How many cryptocurrencies there are in the world: the number of types today

Virtual money first became widely known during the rapid growth of bitcoin in 2017. Since then, new projects have been appearing regularly. As of April 2022, there are more than 8200 tokens and coins in the rating. It includes assets that have been listed on an exchange.

Varieties of cryptocurrencies

Digital coins and tokens are created on the principles of decentralization (not controlled by one main server). Accounting of financial transactions is automatically performed in the blockchain network. Transactions in the system are combined into a chain, which is stored simultaneously on all connected devices.

Virtual money has the following characteristics:

• Method of generating new units of account.
• Purpose (means of payment, service units of account, exchange koins).
• Issue volume (number of coins or tokens issued).
• Collateralization. Speaking about how many types of cryptocurrencies there are in the world at the moment, it is worth mentioning stablecoins. These are special digital money backed by fiat or gold. For example, Tether (USDT) has a fixed exchange rate to the American dollar at a ratio of 1:1.
• Degree of decentralization. In some blockchains, all participants can verify transactions. Such systems are called decentralized. In others, the validation function is delegated to special servers(masternodes). These systems are called pseudo-decentralized.

How many cryptocurrencies exist now

It is impossible to name the exact number of digital coins and tokens. Cryptocurrencies not only appear, but also disappear. Some of the projects turn out to be scams. Others – do not receive the support of the community.

Top cryptocurrencies by capitalization

The total value of virtual money is an important indicator of public interest in it. If we take into account the exact number of cryptocurrencies on the market, the total capitalization of tokens and coins in April 2022 is $2 trillion. The total amount of money invested in each project differs. The main crypto assets on the market are:

1

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Bitcoin (BTC)

The history of the modern cryptocurrency market begins precisely with bitcoin. It appeared in 2009, and the name of the creator is unknown, users only know the pseudonym – Satoshi Nakamoto. In November 2021, with the price of one bitcoin at $68,000, the capitalization reached $1.29 trillion.

Ethereum (ETH)

The Ethereum blockchain project was created in 2013 by Vitalik Buterin, a Canadian programmer of Russian origin. Its main idea is to use smart contracts to simplify the development of decentralized applications (DApps). Ethereum ranks second among cryptocurrencies with the largest capitalization. In November 2021, it stands at $569 billion and the exchange rate has crossed the $4700 mark.

A smart contract is a special algorithm that allows you to track the fulfillment of obligations of two separate parties. It provides an opportunity to specify the terms of the deal and ensure their automatic fulfillment. The parties put digital signatures. The smart contract automatically checks the fulfillment of obligations and makes a decision on the transaction.

Ripple (XRP)

The third coin in the list of cryptocurrencies with the largest capitalization. Features of Ripple:

• High level of anonymity.
• Fast transaction processing (compared to bitcoin).
• The company acts as an intermediary between the sender and the recipient of the asset.
• One-time issuance. All 100 billion coins are issued at the moment of the network launch.

Ripple’s capitalization was $129 billion in November 2021. The value of the coin was above $1.26 at that time.

Solana (SOL).

The project appeared in 2017 and offers tools for creating secure, fast DApps. The peculiarity of the system is the high speed of transaction processing. In practice, the network is able to conduct 60-65 thousand transactions per second. For comparison, Bitcoin’s blockchain algorithm processes up to 5 transactions during this time.

The capitalization of the Solana project in November 2021 is $125 billion. The price of SOL has exceeded the mark of $250 per coin. The rate of virtual currency for 2021 showed a rapid growth of 166.6 times.

Binance Coin (BNB)

The coin is an exchange token of the cryptocurrency marketplace Binance. Prior to the creation of the Binance Smart Chain (blockchain platform), BNB was an ERC-20 standard unit of account and operated on the Ethereum network. The asset is used for:

• Discounts on trading commissions (25%).
• Purchases of services and goods.
• Purchasing fiat money.
• Pledging collateral when taking a crypto loan on Binance Loans.
• Paying salaries to company employees.
• Launching smart contracts.

The capitalization of Binance Coin is $108 billion as of November 2021. The value of the exchange-traded coin exceeds $640.

Which cryptocurrencies will remain in the future

Some of the projects do not offer real solutions to fix customer problems, or they are ineffective. They can exist as many as you want, since no one knows the exact number. However, as experts and analysts believe, such cryptocurrencies will eventually disappear from the market. Ripple CEO Brad Garlinghouse predicts that 1% of all digital coins will remain.

Often, crypto project developers see an opportunity to make money without offering tools that are useful to humanity. In addition, tools have emerged to make it easier to develop your own tokens. There are also companies that help you create a cryptoproject.

The best coins to buy

Over 7,300 cryptocurrencies exist today. This market includes promising assets that can grow significantly in value. The years 2020-2021 have seen its rapid development. The best crypto assets for investment are presented in the table below:

Name of digital currency	Growth factor
Bitcoin	The US Securities and Exchange Commission (SEC) approved the first bitcoin-ETF (index fund) based on futures. There was an increase in the number of institutional investors.
Ethereum	Investors’ anticipation of Ethereum 2.0. The 2022 upgrade will increase scalability, security, and lower fees.
Solana	The project is designed to increase the speed of transaction processing in decentralized networks. This blockchain system is capable of handling up to 60,000 transactions per second.
Mina	One of the problems with many cryptocurrencies is the large amount of transaction history. In 2021, Bitcoin’s blockchain size will exceed 370 GB. DApps require lighter solutions to be productive. The Mina project offers one of the smallest blockchains in terms of size. In 2021, it weighed only 22 KB.
Avalanche	Is an improved version of Ethereum. Its peculiarity is the high speed of transaction processing. The project allows using smart contracts, creating DApps, implementing DeFi services (decentralized finance).
Polkadot	Allows linking different blockchains. Chains of links are combined and work in parallel.
Uniswap	Exchange token of the DEX platform (a protocol in which cryptocurrency is transferred between transaction participants in a decentralized manner – without the need to store it on a platform). Uniswap topped the ranking among such projects in 2021.
Waves	Is a service token of the DEX-platform of the same name. It implements the ability to use fiat money.
Aave	A service token of the decentralized lending protocol.

Summary

It is possible to name the exact number of all coins and tokens, but it is constantly changing. Some cryptoassets have depreciated in value, others have not been listed on exchanges. New digital money continues to appear regularly to replace them.

In 2021, the leaders in terms of capitalization were such tokens and coins:

• Bitcoin.
• Ethereum.
• Ripple.
• Solano.
• Binance Coin.

But you should not consider exclusively crypto assets from the top of the rating. Investing is associated with risks. Even popular koins and tokens at the top of the rating can depreciate. Therefore, when choosing cryptocurrencies to buy, you need to analyze the possible dynamics of the value of the asset in the future.

Frequently Asked Questions

🚹 Who is Satoshi Nakamato?

There is no unambiguous answer to the question. Satoshi Nakamato is believed to be a pseudonym of a developer or a group of individuals.

😱 What is the minimum value of bitcoin in history?

The first sales of Bitcoin started on the New Liberty Standard exchange. $1 bought 1309.03 bitcoins.

❗ How can you distinguish real cryptocurrency projects from fraudulent ones?

There is no absolutely reliable method. It is better to invest in digital money through sites with strict selection.

❔ Which crypto asset is the least risky to invest in?

Bitcoin is the most popular coin. This is due to its low volatility relative to other cryptocurrencies and high capitalization. But this does not guarantee the stability of profit from investing in BTC coins.

📊 What is the point of decentralized exchanges (DEX)?

The main advantage of such cryptocurrencies is the complete anonymity of users. No data about traders and investors are stored on the exchange’s servers. In addition, clients do not transfer tokens and coins to the platform. All transactions are carried out automatically with the help of smart contracts.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.