Cryptocurrencies have become exceptionally popular lately, and with good reason: Their value has shot through the roof of late, with many investors doing very well with the financial instrument. As noted by the financial experts at SoFi, there are many types of online currency, and all act in a somewhat similar manner: “Cryptocurrencies can act like real money—in a sense, they are real money—but they take a digital monetary form and are not managed or governed by any central authority.”
When they think of crypto, most people think of Bitcoin, the cryptocurrency that recently hit $52,000 for the first time ever. However, it is important to realize that there are many, many more types of cryptocurrencies on the market today. The decentralized nature of crypto makes it somewhat hard to track, there are over 4,600 different types of cryptocurrencies on the market today, and more being added on a regular basis.
It’s also worth noting that cryptocurrency is a trillion-dollar industry. At the last check, the market cap for all cryptocurrencies was more than $1.57 trillion dollars. This, of course, is a massive number. More than half of that funding is tied up in Bitcoin, but there are plenty of other cryptos on the market today.
Etherum is the second wealthiest form of cryptocurrency in terms of its overall market capitalization. As of this writing, it is worth $1,783 per coin, which is a growth of almost 50% in the past month. Like other forms of cryptocurrency, Etherum has oscillated wildly in terms of its price. At one point in 2018, it was as high as $1,066 before falling all the way to $83 a coin. Since that time, it has obviously made a massive recovery.
Tether is the 3rd highest cryptocurrency at the moment, behind only Ethereum and Bitcoin. Its market capitalization is more than $32 billion, significantly behind Ethereum, which enjoys a market capitalization of more than $210 billion. Tether has remained remarkably consistent with a price of $1 per coin – it’s high in the past year has been around $1.02, but its low has been just less than $.995. Tether is less of a cryptocurrency and more of an alternative form to the dollar bill.
Dogecoin started as a joke. It was created by its founders as a currency to refer to a memes Shiba dog. However, its financial movement has been no laughing matter. Thanks in part to the influence of Reddit – including a favorable tweet by crypto-backer Elon Musk – the price of the coin has moved significantly upwards over the past two months, increasing by almost 1000% over the past few months. That’s not to say that the coin’s success has been without controversy, as even one of its founders has said he has no idea why his creation is doing so well.
Remember, if Bitcoin is too rich or volatile for your tastes, you have many other options at your disposal. Just make sure to do your homework about the best type of crypto for your financial goals and risk tolerance.