Forbes Advisor UK: March 2023’s Top 10 Cryptocurrencies.
Cryptocurrency is a form of digital currency that operates independently of central authorities like banks or governments. According to coinmarketcap.com, the total value of all cryptocurrencies currently in circulation is £697bn, represented by 21,910 different cryptocurrency projects. The top 10 cryptocurrencies by market cap, ranked as of March 2023, follow: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB), US Dollar Coin (USDC), XRP (XRP), Cardano (ADA), Dogecoin (DOGE), Polygon (MATIC), and Binance USD (BUSD). The ranking of cryptocurrencies in this list is based on the total value of all coins in circulation for each project.
One of the most well-known cryptocurrencies is Bitcoin, which operates using a blockchain technology where transactions are logged on a distributed ledger validated through a process called proof of work. Ethereum, which is also a blockchain platform, is known for enabling smart contracts and non-fungible tokens (NFTs) and operates using a proof of stake validation method. Tether and US Dollar Coin are examples of stablecoins, which aim to maintain a value equivalent to a fiat currency. XRP can be used on Ripple’s network to facilitate currency exchanges, and Dogecoin (originally created as a joke) gained popularity through a dedicated community and memes, but has no limit on the number of coins that can be created, making it susceptible to inflation.
It is important to note that investing in cryptocurrencies is different from investing in traditional stocks or shares, as ownership is only granted over the cryptocurrency token itself. Cryptocurrency trading hours operate 24/7, unlike traditional stock exchanges that have set trading hours. Cryptocurrencies are not regulated investment vehicles, which could increase risk. Capital gains taxes may apply when buying and selling cryptocurrencies. Cryptocurrency ETFs recently began appearing to allow for diversification in crypto investments. Cryptocurrencies can be bought through crypto exchanges like Coinbase, Kraken, or Gemini.
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