Best Cryptocurrencies To Invest In 2021
01 March 2021 â¢ 17 min read
Did you know that there are over 4,000 cryptocurrencies in existence, with an ever-expanding field of offerings?
Although bitcoin has been in the news quite a bit recently, itâs clearly not the only game in town. In fact, for many people âbitcoinâ and âcryptocurrencyâ have come to mean one and the same thing, but cryptocurrency markets are awash in alternatives. However, it can be quite difficult to navigate your way through these crowded waters, much less decide on the best ones to invest in, which is why weâve put together a list of the best cryptocurrencies to consider this year, from established names to emerging players, that are worth your attention.
What To Expect While You’re Investing
Investors should expect that cryptocurrencies will continue to be volatile. What’s more, the historically risky asset hasn’t been tested in an environment like the one we’re seeing today, where interest rates are set to rise, according to both Ross and Johnson.
“You should fully expect that will go down further, so only put in what you can afford to lose,” said Ross. “If we wake up tomorrow and it goes to zero, you should be able to still pay your rent.”
Before putting money into crypto, both experts stressed the importance of having a secure personal financial situation and clear investment plan. “If you dollar-cost average on the way down and also on the way up, it will smooth out that volatility and also enhance returns,” said Ross.
How Big Is The Global Coin Market
At the time of writing, we estimate that there are around 8,000 coins, tokens and projects in the global coin market. As mentioned above, we have a due diligence process that we apply to new coins before they are listed. This process controls how many of the cryptocurrencies from the global market are represented on our site.
Top Cryptocurrencies Are Sliding Is It Time To Try The Asset Class
- The price dips offer a chance for people to review their financial plan and buy into the volatile asset class if it makes sense for them, said Tyrone Ross, CEO of Onramp Invest.
- Bitcoin bulls argue the asset has room to run this year perhaps as high as $100,000 per coin even though it’s off to a rocky start.
- But experts say you shouldn’t rush into any investment just because it is relatively cheap.
For some investors, this may present as a buying opportunity in the risky digital assets.
Bitcoin slumped as much as 6% Monday, falling below $40,000 per coin for the first time since September, according to Coin Metrics. At the same time, ether shed 7% of its value, plunging below $3,000.
The dips offer a chance for people interested in investing in cryptocurrencies to review their financial plan and buy into the volatile asset class if it makes sense for them, said Tyrone Ross, CEO of Onramp Invest, a crypto-asset platform for financial advisors and firms.
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“When something goes on sale and you like it, you should buy it,” he said.
Basic Attention Token Revolutionising Digital Advertising
Basic Attention Token is a clever coin designed to decentralise digital advertising, ensure content creators get paid fairly for their work, and pay consumers for their time.
It also is designed to provide advertisers with more informed data about how effective marketing campaigns are and has a strong focus on protecting users privacy.
For the time being, BAT works solely on the Brave browser which is gradually growing in popularity.
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Cardano Back Up To $3 Again By The End Of 2021
In 2021 Cardano sneakily stepped into the third spot cryptocurrency by market capitalisation after a lot of hype from crypto enthusiasts. Some will say that its finally time they were recognised.
Compared to other coins, ADA has shown some of the strong growth we have seen, breaking first past the $1 barrier for the first time since 2017, then right past $2 and briefly passing $3 in September 2021.
Cardano stands out for its ouroboros blockchain. In short, Cardano technically has two blockchains, one to handle basic transactions and another to handle smart contracts.
What this ingenious idea does is prevent overburdening the Cardano network with too many transactions, which theoretically should make it faster and prevent scalability issues.
But the best reason to buy Cardano in December 2021 is its smart contracts. Thats right, at long last Cardano has implemented those all-important smart contracts that will enable much of the functionality it has been boasting about for years .
Initially, many traders assumed that after smart contracts were made live, the price would skyrocket, which didnt happen. What will likely happen instead is the price could rise if a large institution decides to use Cardanos smart contracts to build something remember, adoption is the key to success in crypto investing.
How much could Cardano be worth in 2021?
Read our article on Cardano here.
How much do you think Cardano is worth?
The 11 Best Cryptocurrencies To Buy
Going forward, I will describe each coin, its purpose, team, liquidity, price volatility, and other metrics.
In the end, you will have a solid understanding, so that you can decide for yourself which is the best crypto to buy in 2021.
I will start with popular, well-known cryptocurrencies. Ideal for beginners.
Then, I will move on to some more advanced coins.
These coins may generate more profits, but they require you to know a bit more about them.
Plus, they are likely more volatile than the first coins on my list.
If youve already invested in top cryptocurrencies offered on platforms like Coinbase and want to expand your portfolio, then the coins at the bottom of my list might be the best crypto to invest in.
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Avalanche Revolutionary Game Changer
Avalanche is another rising star in the smart contracts arena. The avalanche blockchain is a competitor to ethereum, as it provides a platform for building decentralized apps, and it is the fastest smart contracts platform in the industry with very low fees, says Marcus Sotiriou, a trader at GlobalBlock, a U.K.-based asset broker.
Its native AVAX coin is used both as part of the avalanche consensus mechanism and for paying network transaction fees.
In August 2021, the Avalanche Foundation announced the Avalanche Rush program, earmarking US$180 million in DeFi incentives to encourage more applications to move to the avalanche ecosystem.
The program has already attracted established crypto projects like Aave and Curve, Sotiriou notes. Since the announcement of Avalanche Rush, the total value locked the cumulative value of assets staked on the avalanche protocolhas jumped from US$250 million to a whopping US$13 billion.
Building on the programs success, the Foundation announced the Blizzard investment fund, allocating another US$200 million to attract developers focused on DeFi, enterprise applications and NFTs to the avalanche blockchain.
Avalanche is a newer crypto relative to the more established smart contract platforms, says Sotiriou, but its incentive programs and growing institutional interest mean AVAX could soon become a blue-chip cryptocurrency.
Best Cryptocurrencies To Buy: Avalanche
This coin is dubbed the Ethereum killer and is also said to be like Ethereum, but faster. Avalanche is a popular smart contract platform and Decentralized Finance blockchain. In one year, the value of AVAX has risen more than 400% and is currently trading at a reasonable $64.
Even though the use of Avalanche is limited to trading and paying fees, the platform allows anyone to create and launch their own blockchains. With its protocols, this platform can process over 4,500 transactions per second. Upon comparing it with Ethereums speed of 14 TPS, one can understand why Avalanche has the most proof-of-stake validators.
Avalanche gained almost 4,500% in 2021. It began at $9.65 in July and reached $134 in November. Unfortunately, it fell soon after its peak. Accordingly, this price performance indicates this token could remain more volatile than others. During this recent bout of volatility, this has proven to be true.
That said, analysts remain bullish about its growth in the long haul. Ava Labs has various projects in line for 2022, which can boost its prospects despite any dip. It has partnered with Deloitte so that local and state governments can allocate funds swiftly in disaster-hit areas. To develop a gaming program, the team is also linking with Web3 accelerator. These are all catalysts many long-term investors look to as reasons to hold this token right now.
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What Is The Cheapest Cryptocurrency To Buy Right Now
Dogecoin and Shiba Inu are perhaps the cheapest best-known cryptocurrencies to invest in right now. However, the cheapest cryptos do not necessarily make the best investments.
For example, Shiba Inu, which was created to be a Dogecoin killer, has exhibited some extreme price movements. Particularly after the creator sent over half the supply to Vitalik Buterin, the creator of Ethereum, who then burned 90% of it and donated the remaining 10% to charity.
Other cheap cryptocurrencies include:
- eCash formerly known as Bitcoin Cash ABC.
Gamifying The Crypto Industry
The intersection between crypto, games and the metaverse became more than just a pipe dream in 2021. Axie Infinity was the first crypto native game to successfully establish a play-to-earn structure that combines its native token and in-game NFTs, becoming a sensation and for many in the Philippines.
Other crypto gaming projects like Defi Kingdoms are putting recognizable game interfaces on decentralized finance applications, with the decentralized exchange becoming the towns marketplace and yield farms being the gardens where yield is harvested. This fantasy aesthetic is more than just a new coat of paint, as the project with $1.04B of total value locked is developing an underlying play-to-earn game.
Along with gamification, 2021 saw crypto native and non-crypto developers put a big emphasis on the digital worlds or metaverses users will inhabit. Facebooks name change to Meta resulted in the two prominent metaverse projects The Sandbox and Decentraland surge another few hundred percent to finish off the year at 16,261% and 4,104% returns respectively.
With so many eyes on the crypto sector after 2021s break-out year, well see how developing US regulation and changing macro conditions affect cryptocurrencies in 2022.
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Ripple Xrp Still On The Increase Despite Sec Lawsuit
On the 24th December 2020, the SEC took Ripple to court because they believe that XRP is actually a security, not a cryptocurrency, therefore making all the money they had raised so far from retail traders illegal .
XRP haemorrhaged value while most of the crypto market was booming, but now it looks like XRP is back in action.
While on the outside the situation looked pretty worrying , many believe that the SEC has overstepped and pretty badly at that as there is tonnes of evidence in Ripples favour.
So, in the end, it is quite likely that Ripple will win the case, which will likely improve prices. Of course, though, no one can guarantee this.
For those that dont know much about Ripple, it is a lot more than just a cryptocurrency, it is an exchange that enables you to transfer all kinds of funds faster and across borders much faster than traditional banks and institutions.
What makes it so unique is that you could send a payment in, for example, British pounds to someone, which Ripple would convert into XRP, and when it reaches the recipient, it could be in their currency, lets say the euro.
How much could Ripple XRP be worth in 2021?
Read our article on Ripple XRP price prediction here.
Have you considered buying Ripple XRP ?
Why Are There So Many Cryptocurrencies
The majority of cryptocurrencies today are derived in some form or another from Bitcoin, which uses open-source code and a censorship-resistant architecture. This means that anybody can copy and tweak the code and create their own new coin. This also means that anybody is free to join its network or transact in it.
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Best Cryptocurrencies To Buy: Cardano
Cardano is another token thats often referred to as an Ethereum killer. The functioning of ETH and ADA are quite similar, but Cardano is the largest cryptocurrency using the proof-of-stake system. It also beats Ethereum with a speed of 257 transactions per second.
Indeed, Cardano is not the only Ethereum killer in the market, but what gives it an edge is its unique approach. The developers have skillfully divided Cardanos launch into five phases. It is currently in its third phase of allowing individuals to create their dApps and DeFi products on its blockchain. In 2022, we can see the remaining phases of scaling the network and implementation of a governance solution.
Moreover, the Cardano network aims to improve its scalability further in 2022. To do so, it is implementing a layer 2 scaling solution, where the second layer, on top of the PoS layer, will be able to handle 2 million TPS.
ADA is currently posting a minor loss in year-to-date performance, which is dulling some of its former luster. Since its peak in September, this coin is again trading near the lower level at $1.05. That said, should investors turn bullish once again, Cardano is a token that certainly has the potential to continue taking off.
Risks Of Investing In Xrp
In December 2020, the Securities and Exchange Commission filed a lawsuit against Ripple and two of its executives, alleging that they violated registration provisions of the Securities Act of 1933 by raising over $1 billion through an unregistered digital asset securities offering. The implication that XRP is a security, not a currency, could have consequences not just for XRP, but for other cryptos as well.
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These Trending Cryptocurrencies Have Created A Lot Of Stir Since Their Price Rallies In 2021
Bitcoin and other cryptocurrencies ran wild in 2020 and 2021. Several investors are now using cryptocurrencies for their intended purpose of processing payments and conducting transactions. Every day, millions of cryptocurrencies are transferred for making daily payments. Today, the world of cryptocurrency is not limited to the Fintech industry. Interestingly, some of the top-notch and the most influential people in the tech industry are also vastly expanding their tech domains by investing in cryptocurrencies. Apart from the banks going completely digital, newer platforms like Coinbase are coming up with transaction facilities and completely revolutionizing the modes of payments. So, now it is safe to say that cryptocurrencies are everywhere, and this trend will continue to grow in the future. In this article, we have listed the top trending cryptocurrencies that investors can buy and hold in 2022.
Bitcoin is currently the most trending cryptocurrency after its bullish price rally in 2021. It is known to be the largest cryptocurrency in the market. Theoretically, BTC is a peer-to-peer online currency, which means that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them.
Top 5 Cryptocurrencies Of The Week
The Bitcoin price has cracked the $38,000 mark and may have touched a critical support spot. This significant accomplishment could unlock the pathway up again. Presently, the question is how fast can Bitcoin touch 40,000s. This post is all about the top 5 cryptocurrencies that achieved excellently in the last seven days. At the time of writing this, the Bitcoin price is sitting at $38,057.93. Lets take a look at it in more detail.
BTC/USD Weekly chart TradingView
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Best Cryptocurrencies To Buy: Binance Coin
This digital currency started its journey in 2017 when it was valued at 3 cents. Over the past five years, Binance Coin has gained more than 10,000%. It touched an all-time high in May 2021, when it reached $686.
BNB is the native token of the worlds largest crypto exchange, Binance. On this platform, this coin can be used for investing in crypto and other investments, or paying transaction fees. BNB coin is highly favored since it is part of a highly liquid ecosystem that has services ranging from Binance loans to token farming facilities.
Indeed, Binance coin showed steady growth in 2021 with a 938% gain in one year. That said, this top token has fallen nearly 20% year-to-date. This coin had its largest gains in March and April of last year. But after its peak, it has been on a rather consistent downtrend. It is currently trading around $400, which provides value investors with an intriguing dip worth buying.
Binance has been making growth-driven acquisitions in the crypto world to boost BNBs value in 2022. Thus, theres a strong growth thesis with this token for aggressive investors. For those who believe analyst predictions that BNB could hit $504.47 by July 2022, this tokens upside certainly looks attractive at these levels.
Top Metaverse Cryptocurrencies: Axie Infinity
Axie Infinity is a top play-to-earn game in the crypto world that has garnered a tremendous amount of attention. This networks native AXS token saw a late-September airdrop as well as a move to allow staking of AXS token. Besides the utility generated by playing the Axie Infinity play-to-earn game, this announcement offers more reasons to investors to hold AXS.
A majority of the tokens that undertake an airdrop have witnessed a surge in interest. This was undoubtedly the case with AXS, too.
However, many suggest the impacts of airdrops are short term in nature. Accordingly, this platforms staking implementation may generate more sticky interest over a period of time. Staking enables investors to earn AXS rewards just by staking these tokens. This offers an entirely new investing thesis for individuals bullish on this play-to-earn metaverse space.
Moreover, AXS offers investors with more than just a metaverse game a key draw for a majority of cryptocurrency enthusiasts.
The Axie Infinity team recently came up with its own decentralized exchange named Katana. This decentralized exchange enables investors to get involved in yield farming, further generating another potential passive-income stream for AXS token holders.
Thus, Axie Infinity has a number of drivers that could bolster this tokens value over time. This token is down more than 70% from its peak.
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