Here are the five cryptocurrencies that we believe could generate massive ROI for investors in 2021 – Iota, Stellar, Binance Coin, Zcash, and Bitcoin. These coins are backed by solid fundamentals and can possibly grow a lot more in 2021.
5 Cryptocurrencies to Buy and Hold in 2021
3. Binance Coin
The Best 5 Cryptos to Buy and Hold in 2021
1. Iota – The Underdog That Could Dominate 2021
Iota (IOT) has risen from $0.166 to $0.30 over this year. While this may not seem as impressive as some of its peers, we believe that its fundamentals are excellent. Recently, the IOTA team announced the successful roll-out of the Chrysalis Phase 2 testnet. This is a critical step before the launch of the much anticipated IOTA 2.0.
The latest testnet comes with several components:
- A new command-line interface (CLI) wallet
- A new faucet for requesting test tokens
- An experimental JS library that comes with Chrysalis APIs
- A new Rust-based wallet.rs library with JS bindings via Neon
- Those interested in setting up their nodes can do so via the chrysalis-pt2 branch available in the official Hornet repo.
In 2021, one can expect IOT to pick up steam as it heads into the IOTA 2.0 upgrade, attracting many developers and users.
Read More: What Will Drive The IOTA Price In 2021?
2. Stellar – An Undervalued Monster?
Stellar rose from $0.045 to $0.203 from the beginning of the year to November end. However, it looks like they are going to be ending the year on a sour note. As you may already know, the U.S. Securities and Exchange Commission (SEC) will be suing Ripple for selling XRP tokens as unregistered securities.
It seems like XLM is catching flack and negative sentiment from the investors as a direct result of this lawsuit. This Wednesday, the price crashed from $0.164 to $0.126 before recovering to $0.158 this Thursday.
Regardless, XLM is definitely undervalued right now and could present a very enticing investment opportunity. Stellar has made several valuable partnerships in 2020 – chief among them being Bankhaus von der Heydt (BVDH), one of Germany’s oldest banks. BVDH announced that they would be issuing a euro-backed stablecoin on the Stellar blockchain.
Read Also: How to Trade Stellar: A Step-by-Step Guide
3. Binance Coin – The Token Fuelling A Superstar Exchange
Since the beginning of 2021, Binance Coin has more than doubled in valuation, going up from 13.60 to $32.75. BNB has three primary functions that you should remember:
- It is used to buy assets and pay exchange fees in Binance. Binance does ~$16 billion in trading volume per day, making BNB one of the busier tokens in the whole crypto ecosystem
- It's the native coin of Binance Chain.
- It’s circulating supply is routinely shrunk via the quarterly token burning process.
Along with this increasing utility and a supply crunch, it seems like the Binance Chain is going to cash in on the DeFi revolution, as well. With its increased usage and with Binance Chain attracting some of the most exciting projects, BNB could be on the course of having a monstrous 2021.
4. Zcash – One Of The Biggest Privacy Coins In The World
Zcash has more than doubled in valuation through 2020, going from $27.24 to $63. CoinSwitch expects ZEC to reach $200 in 2021 and continue to grow to ~$1,250 by 2025. With such massive predictions, one can expect ZEC to be pretty popular among investors in 2021.
During 2020, Zcash used the “wrapping” method to create a synthetic version of the privacy coin on the Ethereum blockchain. This wrapped ZEC is now compatible with all the significant wallets and applications. This simple innovation will make ZEC open to scores of new investors.
Chris Burniske, a partner at venture capital firm Placeholder VC, best sums it up:
“Zcash is the best-in-class privacy crypto money out there with an institutional grade team...When you think of a crypto money like this with a logarithmic supply curve converging upon 21 million units, we know what the supply will be over time. The variable is just what demand is going to be. Wrapping Zcash in this way opens up more avenues for people to use and demand it. We anticipate that Zcash will be a base privacy store of value.”
Read Also: What Will Drive The Zcash Price in 2021?
5. Bitcoin – The Market Leader Marches On and On
Bitcoin has leveraged its position as a cryptocurrency market leader to jump by 300% to go from $7,130 to $29,000 in 2020. Currently, the benchmark cryptocurrency is in uncharted waters. Many researchers believe that BTC will reach at least $50,000 in 2021. The main reason for driving this upward momentum is an institutional investment. Grayscale Investments and MicroStrategy are two companies that have made significant Bitcoin investments over the last few years.
- Grayscale Bitcoin Trust has $14.1 billion worth of BTC.
- MicroStrategy made quite a splash in 2021, buying around $1.1 billion worth of the premier cryptocurrency.
WIth institutions buying up vast chunks of Bitcoin and with its fixed upper limit of 21 million, we can expect the decreasing supply and increasing demand to potentially shoot BTC’s price through the roof.
Read Also: How to Trade Bitcoin 2021
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