such as the Euro and U.S. Dollar. Due to this, the digital currency's market capitalization is valued at around the same as one of those denominations, meaning that its value is supposedly less volatile than other cryptocurrencies.
It is well known that investing in cryptocurrencies can be high-risk due to their volatile nature, so Tether is typically favored by investors wary of the volatility of other cryptocurrencies as it’s hypothetically considered a ‘safer’ way of investing in crypto. As of this writing, the market capitalization of Tether sits at around $83 billion, with the average price per coin being $1,00 – placing it just behind Bitcoin and Ethereum.
Commonly mistaken as a cryptocurrency, Ripple is a payment settlement system and currency exchange system that allows users to process transactions globally with low fees and speedy processing times. Despite not being a cryptocurrency itself, Ripple does have its own cryptocurrency, commonly referred to as XRP, so those who enjoy Ripple’s platform and want to invest can buy XRP.
Ripple’s cryptocurrency can be used on their network to facilitate transactions across various currency types, including fiat currencies such as the U.S. Dollar, Pound Sterling, Euro, and even other major cryptocurrencies. As of this writing, Ripple’s market capitalization rests at around $29 billion, with the average cost per coin being about $0.62.
Binance Coin (BNB)
BNB is a form of cryptocurrency that investors can use to trade or pay fees on the crypto-exchange platform called Binance. Launched in 2017, due to its popularity, BNB has outgrown merely facilitating trades on Binance.
Users can now use the digital currency to promote other financial obligations such as booking travel, payment processing, and trading. As of this writing, the market capitalization of BNB currently sits at around $389 billion, with the costs per coin being $32,420.