Cryptocurrencies were thought to be an optimistic view of the future of world economics. However, when they first were introduced with the creation of Bitcoin, the average person did not jump right into investing just yet. Although, in 2022, some of those people now wish they had seen the potential of crypto sooner.
There are approximately 10,000 cryptocurrencies in the market today. As overwhelming as that sounds, not all the cryptos are thriving and being used as much as others. On that note, the list that we selected is not meant as financial advice to invest in these specific crypto coins. These cryptocurrencies are either ranked on popularity or how they are ranked on the market cap. It’s up to you to choose the ones that best fit your goals and objectives.
Here are the top 5 cryptocurrencies everyone should know about:
Solana is currently ranked number 9th on the market cap and its token is called SOL. This crypto system is a “public, open-source blockchain ecosystem” and has become very popular for their use for NFTs and Decentralized apps.
1 SOL = $112 USD
- After Ether, Sol is associated with most NFT marketplaces. A few of them are Solanart and Solsea. Ethereum is still winning the race for most market demand, but Solana is a close second.
- SOL has cheaper gas prices and processes transactions faster than other cryptocurrencies. Its network processes 65,000 transactions per second, compared to Bitcoin (7 transactions per second) and Ether (17 transactions per second).
- Solana uses a proof-of-history system to verify transactions. This means the nodes must vote to decide if the transaction in the blockchain is legitimate and then send it to a leader who will decide if there is sufficient proof to deem the transaction legitimate. This makes it faster than waiting for all of the nodes to agree with each other on which block is the valid one.
- The Proof-of-history method that Solana uses has been criticized because it defies what a decentralized blockchain is supposed to be: No leaders, but equal nodes with the same power of the vote.
Binance is one of the largest cryptocurrencies in the world and number 13 on the market cap. Even if it’s not the most popular crypto coin, BNB has a big exchange on a global scale with a market cap of over US$96 billion.
1 BNB = $412.48 USD
- Binance started out in the Ethereum blockchain in 2017 and then move to its own chain.
- The BNB can be used for a variety of transactions outside the crypto world, such as: traveling, entertainment, credit crypto card bills, online purchases, etc. Popular ones include Splitting bills and paying friends with BNB.
- Binance offers discounts to its users for their transactions fees.
- They have very low transaction fees (0.01%)
- Binance has had steady growth over time, but its constantly competing with Ethereum and Cardano for the best use of smart contracts.
Tether was created in the bitcoin blockchain and its value is the same as the US dollar. As a very affordable cryptocurrency, USDT is very popular for regular crypto transactions and is the 3rd cryptocurrency on the market cap.
1 USDT = $1.00 USD
- USDT has a fast transaction rate, usually within minutes. However, withdrawals and deposits usually take a few days, just like any bank would take.
- Tether is a very reliable and stable coin since it’s tied to the dollar’s value.
- Transactions fees are very expensive.
- There is no mining. If you want to create NFTs or draft smart contracts, you can’t do it on Tether.
- Tethers hold Fiat’s currency.
Ether is the most valuable digital market leader. The Ethereum blockchain was created in 2015 and with its rapid growth in the market and in popularity, some think that Ethereum will become the next, improved Bitcoin. The reason for its popularity is because its blockchain has the biggest market for smart contracts on a number of NFT websites.
1 ETH = $3,095.00 USD
- Their system of verification is proof-of-work, where all of the nodes need to agree on a single transaction without oversight.
- Their current gas prices are very elevated. For example, A $40 NFT can end up costing $100 in the Ethereum blockchain.
- Its network processes only 17 transactions per second.
- Their prices are high, yes. However, there will be an ETH 2.0 upgrade this year that will change their verification system to proof-of-stake, which will make transactions faster, cheaper, and more environmentally friendly.
- Their growth has been steady and they’re projected to increase their value in the next 5 to 10 years.
Bitcoin was the first crypto coin ever created in the market and it’s still the leading cryptocurrency in the world and the most popular. It holds spot number 1 in the market cap with nearly US$1.1 trillion. Bitcoin has been around for a while and for now, there is no crypto currency that has reached their level.
1 BTC = $43,871.99 USD
- Bitcoin has a limited supply. There are only 21 million tokens available, which is why its price shot through the roof.
- This coin is very unstable. Bitcoin is well known for its volatility in the market which makes it very unreliable.
- Their ledger is very transparent, anyone can access any transaction. It’s completely decentralized.
- High risk, high reward. Because of its volatility, there is high return potential. In 2017, it was valued at around $900 and by the end of the year, it was priced at $20,000. However, the average person is unlikely to invest such a high value.
There are many other emerging crypto coins in the market right now. As we stated before, this article is not financial advice. We just want you to know some of the most common crypto currencies out there. Do your extra research and find the crypto coin that matches your needs and your wallet.