There are so many significant digital assets for market capitalization in the crypto market that it’s difficult to choose only one of them. In this article, we will review some of the top cryptocurrencies, how to buy crypto coins, and what qualities have made them popular.
Best Cryptocurrencies By Market Capitalization
Have you used the market capitalization calculator? Then you can see which types of crypts will be the best for market capitalization.
Let’s have a look at the best cryptocurrencies which are perfect for market capitalization.
1. Bitcoin (BTC)
Bitcoin is the first and most famous cryptocurrency in the world. It is completely decentralized and operates in a peer-to-peer network, allowing anonymous transactions to be made without intermediaries.
The Bitcoin blockchain consists of a network of computers (nodes) with special software containing a complete or partial history of Bitcoin transactions. The blockchain operates on the Proof of Work (PoW) consensus. Miners are rewarded in bitcoins after the transactions they have confirmed form a block.
The total amount of BTC is limited to 21 million coins. It’s like a world computer! BTC ranks #1 in market cap with $432,266,909,136. The price of the coin at the time of writing is $22,386.74.
2. Ethereum (ETH)
Ethereum is a blockchain platform for decentralized applications and the second most popular cryptocurrency, ETH.
Ethereum has a number of features that distinguish it from Bitcoin (BTC) and other cryptocurrencies:
- Support for full-fledged smart contracts: computer algorithms that allow you to conduct transactions without intermediaries and actually transfer business operations to the blockchain;
- A virtual machine (EVM) is responsible for executing smart contracts. EVM is able to process much more complex operations programmed in smart contracts;
- Possibility of issuing custom tokens in the unified ERC-20 standard;
- Ethereum is popular as a blockchain for NFTs and market capitalization.
ETH (or Ether) is the native Ethereum cryptocurrency used to run decentralized applications and pay fees for transactions on the network. It is also great for cross-border transactions.
After the update called “The Merge,” staking became available. ETH is the second largest cryptocurrency by market capitalization, with $192,124,070,854. Its price at the time of writing is $1,569.88.
3. Binance Coin (BNB)
Binance Coin (BNB) is a native cryptocurrency of the cryptocurrency exchange, Binance. The crypto was originally based on ERC20 using the Ethereum (ETH) blockchain, but then Binance moved the asset to its own network, which is currently running on the Binance blockchain.
BNB is also the native token for the Smart Chain (BSC) blockchain network, launched in 2020. BNB can be used to pay trading fees on Binance, Binance DEX, pay transaction fees on Binance Chain, goods, services, and more.
The BNB rate is largely dependent on the market capitalization development of Binance exchanges, which resembles the mechanism of how shares work. At the time of writing, Binance Coin (BNB) is ranked 4th in terms of capitalization with $46,523,520,092 and a price of $290.52.
4. Cardano (ADA)
Cardano is a blockchain platform based on the Proof-Of-Stake algorithm, designed by its developers to create decentralized applications based on smart contracts. The project is based on research in mathematics and game theory.
One of the important differences between Cardano and its competitors is a large research community, thanks to which the project has implemented several unique architectural solutions.
Cardano (ADA) is the native cryptocurrency of the project, designed for transfers in the blockchain. Staking is also available: ordinary asset holders can delegate them to stake pool node operators participating in the consensus algorithm. Great alternative for financial institutions!
The most popular Daedalus and Yoroi wallets have an integrated coin delegation mechanism. Approximate yield: from 3.7% to 4.2% per annum. ADA takes 7th place regarding market capitalization ($11,862,761,640). The asset’s price at the time of writing this article is $0.3421.
5. Ripple (XRP)
Ripple is a blockchain project positioned as an alternative to such global payment systems as SWIFT and SEPA. The Ripple ecosystem operates on the basis of the decentralized XRP Ledger (XRPL) network. Its advantages include high speed (the average block creation time is 3-4 seconds), scalability, secure transactions, and low transfer fees.
Blockchain technology works on nodes being under the control of validators. At the time of writing, more than 150 validators are active on the network. Thirty-five validators are part of the Unique Nodes List (UNL) group, which is responsible for changes to the protocol.
In 2013, XRP (Ripple’s native coin) was introduced. Instead of mining, the creators decided to use a one-time emission of 100 billion coins at the time of launching the network. Each coin is divided into a million particles called drops.
These amounts will eventually burn and reduce the number of coins. XRP ranks 6th by market capitalization with $19,138,840,152. The price of the asset at the time of writing is $0.3756.
There is no universal advice on which cryptocurrency to buy. Many of the currency’s market capitalization depends on an asset’s scarcity and real-world utility.
The choice of cryptocurrency should always be your personal decision. In this article, we have reviewed several assets with a good market reputation. You may want to have one or more of these for diversifying portfolios.