Cryptocurrency is going strong, with numerous types of digital currencies available. At this point, how many types of cryptocurrency are there? CoinMarketCap reports that there are approximately close to 22,000 cryptocurrencies, which is quite a crowd considering Bitcoin only launched in 2009.
Obviously, it is impossible to list all of the types of cryptocurrency and their value, so instead, let’s focus on the biggest projects on the market, ranked by their market capitalization.
“Bitcoin is a technological tour de force.”– Bill Gates
Since its creation in 2009, Bitcoin has seen a rapid rate of adoption, with millions of users and merchants around the world accepting it as a form of payment. Bitcoin’s standing as the first and largest cryptocurrency has made it a benchmark for all types of cryptocurrency, and its influence on the market and the broader financial world is undeniable.
Ethereum was created in 2015, and it allows for the creation of decentralized applications and smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. The combination of its versatility and strong performance has made Ethereum a popular choice for developers and investors alike.
“Tether was the first stablecoin, and it’s been hugely important in bringing stability to the cryptocurrency market.”– Jean-Louis van der Velde, CEO of Bitfinex and Tether.
Tether is a stablecoin that is pegged to the value of the US dollar. It was created in 2014 with the aim of providing a stable and secure alternative to traditional cryptocurrencies, which can experience significant price swings.
USDT operates on several blockchain platforms, including Bitcoin and Ethereum, and has seen widespread adoption due to its stability and usefulness as a means of payment and a tool for hedging against volatility.
Binance Coin (BNB)
Binance initially issued BNB as an ERC-20 token in 2017 and later migrated to its own blockchain, Binance Chain, in 2019.
Binance uses BNB as the native token on its platform and offers discounts on trading fees for users who hold and use BNB to pay for these fees. This has led to a high rate of adoption and demand for BNB, contributing to its past performance as one of the top-performing types of cryptocurrency.
USD Coin (USDC)
USDC is a stablecoin created in 2018 by Circle, a financial services company, and is now managed by the CENTRE consortium. USDC operates on the Ethereum blockchain and is designed to provide a fast, secure, and low-cost alternative to traditional US dollar-based transactions.
Additionally, USDC has strong transparency and accountability standards, with regular audits and verifications of its US dollar reserves, making it a trusted option for users and businesses.
Ripple is a digital currency that was created in 2012 with the aim of revolutionizing cross-border payments. Ripple’s combination of fast transaction times, low costs, and financial institution adoption has made it a popular choice for those looking for an alternative to traditional payment systems and a contender among the different types of cryptocurrency available.
Binance USD (BUSD)
BUSD was created in 2019 by Binance, one of the largest cryptocurrency exchanges in the world, in partnership with Paxos, a trusted provider of stablecoins. Its association with Binance, a well-established and trusted player in the crypto space, has helped to increase its credibility and acceptance among users.
The cryptocurrency landscape is a dynamic and fluid one, with new developments, different types of cryptocurrency, and their value fluctuations happening all the time. This makes it a constantly evolving and challenging space to navigate.
Despite this, certain cryptocurrencies, such as Bitcoin and Tether, have managed to hold their position as market leaders for an extended period of time, proving their resilience and staying power. Know the market leaders but keep in mind that even the most popular coins could see shifts in their standing.
Intro to Ethereum, ethereum.org
USDT vs. USDC vs. BUSD: How are they different? Bybit Learn