What are cryptocurrencies? A guide to the 10 biggest cryptocurrencies by market cap

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, making it overwhelming for those first considering

There are thousands of cryptocurrencies available, making it difficult for beginners to choose where to start. Here are 10 cryptocurrencies to consider based on their market capitalisation.

1. Bitcoin (BTC)

2. Ethereum (ETH)

3. Tether (USDT)

4. BNB (Binance Coin)

5. Solana (SOL)

6. US Dollar Coin (USDC)

7. Ripple (XRP)

8. Toncoin (TON)

9. Dogecoin (DOGE)

10. Cardano (ADA)

Cryptocurrency is a high-risk digital asset that can circulate without the centralised authority of a bank or government. To date, there are over 26,000 cryptocurrency projects out there that represent the entire £917 billion crypto market.

A cryptocurrency is a high-risk digital asset that can circulate without the centralised authority of a bank or government. To date, there are over 26,000 cryptocurrency projects out there that represent the entire £917 billion crypto market.

This content is not intended to help you decide whether or not to invest in cryptocurrency. If you decide to invest in cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.

Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is intended to be kept secure and safe from fraudsters.

Bitcoin’s price has both skyrocketed and plummeted over its lifetime. In May 2016, the price of a single Bitcoin was worth about £370. As of11 July 2024, the figure is around £45,313.

The graph below displays the past performance of Bitcoin. Past performance is not a reliable indicator of future results.

Both a cryptocurrency and a blockchain platform, Ethereum is a favourite of some programme developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum’s price has also experienced tremendous fluctuations in value.

From April 2016 to the 11 July 2024, its price went from about £8 to around £2,453. At its peak in November 2021, its value was £3,400, which demonstrates its volatility.

The graph below displays the past performance of Ethereum. Past performance is not a reliable indicator of future results.

Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it’s pegged to fiat currencies like US dollars and the Euro and hypothetically keeps a value equal to one of those denominations.

In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s preferred by some investors who are wary of the extreme volatility of other coins. However, it has fallen below its $1 peg in the past.

The graph below displays the past performance of Tether. Past performance is not a reliable indicator of future results.

Investments in a currency other than sterling, are exposed to currency exchange risk. Currency exchange rates are constantly changing which may therefore affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin.

Binance Coin is a form of cryptocurrency. At its launch in 2017 it was priced under 10p. It peaked at around £484 in July 2017 and, as of 11 July 2024, its value was at £413.

The graph below displays the past performance of BNB (formerly Binance Coin). Past performance is not a reliable indicator of future results.

Investments in a currency other than sterling, are exposed to currency exchange risk. Currency exchange rates are constantly changing which may therefore affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin.

Developed to help power decentralised finance (DeFi) uses, decentralised apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms intended to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.

When it launched in 2020, SOL’s price started at £0.57. It peaked at the end of October 2021 at approximately £191. Then on 11 July 2024 its price was around £110