• Smart Cash
  • Log in
  • Get Started

Table of Contents

How many types of cryptocurrency are there?

8 of the most common cryptocurrencies

Different types of crypto assets

LearnCryptocurrency 101Understanding the Different Types of Cryptocurrency

Understanding the Different Types of Cryptocurrency

Aug 25, 2022


7 min read

How many cryptocurrencies are there? Answers vary but in short: a lot. As many as 70,000, by one estimate.

The rapid rise of Bitcoin has sent interest in cryptocurrencies to unimaginable heights. “Crypto” is an umbrella shorthand term used to describe types of digital currency that use blockchain technology: a digital public ledger that uses complex cryptography to record every transaction. It’s a decentralized system spread across thousands of computers around the world, and users are identified not by name but simply by the ID number of their digital wallet. 

Unlike so-called fiat currencies, such as the dollar and yen, cryptocurrencies aren’t backed by a government. Nor do they involve any banks or other intermediaries. 

Those who are bullish on cryptocurrency believe the currencies and the blockchain are the future of money—where power is in the hands of users rather than intermediaries or governments, and transactions are completely transparent. Others merely view the crypto opportunity as they would any other investment: an asset that they can buy and sell to try to make money.

How many types of cryptocurrency are there?

Answers vary but in short: a lot. As many as 70,000, by one estimate. Because blockchain technology is open-source, anyone can access and use it. So it’s relatively easy to take that source code and create brand new cryptocurrencies.

Not all cryptocurrencies have big followings, and the circulation and use of most aren’t anywhere near the most popular crypto, Bitcoin, whose market capitalization is by far the largest, exceeding $1 trillion for a time in early 2021. But popularity and size are not necessarily always the goals for the creators of these so-called altcoins (alternative coins, meaning any cryptocurrency other than Bitcoin). Many are instead designed for certain scenarios, companies, and industries.

8 of the most common cryptocurrencies

There are many different cryptocurrencies, and among the most widely used based on market value are:

  1. Bitcoin

Created in 2009 by an unidentified person (or people) using the alias Satoshi Nakamoto, Bitcoin is the mother of all cryptocurrencies. It’s considered the first “real” crypto, built around the blockchain and paving the way for the thousands of others after it.

Bitcoin burst into broader awareness in about 2017 and has surged in value during the past few years. At the same time it has also been gaining mainstream appeal: electronic-payments company PayPal lets customers buy the crypto via Venmo, electric-carmaker Tesla has bought Bitcoin, and big banks such as Morgan Stanley are giving some of their customers access to bitcoin investment funds.

  1. Ether

Currently the second-most valuable crypto after bitcoin, Ether was created largely to give app developers freedom, aiming to return control to the creators and allow them to avoid intermediaries such as Apple and Google—who take a large cut for purchases made on their app stores.

Ethereum uses smart contracts, or programs on the blockchain that execute automatically when predetermined conditions are met. Smart contracts make transactions fast and accurate: Because they’re automated, there’s no time spent processing paperwork and there’s no need to pay an intermediary to help make the deal happen. And in business applications like supply chain, smart contracts can also automate workflow by signaling the next action to begin when the previous step’s conditions are met.

Ether has been on a tear lately, thanks in part to its status as the currency of choice to buy NFTs, or non-fungible tokens: digital art and other collectibles that have become a major trend in the art, sports, and media worlds. In March 2021, a piece created by digital artist Beeple sold for a record-setting equivalent of $69.3 million, paid for in ether.

  1. Cardano/ADA

A crypto developed by Ethereum co-founder Charles Hoskinson, Cardano was built on a “scientific philosophy” and dozens of peer-reviewed research papers. Cardano uses its own internal crypto, called ADA, to let users send and receive funds. It’s also a different type of blockchain technology, with the goal of being “greener” and more scalable than other platforms.

As Cardano evolves, its researchers use evidence-based approaches and continue to solicit peer insights before implementing each new phase of development—including a recent update to allow smart contracts, like Ethereum. It’s currently the third-largest crypto.

  1. Binance Coin

This cryptocurrency is issued by Binance, one of the major crypto exchange platforms. The company created Binance Coin as a token that can be used to pay fees on crypto trades and app-building on its platforms. But it’s grown significantly and can now also be used to pay for goods and services.

  1. Tether

Tether is different in that it’s a so-called stablecoin: Its value is tied to that of the U.S. dollar, a traditional fiat currency. That may sound antithetical to the entire premise of cryptocurrency, but the concept of Tether is to include both the intermediary-free benefit of cryptos and the stability of a government-backed currency. Some users like to use Tether as a go-between when moving funds from one crypto to another, rather than converting to dollars and back to crypto again.

  1. Ripple/XRP

Unlike Bitcoin and many others, Ripple doesn’t use the blockchain. Instead Ripple, whose cryptocurrency is called XRP, designed its system to help larger institutions move money all over the world—in any form—while reducing the costly overseas-transfer fees usually incurred in converting foreign currencies.

  1. Litecoin

True to its name, this crypto is a sort of Bitcoin-lite—though much smaller in circulation than the original. Former Googler Charlie Lee created Litecoin in reaction to what he perceived as flaws in Bitcoin’s setup. Though many of the basic ideas are the same, Litecoin uses different cryptographic algorithms and offers benefits like shorter times for transactions to settle compared to Bitcoin. It also uses less electricity.

  1. Dogecoin

What began as a joke has become a notable entrant in the cryptocurrency world. A pair of software engineers created Dogecoin in 2013, jumping on the Shiba-Inu-and-Comic-Sans “doge” memes to attract buzz and bring broader appeal to the then-niche crypto world. Recently, meme-loving Tesla CEO Elon Musk has helped push Dogecoin higher with Twitter chatter about the crypto.

Different types of crypto assets

As the cryptocurrency list above indicates, there are many different cryptocurrencies designed for specific purposes. Here are a few of the main types of crypto assets:

Payment cryptocurrencies

Think of this category as the classic or original crypto: Payment cryptocurrencies are digital money created to pay for goods and services. Most are decentralized, powered by blockchain technology, and enable anonymous transactions. Some, like Bitcoin, are generalized and offer an alternative to traditional money. Others are designed to facilitate payments for specific companies or industries. And then there are alternatives such as Litecoin, which set out to improve on existing payment cryptos with benefits like faster transaction times.

Infrastructure cryptocurrencies

Most of those payment cryptocurrencies are powered by the blockchain—and infrastructure cryptocurrencies are what help make the blockchain possible. Many infrastructure cryptos were created to pay the people who own the computers that run blockchain programs, and these machines and the energy they use  can cost a great deal. Without those thousands of computers sharing the work, the blockchain wouldn’t be decentralized, and couldn’t exist.

Financial cryptocurrencies

Financial cryptocurrencies allow users to manage or trade other types of crypto assets. For example, a user can buy a certain type of cryptocurrency to get access to one of the exchanges, where they can then purchase other cryptos. Some financial cryptocurrencies are more complex, created to facilitate traditional services, such as lending.

Service cryptocurrencies

These cryptos focus more on leveraging the underlying blockchain technology, rather than acting as digital money. Service cryptocurrencies can help specialized industries store information on the blockchain, especially potentially sensitive data like healthcare records, financial transactions, or business files. These “real-world” uses are in their early days, but several cryptos are experimenting with what’s possible.

Entertainment cryptocurrencies

This is the “fun” category in the batch: Entertainment cryptos are used as payments or rewards for media and entertainment offerings like games, original content, and some gambling applications.

At Titan, we are value investors: we aim to manage our portfolios with a steady focus on fundamentals and an eye on massive long-term growth potential. Investing with Titan is easy, transparent, and effective.

Get started today.


Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Titan has not independently verified such information and makes no representations about the accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; Titan has not reviewed such advertisements and does not endorse any advertising content contained therein.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any strategy managed by Titan. Any investments referred to, or described are not representative of all investments in strategies managed by Titan, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see Titan’s Legal Page for additional important information.

You might also like

What Is Digital Currency? Types, Advantages, and Examples

Digital money isn’t necessarily new. Today, thanks to the rise of digital payments and cryptos, individuals may be more likely to buy and spend virtual currencies.

Read More

What Is a Crypto Token and How is it Different From a Coin?

Developers can launch a crypto token to build on top of an existing blockchain’s features and popularity. Learn how they also can focus on creating, promoting, and updating it.

Read More

Can You Short Crypto?

There are many ways for investors to bet against Bitcoin and Ether and sell them short. Learn how these often involve derivatives such as futures contracts.

Read More

7 Alternative Cryptocurrencies (Besides Bitcoin & Ethereum)

The crypto market is extremely volatile, and altcoins are no exception. Like Bitcoin and Ethereum, altcoins are digital currencies and most rely on blockchain technology.

Read More

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash


© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.