Top 5 Crypto Coins You Should Know About

Over the past 15 years, cryptocurrency has emerged from obscurity to become an integral part of the financial world. When Bitcoin was first released in the market, no one could have predicted its impact on the financial landscape. The current market cap for cryptocurrencies is valued at over $2.6 trillion, with billions being traded every day. Since the release of Bitcoin, multiple new digital currencies have been released as competitors to the original pioneer. Let’s look at the top cryptocurrencies for 2024.

New projects are being announced every day on top of keeping up with the market conditions of existing ones can be challenging for seasoned and new traders alike. If you feel like you can’t keep up with the ups and downs of the crypto market, you have come to the right place. Follow our detailed guide on the top crypto coins to make the right decision for your next crypto purchase.

What are Cryptocurrencies?

A cryptocurrency is a digital form of payment that uses cryptography to secure its transactions and the creation of new units. This technology protects sensitive financial information by converting it into code that is harder to crack compared to traditional data forms. Moreover, the distribution of cryptocurrencies is primarily anonymous which makes it even more unique.

Each transaction is recorded on a virtual ledger called the blockchain. This ledger acts as a permanent digital record of every transaction that has ever taken place. The blockchain system is the reason cryptocurrency got its decentralized label. There is no central authority that controls the different cryptocurrencies. Blockchain technology makes it possible to carry out all these transactions without an authority handling them.

Blockchain technology is an integral part of the cryptocurrency ecosystem. By design, it is open-source, which means that any developer can access and build on it. As a result, there are an unprecedented amount of crypto-backed financial products on the market today.

Leading Cryptocurrencies to Watch in 2024

The cryptocurrency world is nothing short of a rollercoaster ride. If you are ready to handle the constant ups and downs that come with owning crypto coins, we have compiled a list of the top digital currencies for you to consider in 2024.

Bitcoin

Extreme volatility is par for the course when it comes to crypto trading, therefore most traders want to protect themselves from a total collapse of their holdings by opting for more established names. There isn’t a more established name in the market than Bitcoin. The oldest and latest by market capitalization, Bitcoin has a 52% share of the market at $1.3 Trillion.

Bitcoin is the most widely accepted cryptocurrency today. This mainstream acceptance was displayed by the launch of 11 new Bitcoin EFTs in January. The campaign with the Securities and Exchange Commission to approve spot Bitcoin EFTs took a long time but the approval was finally granted. Bitcoin EFTs have launched a new era of mainstream acceptance of the currency as investors can now track the performance of the crypto coin without actually owning Bitcoin.

After falling below $17,000 at the start of 2023, Bitcoin currently trades for upwards of $65,000, following a powerful rally in the early months of 2024. Through April 1, Bitcoin prices have risen 64.9% year to date, owing largely to the establishment of spot Bitcoin ETFs, which quickly attracted billions of dollars in assets under management.

The approaching Bitcoin halving event, in which the rewards for mining Bitcoin are slashed in half, is another driver for the cryptocurrency. It’s a process that takes place every four years and corresponds to Bitcoin’s scarcity; the next Bitcoin halving is expected to take place in April.

Ether

Ether is the native token of the Ethereum blockchain and it is the second-largest currency by market cap. Often called Ethereum, this currency has a market cap of over $428 Billion. Unlike Bitcoin, the Ethereum blockchain can be used for more than just peer-to-peer payments. The blockchain is designed for crafting smart contracts and decentralized tools. It is also compatible with Web3 applications and trading of non-fungible tokens.

While Bitcoin primarily functions as a store of value, Ether has wide inherent utility as the native token of a widely popular network. Moreover, Ethereum recently switched from the inefficient proof-of-work consensus mechanism to the energy-efficient proof-of-stake system. This gives it another advantage over Bitcoin in a more environmentally conscious world.

ETH, like BTC, has risen substantially in 2024, with an average growth rate of 146%. These two cryptocurrencies are unquestionably the top in their respective asset classes. Some market analysts believe that Ethereum ETFs will be the next step in crypto’s mainstream adoption, and if any digital currency is next in line, it is unquestionably Ether.

Solana

Similar to Ethereum, Solana was also built with utility in mind. Solana is especially popular for facilitating the creation of decentralized applications. The Solana blockchain is also faster, has lower fees, and is more scalable when compared to its rivals. The native token for the blockchain is similarly called the SOL token.

The SOL token did not become a part of the market until 2020, but it has experienced exponential growth since then. Starting 2021 with a market share of less than 0.01%, Solana has risen to a 4.2% share by this year. Additionally, Solana is considered the 4^th largest cryptocurrency in the world with a market cap of $98 billion.

Aside from its low fees, ease of usage, and healthy ecosystem, Solana has recently received a lot of attention for its platform due to Solana meme coins. These coins are popular because they are simple to manufacture and trade. Dogwifhat (WIF) and Bonk (BONK), another dog-themed meme coin, are among Solana’s most popular meme coins in early 2024.

Avalanche

When starting your crypto journey, all traders need to understand that Bitcoin and Ethereum are the top tier. All other altcoins come with less mainstream acceptance which comes with increased risk. Traders need to consider these factors when choosing the right crypto coin. Even with these factors, the AVAX token earns its place because of the ambitions of the Avalanche blockchain.

The subnet feature of the Avalanche blockchain allows users to deploy mini blockchains on top of its network. Ava Labs, the parent company behind the Avalanche network, anticipates a future where most commercial enterprises and even individuals will want their blockchains. The subset feature offers a viable solution for this concern. If this prediction becomes a reality, Avalanche will experience significant gains.

Polygon

MATIC is the native coin of the Polygon blockchain. MATIC is now the 17th-largest cryptocurrency by market capitalization, excluding stablecoins, with a valuation of approximately $9 billion. Polygon still accounts for less than 0.5% of the total market size, therefore there is lots of possibility for growth. However, its long-term success is heavily dependent on the Ethereum network’s approval and continued use. That’s because the Polygon network is a scaling platform designed to expand Ethereum’s capabilities, eventually allowing it to operate an infinite number of dApps.

MATIC’s price, like most tokens, fell by 70% in 2022. It’s nowhere close to its late 2021 highs right now, but It could be a turnaround contender. As part of its Polygon 2.0 strategy, the project will transition from its native token, MATIC, to a new token, POL. The prices of these tokens are equivalent and exchangeable on a one-for-one basis.

Are Altcoins a Separate Cryptocurrency

When researching cryptocurrencies, you’ll come across the term altcoins. Bitcoin is regarded to be the original cryptocurrency. Others are referred to as alternative coins, hence the name altcoins. In the grand scheme of things, they’re all just cryptocurrencies. As blockchain technology advances, new types of coins keep emerging. All are crypto, although they can have different functions and be built in various ways. Some examples include mining-based coins and stablecoins.

Mining-based coins follow the same system as Bitcoin. They require computer networks to mine coins for circulation. This procedure requires a significant amount of energy, forcing environmentalists and others to question whether the input justifies the outcome.

Stablecoins are linked to other assets to reduce their vulnerability to the volatile changes that characterize the cryptocurrency market. The asset is typically a fiat currency, such as the US dollar. Tether and USD Coin are two of the most popular in this category.

Top Cryptocurrencies for 2024: Final thoughts

The crypto landscape is constantly evolving, making it challenging for new and seasoned traders to keep up with the new developments and new currency releases. With the vast variety of crypto coins available traders have to consider multiple factors to ensure that they get a long-term return on their investment. Since its release as the first crypto coin, Bitcoin still maintains its position as the leading cryptocurrency on the market.

This pioneer is followed by the Ethereum currency, offering users additional features that make it a worthy challenger to Bitcoin. The remaining altcoins exist in the shadows of these industry juggernauts. However, these altcoins offer users features that make them attractive to traders. We hope that this article will help you in choosing the right crypto coin for you.