The number of cryptocurrencies that are there is huge and furthermore, this number is increasing each day. It all started from a few in the 2010’s and today we have almost more than 2500 different ones if we talk in terms of the count. The reason behind this rapid emergence of new and new cryptos is that one, Bitcoin has been a great motivating factor, and two, cryptocurrency and blockchain are all IT based. This means there are a lot of leaks and vulnerabilities in the system that can always be improved. So new companies enter, and market themselves to be more promising in terms of privacy and security, and newer ones still enter, picking up from where the last one left. There is no end to this as IT is always endless in scope from both a hacker’s point of view and then a security provider’s point of view.
How Many Cryptocurrencies Are There
Above we have a rough idea as to how and why new cryptocurrencies are evolving; let us see the major blocks of the blockchain here. We have tried to divide these as per some parameters, so that it is easier to see how many cryptocurrencies there are.
1. By Market Capitalization: It is beyond doubt that Bitcoin has managed to maintain its position as the market leader in figures based on market capitalization at 59% to itself alone. Ethereum, Ripple and Tether are the immediate followers, and then there are a few more like Stellar, EOS etc., about another 21, and this makes up for almost 90% of the chunk.
2. By Technology: Technology variation is another major market demarcation when we talk about how many cryptocurrencies there are. There are three major categories presently: Bitcoin, Altcoin and Tokens. While Bitcoin and Altcoin have their own blockchain networks, Tokens do not have such. However, the algorithms that are used in Bitcoin and Altcoin are also very different. Also, currencies like Monero etc. are a completely different class of technology, trying to provide some totally different functionality to the buyers and investors.
3. Active and Inactive Cryptocurrencies: This is perhaps the most practical way of looking at how many cryptocurrencies there are. Even out of the top 25 that constitute about 90% of the market cap, only 20 are considered active, as most of the trades happen through them.
How Many Cryptocurrencies Can a Trader Use
Technically speaking, there is no end to the number of cryptocurrencies a trader can use. However, practically, people do not go for more than 4 to 5 different cryptocurrencies at a time, which too is the case only with more experienced traders who can manage to do so. Otherwise, people usually restrict themselves to a single one, and that takes Bitcoin more often than not. Recently, companies like executium.com have also started serving customers in this regard, to help them trade into multiple cryptos and to gain out the best possible from each one.