In this article, we will list down the top 10 cryptocurrencies to invest in 2021.
It is the time of year when investors start thinking about the best investment for the coming year. 2020 has been an extremely volatile year for markets. We have seen global economies dwindle in the face of the coronavirus pandemic. This brings us to the question of which cryptocurrencies are best for investment in 2021.
Many experts believe that 2021 will be the year of cryptocurrencies. People around the world are heartbroken over the poor state of local economies. Governments, in an effort to uplift small industries, are printing more money to give relief packages. Thus, the currencies are devaluing and making the fiat holders panic. Subsequently, investing in cryptocurrency seems like the right thing to do.
Best cryptocurrencies for investment in 2021 are the ones with strong prospects throughout 2020. Overall, the crypto market is having a good time so far. Bitcoin is at an all-time high since 2018 and altcoins are also likely to join the rally. Nonetheless, there are more than 6000 registered crypto coins. This makes it hard to see which ones will perform best. Therefore, we have prepared a list of the top 10 cryptocurrencies to invest in 2021. This list focuses on some key factors that make a currency suitable for investment.
Let’s discuss the best cryptocurrencies for investment, in detail:
Bitcoin is the king of cryptocurrencies. It is also known as digital gold compared to fiat gold. Bitcoin was introduced in 2009 by an unknown person Satoshi Nakamoto. Ever since it has dominated the market. Bitcoin took a dip in March 2020. However, it hit $18.5K USD in November of the same year. It won’t be wrong to say that this year has been among the strongest years bitcoin ever had. 2021 is expected to bring a further upward rally.
Bitcoin has strong community support, high trading volume, and giant market capitalization. There is more to BTC than any other cryptocurrency. It will keep its top rank in 2021. Additionally, no other coin can surpass the trust BTC has gained so far.
Bitcoin is the first one in our list of the top cryptocurrencies to invest in 2021. At the time of this writing, bitcoin is at $18K. So, it is quite an expensive investment. Nonetheless, you can buy a few satoshis (sats), which is a 100 millionth part of one BTC, to earn some profit when the price will go up.
Ethereum is a popular blockchain platform developed by a young Canadian programmer Vitalik Buterin. If Bitcoin is digital gold then Ethereum is digital oil. Since its release in 2015, bitcoin has shown strong resolve. The current price of Ether, the platform’s native currency, is $616 USD which is an all-time high.
Throughout 2020, many cryptocurrencies have shown extreme volatility and occasional dips. However, ETH has stayed its ground for the most part. This strength is a result of the massive growth of decentralized finance (DeFi). Many Cryptos that are the driving force behind DeFi are supported by the Ethereum platform such as Chainlink (LINK), Maker (MKR), and Wrapped Bitcoin (WBTC).
Also Read: What is DeFi?
The number of exchanges and transactions on Ethereum have increased massively this year. Additionally, Ethereum 2.0 will launch in December 2020. It is a long-awaited upgrade on the platform. In the wake of it, Ethereum is expected to explode in 2021. Hence the silver of cryptocurrency i.e Ether is the second-best cryptocurrency for investment in 2021.
3. Litecoin (LTC):
Litecoin is bitcoin with a lot more perks. It is lower in price thus affordable by many and fast in transaction speed. It only takes 2 and a half minutes to process an LTC block. Besides, the price of LTC has shown 8000% growth since its launch. Therefore, it is among the list of top 10 cryptocurrencies to invest in 2021.
Litecoin is a spinoff for bitcoin. Its current market price is $91.12. The price has been highly dependent on BTC throughout history. In 2017, when BTC was topping at $20K USD LTC also hit the highest peak of $370K USD. The current market cap of litecoin is 5.62B. It has a high trading volume on exchanges. Consequently, Litecoin is considered to be one of the liquid assets.
The reward to miners for processing a block on the LTC ledger is 12.5 LTC. After every halving event, the reward is halved. The next halving will take place in 2023.
The launch of LiteBringer, the role-playing game (RPG) also gave fresh impetus to the transaction on litecoin Blockchain. For instance, 75% of transactions on the blockchain are now caused by the game. Moreover, the price of Litecoin will also surge in the coming year. According to CoinSwitch, one litecoin will be worth $600 in 2021. Hence, LTC is among the best cryptocurrencies for investment in 2021.
4. Ripple (XRP):
Ripple is the name of a cryptocurrency platform whereas XRP is its native currency. However, both names are interchangeably used. XRP is used for the transfer of value at an international level. It has a fast transaction speed.
Ripple is the third most popular cryptocurrency according to CoinMarketCap. Nonetheless, it has a low price. Over the past 3 years, XRP has shown steady growth. The platform of ripple is trusted by many. Hence, we believe that XRP will continue to thrive in the next year.
Also Read: Bitcoin VS. Ripple
If you want to make a safe investment in the crypto world then XPR is the best choice. It is not overly priced and you can start small. The price of XRP reached $3.4 USD in 2017.
In recent months, we have seen a drop and then surge in ripple price. The current price is at $0.68 USD. This depicts high volatility. Nevertheless, you can put your money on it if you want to make short term trades for squeezing small profits. Therefore, Ripple is our cryptocurrency of choice for investment in 2021.
5. Cardano (ADA):
Cardano is a proof-of-stake blockchain platform. It was launched in 2017. The idea behind the platform was to bring innovators, visionaries, and changemakers to one place for bringing global change.
ADA is the native token on the Cardano platform. It is in 9th place on CoinMarketCap. Currently, the price of ADA is at $0.177 USD. However, it shows the potential to explode in the next year with high trading volume and market cap.
The growth of Cardano’s platform is over the horizon because of two factors. The first one is the Shelley upgrade held in 2020. It was aimed at making the platform’s blockchain 50 to 100 times more decentralized. Charles Hoskinson, the founder of Cardano, predicted that this upgrade will bring hundreds of more assets to the platform.
The second factor potentially responsible for Cardano’s growth is the release of Hydra. It is a scalability solution for speeding up the transactions on the network. According to developers of the platform, this upgrade will give Cardano the power to process more than 1 million transactions per second.
We have put Cardano on 5th number in our list of the top 10 best cryptocurrencies for investments in 2021. Hence, you should give it a due share of attention.
6. Bitcoin Cash (BCH):
Bitcoin cash is scarce, yet spendable like fiat cash. Being dependent on bitcoin, BCH price went up in the last month following BTC. The price of the BCH is $343 USD at the time of this writing.
BCH has high usability as a peer-to-peer electronic cash system. It has the seventh-highest market cap among cryptocurrencies. BCH, so far, had the highest price of $3.5K USD in 2017. The price predictions for 2021 vary. However, it will likely reach $500 in 5 years according to Stormgain.
2021 is an excellent time for investment in Bitcoin Cash. The currency’s high trading volume makes it a good catch for profit-making.
7. Chainlink (LINK):
Chainlink is among the top five popular coins in the cryptocurrency market. It has gained this level of fame in a short amount of time. It was developed in the latter half of 2017. After the ICO, Chainlink’s initial price was $o.1 USD. Today, it is at $16.13 USD.
Chainlink (LINK) is a decentralized oracle network on the ethereum blockchain. It is created with the purpose of connecting smart contracts with real-world data. Chainlink had its moment in 2020 when the price reached $19.6 USD in August. The coin shows a strong potential of exploding in 2021.
We reckon that Chainlink is among the best cryptocurrencies to invest in 2021.
8. TRON (TRX):
TRON was launched in 2017 on the ethereum network. Later on, it developed into an independent platform. TRON is recognized as a blockchain platform that uses proof-of-stake algorithms for processing transactions.
The TRON platform is very common among organizations for building decentralized applications (dApps). It is currently hosting more dApps than the Ethereum platform. The price of TRON is at $0.03 USD.
It is listed on the 15th number on CoinMarketCap. However, daily usage of TRON and its suitability makes it the best investment for the coming year. Thus, TRON is among the top 10 cryptocurrencies to invest in 2021.
9. Binance Coin (BNB):
Binance coin is a utility coin offered by Binance Exchange. Individuals using BNB on Binance exchange get special discounts on transaction fees. BNB showed a downward trend at the start of 2020. However, the coin is bullish at the moment with a market cap among the top 10 cryptocurrencies.
BNB’s price at the time of this writing is $33.43 USD. The price trend is bullish and it is expected to stay so in the next year. Therefore, BNB is on our list of top 10 cryptocurrencies for investment in 2021.
10. Yearn.finance (YFI):
Yearn.finance became popular in the summer of this year. It is one of the coins that exploded out of nowhere and grabbed the attention of all cryptocurrency enthusiasts. The current market price of YFI is higher than even bitcoin. At the time of this writing, YFI is at $25,522 USD.
YFI is representative of DeFi. As the growth of DeFi is surging with increasing investments, the YFI price will keep surging. It is one of the best choices for investment in 2020 if you have good capital.
Conclusion: Top Cryptocurrencies to Invest in 2020:
Cryptocurrency investments are risky. There are a plethora of scam platforms. However, looking at the past performance of a coin can help you make the right investment decisions. Besides, it is a good practice to diversify your portfolio with multiple coins with varied trends. This will help you stay safe in the face of uncertainty.
Lastly, remember that making steady profits over a longer period of time is better than trying to smash the market with one great move. You can keep our list of top 10 cryptocurrencies to invest in 2021, with you. Nonetheless, if the market tells you otherwise at some point then take the best shot according to your own understanding. Good luck for 2021!