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Top 10 Cryptocurrencies for May 2024 – Forbes Advisor UK
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The Forbes advisor has provided this content for educational reasons only and not to help you decide whether or not to invest in cryptocurrency. If you decide to invest in cryptocurrency or any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.
From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which makes this overwhelming for those thinking about getting started in the high-stakes world of crypto.
Here’s our pick of some of the top cryptocurrencies based on their market capitalization – the total value of all coins currently in circulation.
What are cryptocurrencies?
A cryptocurrency is a high-risk digital asset that can circulate without the centralized authority of a bank or government. To date, there are over 26,000 cryptocurrency projects representing the entire £917 billion cryptocurrency market.
1.Bitcoin (BTC)
- Market capitalization: £911 billion
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC works on a blockchain, or a ledger that records transactions distributed across a network of thousands of computers. Because additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin must be kept safe and protected from fraudsters.
Bitcoin’s price has soared and plummeted throughout its lifespan. In May 2016, the price of a single Bitcoin was worth around £370. As of May 1, 2024, the value is around £46,302.
Bitcoin Price
2. Ethereum (ETH)
- Market capitalization: £284 billion
A cryptocurrency and blockchain platform, Ethereum is a favorite of some program developers because of its potential applications, such as so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
The price of Ethereum has also experienced tremendous fluctuations in value.
From April 2016 to May 1, 2024, its price went from around £8 to around £2,332. At its peak in November 2021, its value was £3,400, demonstrating its volatility.
Ethereum Price
3. Tether (USDT)
- Market capitalization: £88.5 billion
Unlike some other forms of cryptocurrency, Lashing (USDT) is a stable currency, meaning it is pegged to fiat currencies like the US dollar and the euro and hypothetically maintains a value equal to one of these denominations.
In theory, this means that Tether’s value should be more consistent than other cryptocurrencies, and it is preferred by some investors who are wary of the extreme volatility of other currencies. However, it has fallen below its $1 value in the past.
4. Binance Coin (BNB)
Binance Coin is a form of cryptocurrency. At its launch in 2017, the price was less than 10p. It peaked at around £484 in July 2017, and as of May 1, 2024, its value is £441.
5. Solana (SOL)
Developed to help drive decentralized finance (DeFi), decentralized applications (DApps) and smart contracts, Solana runs on unique hybrid proof-of-stake and proof-of-history mechanisms intended to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.
When it launched in 2020, the SOL price started at £0.57. It peaked in late October 2021, costing approximately £191. Then, on May 1, 2024, its price was around £99.
6 US Dollar Coin (USDC)
- Market capitalization: £26.5 billion
Like Tether, US dollar currency (USDC) is a stablecoin, which means it is theoretically pegged to the US dollar currency and aims for a ratio of 1 USD to 1 USDC. USDC is powered by Ethereum and can be used to complete global transactions.
7. Ripple (XRP)
- Market capitalization: £21.6 billion
Created by some of the same founders of CurlingA digital technology and payment processing company, XRP can be used on this network to facilitate exchanges of different types of currency.
At the beginning of 2017, the price of XRP was £0.004. At the end of April 2021, the price peaked at approximately £1.19 and as of May 1, 2024, its value is £0.39, demonstrating its volatility.
XRP Price
8. Dogecoin (DOGE)
- Market capitalization: £14.4 billion
Dogecoin It started as a joke in 2013 but quickly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.
The price of Dogecoin in 2017 was £0.00016. It peaked in May 2021, costing approximately £0.45. Then, in May 2024, its price was £0.10, which demonstrates its volatility.
Dogecoin Price
9. Toncoin (TON)
Launched in 2021, Toncoin is the native currency of TON (The Open Network). TON is a decentralized and open internet platform created by messaging platform Telegram.
Prices rose between February and April 2024. TON currently trades at £3.85, down from its April 12 high of £5.77. It has a market value of £13 billion.
10. Cardano (ADA)
- Market capitalization: £12.6 billion
A little later in the crypto scene, Cardano (ADA) is notable for its early adoption of proof-of-stake validation. This method is designed to speed up transaction time and decrease energy use and environmental impact, aiming to remove the competitive and problem-solving aspect of verifying transactions on platforms like Bitcoin.
Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native currency, powers.
In 2017, the price of Cardano’s ADA token was around £0.015. Cardano price peaked in August 2021 at approximately £2.06. On May 1, 2024, its price was £0.35, which demonstrates its volatility.
Cardano Price
Cryptocurrency is not regulated in the UK. The UK regulator, the Financial Conduct Authority, has repeatedly warned investors that they risk losing all their money if they buy cryptocurrency, without the possibility of compensation.
Frequently Asked Questions (FAQ)
What are cryptocurrencies?
Cryptocurrency is a form of currency that exists exclusively in digital form and is a high-risk investment. Cryptocurrency can be used to pay for some online purchases or can be held as an investment.
How does cryptocurrency trading differ from stocks?
While it is possible to invest in cryptocurrencies, they differ greatly from traditional investments such as stocks and shares.
When an investor buys shares, they are purchasing an ownership stake in a company, which means they have the right to do things like vote for the company’s direction. If that company goes bankrupt, it may also receive some payout once its creditors are paid from its liquidated assets.
Purchasing cryptocurrency does not grant investors ownership of anything except the token itself; It’s more like exchanging one form of currency for another. If crypto loses its value, the owner of the cryptocurrency will suffer from the price drop.
There are several other important differences to remember:
- Business Hours:Shares are only traded during stock exchange hours. For example, the London Stock Exchange trading hours are 8:00 am to 4:30 pm, Monday to Friday. Cryptocurrency markets never close, so trading takes place 24/7
- Regulation:Share trading is subject to regulation and the finances of listed companies are a matter of public record. On the other hand, cryptocurrencies are not regulated investment vehicles, so investors may not be aware of the internal dynamics of their cryptocurrencies or the developers working on them.
- Volatility:Investing in stocks and cryptocurrencies involves risk with the potential to both lose and make money. However, stocks are directly tied to companies and often rise and fall based on the performance of those companies. Cryptocurrency prices are more speculative – no one is sure of their value yet. This makes them much more volatile and affected by something as small as a celebrity tweet.
Is there tax payable on cryptocurrency?
Tax treatment depends on individual circumstances and may be subject to future change.
The content of this article is provided for informational purposes only and is not intended to be, nor does it constitute, any form of tax advice.
It is important to pay attention to tax rules as they potentially apply to cryptocurrencies.
Cryptocurrency is treated as a capital asset, like stocks, and not as money. This means that if the cryptocurrency is sold at a profit, the profits will be subject to capital gains taxes.
This is the case even if crypto is used to pay for a purchase. If investors therefore receive more value than they paid, they may owe tax on the difference, subject to the usual tax deductions.
Are there cryptocurrency exchange-traded funds (ETFs)?
Given the thousands of cryptocurrencies in existence (and the high volatility associated with most of them), investors have the option of taking a diversified approach when investing in cryptocurrencies to potentially minimize the risk of losing more money.
Cryptocurrency ETFs started appearing in late 2021.