Top 5 cryptocurrencies to watch in 2025

What are cryptocurrencies?

Cryptocurrencies are digital or virtual currencies that use a mechanism called cryptography to secure transactions.

Unlike fiat currencies, cryptos don’t have a central or regulating authority, instead relying on a decentralised structure to record transactions and issue new coins. This means banks and other financial institutions aren’t relied upon to verify transactions, which are instead reviewed on a peer-to-peer system.

This creates a ledger that tracks trades and purchases that can’t be changed. There’s no physical money, and no single authority controls it.

How does cryptocurrency work?

Cryptocurrency works on a blockchain, which is a set of connected blocks of data on a distributed database. Each block holds verified transactions, and it’s this mechanism that makes forgery all but impossible.

Once a block is full, it’s run through a hash function, creating a hexadecimal number known as a block header hash. This hash is then entered into the next block in the chain, along with other encrypted information, creating a ‘blockchain’.

Advantages of cryptocurrencies

The pros of cryptocurrencies are hard to ignore. Massive gains, such as XRP’s 460.71% increase over the past year, make them highly appealing. Here are a few more advantages of cryptos:

• Volatility: While this tends to be a negative factor for investors, it presents opportunities for CFD traders, enabling them to take a position in either direction, depending on where they think the market is headed
• Immutable: Recorded transactions cannot be changed because they’re linked cryptographically via blocks of information. Theoretically, to change one block’s data, you’d need to change the data of all preceding blocks, which is just about impossible
• No third-party enforcement: Because cryptos use a peer-to-peer system to verify transactions, there’s no need to involve financial institutions. This works out cheaper to transact. There’s also less interference from third parties, which makes the system more secure

Risks of cryptocurrencies

While the gains seen in some of the cryptos on our list are appealing, it must be stated that cryptocurrencies are extremely volatile, with news, celebrity endorsements and cultural trends having a major effect on their day-to-day prices. A risk management strategy is non-negotiable if you’re planning to trade cryptos.

Other risks of cryptos include:

• Lack of regulation: There are many unregulated exchanges, which make room for lack of care for investor funds, no safekeeping of assets or protection of personal information
• Hacking and fraud: If you hold your private keys in a hot wallet, you’re susceptible to hacking or fraud, where you can lose all your investment
• User error: You can’t reverse or cancel a crypto transaction – once it’s recorded, it’s there for good. Some estimate that a third¹ of all bitcoins are lost due to misplaced passwords, burning or other user errors
• Regulations: As cryptos garner more everyday use, regulations surrounding them are popping up. Sudden regulatory changes could see the prices of cryptos shoot up or down

Top 5 cryptocurrencies to watch in 2025

We chose these cryptocurrencies based on a number of factors, including their large market caps, which tend to mean steadier prices. However, always remember that most cryptocurrencies are inherently volatile, so the market could skyrocket or plummet at any time.

We also selected these five cryptos based on their diverse utilities, recent news surrounding them and, in most cases, their outstanding growth over the past year.

Overview of the cryptos in this article

With us, you can trade all the cryptocurrencies on our list via CFDs, as well as several more. For investors, we also offer a number of crypto ETFs.

It's important to note that when trading CFDs, you are speculating on the price of underlying marketing, and you do not have physical ownership.

1. XRP (Ripple)

Market cap: US$179.06 billion²

Utility: Cross-border transactions

XRP stands as one of the cryptocurrency market's most established players, launched in 2012 by Ripple Labs as a digital payment protocol designed specifically for financial institutions and cross-border transactions.

Unlike traditional cryptocurrencies that rely on mining, XRP operates on the XRP Ledger using a unique Federated Consensus mechanism, making transactions faster and more energy-efficient than Bitcoin or Ethereum.

It’s accessible to financial institutions around the globe and may become more appealing after the recent closure of the SEC case, which came about on the grounds that the cryptocurrency was an unregistered security.

Its connections to major banking institutions include Santander, RAKBANK, Currencies Direct, TransferGo, the Commonwealth Bank of Australia and more.

Highlights:

• Ongoing uncertainty about the SEC’s decision to list two XRP ETFs on the Nasdaq is driving volatility in the crypto’s price³
• A year ago, the price of XRP was A$0.84 – as of 18 August 2025, it’s A$4.71, representing a jump of 460.71%

2. BTC (Bitcoin)

Market cap: US$2.3 trillion⁴

Utility: Store of value and medium of exchange

Created under the pseudonym Satoshi Nakamoto in 2009, Bitcoin enjoys the prestige of being the first widely adopted blockchain-based token of the internet era.

Despite enduring a tumultuous history since its launch over a decade ago, including sharp declines towards the end of the Covid-19 pandemic, BTC has proven highly resilient amidst the economic turmoil of the 2020s.

It operates on a proof-of-work consensus mechanism and is often referred to as ‘digital gold’.

It has a capped supply of 21 million coins, with new bitcoins released via mining rewards, which halve roughly every four years.

The token has surged nearly 14% since February 2025, closing at A$179,039.07 on 18 August 2025.

• Through the introduction of Bitcoin ETFs and institutional adoption, the cryptocurrency has reached new heights, closing at A$189,814.11 on 14 August 2025
• Over the past year, its value has increased nearly 90%
• For Australian CFD traders, Bitcoin offers the highest liquidity and most established trading patterns in the crypto space, making it a choice worth considering for both short-term trading strategies and longer-term position plays

3. ETH (Ethereum)

Market cap: US$519.83 billion⁵

Utility: Enables developers to build and deploy complex applications without relying on traditional centralised servers

Ethereum, launched in 2015 by Vitalik Buterin, revolutionised the cryptocurrency landscape by introducing smart contracts and decentralised applications (dApps) to blockchain technology.

The network's native token, Ether (ETH), serves multiple purposes within the ecosystem. It acts as the primary medium of exchange for transaction fees, powers smart contract execution and functions as collateral in decentralised finance (DeFi) protocols.

Ethereum's transition from proof-of-work to proof-of-stake consensus through ‘The Merge’ in September 2022 significantly reduced its energy consumption by over 99%, addressing environmental concerns while improving network efficiency.

It’s the world’s second-largest cryptocurrency in terms of market cap, and it's garnered strong support among fintech developers, due to the smart contract functionality of its blockchain-based open-source software.

Highlights:

• It hosts the majority of DeFi protocols, NFT marketplaces and decentralised exchanges
• The platform's upcoming developments include continued scaling solutions to help reduce transaction costs and increase throughput
• While it saw quite a decline in April 2025, it’s altogether up in August 2025, sitting at a value of A$6,644.01 on 18 August 2025. This is an increase of just over 69% over the past year

4. USDT (Tether)

Market cap: US$166.78 billion⁶

Utility: Trading pair and safe haven asset

Tether (USDT) represents the world's largest and most widely used stablecoin, designed to maintain a stable value pegged to the US dollar.

Launched in 2014 by Tether Limited, USDT was created to bridge the gap between traditional fiat currencies and cryptocurrencies, providing traders and investors with a stable store of value within the volatile crypto ecosystem.

Unlike other cryptocurrencies that experience significant price volatility, USDT maintains its value at approximately US$1 through collateralisation with traditional assets, including US Treasury bills, cash equivalents and other short-term deposits.

This stability makes it an essential tool for cryptocurrency trading, enabling traders to quickly move in and out of positions without converting back to fiat currency.

Highlights:

• USDT operates across multiple blockchain networks, including Ethereum, Tron and others, providing flexibility for users depending on their preferred platform and transaction cost considerations
• For CFD traders, USDT presents unique opportunities primarily through its stability and correlation with overall crypto market activity. While the token itself doesn't offer the volatility typical of other cryptocurrencies, its trading volume and market influence make it a crucial indicator of market sentiment
• Its value has increased mildly – by just over 4% over the past year, as of 19 August 2025, but this is to be expected from a stablecoin

5. ADA (Cardano)

Market cap: US$33.2 billion⁷

Utility: Staking to secure the network and earn rewards, paying transaction fees and participating in platform governance

Cardano, founded by Ethereum co-founder Charles Hoskinson and launched in 2017, represents a third-generation blockchain platform built on peer-reviewed academic research and evidence-based development.

The platform takes a methodical, scientific approach to blockchain development, emphasising security, scalability and sustainability through its unique proof-of-stake consensus mechanism called Ouroboros.

The ADA token serves as Cardano's native currency and staking mechanism, enabling holders to participate in network governance and earn rewards by delegating their tokens to stake pools.

Cardano's development follows a roadmap structured around five eras: Byron (foundation), Shelley (decentralisation), Goguen (smart contracts), Basho (optimisation) and Voltaire (governance).

The platform's smart contract functionality launched in 2021, enabling DeFi applications, NFTs and decentralised applications to operate on the network.

Highlights:

• For CFD traders, Cardano offers exposure to the academic blockchain sector with strong fundamentals but historically lower adoption rates compared to Ethereum
• Its value has increased 186% over the past year, with the price closing at A$1.42 on 18 August 2025

How to trade cryptocurrency with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for cryptocurrencies on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

FAQs about cryptocurrencies

Footnotes
 

1. Investopedia, August 2025
2. TradingView, August 2025
3. Binance, August 2025
4. TradingView, August 2025
5. TradingView, August 2025
6. TradingView, August 2025
7. TradingView, August 2025