In addition to the well-known Bitcoin and Ethereum, there are thousands of other cryptocurrencies on the market. Some of them can be seen as a good long-term investment, some are only good as a short-term or very short-term investment. Following the principles of risk management, you should not immediately convert ETH to Safemoon, but to familiarize yourself with the situation on the market and the possible prospects for its development.
One of the most objective metrics by which cryptocurrencies can be compared is market capitalization.
Bitcoin (BTC)
Bitcoin was created in 2009. It is the world’s first cryptocurrency to operate on a blockchain distributed across the network. Additions to distributed ledgers before this by solving cryptographic problems and the process of this process is called proof of work. Proof of work ensures secure storage and payment transactions.
It is quite logical that Bitcoin has become the leader in the cryptocurrency market and has grown by 6300% over the past five years. The market capitalization of BTC exceeds $640 billion.
Ethereum (ETH)
The second line of the rating is steadily occupied by Ethereum. This cryptocurrency and platform of the same name is very attractive for software developers due to the possibility of creating smart contracts. Over the same five years, Ethereum has more impressive growth rates. But its market capitalization is roughly half that of Bitcoin at “only” $307 billion.
Tether (USDT)
This cryptocurrency belongs to stablecoins. So are the fiat currencies that are supported by fiat currencies, in particular the US dollar and the euro. In theory, this means that the value should be more stable compared to other cryptocurrencies. This is why USDT is ranked third in terms of market capitalization exceeding $60 billion.
Binance Coin (BNB)
Binance Coin is a cryptocurrency created to pay exchange fees on the Binance system. The coin was created in 2017 and its price has grown since then.
Now the scope of BNB is actively expanding. The market capitalization of the asset is about $56 billion and this is clearly not the limit.
Cardano (ADA)
Cardano was among the first to launch proof of ownership verification. By using this method, it was possible to speed up the transaction and reduce power consumption.
The Cardano platform also provides the ability to create smart contracts and decentralized applications. The ADA utility token is supporting good growth, but its price in absolute terms remains low. The market capitalization of ADA is over $50 billion.
Dogecoin (DOGE)
Created as a joke, the cryptocurrency has become popular thanks to the support of loyal fans. Elon Musk drew attention to this coin and provided DOGE with high positions in the ratings.
The coin has no restrictions on creation and is prone to devaluation. Nevertheless, today the capitalization of this cryptocurrency is approaching the $45 billion mark.
Ripple (XRP)
This cryptocurrency is used by the Ripple network to facilitate international payments in various fiat and digital currencies. Since 2017, the price of Ripple has grown by 15,233%, and its capitalization exceeds $40 billion.
Conclusion
Remember that the cryptocurrency market is very volatile and poorly predictable. First of all, before investing in top cryptocurrencies to buy now, assess the possible risk/reward ratio.