Cryptocurrencies

Top 10 cryptocurrencies in March 2022 – Forbes Advisor

Top 10 Cryptocurrencies In March 2022

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From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re just starting out in the crypto world. To help you get your bearings, here are the top 10 cryptocurrencies based on their market capitalization, which is the total value of all coins currently in circulation.

1.Bitcoin (BTC)

  • Market cap: over $846 billion

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

The price of Bitcoin has skyrocketed as it has become a household name. In May 2016, you could buy a bitcoin for around $500. As of March 1, 2022, the price of a single Bitcoin exceeded $44,000. That’s a growth of about 7,800%.

Related: How to buy bitcoins

2. Ethereum (ETH)

  • Market capitalization: more than 361 billion dollars

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers due to its potential applications, such as so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs). ).

Ethereum has also seen phenomenal growth. From April 2016 to early March 2022, its price jumped from around $11 to over $3,000, increasing by over 27,000%.

Related: How to buy Ethereum

3. Tether (USDT)

  • Market capitalization: more than 79 billion dollars

Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it’s backed by fiat currencies like the US dollar and euro and hypothetically holds value equal to either of those denominations. In theory, this means that Tether’s value is meant to be more consistent than that of other cryptocurrencies, and it’s favored by investors who are wary of other coins’ extreme volatility.

4. Binance Coin (BNB)

  • Market capitalization: more than 68 billion dollars

Binance Coin is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world.

Since its launch in 2017, Binance Coin has expanded beyond simply facilitating transactions on the Binance exchange. Now, it can be used for commerce, payment processing, or even travel booking. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

The price of BNB in ​​2017 was only $0.10. By early March 2022, its price had risen to around $413, a gain of around 410,000%.

Related: How to buy cryptocurrency

5. US Dollar Coin (USDC)

  • Market capitalization: more than 53 billion dollars

Like Tether, USD Coin (USDC) is a stablecoin, which means it is backed by US dollars and targets a ratio of 1 USD to 1 USDC. USDC is powered by Ethereum and you can use USD Coin to trade globally.

6.XRP (XRP)

  • Market capitalization: more than 37 billion dollars

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on this network to facilitate trading of different types of currencies, including fiat currencies and other major cryptocurrencies. .

At the beginning of 2017, the price of XRP was $0.006. In March 2022, its price reached $0.80, an increase of more than 12,600%.

7. Earth (LUNA)

  • Market capitalization: more than 34 billion dollars

Terra is a blockchain payment platform for stablecoins that relies on maintaining a balance between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, are pegged to the value of physical currencies. Their counterpoise, Luna, powers the Terra platform and is used to mint more Terra stablecoins.

Terra and Luna stablecoins work together based on supply and demand: when the price of a stablecoin exceeds the value of its linked currency, users are incentivized to burn their Luna to create more of that Terra stablecoin. Likewise, when its value drops against its base currency, it encourages users to burn their Terra stablecoins to mint more Luna. As adoption of Terra platforms increases, so does Luna’s value.

From January 3, 2021, when its price was $0.64, to early March 2022, Luna rose over 14,200% to $92.

8. Gimbal (ADA)

  • Market capitalization: more than 33 billion dollars

A bit later on the crypto scene, Cardano stands out for its early adoption of proof-of-stake validation. This method speeds up transaction time and decreases energy consumption and environmental impact by removing the competition and problem-solving aspect of transaction verification found on platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which are powered by ADA, its native coin.

Cardano’s ADA token has seen relatively modest growth compared to other major crypto coins. In 2017, the price of ADA was $0.02. As of March 1, 2022, its price was $0.99. This is an increase of 4,850%.

9. Solana (SOL)

  • Market capitalization: more than 33 billion dollars

Developed to help power the uses of decentralized finance (DeFi), decentralized applications (DApps) and smart contracts, Solana operates on unique hybrid proof-of-stake and proof-of-history mechanisms that help it process transactions quickly and securely. SOL, Solana’s native token, powers the platform.

When launched in 2020, the price of SOL started at $0.77. As of March 1, 2022, its price was around $101, a gain of nearly 13,000%.

10. Avalanche (AVAX)

  • Market capitalization: more than 22 billion dollars

Similar to Ethereum and Cardano, Avalanche provides blockchain software capable of creating and executing smart contracts powered by a native token (in this case, AVAX). Since its launch in 2020, Avalanche has grown rapidly, thanks in large part to its relatively low gas fees and fast transaction processing speeds.

From July 12, 2020 to March 1, 2022, the price of AVAX increased by more than 1,840%, from $4.63 to $89.84.

* Market capitalizations and prices in effect as of March 1, 2022.

Best Crypto Exchanges 2022

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Crypto FAQ

What are cryptocurrencies?

Cryptocurrency is a form of currency that exists only in digital form. Cryptocurrency can be used to pay for online purchases without going through an intermediary, such as a bank, or it can be held as an investment.

How is trading cryptocurrency different from stocks?

Although you can invest in cryptocurrencies, they are very different from traditional investments, such as stocks. When you buy stock, you are buying a piece of ownership in a company, which means you have the right to do things like vote on the direction of the company. If that company goes bankrupt, you may also receive compensation once its creditors have been paid from its liquidated assets.

Buying cryptocurrency does not give you ownership of anything other than the token itself; it’s more like exchanging one form of currency for another. If the crypto loses value, you will not receive anything afterwards.

There are several other key differences to keep in mind:

  • Trading hours: Shares only trade during trading hours, typically 9:30 a.m. to 4:30 p.m. ET, Monday through Friday. Cryptocurrency markets never close, so you can trade 24 hours a day, seven days a week.
  • Regulation: Stocks are regulated financial products, which means that a governing body checks their credentials and their finances are public knowledge. In contrast, cryptocurrencies are not regulated investment vehicles, so you may not be aware of the internal dynamics of your crypto or the developers working on it.
  • Volatility: Stocks and cryptocurrency carry risk; the money you invest may lose value. However, stocks are directly tied to companies and generally rise and fall based on the performance of those companies. Cryptocurrency prices are more speculative – no one is sure of their value yet. This makes them much more volatile and affected by something as small as a celebrity tweet.

Do you have to pay taxes on cryptocurrency?

If you are buying and selling coins, it is important to pay attention to tax rules related to cryptocurrencies. Cryptocurrency is treated as capital, like stocks, rather than cash. This means that if you sell cryptocurrency for a profit, you will have to pay capital gains tax. This is the case even if you are using your crypto to pay for a purchase. If you receive more value than you paid, you will have to pay taxes on the difference.

Are there cryptocurrency exchange-traded funds (ETFs)?

Given the thousands of cryptocurrencies in existence (and the high volatility associated with most of them), it’s understandable that you would want to take a diversified approach to investing in crypto to minimize the risk of losing money. money.

Several companies have offered crypto ETFs, including Fidelity, but regulatory hurdles have slowed the launch of any consumer product. As of June 2021, no ETFs were available to average investors in the market.

You can buy cryptocurrencies through crypto exchanges, such as Coinbase, Kraken, or Gemini. Additionally, some brokerages, such as WeBull and Robinhood, also allow consumers to purchase cryptocurrencies.