The cryptocurrency market has been growing rapidly over the past few years, from Bitcoin and Ethereum to Dogecoin and USDT. How to understand what to buy? In such a volatile market, it is difficult to say with certainty which investment will be the best. But there are several metrics that can help with the choice. One of them - market capitalization.
What is market capitalization?
Market capitalization is the value of the object, calculated on the basis of the current market (exchange) price. This metric shows current dynamics and helps calculate future growth.
The formula for the capitalization of cryptocurrencies is as simple as possible: the number of tokens in circulation × the price of the token.
Let’s have a look at the example of Bitcoin:
According to this indicator, cryptocurrencies are divided into three main categories:
1. Coins with a large capitalization - more than 10 billion dollars. These include highly profitable assets such as BTC and ETH;
2. Coins with an average capitalization — from 1 to 10 billion dollars. These are assets that have significant growth potential in the future;
3. Coins with a small capitalization - less than a billion dollars. Such coins are risky objects for investment, because they are characterized by high volatility with a huge potential for profitability.
Top 10 cryptocurrencies by capitalization in 2022
Number: 1
Market capitalization: $368,696,151,480
Bitcoin is the most popular and most expensive cryptocurrency in the world. Its share in the global volume of cryptographic money is 45%. BTC is not backed by any real assets (dollars, securities, etc.), the coin is issued according to a certain algorithm and the entire volume will be issued by 2140.
If you want to buy BTC, follow the link.
Number: 2
Market capitalization: $158,775,060,565
It is the second largest cryptocurrency in terms of popularity and volume in the world. It has its own platform for creating decentralized online services based on the blockchain. The coin makes up 17% of the entire cryptographic money supply. Ethereum technologies are used by companies such as Microsoft, IBM, the R3 banking consortium (Barclays, Goldman Sachs Group, J.P. Morgan & Co, Deutsche Bank and others).
If you want to buy ETH, follow the link.
Number: 3
Market capitalization: $68,460,394,415
Unlike previous cryptocurrencies, USDT is a "stablecoin". It is secured by: short-term US bills, bank deposits and money market funds, short-term corporate debt and other investments. Despite the heated debate surrounding the stability of this project, Tether holds its place in the top 3.
If you want to buy USDT, follow the link.
Number: 4
Market capitalization: $44,561,404,217
USDC is also a stablecoin, but differs from its competitor USDT in its greater transparency and openness. The issuing company provides public reports and plans to go public on the New York Stock Exchange. This means that USDC is completely in the legal field of the USA, which is why it is considered one of the most stable and safe assets of the cryptomarket.
Number: 5
Market capitalization: $43,661,024,062
BNB was originally planned to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Subsequently, the coin gained great popularity and it became possible to trade it on other exchanges.
Every quarter, Binance allocates 20% of net profit to buy back BNB and burn (send to a wallet that no one has the key to). In this way, the company affects the price of the asset, prevents inflation and creates a deficit.
Number: 6
Market capitalization: $22,848,761,875
The token was created by the Ripple Company in 2013 and issued at a one-time volume of 100 billion tokens. It was created as a faster and more efficient alternative to other digital assets, as well as to existing payment systems such as SWIFT.
Number: 7
Market capitalization: $21,626,529,258
This is a stablecoin that actually belongs to the Binance cryptoexchange. According to public reports, the issuing company secures the equivalent of issued coins in dollars and American high-quality financial instruments (US bills, deposits in American banks, etc.).
Number: 8
Market capitalization: $12,245,615,577
ADA is a blockchain platform created by the collaboration of Input Output Hong Kong and Charles Hoskinson, the former co-founder of Ethereum and Ethereum Classic. Initially, it was positioned as an alternative to Ether. Within a week of its launch, the coin's market capitalization reached $500 million, and daily trading volume reached $100 million. Cardano's main advantage over its competitors is its blockchain bridge technology, which allows ADA to easily interact with other cryptocurrencies.
Number: 9
Market capitalization: $10,706,635,220
The cryptocurrency was created in 2017 by Ukrainian Anatoly Yakovenko with its own blockchain technology. The technology has high scalability and bandwidth, and also makes it possible to build many other projects on its base: games, exchanges, etc. The token itself suffered a lot due to the crisis and hacker attacks, so the forecasts for SOL are mostly negative.
Number: 10
Market capitalization: $7,871,060,708
It is the first "meme" cryptocurrency. Dogecoin was launched by software engineers to make fun of Bitcoin and many other coins. Although the token was created as a joke, it quickly gained a strong number of followers and is now used for digital payments. In many ways, the token owes its popularity to Elon Musk. The businessman openly continues to support this cryptocurrency on and off Twitter.
Where to buy cryptocurrency?
Any.Cash is a safe and easy cryptowallet in Telegram. You can buy coins there that are in the top 3 based on capitalization, with low fees and at a profitable rate. You can read the buying instructions here.
