2021 has been an adventurous year for the crypto market. Within just four months, Bitcoin and other major altcoins saw their prices reach new all-time highs. Although the market experienced some pullback, experts have predicted a booming year for virtual assets.
Despite its popularity, Bitcoin is not the only cryptocurrency that is flourishing. Innovators and spinoff currencies have emerged in large numbers, and there are more than 5,000 cryptocurrencies available in the market today. With so many available options, how do investors know which is the best crypto to invest in?
Based on critical considerations such as buy ratings, price history, network updates, etc., we have put together a list of 5 top cryptocurrencies to buy. These digital assets are popular among investors and traders as they have room for growth.
Let us take a look at these best cryptocurrencies to invest in with strong ratings and understand what makes them suitable candidates for investment right now.
5 Cryptocurrencies with Strong Buy Ratings
Here’s a look at the top 5 cryptocurrencies to invest in with strong ratings:
1. Ethereum (ETH)
Ethereum (ETH) is the native cryptocurrency of the Ethereum network, also known as the "world computer." Launched in 2015, Ethereum improved on the Bitcoin public blockchain model and added the capability to code automated agreements called smart contracts, which execute automatically when a bunch of parameters is met.
The Ethereum blockchain network also introduced decentralized applications (dApps), which utilize the distributed nature of the network. Ethereum is also the basis on which the booming decentralized finance (DeFi) and NFT markets are built. Ether (ETH) is the fuel on which this entire process runs, meaning it has numerous potential use cases. If you are looking to participate in the Ethereum ecosystem, acquiring ETH could be a good start.
Ether is smaller than Bitcoin. The current market cap is $522 billion, with a trading price of about $4,449 per token. However, Ethereum is all set for its transition to Ethereum 2.0. This hard fork would place the network on a new blockchain that operates on a Proof-of-Stake (PoS) algorithm. PoS networks are cheaper to maintain and are more energy-efficient too. The transaction times on PoS are also faster compared to PoW networks.
2. Ripple (XRP)
Ripple is more than just a cryptocurrency. It is a unique payment protocol designed to simplify global and cross-border payments.
The network's native currency, XRP, plays a vital function in the Ripple ecosystem. The token is the digital device that enables the use of the services of the network. In this manner, XRP acts as a service token and reflects the value shift in the Ripple network.
Many crypto experts and analysts believe that Ripple is the future of cross-border payments, making XRP an appealing investment option. It is currently trading for a reasonable price of $1.11 per coin.
If you plan to invest in Ripple and buy XRP at the best price, then NOW is the best time to invest as the Ripple value is down since the start of 2021 because of the SEC-Ripple lawsuit. The XRP token is expected to rise in value and will soon outperform other assets such as Litecoin.
3. Cardano (ADA)
Introduced in 2015, Cardano is often compared to Ethereum, with which it shares many features and attributes (such as dApps and smart contracts). However, Cardano differs from all other blockchain platforms because it is not built atop the technical foundations of Bitcoin or any other network. It is the first blockchain network to deploy a Proof-of-Stake mechanism called Ouroboros. It has also undergone full academic peer review.
ADA is the native cryptocurrency of the Cardano network, named after Ada Lovelace, a famous programmer. The coin can be used for transactions in the same manner as any other digital asset. Additionally, ADA gives holders a stake in the Cardano network, permitting them to vote on proposed technical developments.
As a third-generation crypto platform, Cardano strives to overcome some common problems facing large-scale blockchain adoption. These problems pertain to issues of sustainability, scalability, and interoperability. Cardano aims to fight these issues through the development of best engineering practices and design principles.
Read Also: What Will Cardano Be Worth In Five Years?
4. Tron (TRX)
TRON is a blockchain-powered decentralized platform working to develop a free, digital content entertainment system with distributed storage technology that enables easy sharing of digital content across the world. By leveraging the blockchain tech and peer-to-peer (P2P) network technology, TRON tries to bridge the gap between content consumers and content creators by removing the middleman.
This advanced blockchain platform can process around 2000 transactions per second (TPS) and has zero transaction fees, making it very popular among investors and traders. TRON's native currency TRX is currently trading at $0.10, with a market cap of $7,570,142,018.
TRON's neatly outlined long-term vision and the growing popularity of digital content with the promise of lower costs make it an exciting venture in the blockchain sector. The platform's prospects are also supported by a solid backing of established Chinese investors.
5. Uniswap (UNI)
Uniswap is currently the largest decentralized exchange (DEX) in the world in terms of market capitalization. UNI is the primary token of the exchange. Uniswap is also the most popular Ethereum dApp out there, and it plays a crucial role in promoting adoption and innovation across the cryptocurrency market. Notably, Uniswap experienced record growth this year.
Uniswap has successfully removed the traditional order book model and launched an automated market maker (AMM) protocol that permits users to trade with a smart contract known as a liquidity pool. This approach grants open access to the market. Any user can swap tokens, add them to a pool, or list them on the exchange. The entire ecosystem utilizes UNI as its principal token. UNI is simply an ERC-20 token that is compatible with the Ethereum network. Currently, users can trade UNI on several other popular exchanges, including Coinbase Pro.
Uniswap customers can participate as liquidity providers and earn rewards from trading fees. A portion of all trading fees gets redistributed between the liquidity providers depending on their share in the pool. In this manner, users can earn a passive income without relinquishing the ownership of their holdings directly.
Cryptocurrencies with Strong Buy Ratings: Bottom Line
There is no question about it. Cryptocurrencies are here to stay. But remember that digital assets are not a get-rich-quick scheme. Instead, investors should consider them a long-term investment. It is also essential to carefully consider how much of one's portfolio should be devoted to cryptocurrency and determine that allocation in line with your risk profile.
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