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From bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when youre first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the coins currently in circulation.

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Created in 2009 by Satoshi Nakamoto, bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, bitcoin is kept secure and safe from fraudsters.

Bitcoins price has skyrocketed as its become a household name. In May 2016, you could buy one bitcoin for about $500. As of Jul. 16, 2024, a single bitcoins price was around $63,808. Thats a growth of 12,662%.

Related: How To Buy Bitcoin

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to the end of July 2024, its price went from about $11 to around $3,409, increasing 30,893%.

Related: How To Buy Ethereum

Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning its backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tethers value is supposed to be more consistent than other cryptocurrencies, and its favored by investors who are wary of the extreme volatility of other coins.

Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binances exchange 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.

BNBs price in 2017 was just $0.10. By late July 2024, its price had risen to around $569, a gain of 568,609%.

Related: How To Buy Cryptocurrency

Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. SOL, Solanas native token, powers the platform.

When it launched in 2020, SOLs price started at $0.77. By late July 2024, its price was around $156.62, a gain of 20,241%.

Like Tether, USD Coin (USDC) is a stablecoin, meaning its backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

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

At the beginning of 2017, the price of XRP was $0.006. As of Jul. 16, 2024, its price reached $0.55, equal to a rise of 9,027%.

Originally developed as a layer-1 blockchain for Telegrams encrypted messaging platform, Toncoin was soon abandoned before being taken over by the TON foundation. The project name was even changed to The Open Network from its original name Telegram Open Network, both of which are referred to by their acronym: TON.

Toncoinfirst known as Gramis the native token for TON. It is an application that allows users to buy, send and store funds on TONs incredibly fast, environmentally friendly network.

Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.

Dogecoins price in 2017 was $0.0002. By July 2024, its price was at $0.12, up 61,051%

Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native coin, powers.

Cardanos ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADAs price was $0.02. As of Jul. 16, 2024, its price was at $0.43. This is an increase of 2,059%.

*Market caps and pricing sourced from coinmarketcap.com, current as of 8:31 a.m. UTC on Jul. 16, 2024.

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

Cryptocurrencies are various forms of digital money that are usually based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist as trustless forms of transactions. This means there is no centralized authority overseeing the transactions on a cryptocurrencys blockchain.

Cryptocurrency is an emerging area with more than 9,000 crypto projects in existence as of March 2024.

While some crypto function as currencies, others are used to develop infrastructure. For instance, in the case of Ethereum or Solana, developers are building other cryptos on top of these platform currencies, and that creates even more possibilities (and cryptos).

There are both pros and cons to investing in cryptocurrencies. Some of the most common ones an investor might run into are:

When choosing the best cryptocurrency to invest in, it is important to consider your individual goals, investing timeline and risk profile, just as you would with any investment. Additionally, you should do your due diligence to make sure that any crypto project you are interested in is legitimate and secure.

In general, investors should consider the following when evaluating a crypto:

When exploring cryptocurrency investments, first consider the exchanges where the token is listed. Tokens featured on major exchanges generally offer better liquidity, attracting larger investors and reaching a broader audience, which in turn increases the potential buyer base.

Maksym Repa, analyst at Symbolic Capital

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

How much it costs to buy cryptocurrency depends on a number of factors, including which crypto you are buying. Many small altcoins trade for a fraction of a cent, while a single bitcoin will cost you tens of thousands of dollars. However, many brokerages and exchanges now allow fractional trading, offering investors the option to buy a portion of a cryptocurrency.

There are also often costs and fees associated with having a crypto wallet and/or an account on a brokerage or crypto exchange. Be sure that you understand all of the costs associated with buying and holding any cryptocurrency before you invest.

If you buy and sell coins, its important to pay attention to cryptocurrency tax rules.

Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, youll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, youll owe taxes on the difference.

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While you can invest in cryptocurrencies, they differ a great deal from traditional investments, like stocks. When you buy stock, you are buying a share of ownership of a company, which means youre entitled to do things like vote on the direction of the company. If that company goes bankrupt, you also may receive some compensation once its creditors have been paid from its liquidated assets.

Buying cryptocurrency doesnt grant you ownership over anything except the token itself; its more like exchanging one form of currency for another. If the crypto loses its value, you wont receive anything after the fact.

There are several other key differences to keep in mind:

Given the thousands of cryptocurrencies in existence and the high volatility associated with most of them, its understandable you might want to take a diversified approach to investing in crypto to minimize the risk that you might lose money.

There are exchange-traded funds, or ETFs, that trade in both bitcoin futures and bitcoins spot price. The bitcoin ETF that is right for you, however, depends upon many factors, including your risk tolerance and investment horizon.

When we first think of crypto, we usually think of bitcoin. Thats because bitcoin represents more than 45% of the total cryptocurrency market. So when we talk about any cryptos outside of bitcoin, all of those cryptos are considered altcoins.

Ethereum, for instance, is regarded as the most popular altcoin.

Part of what makes bitcoin so valuable is its scarcity. Bitcoins maximum supply is limited to 21 million coins. Currently, there are 19 million coins in circulation.

To create supply, bitcoin rewards crypto miners with a set bitcoin amount. To be exact, 6.25 BTC is issued when a miner has successfully mined a single block. To keep the process in check, the rewards given for mining bitcoin are cut in half almost every four years.

While the initial premise of cryptocurrency was to fix the problems with traditional currencies, there are now a whole host of utility cryptocurrencies that have sprung up, thanks to the creation of the blockchain.

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Top 10 Cryptocurrencies Of July 16, 2024 - Forbes