Notable Cryptocurrencies

and tokens
How Many Cryptocurrencies Are There?
• Today there are thousands of different cryptocurrencies in the world, and while each is designed to provide
some new feature or function, most are founded on principles similar to those of Bitcoin:

• As of March 2022, there were more than 18,000 different types of cryptocurrencies, for a total market
capitalization (market cap) for all cryptocurrencies of $2 trillion.

• Cryptocurrencies are not issued, regulated, or backed by a central authority like a bank or the government.
They are decentralized, not centralized.

• Cryptocurrencies are created using a distributed ledger (blockchain) and peer-to-peer (P2P) review.

• Bitcoin and other coins are encrypted (secured) with specialized computer code called cryptography.

• As assets, cryptocurrencies are generally stored in digital wallets, commonly a blockchain wallet, which
allows users to manage and trade their coins.
Why Are There So Many Different Cryptocurrencies?

• Bitcoin might have been conceived as an alternate means of exchange (like money), but using crypto as a currency is

not legal in all parts of the world, and in some countries, crypto is restricted, or banned altogether. So, many of the

18,000 types of crypto are not used as money or currency at all.

• Developers can build almost anything using powerful blockchain technology. Some crypto coins are used as investment

vehicles, stores of value that may be bought, sold, or traded on crypto exchanges.

• Many other crypto platforms have purposes that go far beyond acting as an exchange of value. Blockchain, in fact, can

offer solutions to longstanding problems in many sectors of the economy besides finance including agriculture,

cybersecurity, fine art, gaming, healthcare, insurance, law, medicine, real estate, and supply chain management.

• Another reason there are so many types of cryptocurrencies could lay in the fear of missing out (FOMO) factor.

Encouraged by crypto’s rapid growth of the past few years, in an effort to get in on any potential profit, entrepreneurs

are continuously unleashing huge numbers of new coins to the crypto market.
What Are the Different Types of Crypto?

• Although some people use the terms crypto, coins, and tokens interchangeably,
they are not the same things. To gain a basic understanding of cryptocurrency, it’s
important to understand how these terms differ from one another.

• Cryptocurrencies generally fall into one of two categories:

• Coins: Can include Bitcoin and altcoins (all cryptocurrencies other than Bitcoin)

• Tokens: Programmable assets that live within the blockchain of a given platform
What Are Crypto Coins?

• Crypto coins are strings of computer code that can represent an asset,
concept, or project — whether tangible, virtual, or digital — intended
for various uses and with varying valuations. Originally, these coins
were meant to function as a type of currency.
What Are Tokens?
• Tokens are usually created and distributed through an initial coin offering (ICO),
much like an initial public offering (IPO) for stock. They can be represented as:
• Value tokens (like bitcoins)
•  Security tokens (which are similar to stocks)
•   Utility tokens (designated for specific uses)
• Like American dollars, tokens represent value, but they are not exactly valuable
themselves, in the same way, a paper dollar’s value may not be $1. But tokens can
be used in transactions for other things.
• A token differs from a coin in the way it’s constructed within the blockchain of an
existing coin, like Bitcoin or Ethereum.
Crypto Coins vs Tokens
It’s important to know the difference between a coin and a token.

• While coins and tokens are considered forms of cryptocurrency, they provide different functions. Coins are built on

their own blockchain and were originally intended as a form of currency. Generally, any blockchain-based

cryptocurrency that is not Bitcoin is referred to as an altcoin (more on those below).

• A digital coin is created on its own blockchain and acts much like fiat (traditional money). Coins can be used to store

value and as a means of exchange between two parties doing business with each other. Examples of coins include

Bitcoin and Litecoin.

• But tokens — which are created on an existing blockchain (not their own) — can function in many more ways than

acting as currency. Instead of representing an exchange of value, tokens are considered programmable assets on which

you may create and execute unique smart contracts. These contracts can establish ownership of assets outside the

blockchain network.
The 10 Largest Cryptocurrencies By Market Cap, as of June 25,
2022

• 1. Bitcoin (BTC) BTC—Crypto Type: Token

• Bitcoin in the clear leader in the crypto sector. It is also the very first cryptocurrency. Bitcoin launched in
2009; created by a person (or possibly a group) that goes by the pseudonym Satoshi Nakamoto. As of
June 2022, there are slightly more than 19 million Bitcoin tokens in circulation, against a capped limit of
21 million. Almost a thousand new bitcoins are mined each day, bringing Bitcoin ever closer to its
maximum finite number.

• Bitcoin was designed to be independent of any government or central bank. Instead, it relies on
blockchain technology, a decentralized public ledger that contains a digital record of every Bitcoin
transaction. Bitcoin established the basic system of cryptography and consensus — i.e., peer-to-peer
(P2P) verification — that is the foundation of most forms of crypto today.
2. Ethereum (ETH) •   ETH—Crypto Type: Token

• Like Bitcoin, Ethereum is a blockchain network. But Ethereum was designed as a

programmable blockchain — meaning it wasn’t created to support a currency, but rather
to enable the network’s users to create, publish, monetize, and deploy decentralized
applications (dApps). Ether (ETH), the native Ethereum currency, was developed as a
form of payment on the Ethereum platform. It might be helpful to think of ETH as a kind
of fuel that powers the Ethereum blockchain. Ethereum has helped to launch many initial
coin offerings because many ICOs are built on the Ethereum blockchain. Ethereum has
also been the blockchain behind the boom in non-fungible tokens (NFTs).
3. Tether (USDT) •   USDT—Crypto Type: Stablecoin

• Tether was the first cryptocurrency marketed as a stablecoin — a breed of crypto known as fiat-
collateralized stablecoins. The value of the tether is pegged to a fiat currency — in this case, the
U.S. dollar. Tether is the world’s largest stablecoin; in 2022, the majority of cryptocurrencies
traded using tether.

• Like other stablecoins, tether is designed to offer stability, transparency, and lower transaction fees
to users. Tether was not meant to be a speculative investment like some cryptocurrencies;
originally, investors who wanted to avoid the extreme volatility of the crypto market used USDT.
Tether is pegged to the U.S. dollar (which is why the ticker is USDT), and it allegedly maintains a
1:1 value with the dollar, although this claim has come under some scrutiny.
4. USD Coin (USDC) •   USDC Crypto Type: Stablecoin

• USD Coin (USDC) is a digital stablecoin pegged to the U.S. dollar. It operates on the Ethereum,
Stellar, Algorand, and Solana blockchains. USDC was initially created by the Centre consortium,
which includes its two main founding members, Circle and Coinbase. Each USDC token is
backed by $1 held in reserve and regularly audited by Grant Thornton, a major accounting
corporation. USDC was launched in September 2018, and in March 2021 it was announced that
Visa would facilitate the use of USDC for settlement on its payment network.

• USDC is a stablecoin that runs on the Ethereum blockchain and several others. It is pegged to the
U.S. dollar. Like the stablecoin tether (USDT) described above, a USDC is worth one U.S. dollar
— the guaranteed 1:1 ratio making it a stable form of exchange.
5. Binance Coin (BNB) •   BNB—Crypto Type: Coin

• Binance is one of the world’s biggest cryptocurrency exchanges. The Binance Coin (BNB)

was created as a utility token for use as a medium of exchange on Binance. It was initially
built on the Ethereum blockchain, but now lives on Binance’s own blockchain platform.
Originally, BNB allowed traders to get discounts on trading fees on Binance, but now it also
can be used for payments, to book travel, for entertainment, online services, and financial
services.

• As one of the top five cryptocurrencies by market cap in 2022, BNB has developed a wide
range of use cases and real-world applications. But, as with other digital assets, this crypto
platform has also faced regulatory hurdles here and abroad.
6. XRP (XRP) •   XRP—Crypto Type: Coin

• XRP is the native coin of the Ripple Ledger Network. It is designed to be a

medium of exchange and value transfer, and is intended to be used as a low-
cost bridge between fiat currencies for a broad range of global transactions.

• XRP enables a system that can outperform many established cryptocurrencies

and fiat transmission technologies. This has led to a world-class payments
system that minimizes intermediary processes and enhances the overall
benefit to its users.
7. Binance USD (BUSD) •   BUSD—Crypto Type: Stablecoin

• Binance USD (BUSD) is the stablecoin developed and employed by the

Binance exchange platform. BUSD is pegged at a 1:1 ratio to the U.S.
dollar and was initially deployed on the BNB Chain. BUSD is also
interoperable with other blockchains such as Ethereum, and can be used for
various DeFi applications and value transfers between blockchains. BUSD
is one of the largest USD-pegged stablecoins in the world, with a market
cap of approximately USD 18 billion (as of June 25, 2022).
8. Cardano (ADA) ADA—Crypto Type:
Token

• Cardano. is a Proof-of-Stake blockchain platform with smart contract functionality. In particular,

Cardano is noted for its focus on academic research, high transactions-per-second (TPS)
throughput, and an energy-efficient consensus mechanism called Ouroboros. ADA, the native
coin of the Cardano network, is used to facilitate transactions and execute smart contracts.

• Cardano bills itself as a third-generation blockchain platform, to cast itself as a next-level player.
Cardano relies on proof of stake (PoS), which means that the complicated PoW calculations and
high electricity usage required for mining coins like Bitcoin aren’t necessary. This potentially
makes Cardano’s network more efficient and sustainable than some other crypto networks.
9. Solana (SOL) SOL—Crypto Type: Token

• Solana is a blockchain platform that generates the cryptocurrency, Sol. Solana has
made strides in decentralized finance (DeFi) and specifically with its smart contract
technology — programs that run on the platform according to preset conditions.
Smart contracts are similar to paper contracts, but without the middlemen. Solana
was also behind the Degenerate Ape Academy, an NFT launched in August 2021.
One of the essential innovations Solana brings to the table is its proof-of-history
(PoH) consensus. This mechanism allows for greater scalability of the protocol,
which in turn boosts usability.
10. Dogecoin (DOGE) DOGE—Crypto Type: Altcoin, Meme Coin

• Dogecoin (pronounced dohj-coin) is widely known as the first joke cryptocurrency; it

was launched in 2013 as a way to poke fun at Bitcoin. Nonetheless, the currency
captured people’s attention and a fair amount of investment. In April 2019, a tweet from
Elon Musk indicated he had a positive view of Dogecoin, which further raised
Dogecoin’s profile as a legitimate cryptocurrency.

• Dogecoin is an altcoin similar to Bitcoin and Ethereum in that it runs on a blockchain

network using a PoW system. But the number of coins that can be mined are unlimited
(versus the 21 million-coin cap on Bitcoin).