There are over 12,000 cryptocurrencies, and the rate of growth is simply astounding. Between 2021 and 2022, the number of cryptocurrencies more than doubled. The market is adding over 1,000 new cryptocurrencies every month by the end of 2021. Now, there are many cryptocurrency out there.
This isn’t entirely positive information. Many new cryptocurrencies have little use other than to make money for their creators, so investors must be cautious. Only a small percentage of cryptocurrencies are worth researching and possibly purchasing.
Why is it that the number of cryptocurrencies is increasing so quickly? We’ll respond to that question and go over the most important and influential cryptocurrencies in the section below.
How Many Cryptocurrency are there
There are already over 12,000 cryptocurrencies, and the rate of growth is simply astounding. Between 2021 and 2022, the number of cryptocurrencies more than doubled. The market was adding over 1,000 new cryptocurrencies every month by the end of 2021.
Bitcoin (CRYPTO: BTC)
The first cryptocurrency and the largest by market cap.
Ethereum (CRYPTO: ETH)
The cryptocurrency with the first programmable blockchain that developers can use to build decentralized apps (dApps).
Tether (CRYPTO: USDT)
A stablecoin that follows the U.S. dollar and the cryptocurrency with the most trading volume.
Cardano (CRYPTO: ADA)
A research-based cryptocurrency that’s more environmentally friendly due to its low energy usage.
Binance Coin (CRYPTO: BNB)
The native cryptocurrency on the Binance Smart Chain, which was built by the popular Binance exchange.
XRP (CRYPTO: XRP)
The native cryptocurrency for Ripple and the subject of an SEC lawsuit alleging that it’s an unregistered security.
Polkadot (CRYPTO: DOT)
A cryptocurrency designed to allow different blockchains to communicate and work with each other.
Solana (CRYPTO: SOL)
A cryptocurrency with a high-performance blockchain capable of ultra-fast and inexpensive transaction processing.
Dogecoin (CRYPTO: DOGE)
The first meme coin to gain widespread popularity.
Monero (CRYPTO: MXR)
A donation-based cryptocurrency that intends to provide total privacy through untraceable transactions.
Why are there so many different cryptocurrencies?
The fact that there is essentially no barrier to entry is one of the main reasons why there are so many different cryptocurrencies. Anyone with a computer can create a cryptocurrency. Even if you have no technical knowledge, you may hire someone to create a cryptocurrency for less than $20 on Fiverr (NYSE: FVRR).
This was not always the case. There was only Bitcoin in the beginning. After that, coders began building altcoins. Any cryptocurrency that isn’t Bitcoin is known as an altcoin. The majority of early cryptocurrencies were created to improve Bitcoin’s performance or to fulfill some other objective.
The majority of successful cryptocurrencies still have an aim or purpose. Developers build cryptocurrencies in the hopes of solving a real-world problem with blockchain technology.
The quantity of money in crypto has attracted many looking to earn a quick profit since it has become relatively easy to create a coin. If you look at the charts of newly released cryptocurrencies, you’ll see a lot of them have names that include “Elon,” “Shib,” or “Doge.”
Here are the cryptocurrencies that have had the most influence if you’re looking for a decent cryptocurrency investment or just want to learn about some prominent projects.
Bitcoin was the first cryptocurrency in the world. Bitcoin was created in 2009 by an unidentified inventor known only as Satoshi Nakamoto. It was created as a decentralized digital money that was independent of banks and financial organizations.
Bitcoin is currently mostly utilized as a store of value because newer cryptocurrencies are more technologically advanced and provide far more efficient transactions. It has a strong first-mover advantage because it is by far the most well-known and valued cryptocurrency.
Ethereum was the first cryptocurrency with programmable blockchains, and it continues to be the most popular. Because of its early development, it has firmly established itself as the second-largest cryptocurrency.
Buy your Bitcoin by creating an account with Binance
Tether is the most popular stablecoin, which is a cryptocurrency that tracks the value of another asset. Tether, for example, seeks to track the value of the US dollar, therefore one Tether is usually worth $1.
This digital currency isn’t without its detractors. Tether Limited, the corporation behind it, lied about its reserves when it claimed that every Tether was backed by a US dollar. Tether is usually the cryptocurrency with the highest daily trading volume, despite this and other concerns.
Cardano is an open-source blockchain technology created by one of Ethereum’s co-founders. It intends to address a wide range of challenges, including ensuring universal access to financial services and identification records. Cardano development takes longer than other projects since it is based on peer-reviewed research.
Proof of stake was used to validate transactions for one of the first significant cryptocurrencies. Proof of work, which is utilized by Bitcoin and many other prominent cryptos, is a more energy-efficient approach.
Binance Coin (BNB)
Binance Coin is the Binance Smart Chain’s native cryptocurrency. Binance, one of the world’s most prominent cryptocurrency exchanges, launched this blockchain platform. It swiftly gained popularity as a cheaper alternative to Ethereum because to its lower gas (transaction) prices.
Binance Smart Chain gas fees are paid in Binance Coin, thus you’ll need it to use the blockchain. Clients who hold Binance Coin get a discount on trading fees on the Binance market.
Ripple’s native cryptocurrency, XRP, is a payment technology designed for quick, low-cost transactions. It’s designed primarily for international money transfers, and Ripple has partnered with hundreds of financial institutions to use its technology.
Ripple is well-known for its involvement in an SEC litigation. The SEC accused Ripple of selling unregistered securities in the form of XRP at the end of 2020. Despite Ripple’s denials, many major crypto exchanges have stopped enabling XRP trading as a result of the allegations.
Polkadot is a platform that tries to improve blockchain interoperability. Any sort of data or asset can be transferred across blockchains connected to Polkadot.
Polkadot is a programmable blockchain that is comparable to Ethereum. However, it goes a step beyond. Polkadot allows developers to create their own bespoke blockchains. It also supports parachains, which are many blockchains that work together but each serves a different purpose.
Solana is a blockchain platform designed for efficiency and speed. It can handle 65,000 transactions per second and processes thousands of transactions per second on a regular basis. The average transaction cost is less than a cent.
While Solana relies on proof of stake to verify transactions, it has also developed a new approach known as proof of history. One of the keys to Solana’s quick performance is the technique, which creates a historical record of when transactions occurred.
Dogecoin is a cryptocurrency that was created in response to the Doge meme. The developers of the coin created it in 2013 to mock cryptocurrency price speculation. It’s largely regarded as the original meme coin, and it’s generated a slew of copies throughout time.
Dogecoin has managed to become one of the most popular cryptocurrencies despite having no competitive edge or distinctive use case. Dogecoin and the meme coins that followed it are proof that in the crypto market, hype does matter.
Monero is a cryptocurrency that conducts transactions using privacy-enhancing technologies. Transactions become anonymous and untraceable as a result of this. Most cryptocurrencies have public blockchains that expose all transaction data, but Monero’s blockchain is private, so no one can access it.
Monero has grown in popularity among privacy-conscious crypto fans, but it may also be used for illicit purposes including money laundering and tax evasion. The Internal Revenue Service (IRS) has offered large rewards to anyone who can crack Monero.
Why are cryptocurrencies important?
Cryptocurrencies improve on traditional fiat currency in several ways. They don’t require the support of the federal government, and they handle transactions totally on their own, without the involvement of financial institutions. People on opposite sides of the globe can transfer payments instantly, cheaply, and without the use of any payment providers when they use a cryptocurrency.
Although Bitcoin was created to be a replacement for traditional currency, it is now used for a variety of purposes. Developers are always coming up with innovative solutions to solve real-world problems with cryptocurrency and blockchain technology.
It can be difficult to determine where to invest with so many cryptocurrencies accessible. It’s critical to thoroughly examine any cryptocurrency you’re considering purchasing. When in doubt, the safest investment options are cryptocurrency stocks and larger coins.
Where should you put $1,000 right now?
There are several different exchanges to choose from, with the most popular being Binance.
These exchanges allow you purchase currencies like Bitcoin and Ethereum with a debit card. With most popular currencies, including Bitcoin, you can buy fractions of a coin.
You can also buy your crypto here