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Why are there so many kinds of cryptocurrency?

Mr.Tom

TRUSTED VERIFIED SELLER
Staff member
It’s important to remember that Bitcoin is different from cryptocurrency in general. While Bitcoin is the first and most valuable cryptocurrency, the market is large.
More than 22,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And while some cryptocurrencies have total market valuations in the hundreds of billions of dollars, others are obscure and essentially worthless.
If you’re thinking about getting into cryptocurrency, it can be helpful to start with one that is commonly traded and relatively well-established in the market.
NerdWallet has created guides to some widely circulated cryptocurrencies, including Bitcoin and some altcoins, or Bitcoin alternatives:

  • Bitcoin is the first and most valuable cryptocurrency.
  • Ethereum is commonly used to carry out financial transactions more complex than those supported by Bitcoin.
  • Cardano is a competitor to Ethereum led by one of its co-founders.
  • Litecoin is an adaptation of Bitcoin intended to make payments easier.
  • Solana is another competitor to Ethereum that emphasizes speed and cost-effectiveness.
  • Dogecoin began as a joke but has grown to be among the most valuable cryptocurrencies.
  • Shiba Inu is another dog-themed token with more complex mechanics.
  • Stablecoins, including Tether and USDC, are a class of cryptocurrencies whose values are designed to stay stable relative to real-world assets such as the dollar.
 
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