There are thousands of different cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, making it difficult to get started in the world of cryptocurrency. To help you get started, here are the top ten cryptocurrencies ranked by market capitalization, or the total value of all coins currently in circulation.
What Are Cryptocurrencies?
A cryptocurrency is a digital asset that can circulate independently of a bank or government. There are currently over 20,000 cryptocurrency projects available, representing the entire $870 billion crypto market.
As of 2022, many people have ventured into the cryptocurrency industry as compared to earlier years when it remained a mystery to most people.
Although cryptocurrencies have not been well accepted in Kenya by both the government and relevant financial institutions, a portion of Kenyans have invaded the market and are actively trading, earning profits daily.
However, the said market is not as good for newcomers as it is known to be flooded with scammers and other ill-fated deals. As a newbie, it’s always good to do your research before venturing into the crypto market.
Bitcoin, Ethereum, and Dogecoin are some of the top 10 best cryptocurrencies in the market as of 2022. These coins have been in the market for quite some time now.
Top 10 Best cryptocurrencies as of 2022
1. Bitcoin (BTC)- Market cap: $370 billion
Bitcoin (BTC) is the original cryptocurrency, created in 2009 by Satoshi Nakamoto. BTC, like most cryptocurrencies, is based on a blockchain, which is a ledger that records transactions across a network of thousands of computers. Bitcoin is kept secure and safe from fraudsters because additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process known as proof of work.
As Bitcoin has grown in popularity, its value has skyrocketed. In May 2016, one Bitcoin could be purchased for around $500. A single Bitcoin was worth around $19,400 on July 1, 2022. That’s a more than 3,780 percent increase.
2. Ethereum- Market cap: $66 billion
Ethereum, which is both a cryptocurrency and a blockchain platform, is a favorite among programmers due to the potential applications it offers, such as smart contracts that execute automatically when certain conditions are met and non-fungible tokens (NFTs).
Ethereum has also seen explosive growth. From April 2016 to the beginning of July 2022, its price increased by nearly 9,509 percent, rising from around $11 to $1,057.
3. Tether (USDT)- Market cap: $66 billion
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Tether (USDT) is a stablecoin, which means it is backed by fiat currencies such as US dollars and the Euro and theoretically maintains a value equal to one of those denominations. In theory, this means Tether’s value should be more consistent than other cryptocurrencies, and it’s preferred by investors who are wary of other coins’ extreme volatility.
4. U.S. Dollar Coin (USDC)-Market cap: $55 billion
USD Coin (USDC), like Tether, is a stablecoin, which means it is backed by US dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to make international payments.
5. Binance Coin (BNB)- Market cap: $35 billion
Binance Coin (BNB) is a cryptocurrency that can be used to trade and pay fees on Binance, one of the world’s largest cryptocurrency exchanges. Binance Coin has grown beyond simply facilitating trades on Binance’s exchange platform since its inception in 2017. It is now possible to use it for trading, payment processing, and even booking travel arrangements. It can also be exchanged or traded for other cryptocurrencies such as Ethereum or Bitcoin.
In 2017, the price of BNB was only $0.10. Its price had risen to around $215 by early July 2022, a gain of approximately 214,900 percent.
6. Binance USD (BUSD)- Market cap: $17 billion
Binance USD (BUSD) is a stablecoin created by Paxos and Binance to create a cryptocurrency backed by the United States dollar. Paxos holds an amount of US dollars equal to the total supply of BUSD to maintain this value. BUSD, like other stablecoins, allows traders and crypto users to conduct transactions with other crypto assets while minimizing the risk of volatility.
7. XRP (XRP)- Market cap: $15 billion
XRP, which was founded by some of the same people as Ripple, a digital technology and payment processing company, can be used on that network to facilitate exchanges of various currency types, including fiat currencies and other major cryptocurrencies.
The price of XRP at the start of 2017 was $0.006. Its price reached $0.31 on July 1, 2022, representing a gain of more than 5,066 percent.
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8. Cardano (ADA)- Market cap: $15 billion
Cardano (ADA), which arrived on the crypto scene later, is notable for its early embrace of proof-of-stake validation. By removing the competitive, problem-solving aspect of transaction verification in platforms such as Bitcoin, this method reduces transaction time, energy usage, and environmental impact. Cardano, like Ethereum, enables smart contracts and decentralized applications, which are powered by ADA, its native coin.
Cardano’s ADA token has grown slowly in comparison to other major crypto coins. In 2017, the price of ADA was $0.02. Its price was $0.44 on July 1, 2022. This represents a 2,100% increase.
9. Solana (SOL)- Market cap: $11 billion
Solana, which was created to power decentralized finance (DeFi) applications, decentralized apps (DApps), and smart contracts, uses a unique hybrid proof-of-stake and proof-of-history mechanism to process transactions quickly and securely. The platform is powered by SOL, Solana’s native token.
SOL’s price when it first launched in 2020 was $0.77. By early July 2022, its value had risen to around $40.58, a gain of more than 5,100%.
10. Dogecoin (DOGE)- Market cap: $8 billion
Dogecoin began as a joke in 2013, but quickly grew into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoins that can be created, making the currency vulnerable to depreciation as supply grows.
In 2017, the price of Dogecoin was $0.0002. By July 1, 2022, its price had risen nearly 32,400% to $0.065.
*Market caps and pricing sourced from coinmarketcap.com, current as of July 1, 2022.
