Top Cryptocurrencies to Watch

Summary:
Forbes Advisor provides an educational overview of cryptocurrencies, emphasizing their high-risk nature and advising potential investors to seek appropriate financial advice and only invest what they can afford to lose. The article highlights the top 10 cryptocurrencies by market capitalization, including Bitcoin, Ethereum, Tether, BNB, Solana, US Dollar Coin, Ripple, Toncoin, Dogecoin, and Cardano. Each cryptocurrency is described in terms of market cap, unique features, historical price performance, and volatility.
Key Points:

1. Bitcoin (BTC): The original cryptocurrency, created in 2009, known for its security via the proof-of-work mechanism. Its price has seen dramatic fluctuations, from £370 in May 2016 to around £45,313 in July 2024.
2. Ethereum (ETH): Both a cryptocurrency and a blockchain platform, valued for applications like smart contracts and NFTs. Its price rose from £8 in April 2016 to around £2,453 in July 2024, peaking at £3,400 in November 2021.
3. Tether (USDT): A stablecoin pegged to fiat currencies, aiming to maintain a consistent value. It is preferred by investors wary of volatility but has occasionally fallen below its $1 peg.
4. BNB (Binance Coin): Launched in 2017, it peaked at £484 and was valued at £413 as of July 2024.
5. Solana (SOL): Developed for decentralized finance and apps, it uses a hybrid proof-of-stake and proof-of-history mechanism. Its price rose from £0.57 in 2020 to £110 in July 2024, peaking at £191 in October 2021.
6. US Dollar Coin (USDC): Another stablecoin pegged to the US dollar, used for global transactions and powered by Ethereum.
7. Ripple (XRP): Created for facilitating exchanges of different currencies, its price peaked at £1.19 in April 2021 and was £0.34 in July 2024.
8. Toncoin (TON): The native currency of the TON platform, created by Telegram. It traded at £5.60 in July 2024, with a market cap of £14 billion.
9. Dogecoin (DOGE): Started as a joke, it gained prominence due to a dedicated community. Its price peaked at £0.45 in May 2021 and was £0.08 in July 2024.
10. Cardano (ADA): Known for its proof-of-stake validation, it facilitates smart contracts and decentralized applications. Its price peaked at £2.06 in August 2021 and was £0.30 in July 2024.
    Regulatory Note: Cryptocurrency is unregulated in the UK, and the Financial Conduct Authority has warned investors about the risks of losing all their money with no compensation.
    FAQs:
    • What are cryptocurrencies?: Digital, high-risk investments used for online purchases or held as investments.
    • Differences from stocks: Cryptos don’t grant ownership in companies, trade 24/7, and aren’t regulated.
    • Tax implications: Treated as capital assets; profits may be subject to capital gains taxes.
    • Cryptocurrency ETFs: Diversified crypto investment options available since late 2021.