What are cryptocurrencies? The essence of the market exceeding 3 trillion dollars

What are cryptocurrencies? Here is a guide on the crypto sector and its global market exceeding 3 trillion dollars.

What are cryptocurrencies: definition and meaning

Cryptocurrencies originated with Bitcoin back in 2009, when it was still necessary to simplify the language of computer scientists to create a definition.

Today, the sector has grown to the point where even global institutions from various industries are describing its significance.

For example, the major global asset manager, Fidelity, defines cryptocurrencies as digital currencies, meaning they operate on a virtual network without existing in physical form, like banknotes or coins. According to Fidelity, cryptocurrencies are often built using blockchain technology, a shared digital ledger that provides a secure system for recording and processing all their transactions.

Kaspersky, the technological leader in cybersecurity, adds that the main feature of cryptocurrency is being a peer-to-peer system. This means there is no need for banks or centralized entities to verify transactions, promoting disintermediation.

Not only that, Kaspersky states that the name cryptocurrency, or crypto-asset, originates precisely from the use of cryptography to verify transactions. This means that advanced coding is involved in the storage and transmission of cryptocurrency data between wallets and public ledgers. The purpose of cryptography is to ensure security and protection.

From Fidelity’s financial approach to Kaspersky’s technological perspective, there is also the more idealistic approach of Bitcoin and cryptocurrencies, which aims to make the concept of “decentralization,” “transparency,” and “freedom” a reality.

In general, cryptocurrencies originated as an unregulated market. However, their current growth of over 3 trillion dollars is increasingly compelling governments to intervene, recognize the market, and establish more and more regulations regarding it.

What are cryptocurrencies: the top 10 cryptos by market cap

To rank the most important cryptocurrencies currently, the market capitalization indicator (or market cap) is used.

In this regard, Bitcoin is at the forefront with its nearly $1.8 trillion market cap, which is more than half of the total value of the entire crypto market.

Bitcoin (BTC) uses the Proof-Of-Work (PoW) protocol, where transaction confirmation is carried out by miners through their mining activity, in exchange for a reward that halves approximately every 4 years, during the halving event. The task of mining is to be the first to solve a complex mathematical algorithm that identifies the access key.

Following that is Ethereum, the so-called crypto of smart contracts, which gave birth to the Ethereum Virtual Machine (EVM), from which the world of DeFi and NFTs emerged.

Currently, the market cap of Ethereum (ETH) is around 400 billion dollars. Through the Merge, on September 15, 2022, Ethereum became a cryptocurrency that uses the Proof-of-Stake (PoS) protocol. Here, transaction confirmation requires staking activity by validators.

In third place in the cryptocurrency rankings, there is the quintessential stablecoin, Tether (USDT) and its $186 billion market cap. Stablecoins are cryptocurrencies designed to maintain a stable value, pegged 1:1 to the underlying asset. In the case of Tether, 1 USDT = 1 USD.

Continuing with the ranking of the top 10 cryptocurrencies by market capitalization, there are BNB, Ripple (XRP), the second stablecoin USD Coin (USDC), Solana (SOL), Tron (TRX), the memecoin Dogecoin (DOGE) and Cardano (ADA).

How to Buy, Sell, Trade, and Store Cryptocurrencies

Another crucial aspect for those entering this rapidly growing sector is taking action: how to buy, sell, trade cryptocurrencies, but most importantly, how to store them.

As of today, cryptocurrency-related services are numerous and increasingly tailored to meet diverse needs.

In general, there are online platforms such as wallets, crypto-exchanges, or even traditional brokers that offer the possibility to access cryptocurrencies while also holding their cryptographic keys.

Here you can find crypto wallets like Uphold or crypto exchanges such as Coinbase, Crypto.com, Bitget, and Kraken. Alternatively, platforms like eToro app or Robinhood app are examples of traditional brokers that integrate some cryptocurrencies for purchase and trading.

For the more passionate cryptocurrency enthusiasts, the ideal is to be the sole and true owner of their own money (keys), by storing their crypto-assets in hardware wallets or non-custodial hot wallets.

Here, the user holds the private key and the seed phrase, a secret alphanumeric string (similar to a password) that proves your ownership of the funds and allows you to sign transactions on the blockchain.

The private key acts as a code to access your wallet, and if it is lost, access to your cryptocurrencies is lost, so it must be kept with utmost care and never shared.

Among the most famous hardware wallets are Ledger and Trezor, while for non-custodial online wallets, there are MetaMask and Zengo Wallet.

The Expanding Crypto World

The evolution of the cryptocurrency sector has increasingly created a certain allure, where users can indulge in choosing to invest in the thousands of dedicated projects.

Beyond the cryptocurrencies themselves, there are increasingly more products (both financial and non-financial) linked to the crypto and blockchain world, which has led more and more new users to enter the sector.

Recently, the Blockchain & Web3 Observatory of the Politecnico di Milano revealed that 2.8 million people in Italy hold crypto-assets. This accounts for 7% of the population.

This figure is still lower compared to European counterparts, with France seeing the figure rise to 9%, Germany to 11%, and Spain to 14%.

Speaking of projects, it seems that 2025 has strengthened the growth prospects of the blockchain technology and Web3 sector. In fact, in 2025 alone, 378 new blockchain projects were recorded globally. This figure represents an increase of +27% compared to 2024, confirming an ongoing expansion phase in the sector.