There are so many forms of cryptocurrencies, and being a newbie in the world of crypto, it may be overwhelming for you to determine the starting point and the path to follow as you invest in crypto. This article gives insight on the top-ranked cryptocurrencies in 2022; A good road map as you venture into the crypto world. The ranking is based on market capitalization of the total value of all the coins currently circulating in the cryptocurrency market.

Bitcoin #1

Bitcoin dates back to 2008/2009. Its introduction has led to an exponential rise in the popularity of cryptocurrency. It was created by an individual or organization under the pseudonym Satoshi Nakamoto.

Like the other cryptocurrencies, bitcoin uses blockchain technology, which is a ledger that keeps a record of the transactions. It is protected through cryptography, which makes it secure. With a skyrocketed value, as of the first day of February 2022, 1 bitcoin was worth over $44,000. Its market capitalization is about $800 billion.

Ethereum #2

It is with absolute doubt that Vitalik Buterin made no error in founding Ethereum. With a market capitalization of over $382 billion, it is the technology behind thousands of applications used today. It uses the blockchain. It is popular among developers because of its features, such as smart contracts that auto-execute when conditions are met. Its value, as of February 2022, was over $3,200.

Tether #3

With a market capitalization of over $78 billion, Tether founders included; Brock Pierce, Reeve Collins and Craig Sellars. In the classification of cryptocurrencies, it is considered a stablecoin. This means its value is tied to a certain currency, hence making its value more stable and less volatile. It has gained the interest of investors who are not willing to risk investing in other cryptocurrencies that have volatile values.

BNB #4

The Binance coin, with a market capitalization of over $90 billion, was worth over $377 as of February 1, 2022. The Binance coin is used to trade on Binance, which is a crypto exchange. BNB was launched in July 2017, and since then, it has gained value and become popular to the point that it can now be traded for other cryptocurrencies like Bitcoin.

US Dollar Coin (USDC) #5

It is a stablecoin, meaning it has a stable value, and its value is tethered to the US dollar. It is backed by cash, meaning it can always be redeemed for a dollar per USDC. Its market capitalization is about $51.3 billion. The USDC is natively supported by multiple layers of blockchains, with Ethereum being an example.

Uniswap (UNI)

Uniswap (UNI) is a decentralized exchange built entirely on smart contracts. As a fully trustless and autonomous system, it allows users to create and trade any ERC20 token they want while remaining in full control of their private keys. All traded tokens, are held in escrow through an open-source contract.

XRP

XRP is a digital currency that was created in 2012 as the internal token of a payment system called Ripple. The Ripple network is a real-time gross settlement system (RTGS), currency exchange and remittance network. It supposedly offers secure, instant and almost free financial transactions of any magnitude across the globe with no chargebacks.

XRP is an open-source technology meaning its design is publicly accessible freely. So, anyone can use it for any purpose. There are many businesses that have already adopted XRP to build reliable, low-cost payment solutions. For example, MoneyGram has already partnered with XRP II, LLC to use XRP in its payment flows. The partnership with MoneyGram will them to use XRP in instantaneous cross-border payments between banks on its network. At its core, Ripple is based around a shared, public database or ledger, which uses a consensus process that allows for payments, exchanges and remittances in a distributed process.

Cardano

Cardano (ADA) is a blockchain platform with smart contract functionality, first proposed on September 27, 2017 – the same day its corresponding cryptocurrency was launched. As the world of cryptocurrency grows and diversifies, new coins are constantly emerging to challenge existing ones. Cardano is one such currency, having recently entered the market and established itself as one to watch. The distinguishing factor behind Cardano is that it is not just another digital currency. It was created to be a fully functioning platform for decentralized apps and smart contracts, similar to Ethereum but with no transaction fees and more advanced features.

Cardano has its own blockchain built in layers like an onion. This ensures that every aspect of the project can be updated without disrupting or forking the main chain. The Cardano team developed a special protocol layer called Ouroboros that allows PoS (Proof-of-Stake) consensus to function on the platform securely and efficiently. The team hopes to bring Cardano up to date with modern technology while keeping it secure and decentralized enough to fend off threats like quantum computers or government regulations in the future. Cardano’s creators made an effort to maintain a diverse team of experts in different fields, including cryptography, programming languages and cyber security.

Aave (AAVE) 

Aave (AAVE) is a blockchain-based technology facilitating the direct monetization of integrated services for global human mobility solutions. Aave facilitates a decentralized, trusted, and intelligent transportation ecosystem built on a community of linked mobility providers and consumers globally. As the network grows and demand for access increases, so does the demand for Aave tokens.

It uses the SHA-256 algorithm and works without using a central bank. Aave is open-source, decentralized and generated through mining. Anyone can become a miner by downloading the Aave wallet, which generates a public address that serves as your identity. Through this, you can travel on an anonymous road while paying for goods and services with Aave.

Solana (SOL) 

Solana (SOL) is a blockchain for decentralized, secure, and encrypted messaging. Using economically incentivized nodes called “Relay Nodes,” Solana (SOL) can destroy and create cryptographically secure messages at varying time intervals. Private data originating from the network’s participants never leaves the network, ensuring the utmost in privacy, security and integrity. Furthermore, Solana supports instant messages, streaming audio/video content, and even file transfers.

Terra (LUNA)

Terra is a decentralized P2P platform that allows direct connection between individuals, with no brokers, market makers, or any other third party. Terra offers a platform for connecting individual needs and skills to the global flow of goods and services. LUNA token is used as a medium of exchange within the Terra ecosystem.

Luna’s unique approach uses a Smart Contract to build decentralized reputation systems powered by terra to handle bad debts between parties, ensure maximum privacy and data ownership, and create a secure and self-sustaining economy that increases in value over time. Terra needs fiat currencies like USD or EUR to be used between accounts on the Luna Network.

Dogecoin DOGE

Dogecoin is one of the latest cryptocurrencies to hit the market. Created in 2013, DOGE founders hoped to create a fun cryptocurrency that could stick out to a broader demographic than other cryptocurrencies. Dogecoin has a very active online community that is extremely helpful to newcomers. Dogecoin has been used to “tip” others on Reddit, Twitter and YouTube as well as being traded for services and goods.

DOGE is used to transfer wealth on the Internet in a very cheap and fast way, without needing a bank account. Even more, DOGE is considered one of the best replacements for Bitcoin.

To Sum it Up

It is important to note that crypto can be purchased in fractions since a whole unit of a given cryptocurrency can be quite expensive. With a solid understanding of these top-ranked cryptocurrencies, you can confidently enter the crypto world and invest.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.