The market for cryptocurrencies is becoming stronger with each passing financial year. Cryptocurrency valuations continue to increase at rates much higher than comparable benchmarks such as the S&P 500.
In light of this, more and more are wondering how to increase their investment exposure to these digital assets. Here are the current cryptocurrency rankings in terms of popularity and liquidity.
Bitcoin still reigns supreme in the cryptocurrency market with a market valuation that is close to $190 billion. Invented in 2008, Bitcoin is perhaps the most well-known crypto in the world. As a result of its popularity, BTC continues to surge in the market. The average daily trading volume witnessed is significantly higher than many other comparable currencies.
Individuals that wish to start their investment journey in cryptocurrencies should definitely consider exposing their portfolio to a tried and true leader of the market like Bitcoin. Returns on BTC have been very high in recent times, with gains of over 10% in the past few weeks.
Next to BTC, Ethereum is the second most popular cryptocurrency, currently valued at $26 billion. In the same way as bitcoin, ETH has risen in the markets at a tremendously fast pace. Released only in 2015, which is many years after bitcoin was released, Ethereum currently stands as a rising star of the market.
There is a hot debate within the investing community about the potential for this particular cryptocurrency. Many believe that ETH may be the next face of the cryptocurrency market as more investors take interest and buy significant holdings.
XRP is based on the Ripple payment protocol, which has taken the world by storm in recent years. The Ripple settlement system has revolutionized modern transactions, and as a result, XRP has skyrocketed in cryptocurrency rankings. Currently, XRP has a massive valuation of $12 billion, which is set to grow extensively in the coming months. Many fans and believers of the new transaction protocols created by Ripple Labs are heavily involved in making the cryptocurrency bigger and more popular than ever before.
Bitcoin Cash (BCH)
Bitcoin Cash is a relatively recent addition to the cryptocurrency market, and is based upon Bitcoin. For numerous reasons, such as accommodating the monumental trading volume of the original Bitcoin, BCH was created as an alternative. As it stands, BCH has seen great success as it nears the $8.5 billion mark in terms of valuation. Compared to other cryptocurrencies, BCH is known for having comparably higher liquidity, which may be an enticing prospect for certain investors.
Bitcoin SV (BSV)
Yet another immensely popular cryptocurrency bearing the name Bitcoin is BSV. The SV stands for “Satoshi’s Vision,” which is named after the presumed developer behind BTC. The cryptocurrency is once again based off of Bitcoin and was created by the community as another alternative with greater block size and easier transactions.
The cryptocurrency has reached a valuation of close to $7 billion, making it the fifth most popular crypto at the time of writing. The returns experienced on BSV have been much higher than other highly popular cryptos, yielding a return of over 30% in recent weeks, which is much higher than the 10% seen on BTC.