In 2009, the only cryptocurrency available was Bitcoin, although most people didn’t know anything about it at the time. Now that cryptocurrencies have become commonplace, we have seen the number of new crypto projects become parabolic. Not only are there thousands of different cryptocurrencies on the market, but we’ve also seen a number of new types of crypto emerge on the scene. There are stable coins, utility tokens, altcoins, decentralized application coins (dApps), etc.
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Although crypto is still a smaller market than most other financial markets, it is a very fast-growing industry. Despite being only 12 years old, we’ve seen cryptocurrencies like Bitcoin reach a market cap of $1 trillion, about the same size as Amazon (AMZN). How many cryptocurrencies are there exactly right now? How fast will this market grow in the future?
Article continues under advertisingTotal number of cryptocurrency projects
The total number of cryptocurrencies is constantly evolving. There are always new tokens that appear on the market. At the same time, the cryptocurrency market is extremely heavy. Like Bitcoin, Ethereum and XRP, the largest cryptos account for the vast majority of crypto’s total market capitalization. On the other hand, thousands of tiny cryptocurrencies are fighting to get the attention of a very small group of investors.
According to Coinmarketcap, there are currently around 4600 cryptocurrencies on the market. Most of them are not listed on the major exchanges. Even Binance, which is one of the best altcoin exchanges, only carries about 320 altcoins. The rest of these tokens are traded on decentralized exchanges like Uniswap or SushiSwap.Since there is no intermediary or institution involved, it is easy for a new crypto project to quickly register on a decentralized exchange.
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Source: CoinmarketcapBest cryptocurrencies to invest in
There are several ways to play in the crypto market. One way is to look for small and obscure projects that have a lot of potential. From a long-term perspective, most cryptocurrencies will not survive more than a few years. Just as almost all internet stocks managed to run smoothly during the dot-com boom, most crypto projects explode during this crypto boom.
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However, in the same way that the initial coin supply market emerged in 2018 before the first crypto bull market collapsed, it wouldn’t be surprising if many of these obscure altcoins disappear in the future after this current 2021 crypto bull market goes out a bit. .
A better approach might be to focus only on larger, more established crypto projects. Alternatives like Cardano, Monero, Tether and other projects that have serious practical applications have the best chance of seeing long-term growth. At the same time, even a cryptocurrency that is in the top 10 or top 20 by market capitalization is still only a small fraction of the size of Ethereum or Bitcoin, so they still have a lot of room for growth.
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Source: istockBest place to buy cryptocurrencies
The best cryptocurrency exchange depends on what you are looking for. Some platforms, like eToro, make it easy to copy what other successful traders are doing. Others are easily accessible for Americans, such as Coinbase.Si you are looking for a wide selection of chips, Binance is usually your best bet.
After buying a cryptocurrency, you will need to determine where to store it. While major exchanges are now quite secure, most crypto enthusiasts encourage investors to store their tokens in a third-party wallet, where there is no risk of security leaks or hacking. Digital wallets like MetaMask are a popular option, while hardware wallets like Ledger are aimed at the most dedicated investors looking for serious security.
