1. Bitcoin (BTC)
Market cap: $506.3 billion
Bitcoin (BTC), created in 2009 by Satoshi Nakamoto, is the original cryptocurrency. Like most cryptocurrencies, BTC runs on a blockchain, or ledger, where transactions distributed across a network of thousands of computers are recorded. Because additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof-of-work, Bitcoin is secure and protected from fraudsters.
The price of Bitcoin has skyrocketed since it became a household name. In May 2016, you could buy one bitcoin for around $500. As of August 29, 2023, the price of one Bitcoin was around $26,002. That's a growth of 5,100%.
Related: How to Buy Bitcoins
2. Ethereum (ETH)
Market cap: $197.5 billion
Both a cryptocurrency and a blockchain platform, Ethereum is popular among software developers for its potential applications, such as so-called smart contracts that automatically execute when conditions are met, and non-fungible tokens (NFTs).
Ethereum has also seen tremendous growth. From April 2016 to the end of August 2023, its price increased from around $11 to around $1,643, an increase of 14,834%.
Related: How to Buy Ethereum
3. Tether (USDT)
Market cap: $82.8 billion
Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it is backed by fiat currencies such as US dollars and the euro and hypothetically maintains a value equal to one of these denominations. In theory, this means that Tether's value should be more consistent than other cryptocurrencies, and is favored by investors who fear the extreme volatility of other coins.
4. Binance Coin (BNB)
Market cap: $33.5 billion
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 beyond just facilitating trades on the Binance exchange. Now it can be used for trading, processing payments or even booking travel services. It can also be traded or exchanged for other forms of cryptocurrency such as Ethereum or Bitcoin.
The price of BNB in 2017 was just $0.10. By the end of August 2023, its price had risen to around $218, representing a gain of 217,730%.
Related: How to Buy Cryptocurrency
5. XRP (XRP)
Market cap: $27.3 billion
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on this network to facilitate the exchange of various types of currency, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. As of August 29, 2023, its price reached $0.52, which equates to an increase of 8,511%.
6. US Dollar Coin (USDC)
Market cap: $26.0 billion
Like Tether, USD Coin (USDC) is a stablecoin, meaning 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 complete global transactions.
7. Cardano (ADA)
Market cap: $9.2 billion
A bit later on the crypto scene, Cardano (ADA) is notable for its early adoption of proof-of-stake verification. This method speeds up transaction time and reduces energy consumption and environmental impact by removing the competitive aspect of verifying transactions on problem-solving platforms like Bitcoin. Cardano also works like Ethereum, enabling smart contracts and decentralized applications powered by ADA, its native coin.
Cardano's ADA token has seen relatively modest growth compared to other major cryptocurrencies. In 2017, the ADA price was $0.02. As of August 29, 2023, its price was $0.26. That's an increase of 1,205%.
8. Dogecoin (DOGE)
Market cap: $8.8 billion
Dogecoin was famously founded as a joke in 2013, but quickly developed 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, leaving the currency vulnerable to devaluation as supply increases.
Dogecoin price in 2017 was $0.0002. As of August 2023, its price was at $0.06, an increase of 31,256%.
9. Solana (SOL)
Market cap: $8.3 billion
Developed to help leverage decentralized finance (DeFi), decentralized applications (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanism for fast and secure transaction processing. The platform is powered by SOL, Solan's native token.
When SOL launched in 2020, the price of SOL started at $0.77. By August 29, 2023, its price was around $20.22, representing a gain of 2,526%.
10. TRON (TRX)
Market cap: $6.8 billion
Similar to Solana, TRON is a blockchain designed to run smart contracts and other DeFi applications. TRX is the platform's native cryptocurrency that powers its proof-of-stake consensus algorithm.
TRON was founded in 2017 and TRX was initially valued at $0.0019 per token. At its peak in 2018, TRX climbed as high as $0.2245, a gain of 11,715% in just a few months. TRX is currently valued at around $0.08.
*Market cap and prices are from coinmarketcap.com, current as of 1:31 p.m. UTC on August 29, 2023.
What are cryptocurrencies?
Cryptocurrency is a form of currency that exists exclusively 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 does cryptocurrency work?
Cryptocurrencies are different 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 that there is no centralized authority to oversee transactions on the cryptocurrency blockchain.
The world's first cryptocurrency, Bitcoin, was created by the pseudonymous computer programmer Satoshi Nakamoto in 2009.
Why are there so many cryptocurrencies?
Cryptocurrency is a growing field with over 22,000 crypto projects in existence as of June 2023.
While some cryptocurrencies act as currencies, others are used to develop infrastructure. For example, in the case of Ethereum or Solana, developers build other cryptocurrencies on top of these platform currencies, and this creates even more options (and cryptocurrencies).
How to invest in cryptocurrencies?
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 to report crypto on taxes
If you buy and sell coins, it is important to pay attention to the tax rules of cryptocurrencies.
Cryptocurrency is treated as a capital asset, just 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 true even if you use your cryptocurrencies to pay for the purchase. If you get more for it than you paid, you'll owe taxes on the difference.