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Top 10 Cryptocurrencies Of January 2024

Top 10 Cryptocurrencies Of January 2024


Starting out in the world of cryptocurrencies can be overwhelming because there are thousands of cryptocurrencies, from Dogecoin and Tether to Bitcoin and Ethereum. These are the top 10 cryptocurrencies according to market capitalization, which is the sum of all the coins in existence at the moment, to help you get your bearings.


Top 10 Cryptocurrencies Of January 2024


Best Crypto To Buy Now


1. Bitcoin (BTC)

Market cap: $839.6 billion


The first cryptocurrency, known as Bitcoin (BTC), was developed in 2009 by Satoshi Nakamoto. BTC operates on a blockchain, a ledger that records transactions dispersed over a network of thousands of computers, just like most cryptocurrencies. Bitcoin is protected from scammers because updates to the distributed ledgers need to be validated through the solution of a cryptographic puzzle known as proof of work.


As Bitcoin gains widespread recognition, its value soars. One Bitcoin cost roughly $500 in May of 2016. On January 16, 2024, one Bitcoin was approximately $42,834. It represents an 8,467% growth.


2. Ethereum (ETH)

Market cap: $303.8 billion


Ethereum is a blockchain platform and cryptocurrency popular among developers due to its potential uses, including non-fungible tokens (NFTs) and so-called smart contracts, which run automatically when certain conditions are met.


Ethereum has grown astronomically as well. Its price increased by 22,881% between April 2016 and the end of January 2024, from approximately $11 to roughly $2,525.


3. Tether (USDT)

Market cap: $95.1 billion


Tether (USDT), in contrast to specific other cryptocurrency versions, is a stablecoin—that is, it is backed by fiat currencies such as the U.S. dollar and the euro and maintains a theoretical value equivalent to one of those denominations. Tether is preferred by investors who are apprehensive about the extreme volatility of other coins because, theoretically, its value is meant to be more stable than that of other cryptocurrencies.


4. Binance Coin (BNB)

Market cap: $48.1 billion


One of the biggest cryptocurrency exchanges in the world, Binance, accepts Binance Coin (BNB) as payment for fees associated with trading. Binance Coin has grown beyond just enabling trades on Binance's exchange platform since its launch in 2017. It can be utilized for travel booking, payment processing, and trading. Additionally, it can be exchanged or traded for other cryptocurrencies like Ethereum or Bitcoin.


In 2017, BNB was only worth $0.10. Its price increased to about $317 by the end of January 2024, a gain of 316,715%.


5. Solana (SOL)

Market cap: $41.6 billion


Solana is a blockchain that powers decentralized apps (DApps), smart contracts, and decentralized finance (DeFi). It processes transactions fast and securely using a hybrid proof-of-stake and proof-of-history mechanism. The native token of Solana, SOL, drives the platform.


SOL's initial price at launch in 2020 was $0.77. At approximately $96.20 by the end of January 2024, it had gained 12,394% in value.


6. XRP (XRP)

Market cap: $31.2 billion


XRP is a cryptocurrency that can be used on the Ripple network to enable the exchange of various currencies, including fiat currencies and other prominent cryptocurrencies. Ripple is a digital technology and payment processing company founded by some of the same individuals.


The price of XRP was $0.006 at the start of 2017. By the time it closed on January 16, 2024, the price had increased by 9,471% to $0.57.


7. U.S. Dollar Coin (USDC)

Market cap: $25.5 billion


Like Tether, USD Coin (USDC) strives for a 1 USD to 1 USDC ratio and is a stablecoin backed by U.S. dollars. Ethereum powers USDC, and USD Coin allows you to conduct international transactions.


8. Cardano (ADA)

Market cap: $19.0 billion


Cardano (ADA), which entered the cryptocurrency space somewhat later, is renowned for being the first to adopt proof-of-stake validation. This approach eliminates transaction verification's competitive, problem-solving element in platforms such as Bitcoin, thereby speeding up transaction times and reducing energy consumption and environmental impact. Like Ethereum, Cardano uses its native coin, ADA, to power decentralized apps and smart contracts.


Comparing Cardano's ADA token to other prominent cryptocurrency coins, its growth could be faster. The cost of ADA was $0.02 in 2017. Its price, as of January 16, 2024, was $0.54. This represents a 2,585% rise.


9. Avalanche (AVAX)

Market cap: $13.0 billion


Two key features that Avalanche offers are quick transaction times and inexpensive transaction costs. Additionally, AVAX has a sizable amount of money deposited in decentralized finance, total value locked, or TVL. The total value of cryptocurrency assets deposited in lending, staking, or liquidity pools within a decentralized finance (DeFi) protocol is TVL.


A protocol's popularity and a cryptocurrency's rate of adoption are both indicated by a high TVL. The current price of Avalanche is $35.


10. Dogecoin (DOGE)

Market cap: $11.5 billion


Famously launched as a joke in 2013, Dogecoin quickly gained popularity as a cryptocurrency because of its committed community and inventive memes. Unlike many other cryptocurrencies, dogecoins can be created indefinitely, which makes the currency vulnerable to depreciation as supply grows.


In 2017, the price of Dogecoin was $0.0002. By January 2024, the price had increased by 40,344% to $0.08.


Market caps and prices are current as of 2:31 pm UTC on January 16, 2024, and are taken from coinmarketcap.com.


What Are Cryptocurrencies?

A type of money known as cryptocurrency only exists digitally. You can hold cryptocurrency as an investment or use it to make online payments without using an intermediary like a bank.


How Does Cryptocurrency Work?

Different types of digital money and cryptocurrencies are typically built on blockchain technology. Thanks to blockchain technology, most cryptocurrencies can function as "trustless" means of transaction. This indicates that a single, centralized body does not supervise the transactions on a cryptocurrency's blockchain.


Computer programmer Satoshi Nakamoto, who uses a pseudonym, invented Bitcoin, the first cryptocurrency, in 2009.


Why Are There So Many Cryptocurrencies?

As of June 2023, there were over 22,000 active cryptocurrency projects. Cryptocurrency is a relatively new field.


Some cryptocurrencies are used as money, while others are used to build infrastructure. Developers are creating other cryptocurrencies on top of platform currencies like Ethereum and Solana, which opens up even more possibilities.


How To Invest in Cryptocurrency?

You can purchase cryptocurrencies through cryptocurrency exchanges like Coinbase, Kraken, or Gemini. Furthermore, a few brokerages, like WeBull and Robinhood, let customers buy cryptocurrencies.


How To Report Crypto on Taxes

You should know cryptocurrency tax laws if you buy and sell coins.


Unlike cash, cryptocurrency is regarded as a capital asset, much like stocks. This implies that you will be liable for capital gains taxes if you sell cryptocurrency for a profit. This remains true even if you pay for a purchase with cryptocurrency. You will be responsible for paying taxes on any amount you receive over what you paid.


Crypto FAQs


How does trading cryptocurrencies differ from trading stocks?

Although cryptocurrencies can be invested in, they differ significantly from conventional investment forms like stocks. Purchasing stock entitles you to a portion of the company's ownership, giving you the power to decide how the business is run, among other things. If that company files for bankruptcy, you might also be entitled to compensation after its creditors have been paid out of the liquidated assets.


Purchasing cryptocurrency is akin to exchanging one type of money for another; it doesn't give you ownership over anything save the token itself. You won't be compensated if the cryptocurrency loses value after the fact.


There are several other key differences to keep in mind:


  • Trading hours: Stocks are traded only during stock exchange hours, typically Monday through Friday from 9:30 am to 4:30 pm E.T. You can sell seven days a week, twenty-four hours a day since cryptocurrency markets are open 24/7.
  • Regulation: A regulatory body verifies its qualifications because stocks are financial products subject to regulatory oversight and public financial disclosure. In contrast, you might need to be made aware of the inner workings of your cryptocurrency or the developers behind it, as cryptocurrencies are not regulated investment vehicles.
  • Volatility: Investing involves risk; your money could lose value. This is true for both stocks and cryptocurrencies. Nonetheless, stocks are closely associated with businesses and typically fluctuate in response to the success of those businesses. Prices for cryptocurrencies are more speculative; people are still determining their exact value now. This increases their volatility and makes even minor events like a celebrity's tweet impact them.


Are there cryptocurrency exchange-traded funds (ETFs)?

Given the thousands of cryptocurrencies (and the high volatility associated with most), you should take a diversified approach to investing in crypto to minimize the risk of losing money.


Although exchange-traded funds (ETFs) trade in Bitcoin futures, no ETFs trade Bitcoin or other cryptocurrencies directly due to regulatory hurdles. In June 2023, BlackRock proposed a Bitcoin spot trading ETF, which has yet to receive regulatory approval.


What are altcoins?

Typically, Bitcoin comes to mind when we think of cryptocurrency. This is because Bitcoin commands a market share of over 45% of all cryptocurrencies. Thus, all cryptocurrencies unrelated to Bitcoin are referred to as altcoins.


For example, Ethereum is thought to be the most well-known altcoin.


Why is Bitcoin valuable?

The scarcity of Bitcoin contributes to its high value. The total number of bitcoins in circulation is only 21 million. There are 19 million coins in use right now.


Bitcoin pays crypto miners a fixed amount of Bitcoin to create supply. When a miner completes a single block successfully, they are awarded 6.25 BTC. The rewards for mining Bitcoin are reduced by half approximately every four years to maintain control over the process.


Why are cryptocurrencies important?

Although the original idea behind cryptocurrencies was to address issues with conventional currencies, the development of the blockchain has led to the emergence of a wide range of utility cryptocurrencies.

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