If you work with cryptocurrencies or observe the market, you may get the impression that some new cryptocurrency appears every day. And there is!
Now there are more than 3,000 cryptocurrencies and at the same time, new currencies appear constantly. In this article, you will learn important points about the volume of the cryptocurrency market, the main players, and why there is a need for such a large number of cryptocurrencies.
According to information on the Internet, in the world, there are somewhere between 3,000 – 2,995 cryptocurrencies. And it all came from one, the first digital coin – Bitcoin.
True, you cannot call all 3,000 currencies significant or even legal. The method by which cryptocurrencies can be created (known as “open source”) makes it surprisingly easy for everyone to create their own cryptocurrency.
At the moment, the total capitalization of the cryptocurrency market is about $ 280 billion.
Here is the Top of 10 cryptocurrencies with their market capitalization:
Bitcoin (BTC) $ 175 billion
Ethereum (ETH) $ 29 Billion
XRP (XRP) $ 11 billion
Bitcoin Cash (BCH) $ 6 Billion
Bitcoin S.V. (BSV) $ 5 billion
Litecoin (LTC) $ 4 billion
Tether (USDT) $ 3 billion
EOS (EOS) $ 3 billion
Binance Coin (BNB) $ 2 Billion
Tezos (XTZ) $ 2 billion
Why do we need other cryptos besides bitcoin?
Bitcoin has several drawbacks, such as high fees, limited scalability, and relatively long transaction processing. Some of the other cryptocurrencies just do their job better, such as Ripple. It costs quite a bit, but its transactions are processed in just a few seconds, so several key financial institutions use this technology of the company.
Traders should also not pursue the “next bitcoin”. If bitcoin is not enough, this also does not mean that the market needs other currencies. Most small cryptos may not bring you any income even a few years later. Therefore, be careful if you want to buy new cryptocurrencies just because you think that they should be in the top 10.
Yes, some market leaders can predict which currency will gain momentum next year and which will not, but some of them may be sponsored by the same coins to advertise it.
Buying bitcoin, Ethereum or any other large coin is speculative enough – buying really small ones is just as risky as buying a lottery ticket, if not more.
The market will eventually reach maturity, and this area will continue to constantly and steadily develop. The current level of prices for bitcoins can be called one of the most acceptable for entry, but with long-term investments. That’s because the potential of blockchain technology is still great.
Even after some of the virtual currencies become securities, traders should expect new turns in the development of the market. This will make them available to retailers and give everyone a wide selection of investment tools and even possibly cause a real gold rush. It is also assumed that the ICO will ultimately be fully occupied by STO.
Everyone knows that Facebook is going to launch its own cryptocurrency, but there is also information that Telegram and Google think about it. The appearance of such coins of these corporations can unpredictably change the value of most cryptocurrencies, but their total capitalization will definitely grow in the future.