Top 10 cryptocurrencies in October 2022

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Cryptocurrencies are a digital-only form of financial exchange that uses cryptography as a means of security. They are not physical currencies, such as, say, the pound or the dollar.

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Bitcoin, the original cryptocurrency, made its debut over a decade ago and paved the way for the creation of thousands of rival cryptocurrencies.

crypto top 10

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If you are unfamiliar with the world of crypto, here are the top 10 biggest cryptocurrencies in terms of market capitalization. Often shortened to ‘market cap’, this figure represents the total value of each coin in circulation.

The law of supply and demand means that market capitalization figures are subject to constant change. For the purposes of the list below, the figures pertain to October 3, 2022 and are necessarily approximate.

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The abbreviation after each cryptocurrency, for example BTC, is associated with its ticker symbol – a means of identification for trading purposes.

Note: Investing in Cryptocurrency is not for everyone. The UK’s financial watchdog, the Financial Conduct Authority (FCA), issues regular warnings to consumers about the crypto industry. The FCA reminds traders that cryptocurrencies are unregulated and high-risk, meaning people “are unlikely to have any protection if things go wrong, so be prepared for people to lose all their money.” if they choose to invest in them”.

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Cryptocurrencies are highly volatile and unregulated in the UK. No consumer protection. Profits may be taxed.

1. Bitcoin (BTC)

  • Market cap: £327 billion

The original cryptocurrency, bitcoin, was first laundered in 2008 by an unnamed 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 of thousands of computers.

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

Despite becoming a household name, the price of bitcoin has risen wildly in recent years. At the time of writing, a coin was worth around £17,100, up from just £51,000 in November last year. In 2016, one bitcoin could be bought for around £370.

2. Ethereum (ETH)

  • Market cap: £137 billion

Ethereum is both a cryptocurrency and a blockchain platform and is popular with program developers because of its potential applications.

These include so-called ‘smart contracts’ that execute automatically when conditions are met, as well as non-fungible tokens – or NFTs. NFTs are digital assets Those that represent real-world objects, such as unique works of art.

Ethereum is another cryptocurrency that has experienced tremendous growth. For example, since April 2016, its price has increased from £8 to around £1,149.

3. Tether (USDT)

  • Market cap: £60 billion

Unlike some of its cryptocurrency rivals, Tether is a type of ‘stablecoin’.

Stablecoins attempt to link their market value to an external context. For Tether, this means that it is backed by established ‘fiat’ currencies such as the UK pound, US dollar or euro and hypothetically holds the equivalent value of one of those denominations.

Tether’s value, the theory goes, should be more consistent than that of other cryptocurrencies. It is preferred by investors who are wary of the extreme volatility associated with other coins.

4. Binance Coin (BNB)

  • Market cap: £41 billion

Binance Coin is a version of cryptocurrency where users can trade and pay fees on Binance, one of the largest crypto exchanges in the world. Binance Coin offers a discount on the fees paid on the exchange.

Launched in 2017, Binance Coin has gone beyond simply facilitating trades on the Binance exchange. It can now be used for business, payment processing and even for booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency such as bitcoin or ethereum.

In 2017 a coin cost less than 10p, but this month it is trading around £254.

5. US Dollar Coin (USDC)

  • Market cap: £36 billion

The US Dollar Coin (USDC) is another stable coin. It is redeemable for US dollars on a 1:1 basis, backed by dollar denominated assets held in segregated accounts with US-regulated financial institutions. USDC is powered by Ethereum and can be used to complete transactions around the world.

6. XRP (XRP)

  • Market cap: £39 billion

XRP aims to become a fast, cost-effective cryptocurrency for cross-border payments.

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used to transact a variety of currency types on that network, including fiat currencies and other major cryptocurrencies.

7. Cardano (ADA)

  • Market cap: £12 billion

Later in the crypto landscape, Cardano is notable for its early embrace of ‘proof-of-stake’ verification.

It is the second of two major consensus mechanisms (along with ‘proof of work’, see bitcoin above) that cryptocurrencies use to verify new transactions, add them to the blockchain, and create new tokens.

This method accelerates transaction times and reduces energy use and environmental impact by removing the competitive, problem-solving aspect of transaction verification that exists through platforms such as bitcoin.

Cardano also acts like Ethereum to enable smart contracts and decentralized applications, powered by ADA, its native coin.

8. Sunshine (Sun)

  • Market cap: £10 billion

Solana is a public, open-source blockchain that supports smart contracts including NFTs and various so-called decentralized applications also known as ‘dApps’.

DApps are digital applications or programs that run on a blockchain network of computers rather than a single computer. DApps can be developed for a variety of purposes, including gaming, finance, and social media, outside the jurisdiction and control of a single authority.

Solana runs on a unique hybrid of proof-of-stake and proof-of-history mechanisms that help it process transactions quickly and securely. Its native token, SOL, powers the platform.

The SOL cost around 57p at launch in 2020 and is now priced at over £28.

9. Polka Dots (Dot)

  • Market cap: £6.5 billion

Launched in 2020, Polkadot is a crypto project that aims to integrate various blockchain networks so that they can work together.

Between its launch and October 2022, the price of Polkadot has increased from £2.15 to £5.56.

10. Dogecoin (DOGE)

  • Market cap: £4.8 billion

dogecoin What started as a joke in 2013, but has quickly grown into a major cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit to the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation when supply increases.

In 2017 the price of Dogecoin was £0.00016. As of 3 October 2022 it was priced at 5p.

frequently asked questions

What are cryptocurrencies?

Cryptocurrency is a type of currency that exists only in digital form. Cryptocurrencies are increasingly being used to make purchases online, bypassing the need to go through a third party such as a bank. These are also used for investment/speculation.

What is the difference between trading cryptocurrencies and traditional stocks?

Buying shares in a company means that you own a small portion of the corporation concerned. Shares also provide the holder with the right to vote on important decisions that a company makes — from the direction of travel, to how much it pays to its executive board.

If a company folds, shareholders may be entitled to compensation once the pecking order has been paid to creditors.

In contrast, buying cryptocurrency only gives the holder ownership of the token. If a cryptocurrency loses value, that’s it. There is no additional layer of compensation for the holder.

There are several important differences between stocks and cryptocurrencies to keep in mind:

  • trading hours: Traditional stock exchanges such as London and New York are only open for a specified period of time, five days a week. The cryptocurrency markets are never closed, however, enabling participants to transact 24/365.
  • Regulation: Stock trading is subject to strict regulation, and the reports and accounts of publicly listed companies are matters of public record. Cryptocurrencies are unregulated. Unlike other parts of the financial services market, there is no financial safety net for customers if a cryptocurrency company goes over the wall.
  • Volatility: Investing in both stocks and cryptocurrencies involves risk. Investors can lose money from both and, in extreme cases, end up with nothing. While share prices rise and fall based on company performance, cryptocurrency prices tend to be more speculative. This can make subsequent price movements extremely volatile, seemingly insignificant as a celebrity tweet.

How do you buy crypto?

You can buy cryptocurrencies through many exchanges such as Coinbase.

Do You Have to Pay Taxes on Cryptocurrencies?

find out here How HM Revenue & Customs Taxes Crypto such as cryptocurrencies.

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