From Bitcoin and Ethereum to Dogecoin and Cardano, the world of cryptocurrencies keeps evolving.
In the past 15 years, the crypto industry has grown from non-existent to an important aspect of the financial markets. Currently, there are 22,759 cryptocurrency projects with a valuation of $1 trillion.
But don't get your hopes up; the crypto market has already erased 63% of its value in 2022 alone.
But what is cryptocurrency?
According to the Oxford Dictionary, cryptocurrency is a digital currency where transactions are verified and records are maintained by a decentralized system. These are done using cryptography rather than by a centralized authority.
Simply put, it is a form of digital money that serves as a medium of exchange and is protected by cryptography.
So instead of physical cash carried around the world, cryptographic payments act as a medium of exchange. The most amazing thing about crypto is that it is decentralized.
To help you get started with the world of crypto, here are the top 10 cryptocurrencies to watch out for in 2023.
1. Bitcoin (BTC)
Market Сap: $455,084,957,535
The first and most valuable cryptocurrency asset, Bitcoin (BTC), was introduced in 2009 by an anonymous developer going by the name of Satoshi Nakamoto.
The blockchain technology that powers Bitcoin creates a shared public history of transactions that are organized into "blocks" and chained together to prevent tampering. Every transaction is permanently recorded thanks to this technology, which also gives each Bitcoin user a uniform understanding of who owns what.
A Bitcoin wallet has a public key and a private key that together enable the owner to start and sign transactions electronically.
Although the price of Bitcoin has significantly increased over time, the results for buyers have varied greatly depending on when they made their investments. More recently, the price of a single Bitcoin started in 2022 at slightly more than $47,000.
After a tough year for cryptocurrency in general, Bitcoin has slumped to its current price of just under $23,054.
With the current price of BTC slightly above $23,000, crypto analysts believe that the growth of bitcoin by 2030 can be estimated at 2000%.
2. Ethereum (ETH)
Market Сap: $201,369,644,575
Ethereum is one of literally thousands of cryptocurrencies that allow developers to create their cryptocurrency and deploy smart contracts utilizing the network.
Even though it came out years after some other cryptocurrencies, Ethereum has far exceeded its place in the market because of its unique technology. As the brainchild of eight unique co-founders, Ethereum made its debut in 2015.
Even though the cryptocurrency platform is called Ethereum, the individual unit is called Ether.
Ethereum-based NFTs can enable artists and others to use smart contracts to sell goods directly to customers. By using Ethereum, people may be able to avoid centralized (government) control over the movement of money or other assets.
Ethereum has done tremendously well over the years.
ETH increased from an all-time low of $0.4209 on October 21st, 2015 to an All-Time High of $4,891 on November 16th, 2021. Now its price is around $1,645.63.
3. Tether (USDT)
Market Сap: $73,159,520,357
One of the first cryptocurrencies to tie its market value to a fiat currency was Tether (USDT).
Tether, originally called "Realcoin," valued each token at $1 to reduce the friction of moving real currency throughout the cryptocurrency ecosystem. Because of that peg to a stable fiat currency, Tether and other similar cryptocurrencies have been dubbed "stablecoins."
Currently, Tether is the largest stablecoin by market capitalization, and its users can redeem tethers for US dollars.
Additionally, it produces "tether gold," a cryptocurrency linked to the price of gold that is backed by actual gold bars.
4. Binance Coin (BNB)
Market Сap: $48,556,968,584
The Binance decentralized exchange (DEX), one of the biggest cryptocurrency exchanges by volume, has its cryptocurrency called BNB.
BNB was initially introduced on Ethereum before being moved to the Binance Chain, a trading platform made for blazing-fast transactions. But the chain's ability to use smart contracts is limited by the limitations that blockchain systems have by their very nature.
As a result, scalability was limited.
The Binance Smart Chain, a brand-new blockchain with all the tools needed to create high-performing decentralized applications, was developed by developers to address this issue.
BNB’s price in 2017 was just $0.10. Today, its price had risen to around $306.98
5. USD Coin (USDC)
Market Сap: $40,479,571,272
USD Coin (also known as USDC) is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis.
USDC was created to be a highly useful form of digital money that wouldn’t see its value swing dramatically in the middle of a transaction. In the context of Ethereum smart contracts, USDC can be used to simplify value transfers and blockchain transactions.
This allows users to keep cryptocurrencies in a wallet, ready to send to a friend or interact with decentralized financial tools and services.
This comes with minimal exposure to the risk of their holdings falling in price before they get a chance to spend them. It is backed by assets held in segregated accounts with U.S.-regulated financial institutions that are denominated in dollars and have at least the same fair value as the USDC that was in use at the time.
6. XRP (XRP)
Market Сap: $18,936,034,180
David Schwartz and two co-founders launched the XRP Ledger in 2012 with its native currency, XRP, as a faster, more energy-efficient alternative to the Bitcoin blockchain.
XRP’s blockchain operates a little differently than most cryptocurrencies. This asset was constructed as a solution to improve payments across the world.
Individuals can send and receive XRP, and businesses and platforms can use the asset both in and out of their operations.
It is secure, though, because most ledger owners must agree to the verification before a transaction can be added. At the beginning of 2017, XRP traded at $0.006. As of March 13, 2023, its price had reached $0.374.
7. Binance USD (BUSD)
Market Cap: $8,410,825,800
Binance Academy gives us a proper description of its fiat-backed stablecoin, BUSD.
BUSD offers three key attributes for transactions: accessibility, flexibility, and speed. The token is easily accessible through Paxos or Binance.
You can purchase them through Binance’s exchange or fiat gateway services, or send an amount in U.S. dollars to Paxos to mint new BUSD tokens for you.
BUSD also offers flexibility by allowing crypto users to quickly turn their holdings into stable assets without moving off the blockchain. Finally, by using BUSD, a user can quickly send money around the globe with nominal fees.
The BUSD to USD rate is always approximately 1:1.
It is acknowledged as a medium of exchange by the New York State Department of Financial Services (NYDFS) and is accepted as payment on the crypto market all over the world.
8. Cardano (ADA)
Market Cap: $12,063,682,969
Cardano gave its digital currency, Ada, the name in recognition of Augusta Ada King, widely regarded as the first computer programmer.
A proof-of-stake blockchain platform called Cardano was created using evidence-based methods and peer-reviewed research as its foundation. It brings together cutting-edge technologies to provide decentralized applications, systems, and societies with unmatched security and sustainability.
Charles Hoskinson founded the blockchain platform known as Cardano in 2015. It was launched in 2017.
Cardano has the vision to redistribute power from unaccountable structures to the margins—to individuals—and be an enabling force for positive change and progress. In 2017, ADA’s price was $0.02.
As of March 13, 2023, its price is $0.3477.
9. Dogecoin (DOGE)
Market Cap: $9,739,477,159
Dogecoin was created to be a meme coin.
But due to its abundant supply and low price, it quickly changed into a digital asset that made it simple to tip users on social media sites. It can be used to make payments anywhere that accepts cryptocurrencies and functions similarly to many other cryptocurrencies.
Dogecoin is very similar to some of the earliest altcoins, which, like Bitcoin, run on proof-of-work consensus, technically speaking.
Since it was forked from the now-defunct Luckycoin, which was itself a fork of Litecoin, the two coins share many similarities. Dogecoin’s price in 2017 was $0.0002.
Currently, on March 13, 2023, its price is $0.0734.
10. Polygon (MATIC)
Market Cap: $10,867,510,531
Polygon was formerly called Matic Network.
This is an Ethereum token that powers the Polygon Network, a scaling solution for Ethereum. It gives both new and existing blockchain projects a simple framework to build on Ethereum without running into scalability problems.
Polygon aims to provide faster and cheaper transactions on Ethereum using Layer 2 sidechains, which are blockchains that run alongside the Ethereum main chain.
Ethereum tokens can be deposited into a Polygon smart contract, used within Polygon, and then withdrawn back to the Ethereum main chain. Polygon has solutions for everyday users, developers, and enterprises alike.
Their primary objective is to create an "Internet of Things" (IoT) for the Ethereum blockchain.
This strategy gives developers more flexibility and control when selecting the scaling solution that is best for their application. MATIC traded for $0.00263 per coin when it was first launched.
As of March 13, 2023, MATIC trades at $1.24.
Conclusion.
Cryptocurrencies are an amazing financial investment. The real question becomes, "Which crypto should I put my money into?"
As you decide which cryptocurrency is best suited for you, here are things to keep in mind to maximize your financial decisions:
The speed at which transactions are completed.
The fees associated with transacting.
The ability to use your cryptocurrency for regular purchases.
If you’re strictly looking to invest without transacting within the network, remember that cryptocurrency isn’t a get-rich-quick scheme. Instead, consider it a long-term investment.
PS: Note that the market cap was taken on March 13th, 2023. Remember that this serves for educational purposes only. For more information, DYOR(Do Your Own Research).
I'd love to connect with you on Twitter | LinkedIn | Portfolio
See you in my next blog article. Take care!!!