Cryptocurrencies are decentralized money not managed by a central authority like a bank or the government. Instead, cryptocurrencies are based on blockchain technology, and Bitcoin is the most popular one so far, with the largest market capitalization. Bitcoin was the first digital coin ever created, but things are different now, as cryptocurrency trading has been developed over the last few years.

From Bitcoin and Ethereum to Tether and Dogecoin, there are thousands of digital assets, making it overwhelming to pick one, especially when you have just begun your crypto journey. If you want to start investing in digital currencies, you must be careful, as this environment is highly volatile, and you could either have good results or lose all your investments.

However, you will have higher chances of success if you choose the biggest cryptocurrencies by market cap, so checking the BTC price chart is necessary.

What are the most popular Cryptocurrencies in 2024?

To help answer that question, we have created a list of the top cryptocurrencies based on their market capitalization or the total value of tokens in circulation.

Bitcoin (BTC)

Bitcoin was created in 2009 by Satoshi Nakamoto, and it is the original cryptocurrency. As with most digital assets, BTC runs on a blockchain, representing a digital ledger that allows transactions across a network of thousands of computers. Even though Bitcoin was launched more than ten years ago, the pioneer of cryptocurrency trading still appeals to plenty of investors, which happens for a couple of good reasons. For example, Bitcoin had an impressive performance in the past and gave the possibility to investors to make significant gains.

Besides the potential for considerable returns, Bitcoin is a good option because it is secure and decentralized. Additionally, it has high liquidity, making it perfect for those who want to enter the crypto world for short-term profits.

Ethereum (ETH)

Both a blockchain platform and a cryptocurrency, Ethereum is a favorite option for developers because of its potential applications, like non-fungible tokens (NFTs) and smart contracts, that execute automatically when a set of conditions are met. Ethereum is the second largest of the digital currencies by market cap and is home to a wide selection of Web 3 projects and dApps.

Also, Ethereum wants to be one of the most efficient blockchain networks, which is why it has adopted several developments. For example, the Merge was the first step to achieve its goal, which enhanced transactions’ processing speeds. With more improvements on the way, Ethereum can only increase in popularity and remain one of the best cryptocurrency trading options. After all, there are good reasons for this belief, as Ethereum has proven its resilience and sustainability over time because it has survived numerous crashes in the market.

Tether (USDT)

Tether is the largest stablecoin by market capitalization. It is a popular alternative for crypto investors, as its value is pegged to the U.S. dollar, so this digital currency should not be affected by the volatility that characterizes the other digital currencies. Crypto traders use Tether to move their investments out or into fiat money or make transfers between different virtual coins.

Stablecoins like Tether usually maintain a steady valuation as they are low-volatility digital assets and popular in the cryptocurrency trading world. Currently, Tether is the largest stablecoin, accounting for approximately 53% of the total stablecoin market cap. People buy Tether for a steady and reliable option that does not face unpredictable losses in price changes.

Binance Coin (BNB)

Binance Coin is a digital currency you can use to trade and pay fees on one of the largest crypto exchanges worldwide, Binance. It was launched in 2017, and since then, it has significantly expanded, as it doesn’t only facilitate trades on Binance anymore. Instead, it can now be used for payment processing, trading, and even booking travel arrangements. Plus, it can also be exchanged or traded for other digital currencies, like Bitcoin and Ethereum.

Due to all these factors, Binance Coin is one of the fastest-growing digital tokens with a promising future. Additionally, BNB went through several improvements in the ecosystem, which had a positive impact on its price.

XRP (XRP)

Created by the same founders as Ripple, a payment processing company and digital technology, XRP can facilitate exchanges of several digital currency types, including major crypto and fiat money. XRP can be bought as a coin to exchange for other digital assets, as an investment or as a way to finance the transactions made on the Ripple network.

U.S. Dollar Coin (USDC)

Exactly like Tether, USD Coin is a stablecoin backed by the U.S. dollar. USDC is powered by Ethereum, and it is used to complete global transactions. The main benefits of the USD Coin are the low price volatility and the fact that it can be a hedge against inflation.

Solana (SOL)

Developed to help power decentralized apps (dApps), decentralized finance uses (DeFi), and smart contracts, Solana is built on unique proof-of-history and proof-of-stake mechanisms to process transactions securely and quickly. SOL is the native token of the platform, which powers the entire network.

Cardano (ADA)

Although it entered the crypto space later than the other alternatives, Cardano is a notable cryptocurrency, as it embraced a proof-of-stake validation quite early on. This method decreases energy usage, as it has a quicker transaction time and positively impacts the environment. Cardano also has some features from Ethereum, as it enables decentralized applications and smart contracts.

Cardano peaked in 2021 when it gained its position as one of the most profitable digital assets. Experts are optimistic regarding the future of Cardano, so it might be an excellent option to add it to the crypto portfolio.

Getting Started With Cryptocurrency Trading

People in the crypto community think that digital assets are a good investment. This is because many cryptocurrencies have performed well in the last few years and are very likely to bring high returns in the future. However, there are several risks in the crypto space, and the ones who want to enter this space must be careful and not overlook the dangers that could lead to negative experiences.

If you want to invest in cryptocurrencies, you should research before to learn the advantages and disadvantages that digital currencies bring. Also, if you wish to reduce the risk associated with digital coins, opting for the biggest cryptocurrencies by market cap, like the ones presented above, might be good.