Any cryptocurrency is a form of digital money. Based on cryptography (as the term suggests), it is mainly used in electronic networks built on blockchain. Apart from secure and fast transactions, they offer plenty of investment opportunities. Beyond Bitcoin, there are hundreds of altcoins in circulation, making it difficult to know which cryptocurrencies to invest in.
We have chosen the top cryptocurrencies of 2021 to help you make an informed decision. These digital assets attract millions due to their enhanced security and robust growth. Unlike fiat currencies like the U.S. dollar, cryptosystems are usually decentralized, which makes them immune to state interference.
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Best Cryptocurrencies to Invest in
Cryptocurrencies are popular assets, but the sheer number of options is startling. Which coin should you pick? If you are looking for the best cryptocurrencies to invest in, here are the top 6 according to experts. These currencies are the most attractive overall. If you would like to find cheap crypto to invest in, check the next section for a few more options.
1. Bitcoin (BTC)
Bitcoin was designed as a completely decentralized and global system for peer-to-peer transactions. It operates independently of financial institutions, which is part of the appeal. Today, Bitcoin is synonymous with cryptocurrency, and many investors still regard it as the best crypto to invest in.
Key Advantages
In the coming years, the demand and popularity are projected to grow. Thanks to growing institutional adoption and support from high-profile investors, BTC is going from strength to strength. It boasts the highest liquidity value. However, it is still very volatile, which makes it risky.
The biggest cryptocurrency in the world is all the rage. More and more companies are embracing it. Despite the Tesla controversy, the coin is on the rise once again. As of this writing, it is valued at $39,570.77. The market capitalization is a whopping $741.32 billion.
2. Litecoin (LTC)
This is one of the top altcoins to invest in. Litecoin is the runner-up due to its liquidity and market capitalization. The total number of coins in circulation is limited to 84 million — four times more than for Bitcoin. For many experts, Litecoin is the best crypto to invest in 2021. Here is why.
Key Advantages
Currently, the reward for miners is more attractive than for other coins — 12.5 crypto coins per block. Mining itself is also faster — just two minutes on average. Out of all the altcoins, this is your best bet. At the moment, the LTC price is $169.25, and the market cap is $11.49 billion.
3. Ethereum (ETH)
It was Ethereum that introduced smart contracts to the market. They allowed developers to create decentralized blockchain-based apps for desktop and mobile use. Without fail, it is one of the strongest cryptocurrencies in history and one of the best investment options.
Key Advantages
Ethereum has a loyal following of investors and a good chance of remaining stable. At the moment, the price of ETH is $2,493.06, and the total capitalization is $289.89 billion, the second-highest after BTC.
4. Binance Coin (BNB)
One of the top cryptocurrency coins, it is primarily used on the namesake exchange — one of the largest in the world. This makes Binance Coin popular internationally. The native system is a network using blockchain and the proof-of-stake method. The total number of coins in circulation is capped at 200 million.
Key Advantages
In recent months, this altcoin has been growing stronger. It is one of the top cryptocurrencies to invest in. The platform provides trading discounts to boost adoption, and it partnered up with Multicoin Capital in March. As the hedge fund is focused on digital currencies, the announcement has reinforced the position of Binance.
Multicoin is one of the most successful hedge funds in the industry. It has a history of working with Ribbit Capital, Union Square Ventures, Craft Ventures, and other top providers of venture capital. Today, Binance Coin is robust with a price of $362.37 and market capitalization of $55.3 billion.
5. Ripple (XRP)
Unlike other currencies on the list, Ripple has a different philosophy. It was conceived as a venture-backed startup with a mission to render financial settlement services to banks. Thanks to Ripple, banks can ensure direct transactions for their clients, including international transfers. Wide adoption is a feature of the best coins to invest in.
Key Advantages
Now, almost a decade after its launch (2012), Ripple has an impressive collaboration record. It has worked with major banks around the world, including Bank of America. This makes it ideal for institutional investment rather than just personal investment. At the moment, Ripple is priced at $0.876639 with a market cap of $87.66 billion.
6. Bitcoin Cash (BCH)
This peer-to-peer system emerged in 2017 due to speculation about the scalability of BTC. The coin is supremely flexible. It is the result of forking the original blockchain and changing the maximum size of its blocks.
Key Advantages
Given the market cap of $11.52 billion, this is one of the biggest cryptocurrencies today. Its relation to Bitcoin boosts its appeal to many big-time investors. As of this writing, the price for Bitcoin Cash is $613.96.
Best New Cryptocurrency to Invest in
To find the most promising cryptocurrency, you need to look beyond the hype. New coins are emerging all the time, but only some of them rise to stardom. Making a choice is difficult, as the market is changing so fast. Here is one of the strongest coins among the latest arrivals.
Uniswap (UNI)
At the moment, Uniswap is one of the most promising new coins. It brings substantial benefits to users and the market. Open and simple by nature, the system has recently risen to prominence. Is this the best cryptocurrency to invest in? Here is an overview of the coins today, less than a year after their emergence.
History of Uniswap
This system is based on the DeFi framework, and it allows traders to exchange Ethereum tokens through liquidity pools. The app renders two primary services — delivery and utilization of liquidity.
Uniswap was founded in late 2018 by Hayden Adams, an ex-employee of Siemens. This protocol facilitates transactions on the Ethereum blockchain. Thanks to smart contracts, the operations between cryptocurrency tokens are automatic.
The namesake coin appeared in 2020. Despite its short history, Uniswap has already made some impressive achievements. It is one of the strongest contenders among DeFi coins, and experts believe the current price does not reflect its expected growth.
Key Advantages
This altcoin is worth keeping an eye on. Recently, Uniswap has officially become the first decentralized exchange with margin and leverage trading. This makes analysts positive about the potential of the coin. As of this writing, its price is $22.71. The total market cap is $22.71 billion. The main strengths of this crypto investment include:
- Flexibility
In this open system, anyone can swap a couple of Ethereum assets for an underlying liquidity pool. Any party can establish or seed a market. All it takes is two ERC-20 tokens of equal value for pairing.
- No Censorship
The network does not have a central authority that can block users and seize funds. Nobody will monitor how much you trade and where you invest your virtual money. Everyone has equal access. This is the epitome of decentralization.
- Multiple Trading Opportunities
As the system is decentralized, the pricing for the token within the system and outside it differs. The gaps between the internal listings and centralized exchanges can bring substantial profit to investors. If you engage in arbitrage trade between CeFi and DeFi, you can take advantage of these discrepancies.
Top-Performing Cryptocurrencies
Since the beginning of 2021, the market has seen a steady bull run. It is still strong. Here are the top five performers as of June 14, 2021. The estimates are based on the data provided by Cryptorank.
1. BakerySwap (BAKE)
The top-performing cryptocurrency in terms of year-to-date growth is BakerySwap. This is the proprietary token for the namesake exchange, which competes with Uniswap.
Its value has grown by 21,465.3%, with 15,368.3% gained over the past six months! The current price is $3.18 — less than the latest high ($7) but more than its price of $1.50 at the beginning of the year.
2. Telcoin (TEL)
This coin comes in second with +20,173.5% gained over the past six months and 18,841.1% YTD. This token for remittances now costs $0.0325. The all-time high was achieved on May 11, 2021 ($0.065). Since the start of the year, the value has grown 137-fold!
3. TerraCredit (CREDIT)
This coin has gained 11,035.6% YTD, with 9,951.8% added in the past six months. Currently priced at $0.140, it peaked on May 4, 2021. Then, it reached $0.300.
TerraCredit is a coin and decentralized solution for digital payments. It targets the world’s unbanked adult population. Previously, it went by the name of CREDIT.
4. MEET.ONE (MEETONE)
This token, based on the Binance Coin blockchain, has gained 9,288.8% YTD and 8,443.1% over the past six months. The current price is $0.0141. This year, the currency reached its all-time high in April ($0.059).
5. Polygon (MATIC)
Polygon concludes the top 5 with 8,148.8% YTD growth and 7,769.1% gained over the past six months. At the beginning of the year, it cost under 2 cents. The current price is $1.44. The system is a protocol and a framework for networks based on Ethereum-compatible blockchains.
Best Cheap Cryptocurrency to Invest in
Many crypto coins are very affordable, but their potential for good investments may also be dubious. Based on the current dynamics, Dogecoin is the most attractive choice. Investors are willing to overlook its shady past. Here is everything you need to know about DOGE and its strong rivals in this price segment.
The Leader: Dogecoin (DOGE)
Thanks to the support from Elon Musk, Dogecoin is one of the trendiest cryptocurrencies. The meme coin, which emerged in 2013, was not taken seriously until the “Doge master” posted one tweet. Today, DOGE is not only legit — it is one of the top altcoins and one of the cheapest.
The creators of DOGE wanted to ridicule the popularity of altcoins. Jackson Palmer and Billy Markus could not foresee such a spectacular future: the current price is $0.324157, but the market cap is $42.10 billion! Their invention is one of the hottest altcoins in circulation. Once a joke, it is now regarded as a viable option for investment.
Naturally, support from the Tesla CEO is not the only factor contributing to the growth in 2021. Previously, Reddit users caused a price hike in an effort to prevent the rumored short-selling of the coin on Wall Street.
Dogecoin is practical due to its impressive supply and affordability. The system has been used for micro-tipping on social media. It is a derivative of Luckycoin, which in turn is a derivative of Litecoin. Since the beginning of 2021, DOGE has gained over 8,000%.
Other Strong Contenders
Dogecoin is not the only cheap crypto coin with impressive potential. Here are a few other options to consider if you do not want to splurge on Bitcoin. These cryptocurrencies have seen growth since the beginning of 2021.
1. Cardano (ADA)
Cardano is one of the more affordable altcoins, and its popularity has been surging. Created in 2015, it is now a strong contender. The cryptocurrency is based on the proprietary Ouroboros system, which is a system of two blockchains.
One of the elements ensures regular management of ordinary transactions. The second one tracks smart contracts. This unique two-fold logic gives Cardano scalability and fast transaction speed.
Another peculiarity is that Cardano is mostly popular in Japan. It has even been nicknamed the “Japanese Ethereum” due to its use of the Proof of Stake algorithm (which Ethereum has been planning to implement for quite a while). As of this writing, Cardano has a price of $1.54, while its market cap is $49.38 billion.
2. TRON (TRX)
Tron is a side project of the Ethereum team. Started in 2017, it now boasts a market cap of $5.10 billion. The price of one coin is $0.07132.
Tron is promoted as an independent cryptocurrency. It has its proprietary blockchain platform and processes transactions using the Proof of Stake algorithm. Another competitive strength is its use of more decentralized apps than Ethereum.
3. VeChain (VET)
The first block on VeChain was mined in June 2018. Today, the price is $0.112593. Its market cap is $7.217 billion. This year, the altcoin has skyrocketed, gaining 4,500%.
This is the proprietary currency of the VeChain Thor Blockchain. It was established for business operations and supply chain management. Its core is a distributed ledger. VeChain is based on a twin token system designed as an alternative to public blockchains like ETH and BTC.
Cryptocurrency to Invest in 2021
So, what is the best cryptocurrency to invest in? In this volatile market, there is no universal recipe. Make your choice based on a thorough analysis of the background, strengths, and weaknesses of each system. The following factors are crucial for profitable investment decisions in 2021.
Historical Perspective
How long has the currency been in circulation? We are not saying that new coins cannot make you rich, but the availability of historical data matters. By knowing how a token performed in the past, you can assess its chances today. Naturally, the past does not define the future, but there are still insights to be gained.
Is the currency gaining value? Has the company performed well in recent years? Steady growth is a positive feature of the best coins as an investment.
Technology
What makes this platform special? Is it more convenient or reliable? Consider the speed of transactions and the security of the funds. If the system is based on blockchain, all transactions are transparent and traceable. Note that blockchain does not make a system unhackable, but tracking and recovery are easier.
Adoption Rate
How many people are using the cryptocurrency in question? Rising adoption translates into higher liquidity. This means that trading, spending, or selling this coin will be increasingly easy.
Which Currency Should I Choose?
Many experts recommend investing in cryptos like Bitcoin, Ethereum, and Binance Coin. The latter is one of the most stable options. On the other hand, Bitcoin and Ethereum are still highly volatile. Investors should be aware of the risks, as dramatic rises are often followed by dramatic falls. If you want to benefit from volatility, a diversified portfolio is a must. Check our FAQ section for more tips.
FAQ
Is Cryptocurrency a Good Investment?
Cryptocurrency investment is not for everyone. It suits those with higher risk tolerance. If you are willing to accept the volatility, you may also reap higher rewards than in conservative markets! Invest based on the facts, but not the hype. Unfortunately, when some token starts making headlines, many investors jump on the bandwagon without thinking about the risks. Remember that without proper knowledge and education, you are likely to make the wrong choices.
Which Crypto Should I Invest in?
Coins may be grouped by utility, as their founders have different visions about their purpose. For each currency, you need to understand who is behind it, what it is for, and what its value proposition is. Do the developers have a proven track record of success?
Pay attention to the underlying technology as well. What makes it different from the rest? It is advisable to pick the biggest innovator — coins with the potential to disrupt the industry.
The third biggest factor should be the pricing history. You need to determine how volatile and resilient the currency is. How fast does it rebound after market dips? When was the all-time high? If the currency is peaking at the moment, wait for the next dip before buying it. Often (but not always), past behavior is a predictor of the future.
Should I Invest in Multiple Currencies or Just One?
Every investor knows that diversification is a way to hedge risks. When you spread them across different markets, losses in one domain are neutralized by gains elsewhere. But what about cryptocurrencies?
Everything depends on your goal. Focus on the value, which means you may stick to one, several, or multiple currencies. The approach will depend on how much you have learned about the market. Basket investing is convenient if your knowledge does not allow you to pick just one asset, and it also helps to keep the risks under control.
Crypto investing involves risk, spend your money wisely, you have your own responsibility for the investments.
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