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Top 10 Cryptocurrencies of January 2024

The crypto world is dynamic, characterized by constant innovation, huge fluctuations and plenty of opportunities for making profit. From Bitcoin to Dogecoin, each of these crypto assets have their own story to tell.

Top 10 Cryptocurrencies in January

#1 Bitcoin (BTC)

Bitcoin is the original and, perhaps, the most famous cryptocurrency created in 2009 by an unknown person or a group using the pseudonym Satoshi Nakamoto. One unique feature of Bitcoin is its capped supply; there will only ever be 21 million Bitcoins in existence, making it a deflationary asset. Bitcoin has risen from a mere $1,208 in May 2016 to around $38,709 as of January 23, 2024 with a market cap of over $758.9 billion—an astounding rise by an impressive figure of 764% within the time period.

#2 Ethereum (ETH)

Ethereum is not only a cryptocurrency but also a blockchain platform that has many uses. It is liked and preferred by developers that are using applications like smart contracts and NFT’s. The market cap of Ethereum amounts to $263.1 billion, and the coin has grown dramatically from around $11 in April 2016 up to approximately $2,189 by the end of January 2024; this is a whopping gain of 19,800%.

#3 USD Tether (USDT)

Unlike other cryptocurrencies, Tether (USDT) is a stablecoin, which means its value is tied to fiat currencies like the US dollar and the Euro. With a market cap of $94.8 billion, Tether aims to remain stable and is suitable for investors who are afraid of the wild price swings in other crypto coins.

#4 XRP (XRP)

Some of the Ripple founders created XRP; it allows currency conversion on the Ripple network. Given that XRP has a market capitalization of $27.3 billion, it has made considerable progress after 2017 at $0.006 and rising to $0.5 as of January 23, 2024 which is an increase in value by over 8,277%

#5 Binance Coin (BNB)

Binance Coin (BNB) was initially developed as a means of trading and for fee payment on the Binance exchange but has evolved into an all-round cryptocurrency. The price of BNB has had unbelievable growth given that it started trading at a market cap of $43.9 billion in 2017 and currently is almost $293 as of late January 2024.

#6 Solana (SOL)

SOL powers the Solana platform which is based on a hybrid proof-of-stake and proof-of-history mechanism. In January 2024 SOL’s price was around $80.66 after increasing from $0.77 at launch in 2020 with a market cap of $34.9 billion, marking an increase of over 10,376%.

#7 Dogecoin (DOGE)

Initially designed as a prank in 2013, Dogecoin has quickly become very popular with the help of creative memes and a dedicated community. Although Dogecoin started as a joke, it has evolved into a major cryptocurrency with a $11.0 billion market cap. The cost, which was $0.0002 in 2017, has since risen to $0.08 by the end of January; an unbelievable increase of 38,359%.

#8 U.S. Dollar Coin (USDC)

Similar to Tether, USD Coin (USDC) is a stablecoin backed by U.S. dollars, aiming for a 1: 1 ratio. USDC has a market cap of $25.6 billion and is based on Ethereum, enabling users to conduct world-wide transactions with stability.

#9 Cardano (ADA)

What separates Cardano from other crypto coins is that of its early adoption of the proof of stake concept, which decreases the time and energy consumption to complete transactions. ADA with a market cap of $16.1 billion, its price has increased from $0.02 in 2017 to $0.46 by January 2024 with an increase of 2,181%.

#10 Avalanche (AVAX)

Avalanche has branded itself as a major force among cryptocurrencies with its emphasis on high transaction speeds and low fees. Currently it’s value is $35 with a market cap of $10.3 billion. 

How Much of My Portfolio Do I Devote to Cryptocurrencies?

The critical step in risk and volatility management is to know how much of your portfolio should be in crypto investment. Most financial professionals would advise you to keep your crypto exposure below 5% of your total portfolio. For newbies and beginners in crypto investing, making a small allocation, say 1% to 2%, is a good way to get started.

Tax Implications of Crypto Investing

Cryptocurrencies investment requires complicated tax obligations that investors should take into account. Crypto’s are considered to be capital assets, just like stocks. This means that capital gains and losses should be declared when investing in crypto. The short-term and long-term capital gains tax rates applied to other assets, like stocks, also apply to cryptocurrencies.

Protecting your Crypto

Crypto Self-Custody

In cryptocurrency, self-custody refers to the practice of holding and controlling your private keys—the cryptographic passwords that serve as a key into accessing your tokens and funds. This method offers more control and safety than leaving the assets on an exchange. 

Self-custody requires that recovery phrases are stored in secure locations, sensitive information is not electronically retained and strong passwords with no similarities between different accounts should be used.

Custodian services

For those who like a less active style of security, crypto custodian services are one option. Custodians are external services that safeguard your crypto currency, which means better protection from hackers, schemers and private keys lost. Controlled custodians are typically accompanied by added monitoring and financial safeguards, especially useful for major crypto hackers.

The Bottom Line

Crypto investing, being full of risk as it is, can offer some very specific opportunities for people who are ready to address the market responsibly and diligently. 

A successful crypto investment strategy involves being objective, thinking in the long term and keeping an eye on how much risk is present relative to one’s overall financial assets. All the while, patience and dedication are virtues of those heavily invested in this rapidly changing industry regarding digital assets and decentralized finance.

Disclaimer

Kindly be aware that the content in this article does not constitute financial or investment advice. The information conveyed is solely the author’s opinion and should not be construed as providing trading or investment recommendations. We do not guarantee the completeness, reliability, or accuracy of this information. Given the cryptocurrency market’s inherent high volatility and occasional unpredictable fluctuations, it is imperative for any investor, trader, or regular crypto user to explore various perspectives and acquaint themselves with local regulations before making any investment decisions.