More than 1,600 cryptocurrencies are already "dead coins" according to the website 99Bitcoins. That means investors can't go out and buy any random cryptocurrency and expect Bitcoin-like gains.
Cryptocurrency is digital money that isn’t managed by a central system like a government. Instead, it’s based on blockchain technology, with Bitcoin being the most popular one. As digital money continues to gain traction on Wall Street, more and more options become available. There are currently more than 5,000 cryptocurrencies on the market.
There isn’t only one best cryptocurrency to buy. We need to be clear about this, investing in cryptocurrency is risky, but investing in only one is way riskier. Lots of cryptocurrencies have various use cases and promise to disrupt various industries. Diversification is a great way to hedge your risk and increase your chances of being involved in the next hot cryptocurrency.
How long has the cryptocurrency been around? New cryptocurrencies aren’t immediately ruled out, but having historical data for comparison helps you see how a company has performed up until now.
You need to know this rule – the more people invest money in the coin, the higher will be its price. That is why, if the coin you want to invest in is popular, people talk about it, discuss its potential, etc., then you can continue researching it. These coins may generate more profits, but they require you to know a bit more about them.
Always check the past charts. If you see the coin had a low price, then suddenly climbed 300% higher, it will not be the best cryptocurrency to invest in now. We advise you to choose coins with adequate charts and high volume.
How does the platform compare to others in terms of usability and security? The first thing you want to look for is the speed at which transactions occur. The network should be able to handle transaction traffic with ease.
Below, we've listed what our research shows are the top cryptocurrencies to watch in 2021. Despite all the factors and rules, there are some cryptocurrencies that are time-tested and show excellent dynamics. And, as you already understood, it is in these coins that traders invest money most often.
Bitcoin is the most widely used cryptocurrency to date. It is often referred to as the king of cryptocurrencies, and its primary goal is to act as global, peer-to-peer, digital cash. Many businesses already accept Bitcoin as payment, which makes this cryptocurrency a smart investment. Visa transacts with Bitcoin, and Tesla CEO Elon Musk recently invested $1.5 billion in it. Plus, the larger banks are beginning to incorporate Bitcoin transactions into their offerings, too. The value of Bitcoin tends to fluctuate a lot. You may see the price go up or down thousands of dollars during any month. If wild fluctuations like these make you nervous, you may want to avoid Bitcoin. Otherwise, as long as you keep in mind that cryptocurrency is a smart long-term investment, these fluctuations shouldn’t be too concerning. bitcoin runs on a PoW (Proof-of-Work) system, which means miners receive block rewards in Bitcoin. Initially, the block reward was 50 BTC per block, but every 210,000 blocks the reward halves. This means, over time, inflation decreases. Also, the supply is limited: only 21 million coins will ever be mined. As demand increases, the price should rise substantially. Did you know that Bitcoin accounts for over 60% of the total cryptocurrency market cap? This dominance means it has tremendous momentum, which makes it the best cryptocurrency to invest in 2021 if you’re a beginner, or if you simply don’t trade much. Regarding scarcity, only 21 million bitcoins will ever exist, and nearly 19 million have already been mined. As for security, the network itself has never been hacked or compromised. That's a testament to the code that runs the network as well as the enormous amount of computing power the miners use to verify the Bitcoin blockchain. While Bitcoin can't do a lot of the fancy tricks other cryptos can do, its role as digital gold ensures it will remain the leader. I personally see btc on the pump to 300k, but let`s keep our finger crossed.
Litecoin is one of the first cryptocurrencies to come after Bitcoin, and one of the hottest cryptocurrencies of the last decade. In 2017, it was the first cryptocurrency to complete a Lightning Network transaction. The transfer was completed in less than one second. If the company expands its use of Lightning Network for faster transactions, Litecoin’s value could increase dramatically. Litecoin is one of the most popular cryptocurrencies for long-term investment. Developer Franklin Richards noted in January 2020 that more than half of all LTC issued have been inactive in the past 12 months. Using Bitcoin’s source code, Litecoin is a fork of Bitcoin with some technical changes to the code, making it much faster than Bitcoin. Its mission is also to be a global, peer-to-peer currency. Litecoin is the silver to Bitcoin’s gold. It’s one of the original altcoins, and therefore also has a tremendous market cap when compared to other altcoins. Plus, it has utility; it’s faster and cheaper than Bitcoin. Its longevity and utility put it towards the top of the best cryptocurrency to buy in 2021.
Binance Coin (BNB) Unlike Bitcoin and Litecoin, which aim to be used as currencies, the Binance coin is a utility token. This means its value comes from how useful it is (and how much demand there is for its utility) within the Binance ecosystem. As opposed to most utility tokens, Binance has found lots of use cases for BNB tokens (and they keep adding new use cases regularly), which should only increase demand for the token -- and thus, its price. We have been seeing in recent times companies with utility tokens have been merging with the BSC (binance smart chain).
Dogecoin (DOGE), Why it was created: Jackson Palmer, a product manager with Adobe Inc. (NASDAQ: ADBE), and Billy Markus, a software developer at IBM, created Dogecoin in 2013 to satirize the early hype around cryptocurrencies. It's a fork of Litecoin. They adopted a meme of a Japanese Shibu Inu dog as the official Doge logo. While it's mainly a publicity stunt, who knows where this might lead. This old dog keeps coming up with new tricks.
Basic Attention Token (BAT) The BAT token is used to tip content creators or virtually anyone that you find helpful on the internet. You can tip content creators monthly, or choose to send one-time payments to specific people. Basic Attention Token is another utility token most commonly utilized in the Brave Browser. What makes BAT a good investment? BAT tokens are heavily used within the Brave ecosystem. Plus, the Brave browser has seen huge adoption growth and great feedback from internet users since 2019. BAT will likely be a hot cryptocurrency in 2021.
Chainlink is unique as a cryptocurrency because it has an appealing price. While the shares are affordable to buy, they’re also priced high enough to not be considered penny stocks. This is appealing to investors because it has proven it can increase in value, and there is still a lot of room for growth.
Stellar’s Lumens, also known as XLM, was established to serve a niche need within the world of cryptocurrency. It’s essentially the PayPal of cryptocurrency networks, serving as a bridge between banks and blockchain networks. This international transfer system is designed to simplify the system for sending and receiving funds. So, using the XLM token, ordinary people and large companies can quickly and without intermediaries conduct financial transactions via the Internet. Stellar (XLM) has been doing pretty well in the cryptocurrency downtrend lately compared to Bitcoin. Perhaps the main reason for its stable position was the creation of a number of projects based on the platform. Now, at the beginning of 2021, this coin costs $0.33 – this is not a record, but far from the lowest value, so it is the fourth-best cryptocurrency to invest in now, to our opinion.
Cardano, which is competing with Ethereum and NEO, is touted to be more scalable and easier for developers to use. It aims to be more scalable by introducing two layers of technology: one responsible for tracking balances of the ledger, and the other for transferring value. Cardano uses two programming languages called Haskell and Plutus. What makes ADA a good investment? All in all, Cardano is a good cryptocurrency today because it’s another way to hedge against Ethereum. It may not be as promising as NEO or Ethereum itself, but it has potential and is worth keeping an eye on at least.
Nexo has been gaining some attention recently. Nexo as software is a wallet that allows users to borrow money using their coins as collateral. On the other hand, users can also easily and instantly lend crypto and gain interest from lending. The NEXO token is one of the first security tokens to be offered (STO) in the industry. What makes NEXO a good investment? The crypto lending space is growing fast, and Nexo is one of the leading brands in the industry. Although the coin is fairly new, it offers a great way for investors to diversify their crypto assets AND earn money from their holdings through dividend payments. Nexo already has a functional product - which most cryptocurrency projects out there don’t. And the founders are very experienced in the credit industry.
NEO is often known as the China-based Ethereum. Founded in China, NEO is another smart contract platform enabling developers to launch dApps on the blockchain. They are slightly more centralized than Ethereum: instead of relying on hundreds of nodes like on Ethereum, there are only a few (less than 10) that make up Neo's decision-making. What makes NEO a good investment? Smart contract platforms are targeting a vast market. Although Ethereum is currently the worldwide leader, China is a huge market, and NEO has significant chances of leading out there. As a result, NEO is one of the best cryptocurrencies to buy if you want to hedge against Ethereum.
Monero (XMR) Monero is a privacy-focused project. The coin utilizes fancy cryptography and privacy logic to hide the participants' identities. It is widely used on the dark web for this reason and is the most popular privacy coin today. What makes MXR a good investment? Whether you feel good about it or not, privacy coins like Monero will always have demand due to their use on black markets. Despite its old-fashioned technology, Monero’s popularity and liquidity make MXR one of the top privacy-focused cryptocurrencies to buy in 2021, and a great way to diversify your portfolio.
Ethereum is the second-best cryptocurrency to invest in in 2021 and ranks high in the portfolios of many investors. It was launched in 2015 and crossed the $1,000 mark in early 2021. Ethereum may lose its altcoin status, becoming an independent cryptocurrency. This is the conclusion drawn by the specialists of the San Francisco Open Exchange (SFOX) in their research. Analysts explained their point of view by the high correlation of ETH and BTC rates. In their opinion, the reaction of the Ethereum course to events, similar to Bitcoin, speaks of the independence of the project. Ethereum was the first major project to introduce smart contracts. What makes Ethereum a good investment? Ethereum is the current leader of smart contract platforms and is still one of the hottest cryptocurrencies to buy in 2021 for the innovations it brought to the world and its potential applications worldwide.
Litecoin is one of the first cryptocurrencies to come after Bitcoin, and one of the hottest cryptocurrencies of the last decade. The next big cryptocurrency is Litecoin that is one of the “oldest” cryptocurrencies and was released in 2011. This coin is stable, has good volume, and is appreciated among crypto enthusiasts, so is the third best cryptocurrency to invest in 2021. In addition, LTC correlates well with Bitcoin. The growth of the latter, which many investors believe in, could open up an opportunity for Litecoin to realize a positive direction. Using Bitcoin’s source-code, Litecoin is a fork of Bitcoin with some technical changes to the code, making it much faster than Bitcoin. Its mission is also to be a global, peer to peer currency. What makes Litecoin a good investment? Litecoin is the silver to Bitcoin’s gold. It’s one of the original altcoins, and therefore also has a tremendous market cap when compared to other altcoins. Plus, it has utility; it’s faster and cheaper than Bitcoin. Its longevity and utility put it towards the top of the best cryptocurrency to buy in 2021.
What makes Litecoin a good investment? Litecoin is the silver to Bitcoin’s gold. It’s one of the original altcoins, and therefore also has a tremendous market cap when compared to other altcoins. Plus, it has utility; it’s faster and cheaper than Bitcoin. Its longevity and utility put it towards the top of the best cryptocurrency to buy in 2021. It provides the solution that is one of the most obvious and useful applications of the blockchain. GET Protocol solves these issues that are plaguing the ticketing industry, by offering a blockchain-based smart ticketing solution that can be used by everybody who needs to issue tickets (NFTs) in an honest and transparent way. Every smart ticket is guaranteed unique and its properties are locked and traceable on the blockchain, which makes ticket fraud impossible. The GET Protocol is fueled by GET. The GET token is the "fuel" for ticketing companies to issue tickets as to make GET Protocol serve its goal, ticketing companies will need GET. After the tickets are validated and processed, GET is automatically burned by the Protocol. There has been little price action over the last few years despite GET gaining continuous adoption. However, this all changed in the beginning of 2021 similar to how it happened with NEXO when GET has updated their tokenomics and made an announcement about all GET Protocol-issued tickets being NFTs, which gave GET a 2,000% pump within just 6 weeks.
Beam is another privacy-focused cryptocurrency making waves in the industry. Unlike Monero, which is a more traditional blockchain project, Beam uses a new blockchain protocol called Mimblewimble. Without getting into detail, Mimblewimble is known to help significantly with scaling the blockchain and transaction speed, all while maintaining a high level of privacy and anonymity. What makes BEAM a good investment? With Mimblewimble technology, Beam should be more scalable than other privacy-focused coins. With well-thought crypto-economics, Beam may very well be the next hot cryptocurrency to buy in 2021.
Enjin is a fascinating use case for blockchain technology. The company's entire goal is to bring gaming (esports, VR, social, etc.) to blockchain. This means that gamers can own assets from their games. Another amazing feature of Enjin is their Multiverse. The concept is incredible: players will be able to play one game and then transfer their character, assets, winnings, and other items to an entirely different game made by a whole different game developer. What makes ENJ a good investment? eSports are the future of competition, streaming, and gaming in general. Asset ownership and gaming is also a natural fit. Enjin is the first company to pioneer blockchain technology in the gaming industry, and thus, has strong momentum and skills. This makes it one of my top cryptocurrencies to buy today.
When choosing the best cryptocurrency to invest in now, you should also consider the following factors:
the behavior of the cryptocurrency course largely depends on the decisions of the project team. Additional initiatives and development prospects can support the value of a digital asset.
some coins are subject to pump schemes. In this case, representatives of the project can act as a source of pressure. Before looking for promising cryptocurrencies for investment, it is important to familiarize yourself with the peculiarities of the influence of various factors on the behavior of digital assets.
a high level of cryptocurrency capitalization is not always a sign of quality. Many popular digital assets have critics.
The crypto storage has to be developed by an experienced custom software development company like MLSDev or others.