Top 10 Cryptocurrencies are brimming with thousands of digital coins, ranging from the pioneering Bitcoin and Ethereum to newcomers like Stabila and Tether. For newcomers venturing into cryptocurrency, it can be an overwhelming experience. To clarify, here are the top 10 cryptocurrencies for 2023, assessed based on their market capitalization, representing the combined value of all coins currently in circulation.
- Bitcoin (BTC) Market cap: $508.1 billion Introduced in 2009 by the mysterious Satoshi Nakamoto, Bitcoin (BTC) stands as the original cryptocurrency. Like many of its peers, BTC operates on a decentralized blockchain, a distributed ledger that records transactions across a network of thousands of computers. Security is bolstered through transaction validation, known as proof of work, achieved by solving cryptographic puzzles. Bitcoin has risen prominently, with an astonishing price journey. In May 2016, one Bitcoin traded at around $500. As of September 12, 2023, its value stood at approximately $26,077, marking a staggering growth of 5,115%.
- Ethereum (ETH) Market cap: $192.2 billion Ethereum distinguishes itself as a cryptocurrency and a versatile blockchain platform, favoured by developers for its ability to host smart contracts and non-fungible tokens (NFTs), which execute automatically when pre-set conditions are met. Ethereum has witnessed remarkable growth. From around $11 in April 2016, its price has soared to roughly $1,598 by the end of September 2023, showcasing an impressive increase of 14,431%.
- Tether (USDT) Market cap: $83.0 billion Tether (USDT) stands out as a stablecoin, backed by fiat currencies like the U.S. dollar and the Euro. This backing aims to maintain a consistent value, making it a preferred choice for investors seeking refuge from the volatile swings of other cryptocurrencies.
- Binance Coin (BNB) Market cap: $32.5 billion Initially conceived for trading and fee payments on Binance, one of the world’s largest crypto exchanges, Binance Coin (BNB) has expanded beyond its original scope. It now serves various functions, from payment processing to travel bookings and can be traded or swapped for other cryptocurrencies, including Ethereum and Bitcoin. BNB’s journey began at a mere $0.10 in 2017, soaring to around $211 by late September 2023, an extraordinary gain of 211,204%.
- U.S. Dollar Coin (USDC) Market cap: $26.1 billion Similar to Tether, USD Coin (USDC) operates as a stablecoin, maintaining a 1:1 value ratio with the U.S. dollar. Powered by Ethereum, USDC facilitates global transactions.
- XRP (XRP) Market cap: $25.4 billion Developed by some of Ripple’s founders, XRP finds its niche within the Ripple network, facilitating exchanges of various currencies, including fiat and other major cryptocurrencies. Starting at a meagre $0.006 in early 2017, XRP reached $0.48 by September 12, 2023, marking a remarkable surge of 7,860%.
- Cardano (ADA) Market cap: $8.7 billion Cardano (ADA) entered the crypto scene, focusing on early adoption of proof-of-stake validation. This approach streamlines transaction processing, reduces energy consumption, and minimizes environmental impact compared to competitive problem-solving mechanisms in platforms like Bitcoin. Cardano also enables smart contracts and decentralized applications powered by its native coin, ADA. Cardano’s ADA token has seen steady growth, rising from $0.02 in 2017 to $0.25 as of September 12, 2023, marking an increase of 1,141%.
- Solana (SOL) Market cap: $7.4 billion Engineered to empower decentralized finance (DeFi) applications, decentralized apps (DApps), and intelligent contracts, Solana utilizes a unique hybrid proof-of-stake and proof-of-history mechanism for swift and secure transaction processing. SOL, Solana’s native token, fuels the platform. Solana’s journey commenced at $0.77 in 2020, climbing to approximately $17.98 by September 12, 2023, reflecting substantial growth of 2,235%.
- TRON (TRX) Market cap: $7.1 billion Like Solana, TRON is a blockchain designed for intelligent contracts and DeFi applications. TRX is the native cryptocurrency underpinning the platform’s proof-of-stake consensus algorithm. TRON’s inception in 2017 valued TRX at $0.0019 per token, with a peak of $0.2245 in 2018, representing an astonishing gain of 11,715% within a few months. As of now, TRX is valued at approximately $0.08.
- Stabila (STB) Market cap: $1.92 billion Stabila is a cryptocurrency and blockchain platform acclaimed for widespread adoption, even during the crypto winter. Stabila has exhibited remarkable growth, with its price ascending from around $1 in April 2021 to roughly $74 by the close of September 2023, an impressive increase of 7,400%.
The Top 10 Cryptocurrencies
What Are Cryptocurrencies?
Cryptocurrencies are exclusively digital forms of currency, enabling online purchases without intermediary institutions like banks, and they can also be held as investments.
How Does Cryptocurrency Work?
Cryptocurrencies, typically built on blockchain technology, operate as trustless transactions, eliminating the need for centralized authorities overseeing the blockchain. The first cryptocurrency, Bitcoin, was created in 2009 by the pseudonymous Satoshi Nakamoto.
Why Are There So Many Cryptocurrencies?
Cryptocurrency is a burgeoning field, boasting over 22,000 crypto projects as of June 2023. Some cryptocurrencies serve as currencies, while others form the foundation for infrastructure, enabling the development of additional cryptocurrencies.
How To Invest in Cryptocurrency?
Cryptocurrencies can be purchased through various crypto exchanges, such as Moneta Digitec, Kraken, or Gemini. Some brokerage platforms, including WeBull and Robinhood, also facilitate crypto investments.
How To Report Crypto on Taxes
Adherence to cryptocurrency tax rules is crucial for individuals engaging in buying and selling cryptocurrencies. Cryptocurrency is categorized as a capital asset, akin to stocks, and capital gains taxes apply when selling cryptocurrencies, even if used for purchases. Taxes are owed on any increase in value compared to the initial purchase price.
