With the growing number of Cryptocurrencies in the cryptocurrency market, only a handful of crypto currencies are of great importance in this market. Coinmarketcap.com tracks several crypto currencies in this market. There are thousands of cryptocurrencies in the crypto market. Coinmarketcap tracks the market activity of 864 cryptos on this market. New currencies that are being tracked by the website are Hive, Delta, Aventus, Monetha, and Masternodecoin. The website is now following eight new cryptocurrencies since the last seven days. With the growing number of digital coins, investors and users need to identify cryptos that are important and those that are not.

What makes a cryptocurrency vital?

A cryptocurrency is essential if it is being accepted as a mode of payment by the most merchant. Retailers are taking only a handful of cryptos. The list of the main cryptos being accepted by merchants is Bitcoin, Ethereum, and Litecoin. A buyer of any of this cryptos can thus exchange the crypto with a good or service of their choice in a website that accepts these crypto currencies. It is also important to check whether or not the cryptocurrency you are about to buy is taken on most exchange sites, especially large exchange sites such as Bithumb, OKCoin, and Bitfinex. Bithumb allows trading of 8 cryptocurrencies on its site, Bitfinex accepts 35 while OKCoin accepts only 5.

Another aspect that can make a cryptocurrency vital is if it is a popular crypto currency. Examples of popular crypto currencies are Bitcoin, Bitcoin cash, Ethereum, Ripple, Litecoin and Ethereum Classic. These are the currencies that have the highest market capitalization in the cryptocurrency market. Bitcoin alone commands 47 percent of these markets market capitalization while Ethereum commands 18 per cent of market capitalization.

Importance of government regulation

Examples of governments that have legalized cryptocurrencies include Japan and Russia. Most countries have only legalized Bitcoin but not other coins. China, on the other hand, is against crypto currencies such as non-mineable cryptocurrencies that are offered through Initial Coin Offering (ICO).

A document from a Chinese regulator stated that ICO offerings are an unauthorized fundraising tool that can be used for financial scams. Regulators have also called for the inspection of 60 IOC platforms according to CNBC. There were also rumors of plans to shut down local Chinese cryptocurrency exchange sites.

Such stringent regulation will thus reduce market confidence and acceptance of non-mineable crypto currencies.