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Cryptocurrencies are a highly volatile asset class, and while they may present opportunities for astute investors, they remain a regulatory grey area and thus an arena for scams and hackers.
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Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.
Nevertheless, Australians are crypto-curious. According to consumer group CHOICE, almost one in five Aussies are either involved in some form of cryptocurrency trading or are interested in getting involved. Those who steer clear from crypto often do so because of the risk of crypto scams. Some 4.6 million Australians own cryptocurrency, and Australia ranks third in the world for crypto uptake.
From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, each with different strengths, weaknesses and varying degrees of potential.
These are the top 10 cryptocurrencies based on their market capitalisation or the total value of all the coins currently in circulation. This is not a recommendation of what you should or should not buy; it is merely a list of the largest projects ranked by market capitalisation so you can get a sense of the playing field before you decide whether to roll the dice and invest in crypto.
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What Are Cryptocurrencies?
A cryptocurrency is a digital asset that can circulate without the centralised authority of a bank or government. According to CoinMarketCap, there are more than two million cryptocurrency projects out there that represent the entire $US1.76 trillion crypto market.
1. Bitcoin (BTC)
- Market cap: $US896 billion
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a decentralised blockchain technology, which is 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 kept secure and safe from fraudsters.
Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy one Bitcoin for about $US500. As of January 2, 2024, a single Bitcoin’s price was around $US45,800. That’s a growth of more than 9,060%.
Related: How To Buy Bitcoin
2. Ethereum (ETH)
- Market cap: $US290 billion
Both a cryptocurrency and a blockchain platform, Ethereum is a favourite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
Ethereum has also experienced tremendous growth. From April 2016 to the January 2024, its price went from about $US11 to around $US2,416, increasing around 21,863%.
Related: How To Buy Ethereum
3. Tether (USDT)
- Market cap: $US92 billion
Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin pegged to the value of US$1. This is achieved by having a 1-1 backing between the token and USD which hypothetically keeps a value equal to one of those denominations because one token should always be able to be redeemed for one dollar. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favoured by investors who are wary of the extreme volatility of other coins.
4. Solana (SOL)
- Market cap: $US50 billion
Solana is a high-performance blockchain platform designed to provide fast and scalable transaction processing. It utilises a unique consensus algorithm called Proof of History,…
Read More: 10 Best Cryptocurrencies Of January 2023 – Forbes Advisor Australia