Cryptocurrencies offer a mix of opportunity and risk. While the market has matured and larger digital assets like bitcoin and Ethereum are now recognised as legitimate investments by professionals, investing in them remains volatile and complex.
For astute investors, crypto assets can be an interesting addition to a diversified portfolio. However, they require careful research, strong security practices and a strong stomach to weather the volatility they bring. The Australian Government is yet to introduce legislation to Parliament to regulate crypto markets, and until they do, it will remain a haven for scammers.
Nevertheless, Australians are crypto-curious. According to consumer group CHOICE, almost one in five Aussies are either involved in some form of cryptocurrency trading or are interested in getting involved. Those who steer clear from crypto often do so because of the risk of crypto scams. Some 4.6 million Australians own cryptocurrency, and Australia ranks third in the world for crypto uptake.
From bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, each with different strengths, weaknesses and varying degrees of potential.
Below are the top 10 cryptocurrencies based on their market capitalisation or the total value of all the coins currently in circulation. This is not a recommendation of what you should or should not buy; it is merely a list of the largest projects ranked by market capitalisation so you can get a sense of the playing field before you decide whether to roll the dice and invest in crypto.
Invest Smarter with eToro
Invest with a crypto brand trusted by millions. Buy and sell 70+ cryptoassets on a secure, easy-to-use platform
Own Crypto
Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.
Related: Best Cryptocurrency Exchanges for Australians
What Are Cryptocurrencies?
A cryptocurrency is a digital asset that can circulate without the centralised authority of a bank or government. According to CoinMarketCap, there are more than two million cryptocurrency projects out there that represent the entire $US2.23 trillion crypto market.
1. Bitcoin (BTC)
Market cap: $US1.25 trillion
Created in 2009 by Satoshi Nakamoto, bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a decentralised blockchain technology, which is a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, bitcoin is kept secure and safe from fraudsters.
Bitcoinâs price has skyrocketed as itâs become a household name. In May 2016, you could buy one bitcoin for about $US500. As of September 24, 2024 (five months after the most recent bitcoin halving event occurred) a single bitcoinâs price was around $US63,527. Thatâs a growth of more than 12,600%.
Related: How To Buy Bitcoin
2. Ethereum (ETH)
Market cap: $US317 billion
Both a cryptocurrency and a blockchain platform, Ethereum is a favourite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
Ethereum has also experienced tremendous growth. From April 2016 to September 2
Related:Â How To Buy Ethereum
3. Tether (USDT)
Market cap: $US119 billion
Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin pegged to the value of US$1. This is achieved by having a 1-1 backing between the token and USDÂ which hypothetically keeps a value equal to one of those denominations because one token should always be able to be redeemed for one dollar. In theory, this means Tetherâs value is supposed to be more consistent than other cryptocurrencies, and itâs favoured by investors who are wary of the extreme volatility of other coins.
4. Binance Coin (BNB)
Market cap: $US88 billion
Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binanceâs exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.
BNBâs price in 2017 was just $US0.10. By September 24, 2024, its price had risen to around $US604, a gain of approximately 603,900%.
5. Solana (SOL)
Market cap: $US68.8 billion
Solana is a high-performance blockchain platform designed to provide fast and scalable transaction processing. It utilises a unique consensus algorithm called Proof of History, which allows it to process up to 65,000 transactions per second, making it one of the fastest blockchain networks available today. The platform supports smart contracts and decentralised applications (dApps) and is extremely popular for NFT trading.
The native token of the Solana platform is called SOL, and is used for paying transaction fees, staking, and participating in governance decisions on the network. The ICO price for SOL was $US0.22, and as of September 24, 2024, now sits at $US146, an increase of 66,263%.
6. U.S. Dollar Coin (USDC)
Market cap: $US36 billion
Like Tether, USD Coin (USDC) is a stablecoin, meaning itâs backed by US dollars and aims for a 1 USD to 1 USDC ratio. USDC is available on numerous blockchains, such as Ethereum and Solana, and you can use USD Coin to complete global transactions.
7. XRP (XRP)
Market cap: $US33.2Â billion
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $US0.006. As of September 24 2024, its price reached $US0.58, equal to a rise of 9,566%.
Related: Ethereum 2.0: The Ethereum Merge Explained
8. Dogecoin (DOGE)
Market cap: $15.9 billion
Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.
Dogecoinâs price in 2017 was $0.0002. By September 24, 2024, its price sat at $0.1094, up 54,600%.
.
8. Toncoin (TON)
Market cap: $US14.6 billion
Toncoin (TON) is the native token of The Open Network (TON), a decentralised Layer 1 blockchain network originally developed by Telegram but later transferred to the community. TON aims to onboard billions of users and enable quick, inexpensive, and energy-efficient blockchain transactions. The network boasts a flexible architecture, scalability, and support for millions of transactions per second through dynamic sharding and workchains. Toncoin can be used to pay transaction fees, settle payments, or validate transactions using TONâs proof-of-stake (PoS) consensus model.
TONâs unique features, such as ultra-fast transactions, low fees, apps ecosystem, and Telegram integration, have rocketed the coin into the top 10 cryptocurrencies by market capitalisation over the past few months. As of September 24, 2024, its price stands at $5.59, representing an increase of 1,018% from the coinâs ICO price of $0.50 in 2019.
10. Cardano (ADA)
Market cap: $US13.3 billion
Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralised applications, which ADA, its native coin, powers.
Cardanoâs ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADAâs price was $0.02. As of September 24, 2024, its price was at $0.3699. This is an increase of 1,749%.
