How many cryptocurrencies are there?
Cryptocurrency promises freedom and opportunity. Great minds have flocked to the space to be a part of financial disruption. But with so much innovation happening, there are an increasing number of crypto projects and companies. You may have heard that there are thousands of different tokens and coins. But do we really need so many – and just how many cryptocurrencies are there?
In this blog, we’ll take a look at the numbers and crunch down to some of the most important assets on the market today.
How many cryptocurrencies are there?
According to CoinMarketCap, the total number of cryptocurrencies is just shy of 3,000 – 2,995 to be exact.
So it looks like there are around 3,000 cryptocurrencies out there. That’s a lot!
However, this doesn’t quite answer the question “how many cryptocurrencies are there?” because a lot of cryptocurrencies are attached to projects that were either abandoned, went bust or exit scammed.
Not all crypto projects can or will last forever. There are many that are created as a test or a joke and soon fade into irrelevance. Different sites use different methods to list cryptocurrencies, hence the range of numbers.
Look at CoinGecko to see how many cryptocurrency there are and they’ll tell you there are actually more like 6,000 of them on record! There’s a big disparity.
So how many cryptocurrencies are there? Is it even possible to know?
You could go out there and create your own cryptocurrency today. It wouldn’t be listed on coinmarketcap or any other ranking site. It wouldn’t be logged, but it would exist. There are likely tens of thousands of unknown cryptocurrencies out there in the world.
It’s not possible to know about every crypto that’s ever created. Instead, we can look for a certain number of redeeming factors to qualify a cryptocurrency and count it towards the total. Trading volume and market cap are considered highly in this respect.
Most traders and investors lend credence to the lower numbers reported by CoinMarketCap and investing.com because they have a more stringent review process. Yet even so, scroll through some of the loweer volume tokens and you will find abandoned projects still listed, sometimes even being traded.
As for Coingecko’s 6,000 cryptocurrencies, they do exist – so who’s more right? Where do we draw the line? That’s for you to decide.
What are the best cryptocurrencies?
Opinions - everyone has them. We’re all looking for something different. Asking what cryptocurrency is the best, or most useful, can lead to fierce debate from various camps.
At Liquid, we strive to bring the most innovative cryptocurrencies to the forefront with our platform so our users can buy, sell or trade them. Here are some of well-established favourites.
Bitcoin is the cryptocurrency where it all began. It’s been around for more than 10 years and is the original cryptocurrency. It’s a form of digital cash that challenges to traditional finance systems. No borders, low fees, no restrictions.
If you’re looking to get started in cryptocurrency, Bitcoin is where you should look first. Not necessarily as an investment, but as a research point. The growth of Bitcoin perfectly conveys the necessity for cryptocurrency.
Ethereum is one of the most popular cryptocurrencies, second only to Bitcoin. Ethereum is an open-source software that uses blockchain technology to create smart contracts and allow cryptocurrency trading in its own currency, called Ether (ETH).
Ethereum opened the floodgates of crypto. It provided the tools that great minds needed to bring their ideas to life.
Bitcoin Cash is a hard fork of Bitcoin created to improve scalability and reduce transaction fees. Bitcoin chain has a maximum block size of 1 MB. This can only fit a finite number of transactions inside. The 1 MB limit means that Bitcoin can handle 4.4 transactions a second at most. Bitcoin Cash currently has a block size of 8MB.
XRP is a payment-focussed cryptocurrency designed for cross-border transactions. XRP payments settle in just 4 seconds regardless of geographical location and can handle up to 1,500 transactions per second, all day every day.
Hbar is the cryptocurrency of the Hedera platform, by Hedera Hashgraph. Hedera exists to provide a stable, trustworthy platform optimized for enterprise-grade applications.
Want to learn more? Check out these other recommended blogs about cryptocurrency:
- What gives cryptocurrencies value?
- How to do fundamental analysis for cryptocurrency
- How to buy cryptocurrency with ease
This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.
Providing liquidity for the crypto economy.