10 Best Cryptocurrencies To Invest In May 2024 (2024)

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the coins currently in circulation.

Top 10 Cryptocurrency

Best Crypto To Buy Now

1. Bitcoin (BTC)

• Market cap: $1.4 trillion

• Year-over-year return: 165%

Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or 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.

Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy one bitcoin for about $500. As of May. 22, 2024, a single bitcoin’s price was around $69,901. That’s a growth of 13,880.2%.

Related: How To Buy Bitcoin

2. Ethereum (ETH)

• Market cap: $454.4 billion

• Year-over-year return: 109%

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite 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 the end of May 2024, its price went from about $11 to around $3,783, increasing 34,009%.

Related: How To Buy Ethereum

3. Tether (USDT)

• Market cap: $111.3 billion

• Year-over-year return: 0%

Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins.

4. Binance Coin (BNB)

• Market cap: $90.3 billion

• Year-over-year return: 99%

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 Binance’s 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.

BNB’s price in 2017 was just $0.10. By late May 2024, its price had risen to around $612, a gain of 612,136%.

Related: How To Buy Cryptocurrency

5. Solana (SOL)

• Market cap: $80.8 billion

• Year-over-year return: 809%

Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.

When it launched in 2020, SOL’s price started at $0.77. As of May. 21, 2024, its price was around $181.83, a gain of 23,250%.

6. U.S. Dollar Coin (USDC)

• Market cap: $33.2 billion

• Year-over-year return: 0%

Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

7. XRP (XRP)

• Market cap: $30.0 billion

• Year-over-year return: 18%

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 $0.006. As of May. 21, 2024, its price reached $0.54, equal to a rise of 8,949%.

8. Dogecoin (DOGE)

• Market cap: $24.1 billion

• Year-over-year return: 129%

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.

Dogecoin’s price in 2017 was $0.0002. By May 2024, its price was at $0.17, up 83,353%.

9. Toncoin (TON)

• Market cap: $22.2 billion

• Year-over-year return: 250%

Originally developed as a layer-1 blockchain for Telegram’s encrypted messaging platform, Toncoin was soon abandoned before being taken over by the TON foundation. The project name was even changed to “The Open Network” from its original name “Telegram Open Network,” both of which are referred to by their acronym: TON.

Toncoin—first known as Gram—is the native token for TON. It is an application that allows users to buy, send and store funds on TON’s incredibly fast, environmentally friendly network.

10. Cardano (ADA)

• Market cap: $17.8 billion

• Year-over-year return: 36%

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 decentralized applications, which ADA, its native coin, powers.

Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was $0.02. As of May. 21, 2024, its price was at $0.47. This is an increase of 2,401%.

*Market caps and pricing sourced from coinmarketcap.com, current as of 7.00 p.m. UTC on May. 22, 2024.

What Are Cryptocurrencies?

Cryptocurrency is a form of currency that exists solely in digital form. Cryptocurrency can be used to pay for purchases online without going through an intermediary, such as a bank, or it can be held as an investment.

How Does Cryptocurrency Work?

Cryptocurrencies are various forms of digital money that are usually based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist as “trustless” forms of transactions. This means there is no centralized authority overseeing the transactions on a cryptocurrency’s blockchain.

Why Are There So Many Cryptocurrencies?

Cryptocurrency is an emerging area with more than 9,000 crypto projects in existence as of March 2024.

While some crypto function as currencies, others are used to develop infrastructure. For instance, in the case of Ethereum or Solana, developers are building other cryptos on top of these platform currencies, and that creates even more possibilities (and cryptos).

How To Choose the Best Crypto To Invest In

When choosing the best cryptocurrency to invest in, it is important to consider your individual goals, investing timeline and risk profile, just as you would with any investment. Additionally, you should do your due diligence to make sure that any crypto project you are interested in is legitimate and secure.

In general, investors should consider the following when evaluating a crypto:

• Market capitalization
• Liquidity
• Security
• Use case

How To Invest in Cryptocurrency?

You can buy cryptocurrencies through crypto exchanges, such as CoinDCX, WazirX or Coinswitch.

How To Report Crypto on Taxes

If you buy and sell coins, it’s important to pay attention to cryptocurrency tax rules.

Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, you’ll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, you’ll owe taxes on the difference.