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Top 10 Cryptocurrencies In January 2022 – Forbes Advisor

Top 10 Cryptocurrencies In January 2022
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From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it confusing when you’re first getting started in the crypto world. To help you get your own directions, these are the top 10 cryptocurrencies based on their market cap, or the total value of all coins currently in circulation.

1. Bitcoin (BTC)

  • Market capitalization: over $1.08 trillion

Bitcoin (BTC) was created in 2009 by someone under the pseudonym Satoshi Nakamoto, and is the original cryptocurrency. As with most cryptocurrencies, BTC operates on a blockchain, or ledger recording transactions distributed across a network of thousands of computers. Because additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called Proof of Work, Bitcoin is kept safe and secure from fraudsters.

Bitcoin price has skyrocketed as it has become a household name. Five years ago, you could buy Bitcoin for about $500. As of November 30, 2021, the price of one bitcoin was over $57,000. That’s a growth of about 11.40%.

Related: How to buy bitcoin

2. Ethereum (ETH)

  • Market value: more than 557 billion dollars

Ethereum, as a cryptocurrency and blockchain platform, is favored by software developers due to its potential applications, such as so-called smart contracts that execute automatically when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced massive growth. In just over five years, its price has gone from around $11 to more than $4,700, up more than 42,000%.

Related: How to buy Ethereum

3. Binance Coin (BNB)

  • Market value: more than 104 billion dollars

Binance coin is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest cryptocurrency exchanges in the world.

Since its launch in 2017, Binance Coin has expanded in the past simply to facilitate transactions on the Binance trading platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

Its price in 2017 was only $0.10; By November 30, 2021, it had risen to over $628, an increase of nearly 627,000%.

Related: How to buy cryptocurrency

4. Cord (USDT)

  • Market value: more than $73 billion

Unlike some other forms of cryptocurrency, Tether is a stablecoin, which means that it is backed by fiat currencies like the US dollar and the euro, and by default holds a value equal to one of those denominations. In theory, this means that Tether should have a more consistent value than other cryptocurrencies, and it is preferred by investors who are wary of the high volatility of other coins.

5. Solana (SOL)

  • Market value: more than 64 billion dollars

Developed to help support the uses of decentralized finance (DeFi), decentralized applications (DApps), and smart contracts, Solana works on unique hybrid proof of ownership and proof of record mechanisms that help it process transactions quickly and securely. SOL, Solana’s original code, powers the platform.

When it was launched in 2020, the SOL price started at $0.77. By November 30, 2021, its price was approximately $213.42, up over 26,500%.

6. Cardano (ADA)

  • Market value: more than $52 billion

Somewhat later in the crypto scene, Cardano was known for its early embrace of proof-of-stake validation. This method speeds up transaction time and reduces energy use and environmental impact by removing the competitive problem-solving aspect of validating transactions found on platforms like Bitcoin. Cardano is also working like Ethereum to enable smart contracts and decentralized applications, which are powered by ADA, its native currency.

Cardano’s ADA token has seen relatively modest growth compared to other major cryptocurrencies. In 2017, the price of ADA was $0.02. As of November 30, 2021, its price is $1.57. This represents an increase of 7,850%.

7. XRP (XRP)

  • Market value: more than 47 billion dollars

Created by some of the founders of Ripple, a digital technology and payments processing company, XRP can be used on that network to facilitate exchanges of different types of currencies, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. As of November 30, 2021, its price has reached $1.00, which is an increase of 16,666%.

8. US Dollar Currency (USDC)

  • Market value: more than $38 billion

Like Tether, the US Dollar (USDC) is a stablecoin, which means that it is backed by the US dollar and aims to have a ratio of 1 USD to 1 USD. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

9. Polkadot (DOT)

  • Market value: more than $37 billion

Cryptocurrencies may use any number of block chains; Polkadot (and the cryptocurrency of the same name) aims to integrate them by creating a cryptocurrency network that connects different block chains so that they can work together. This integration could change how cryptocurrencies are managed and has led to an impressive growth since the launch of Polkadot in 2020. Between September 2020 and November 30, 2021, its price increased by nearly 1,300%, from $2.93 to $38.61.

10. Dogecoin (DOGE)

  • Market value: more than 28 billion dollars

Dogecoin has been a hot topic thanks to celebrities and billionaires like Elon Musk. Popularly started as a joke in 2013, Dogecoin quickly became a prominent cryptocurrency choice, thanks to its dedicated community and creative memes. Unlike many other cryptocurrencies, such as Bitcoin, there is no limit to the number of Dogecoins that can be created, leaving the currency vulnerable to devaluation as supply increases.

The price of Dogecoin in 2017 was $0.0002. By November 30, 2021, it was priced at $0.22 – an increase of nearly 110,000%.

Related: How to buy Dogecoin

* Market caps and current prices as of November 30, 2021.

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Encryption FAQ

What are cryptocurrencies?

Cryptocurrency is a form of currency that exists only in digital form. Cryptocurrency can be used to pay for online purchases without going through an intermediary, such as a bank, or it can be held as an investment.

How is cryptocurrency trading different from stocks?

While you can invest in cryptocurrencies, they are very different from traditional investments, such as stocks. When you buy a stock, you’re buying a share of the company’s ownership, which means you have the right to do things like vote on the direction of the company. If this company goes bankrupt, it may also receive some compensation once its creditors are paid off of its liquidated assets.

Buying cryptocurrency does not give you ownership over anything except the token itself; It is like exchanging one form of currency for another. If the encryption loses its value, you will not receive anything after the fact.

There are several other key differences to consider:

  • Trading hours: Shares are traded only during stock exchange hours, typically 9:30 a.m. to 4:30 p.m. ET, Monday through Friday. Cryptocurrency markets never close, so you can trade 24 hours a day, seven days a week.
  • Regulation: Stocks are regulated financial products, which means that the governing body verifies its credentials and that its finances are public. By contrast, cryptocurrencies are not regulated investment vehicles, so you may not be aware of the internal dynamics of cryptocurrencies or the developers working on them.
  • volatility: Both stocks and cryptocurrencies have risks; The money you invest can lose value. However, stocks are directly related to companies and generally rise and fall based on the performance of those companies. Cryptocurrency prices are more speculative – no one is quite sure of their value yet. This makes her even more volatile and affected by something as small as a celebrity’s tweet.

Do you have to pay taxes on cryptocurrency?

If you are buying and selling coins, it is important to pay attention to the cryptocurrency tax rules. Cryptocurrency is treated as a capital asset, like stocks, rather than cash. This means that if you sell cryptocurrency at a profit, you will have to pay capital gains taxes. This is the case even if you use your crypto to pay for the purchase. If you receive more value than you paid, you will owe taxes on the difference.

Do Cryptocurrency Exchange Funds (ETFs) Exist?

Given the thousands of cryptocurrencies out there (and the high volatility associated with most of them), it’s understandable that you might want to take a diversified approach to investing in cryptocurrencies to reduce your risk of losing money.

Several companies have proposed crypto-traded funds, including Fidelity, but regulatory hurdles have slowed the launch of any consumer products. As of June 2021, there are no ETFs available to regular investors in the market.

You can buy cryptocurrency through cryptocurrency exchanges, such as Coinbase, Kraken or Gemini. In addition, some brokerages, such as WeBull and Robinhood, allow consumers to purchase cryptocurrency.

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