According to the most recent tally, there are over 13,000 different cryptocurrencies. As with real-world currencies, not all of them are on equal footing and therefore not equally desired.
One of the most important decisions you have to make as a new investor considering entering the cryptosphere is how much of one currency to buy, how much to invest in two distinct cryptocurrencies, or how much to participate in the trading of numerous cryptocurrencies at once.
There isn’t a formula that works for everyone, and investing in cryptocurrencies depends on one’s risk appetite vs another. For investors, developers, day traders, and so on, some cryptocurrencies are more suited than others.
You’d be better off making an informed choice if you had a better understanding of currencies. That information is what we’re looking to provide in this article. Hence, here are the top cryptocurrencies in Nigeria you can invest in.
Bitcoin (BTC), $1.1 trillion in market capitalization
Bitcoin, being the coin that heralded the cryptocurrency era, is still the coin that most people think of when discussing digital currency. The currency’s mysterious creator, purportedly Satoshi Nakamoto, unveiled it in 2009, and it’s been on a roller-coaster ride ever since. However, it wasn’t until 2017 that bitcoin entered the public mind.
Ethereum (ETH), $413 billion in market capitalization
The second most well-known name in the cryptocurrency industry is Ethereum, which is the name of the cryptocurrency platform. The system allows you to utilize ether (the currency) to execute a variety of operations, but Ethereum’s smart contract feature contributes to its popularity.
Binance Coin (BNB), $72 billion in market capitalization
Binance Coin is the cryptocurrency issued by Binance, one of the world’s major cryptocurrency exchanges. Binance Coin, which was originally designed to pay for discounted transactions, may now be used to make payments as well as purchase a variety of goods and services.
Cardano (ADA), $70 billion in market capitalization
Cardano is the cryptocurrency framework that powers ada, the currency’s name. Cardano, which was created by the co-founder of Ethereum, similarly employs smart contracts to enable identity management.
Tether (USDT), $69 billion in market capitalization
Tether’s pricing is set at one dollar per coin. This is due to the fact that it is a stablecoin. Stablecoins are coins whose value is linked to the value of a single asset, in Tether’s instance, the US dollar. Tether is frequently used as a bridge currency when traders transfer from one cryptocurrency to another. Instead of returning to dollars, they use Tether. However, some people are concerned that Tether is not secure because it is not backed by dollars held in reserve, but rather by a short-term type of unsecured debt.
Ripple (XRP), $51 billion in market capitalization
XRP, formerly known as Ripple and launched in 2012, allows users to pay in a variety of real-world currencies. Ripple can be useful in cross-border transactions since it employs a trust-free technique to allow payments.
Solana (SOL), $43 billion in market capitalization
Solana is a newer cryptocurrency that was launched in March 2020 and boasts about the speed with which transactions are completed and the overall robustness of its “web-scale” platform. The issuance of the SOL money is limited to 480 million coins.
Polkadots (DOT), $33 billion in market capitalization
Polkadot, which will be launched in May 2020, is a digital currency that links blockchain technologies from other cryptocurrencies. One of Polkadot’s inventors is a co-founder of Ethereum, and some industry observers believe Polkadot is attempting to dethrone Ethereum.
US Dollar Coin (USDC), $33 billion in market capitalization
USD Coin, like Tether, is a stablecoin tied to the US dollar, which means its value should not vary. The currency’s creators claim that it is backed by fully reserved assets or assets with “equal fair worth,” which are stored in accounts with regulated US institutions.
Dogecoin (DOGE), $29 billion in market capitalization
Dogecoin was named after an online meme portraying a Shiba Inu dog and was formed as a joke following the run-up in Bitcoin. Unlike many digital currencies that have a cap on the amount of coins that may be issued, Dogecoin has an unlimited supply. It can be used to make payments or to send money.
Terra (LUNA), $15 billion in market capitalization
Terra is a platform that helps backstop a variety of stablecoins based on actual currencies such as the dollar or euro by using its currency Luna. Terra uses several technical ways to help steady the price of stablecoins, and it also enables smart contracts.
Uniswap (UNI), $14 billion in market capitalization
Uniswap, which was launched in November 2018, is a decentralized network that runs on the Ethereum blockchain and can be used to exchange other coins, as opposed to centralized exchanges like Coinbase and Binance.
There are thousands of different cryptocurrencies, ranging from Bitcoin and Ethereum to Dogecoin and Tether, which might be confusing when you’re just getting started in the world of crypto. To help you get started, I’ve listed out the top ten cryptocurrencies in Nigeria in terms of market capitalization.
Be ready for ups and downs in the bitcoin market because it is quite volatile. Prices will fluctuate wildly. Cryptocurrency may not be a good investment for you if your portfolio or mental health can’t handle it.
But don’t get too excited just yet; cryptocurrency is only getting started. Investing in something new is fraught with peril, so plan accordingly. If you choose to take part, do your homework and start investing cautiously.