Top 10 Best Cryptocurrencies to Invest in for 2021
With thousands of cryptocurrencies available in 2021, where is a new investor even supposed to start? The crypto scene can be intimidating to newcomers, but we’re here to simplify it.
In this article, we’re breaking down the 10 best cryptocurrencies to invest in for 2021. Using this list, you can make smart additions to your portfolio and finally get in the crypto game.
Remember, this isn’t investment advice. It’s simply a list of the top assets by volume and market cap. Of course, new initial coin offerings (ICO) are happening every day, and blockchain technology will only continue to grow. Be wise with your money, and do your research! Congratulations—this is a wonderful place to start.
1. Bitcoin (BTC)
The original, most-talked-about, and largest cryptocurrency also has the highest market cap on the cryptocurrency exchange by a significant margin at nearly $900 billion. That accounts for almost half the world’s total investment in the $2 trillion crypto market.
The success of BTC can partially be attributed to its status as the first crypto coin. Still, it has taken on the role of “digital gold” while other assets prove to be more practical as actual currency.
In recent months, investment in BTC has reached new heights, particularly from institutional firms and mining companies with unique business models and industrial-grade operations.
New investors, don’t worry about buying entire Bitcoins. It's easy to purchase portions of a coin and build your long-term investment at a steady pace.
2. Ethereum (ETH)
With a market cap quickly approaching $500 billion, Ethereum has made a name for itself as the growing crypto marketplace’s second-in-command. You’ll see both Bitcoin and Ethereum named in the same sentence often, so get used to hearing more about ETH.
Aside from being a ubiquitous digital asset, Ethereum is also a popular network that allows developers to build apps, ecosystems, and crypto tokens of their own, like Ether. Many altcoins have seen success after splitting from the Ethereum network and establishing unique features. Etherium also helps smart contracts securely connect to APIs and external payment systems.
Investors should note that ETH charges fees known as gas, which can be costly and time-consuming if you plan to facilitate regular transactions.
3. Cardano (ADA)
The unsung hero of the crypto market in 2021 has been Cardano, rising from a heap of unknown altcoins into the mainstream. With a market cap of over $90 billion, ADA has made its mark. Its rising price reflects interest from investors in recent months.
Compared to giants like BTC and ETH, ADA is a “lightweight” network with a smaller footprint, lower transaction fees, and faster speeds. Still, it was co-founded by one of the founders of ETH, Charles Hoskinson, which provided early industry consideration.
The ADA network has passionate support from its small but growing community of developers and investors. The network has made headlines with its introduction of smart contracts and its myriad applications in industries like healthcare, copyright, and government.
4. Binance Coin (BNB)
Originally a token that operated on the Ethereum blockchain, the developers behind Binance Coin decided to forge their own path—which proved to be a wise move.
BNB now has a market cap of over $80 billion and increasing support from the Binance platform’s network who use the token to trade crypto with ease.
If you aren’t already part of the Binance ecosystem, it doesn’t make much sense to go out of your way to purchase BNB. However, if you are eager to start trading on one of the world’s most popular exchanges, adding BNB to your portfolio may be a smart move.
5. Tether (USDT)
Tether is a rarity in the world of crypto known as a stablecoin, meaning it’s tied to real-world assets. In this case, the digital currency is tethered to the US dollar, making it maintain a stable value–at least on paper.
Tether’s appeal is as a digital alternative to the dollar, but this has been a source of controversy from the crypto industry and the US banks. Recently, a report showed that only 2.9% of Tether was backed by cash, raising even more questions.
Nevertheless, a $65 billion market cap can’t be ignored, and there are plenty of institutional players showing faith in USDT for the long haul.
If you’re interested in buying Tether, don’t expect to see monumental returns. The selling point is stability, transaction times, and a way to protect your investments moving forward.
6. Ripple (XRP)
If you recall the wild rollercoaster that was the 2017 crypto market, you’ll remember plenty of hype—and plenty of huge price percentage jumps. Ripple was in the middle of it all, with a value increase of 36,000% in the blink of an eye.
Of course, things have cooled down for XRP, but the $55 billion market cap still shows promise. The company behind XRP is heavily invested in its development and expansion, and XRP advocates have a strong, bullish case as crypto adoption increases.
There’s a lot to like about XRP, but there are many risks as well. Keep an eye on headlines and consider every angle before adding it to your wallet.
7. Dogecoin (DOGE)
You may be surprised to see a meme-inspired joke cryptocurrency on our official top-10 list, but Dogecoin’s $37 billion market cap doesn’t lie.
The DOGE hype was tremendous in the first half of 2021, but it did lose steam. Still, its price is far higher than anyone imagined a year ago, and its daily volume remains impressive enough to merit real consideration.
8. Solana (SOL)
The most recent altcoin to make its way into the top 10, Solana has had a miraculous run in the past month. The market cap is hovering around $33 billion, thanks largely to the recent NFT boom and an investor base eager for a fast ETH alternative.
Like any coin surrounded by hype and lightning-fast price increases, exercise caution when looking at SOL or projects related to it.
9. Polkadot (DOT)
Polkadot is an open-source project run by the Web3 Foundation with over 100 developers and increasing support from a vast online community. It fashions itself as another “Ethereum killer” competing for smart contract network dominance and rapid-fire transactions.
DOT’s market cap of $30 billion is impressive, although it’s one of many cryptocurrencies occupying a similar space and value proposition. Learn more about DOT and compare its alternatives before diving in.
10. USD Coin (USDC)
The second stablecoin on our list has a market cap of $27 billion and runs on several different Ethereum platforms, including Stellar and Solana.
Operated by Coinbase, USDC has shown promise as a worthy adversary to Tether with growing support. Both stablecoins have proven functional and viable. Your investment choice should come down to your own priorities and discoveries.
Ready to Jump into Crypto?
When it comes to picking cryptocurrencies, you’ve got options–a lot of options. More than 5,000 cryptocurrency coins and tokens are recognized across major exchanges, but this list should give you a solid foundation.
Of course, miners are creating new coins every day, founders are creating new businesses, and you never know which cutting-edge technology you'll want a stake in. Price volatility is also an issue, and any list of the best cryptocurrencies needs to be taken with a grain of salt—the market changes every day.
Remember to stay on top of the latest developments in crypto mining, governance, and general news. That’s how you get ahead and stay ahead in this fast-paced industry.
Sources:
10 Best Cryptocurrencies 2021 | Yahoo Finance
Top Cryptocurrencies Set to Explode | Benzinga
Important Cryptocurrencies Other than Bitcoin | Investopedia