Top 10 Best Cryptocurrency 2023

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From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, making it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies based on their market capitalization or the total value of all the coins currently in circulation.

1. Bitcoin (BTC)

Market cap: $506.5 billion

Bitcoin (BTC) is the original cryptocurrency, created in 2009 by Satoshi Nakamoto. BTC runs on a blockchain, a ledger logging transactions distributed across a network of computers. Bitcoin is kept secure and safe from fraudsters through a process called proof of work, where additions to the distributed ledgers must be verified by solving a cryptographic puzzle.

Bitcoin’s price has skyrocketed over the years. In May 2016, one Bitcoin was worth about $500. As of Aug. 22, 2023, the price of a single Bitcoin was around $26,022, representing a growth of 5,104%.

2. Ethereum (ETH)

Market cap: $199.6 billion

Ethereum is both a cryptocurrency and a blockchain platform. It is popular among program developers due to its potential applications, such as smart contracts and non-fungible tokens (NFTs).

Ethereum has experienced tremendous growth. From April 2016 to the end of August 2023, its price went from about $11 to around $1,661, increasing 14,997%.

3. Tether (USDT)

Market cap: $82.8 billion

Tether (USDT) is a stablecoin, backed by fiat currencies like U.S. dollars and the Euro. Its value is supposed to be more consistent than other cryptocurrencies, making it favored by investors who are wary of extreme volatility.

4. Binance Coin (BNB)

Market cap: $32.0 billion

Binance Coin (BNB) is a cryptocurrency used for trading and paying fees on the Binance exchange. It can also be used for payment processing, booking travel arrangements, and can be traded or exchanged for other cryptocurrencies.

BNB’s price in 2017 was just $0.10. By late August 2023, its price had risen to around $208, a gain of 207,965%.

5. XRP (XRP)

Market cap: $27.3 billion

XRP is a cryptocurrency created by the founders of Ripple, a digital technology and payment processing company. It can be used on the Ripple network to facilitate exchanges of different currency types.

At the beginning of 2017, the price of XRP was $0.006. As of Aug. 22, 2023, its price reached $0.52, equal to a rise of 8,523%.

6. U.S. Dollar Coin (USDC)

Market cap: $26.0 billion

USDC is a stablecoin backed by U.S. dollars. It aims for a 1 USD to 1 USDC ratio and can be used for global transactions.

7. Cardano (ADA)

Market cap: $9.1 billion

Cardano (ADA) is notable for its early embrace of proof-of-stake validation. It works like Ethereum to enable smart contracts and decentralized applications, powered by ADA, its native coin.

Cardano’s ADA token has had relatively modest growth compared to other major cryptocurrencies. In 2017, ADA’s price was $0.02. As of Aug. 22, 2023, its price was at $0.26, representing an increase of 1,195%.

8. Dogecoin (DOGE)

Market cap: $8.9 billion

Dogecoin started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency. There is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.

Dogecoin’s price in 2017 was $0.0002. By August 2023, its price was at $0.06, up 31,364%.

9. Solana (SOL)

Market cap: $8.5 billion

Solana is a blockchain platform developed to power decentralized finance (DeFi) uses, decentralized apps (DApps), and smart contracts. SOL, Solana’s native token, powers the platform.

When it launched in 2020, SOL’s price started at $0.77. By Aug. 22, 2023, its price was around $20.94, a gain of 2,619%.

10. TRON (TRX)

Market cap: $6.7 billion

TRON is a blockchain designed to run smart contracts and other DeFi applications. TRX is the platform’s native cryptocurrency, which powers its proof-of-stake consensus algorithm.

TRON was founded in 2017, and TRX was initially valued at $0.0019 per token. At its peak in 2018, TRX spiked as high as $0.2245, for a gain of 11,715% in a matter of months. TRX is currently valued around $0.07.

Market caps and pricing sourced from coinmarketcap.com, current as of 1:31 p.m. UTC on Aug. 22, 2023.

What Are Cryptocurrencies?

Cryptocurrencies are digital forms of currency that can be used for online purchases without the need for an intermediary like a bank. They can also be held as investments.

How Does Cryptocurrency Work?

Cryptocurrencies are based on blockchain technology, which allows for secure and decentralized transactions. Blockchain eliminates the need for a centralized authority to oversee transactions.

Bitcoin, created by Satoshi Nakamoto in 2009, was the world’s first cryptocurrency.

Why Are There So Many Cryptocurrencies?

There are over 22,000 crypto projects in existence as of June 2023. Some cryptocurrencies function as currencies, while others are used to develop infrastructure. For example, Ethereum and Solana serve as platforms for building other cryptocurrencies.

How To Invest in Cryptocurrency?

You can buy cryptocurrencies through crypto exchanges like Coinbase, Kraken, or Gemini. Some brokerages like WeBull and Robinhood also allow users to buy cryptocurrencies.

How To Report Crypto on Taxes

If you buy and sell cryptocurrencies, it’s important to pay attention to cryptocurrency tax rules. Cryptocurrency is treated as a capital asset, and capital gains taxes apply if you sell crypto at a profit.