The top 10 cryptocurrencies in terms of market capitalization are listed below in case you’re not familiar with the world of cryptocurrency. This number, which is frequently abbreviated as “market cap,” shows the total value of each coin currently in use.

Market capitalization numbers are constantly susceptible to change due to the law of supply and demand. The numbers below are approximate and pertain to 3 October 2022 for the purposes of the list.

Each cryptocurrency’s abbreviation, such as BTC, refers to its ticker symbol, which serves as an identifier for trade.

Note that not everyone should invest in cryptocurrency. The Financial Conduct Authority (FCA), the UK’s financial watchdog, regularly warns customers about the cryptocurrency market. The FCA advises prospective traders that cryptoassets are unregulated and high-risk, which means consumers “should be prepared to lose all their money if they choose to invest in them” and “are highly unlikely to receive any protection if things go wrong.”

1. Bitcoin (BTC)

• Market cap: £327 billion

The original cryptocurrency, Bitcoin was first mooted in 2008 by an anonymous individual, or group of people, using the pseudonym Satoshi Nakamoto. Its invention was a breakthrough in cryptography.

As with most cryptocurrencies, Bitcoin runs on a blockchain – a piece of software that acts as a digital ledger that logs transactions distributed across a network comprising thousands of computers.

Because additions to the distributed ledger must be verified by solving a cryptographic puzzle – a process known as ‘proof of work’ – Bitcoin is kept secure from fraudsters.

Despite becoming a household name, Bitcoin’s price has oscillated wildly in recent years. At the time of writing, a coin was worth around £17,100, having peaked at just over £51,000 in November last year. In 2016, a single Bitcoin could be bought for around £370.

Ethereum 2. (ETH)
Capitalization: £137 billion
Because of its potential applications, Ethereum is both a cryptocurrency and a blockchain platform that is well-liked among programmers.

These include non-fungible tokens, often known as NFTs, and so-called “smart contracts,” which automatically carry out when certain circumstances are satisfied. NFTs are digital assets that simulate actual physical objects, such as one-of-a-kind pieces of art.

Another cryptocurrency that has grown significantly is ethereum. For instance, since April 2016, its cost has increased from £8 to almost £1,149.

Tether 3. (USDT)
Capitalization: £60 billion
Tether is a form of “stable coin,” in contrast to some of its cryptocurrency competitors.

Stable coins make an effort to tie their market value to an outside standard. This means that Tether is backed by recognised “fiat” currencies like the US dollar, the euro, or the British pound and that it theoretically maintains a value equivalent to one of those denominations.

According to the hypothesis, Tether’s value should fluctuate less than other cryptocurrencies. Investors who are leery of the significant volatility linked to other coins frequently favour it.

Binance Coin 4. (BNB)
Capitalization: £41 billion
Users of Binance, one of the biggest cryptocurrency exchanges in the world, may trade and pay fees using Binance Coin. A discount is applied to exchange fees paid in Binance Coin.

Binance Coin was introduced in 2017 and is now used for more than just enabling deals on the Binance platform. Now, it may be used for trading, collecting payments, and even making trip plans. Additionally, it can be traded or converted into other cryptocurrencies like Bitcoin or Ethereum.

A coin had a price of less than 10p in 2017, but this month it has been selling at almost £254.

US Dollar Coin 5. (USDC)
Capitalization: £36 billion
Another stable currency is the US Dollar Coin (USDC). It is backed by dollar-denominated assets stored in segregated accounts with financial institutions governed by US law and convertible 1:1 for US dollars. Ethereum powers USDC, which may be used to conduct transactions anywhere in the globe.

XRP 6. 
Capitalization: £39 billion
A quick and inexpensive cryptocurrency for international transfers is what XRP intends to be. A digital technology and payment processing firm founded by some of the same founders as Ripple, XRP may be used on that network to conduct exchanges of various currency types, including fiat currencies and other significant cryptocurrencies.

Cardano 7. (ADA)
Capitalization: £12 billion
Cardano is remarkable for its early adoption of “proof-of-stake” validation despite entering the crypto industry later.

This is the second of the two main consensus techniques that cryptocurrencies employ to verify new transactions, add them to the blockchain, and produce new tokens (the first is “proof-of-work,” see Bitcoin above).

Through the elimination of the competitive, problem-solving element of transaction verification that exists via platforms like Bitcoin, this solution speeds up transaction times while lowering energy consumption and environmental effect.

Cardano uses ADA, its native coin, to power smart contracts and decentralised apps, much like Ethereum does.

Solana 8. (SOL)
Capitalization: £10 billion
A public, open-source blockchain named Solana enables NFTs, smart contracts, and a wide range of so-called decentralised apps, or “dApps.”

Digital applications (dApps) are programmes or applications that operate on a blockchain network of computers rather than a single computer. dApps can be created for a variety of uses, including gaming, finance, and social media, outside the jurisdiction and control of a single government.

Solana’s unique proof-of-stake and proof-of-history hybrid operating system enables it to handle transactions rapidly and securely. The platform is powered by SOL, its native coin.

SOL currently costs little over £28 from its original price of about 57p in 2020.

Market valuation of Polkadot 9. (DOT) is £6.5 billion.
The 2020-launched cryptocurrency project Polkadot aims to connect different blockchain networks so they can cooperate.

The cost of Polkadot has increased from its first debut through October 2022, going from £2.15 to roughly £5.56.

Dogecoin 10. (DOGE)
Capitalization: £4.8 billion
In 2013, Dogecoin was created as a joke, but with the help of a passionate community and innovative memes, it quickly became a well-known cryptocurrency. Dogecoins can be manufactured in an unlimited amount, unlike many other cryptocurrencies, making the currency vulnerable to devaluation as supply rises.

In 2017, the price of Dogecoin was £0.00016. Its cost was 5p as of 3 October 2022.

---