Let’s start to talk about 10 best cryptocurrencies to invest in for 2021. The digital currency market has experienced a real renaissance in 2020. The growth of bitcoin and the subsequent growth of other coins immediately forced investors to turn their gaze on this area again. Every year it becomes easier and easier to start investing. The number of cryptomats is increasing exponentially, and the interface of many exchanges and wallets is so intuitive that even a child can figure it out if he wants to. But a reasonable question arises: in which coins is it worth investing your hard earned money, and which ones are better to bypass? Which coins tend to rise and which ones to fall? We will try to answer these questions by talking about the best coins to invest in 2021.
1. Bitcoin (BTC)
Bitcoin, or digital gold as many call it, is rightfully at the top of this list. The coin with a capitalization of over $900 million is the best cryptocurrency to date. When the first block was generated in January 2009, no one could have thought about the success that would come in 12 years.
Bitcoin is still a coin that can and should be invested in. And its high cost shouldn’t scare you away. Large investors continue to actively purchase the coin. For example, about a month ago, Tesla, owned by the world-famous businessman Elon Musk, bought coins worth the equivalent of $1.5 billion.
Experts predict further growth in bitcoin in the 1st quarter of 2021. Maybe you should buy right now?
2. Ethereum (ETH)
The second largest cryptocurrency in terms of capitalization has also grown significantly in price recently. Its main difference from Bitcoin is continuous improvement. The work on the creation of the Bitcoin blockchain was completed in 2009. Since then, its code has undergone only minor cosmetic changes, while Ethereum is constantly changing, trying to maintain its position in the market.
It is worth noting that Ethereum is not just a regular cryptocurrency. Ethereum is a crypto platform, smart contracts, decentralized applications (Dapps).
Recent updates include the Constantinople protocol, designed to improve the security and speed of the platform. The long-awaited Ethereum 2.0 is on its way, after which power consumption should decrease by changing the consensus algorithm from proof-of-work to proof-of-stake. Phase 0 kicked off in December. A full transition to Ethereum 2.0 is planned after 2021. Experts are confident that the update will give Ethereum a new impetus that the project needs so much.
Ethereum can be used to purchase other coins on exchanges, which sets it apart from many other cryptocurrencies. Because Bitcoin is correlated with Ethereum, ETH has also grown significantly in value in 2020. Yes, the number 1 is still far away, but there is every chance in the foreseeable future to compete for the title of the best coin.
3. Bitcoin Cash (BTH)
In August 2017, the first Bitcoin hard fork occurred, resulting in the birth of Bitcoin Cash (BCH). It was intended to solve the scalability problem once and for all (bitcoin originally had a block size limit of one megabyte). Bitcoin Cash allows the system to carry a large influx of users. For this, the SegWit2x protocol was created, increasing the block size to eight megabytes. This allowed us to reduce the transaction execution time.
Some are actively using the new and improved bitcoin, while others see it as just a pathetic parody of its predecessor. One way or another, the coin has a great perspective, since from a technical point of view, it is in many ways superior to Bitcoin.
4. USD Coin (USDC)
USD Coin is not exactly a cryptocurrency, but rather positions itself as a stablecoin. When a large part of the market is hungry for complete decentralization, the USDC is a coin fully pegged to the US dollar. It was created by the teams of the startup Circle and the Coinbase exchange. The main advantage of the coin is that it is not subject to fluctuations, i.e. it has low volatility.
Another advantage of USD Coin over the paper dollar is its autonomy. Using a stablecoin, a person does not depend on the conditions imposed by financial institutions. A big plus is that all transactions go through without delay. Storage reliability is also an undeniable advantage. Therefore, conservative investors are simply obliged to include this coin in their portfolio.
Recent news, will also have a positive effect on USDC. The American payment system Visa became the first of the largest payment systems to approve the settlement of transactions in the USD Coin cryptocurrency, a stablecoin supported by the dollar. That’s why USCD can be 10 best cryptocurrencies to invest in for 2021.
5. EOS (EOS)
EOS was released in 2017. The platform designed to work with decentralized applications has high bandwidth. The high level of security is worth mentioning separately. In addition, it provides for the simplest possible creation of decentralized applications. The main focus of the developers is on the ease of programming. In use, it is approximately on a par with Ethereum. Scalability, by the way, is much higher than that of Ripple. All these factors make EOS one of the potentially best investment vehicles in the long term.
The EOS team actively supports their product, constantly improving it. If the developers manage to achieve all the goals, then in the future the coin will skyrocket in value and be able to compete with the “sharks” of the market. Check our article about NEO VS EOS.
6. Binance Coin (BNB)
When talking about the top 10 cryptocurrencies to invest in 2021, it would be sacrilege not to mention Binance Coin. It’s no secret that Binance is the largest and best (in terms of functionality and capabilities) cryptocurrency exchange today. In the short term, hardly anyone will be able to bypass this exchange. Binance Coin is Binance’s official token. Thanks to the token, users have the ability to freely trade other digital assets. The developers have tried to make sure that the coin is actively used.
Reduced commission for transactions, payment for a number of goods and services are only a small part of its benefits. For example, the Uplive platform supports BNB for buying virtual gifts.
Not so long ago, a Binance card was issued, which allows you to make everyday purchases in the same way as with a regular debit card from your bank. Agree, this is very convenient and practical. Experts believe that BNB will continue to demonstrate strong growth. At the moment, the coin has confidently settled in the fifth position of the reputable CoinMarketCap portal. The company’s directional policy in the form of buyback and burning of BNB tokens should also contribute to growth. The company’s plan is to leave 100 thousand tokens, while the rest will be burned over time. These factors give full confidence that the digital asset will continue to actively grow in value.
7. Litecoin (LTC)
The Litecoin cryptocurrency was founded by former Google employee Charlie Lee. It has a lot in common with Bitcoin, many experts even call Litecoin its younger brother. Litecoin emission – 84 million coins, which is 4 times more than bitcoin (21 million coins). The most important advantage of Litecoin is its high transaction processing speed. The block is checked every 2.5 minutes (4 times higher than BTC).
What makes Litecoin practical is its scalability. 56 transactions per second is much better than BTC and ETH. The fees for conducting transactions on the Litecoin network are lower than those of the coins just mentioned.
LTC is practical in terms of retail payments. That is why the list of sellers is now growing, actively accepting it as a means of payment. Altcoin is highly correlated with BTC, so it will continue to grow rapidly in value, making it profitable for medium-term investments.
8. Chainlink (LINK)
At the moment, oracle projects are gaining popularity and demand. Chainlink is a decentralized network of oracles that focus on providing real-time data to smart contracts on the blockchain. Simply put, a network of nodes provides data and information from off-blockchain sources to smart contracts inside the blockchain using oracles.
More than 300 partners have already implemented Chainlink, which has significantly increased the value of the token. The ecosystem is now actively developing, which is why in the medium term, the value of the asset should seriously increase.
9. Polkadot (DOT)
Developed in 2017. Fast, scalable and reliable blockchain. Polkadot is the core (main blockchain), located in the middle and responsible for security, while the rest of the blockchains join the network and can interact with each other. For example, 2 tokens of the attached blockchains can be exchanged at each other, the Ethereum network does not have. In fact, the project can be compared to a chamomile, where Polkadot is the core, and all other projects (parachains) are chamomile petals.
For the development of parachains, a proprietary framework is used, which makes development on Polkadot fast and convenient. Using Substrate, you can write blockchain logic in any programming language, which greatly simplifies the entire development process.
The wide functionality has not gone unnoticed by the community, and many investors are actively buying up cryptocurrency. Recently, the DOT token was able to break into the sixth position of CoinMarketCap and grow in value by more than 5 times. Perhaps this is the Ethereum killer that many have been waiting for and the 10 best cryptocurrencies to invest in 2021.
10. Cardano (ADA)
Cardano is another striking Ethereum alternative. Therefore, it deserves its honorable place in our ranking of the 10 best cryptocurrencies to invest in 2021. Cardano is a peer-reviewed decentralized blockchain protocol. The developers managed to create a platform that processes a large number of transactions at minimal cost. Registry technology and smart contacts are available here, by the way. Much attention is paid to safety.
The platform is named after Gerolamo Cardano, an outstanding Italian mathematician, physicist, biologist, chemist, astrologer, philosopher, writer and gambling enthusiast. The project is written in Haskell and serves to create decentralized applications based on smart contracts. Are you planning to invest? Then the Cardano cryptocurrency is definitely worth paying attention to.