9 Best Cryptocurrencies to Invest in Now
Top cryptocurrencies to buy this year
As the world of cryptocurrencies continues to explode, here are 9 of the best cryptocurrencies that are standing out from the crowd in 2021.
Top Cryptocurrencies To Buy Now
Throughout the course of 2020, there was arguably one market that took the spotlight: the cryptocurrency market.
Across 2020 and moving into 2021 the crypto world has dominated and reached record highs across the board. Heading into 2021, the market has been continuing to show its strength and popularity including many big companies on the market today continuing to accept digital cryptocurrencies as a new method of payment.
On the lines of popularity with crypto assets, influential figures such as Tesla’s (TSLA) CEO Elon Musk who is arguably the leader of the pack, continues to openly discuss his thoughts on this blossoming market via the social media account Twitter. Musk’s two recent favoured cryptocurrencies are Dogecoin (DOGE) and Bitcoin (BTC), which following his recent announcement has helped these cryptos witness a rise once again.
In recent times the crypto market has witnessed a heavy market crash and is still in recovery. Nethertheless, this market is showing good signs with its maturity of looking to pull through well by the end of 2021, despite the uphill battle that this market is currently facing.
Before we head to take a look at of the best cryptocurrencies to buy, first it's worth understanding what cryptocurrencies are and how they operate.
Cryptocurrencies are digital currencies or digital assets some may refer to as, that are based on mainly decentralised networks spreaded across large amounts of computers. The terminology behind decentralised networks means that these networks are not subject to any government rules, regulations or central authorities. In the bigger picture, it means that there is zero third party involvement unlike the traditional banking system.
Most cryptocurrencies run off the popular “blockchain” database which is most commonly used as a ledger in order to make transactions, where it seeks to block data together one after another until a block has reached a certain capacity level.
To summarize, cryptocurrencies are virtual tokens that are dependent on the individuals’ activity as they look to buy and sell these assets edged on through market happenings.
9 Best Cryptocurrencies To Invest In Now
With thousands of cryptocurrencies being available on the market today, how do you know which is the best cryptocurrency to invest in? From popular cryptocurrencies to less known coins, here are the best cryptocurrencies to buy in 2021.
- Cosmos (ATOM)
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Dogecoin (DOGE)
- Compound (COMP)
- Tron (TRX)
- Cardano (ADA)
- Polkadot (DOT)
Cosmos (ATOM) is the first crypto to grace the list and one that is different to others on this expanding market.
Cosmos looks to be the “open economy of the future” with its main aim being able to connect blockchains together and create an “internet of blockchains” to solve all blockchain issues. For example, Cosmos will seek to offer support to cryptocurrencies that run sluggish, expensive and environmentally harmful protocols and turn them around.
Prior to Cosmos hitting the market back in 2019, blockchains were not able to offer communication until Cosmos released its communication protocol, enabling blockchains to communicate and witness fewer breakages within the market.
Cosmos has it all under one roof including having 248 apps, wallets and more built into its ecosystem. Cosmos’s token, ATOM, is the main token on its blockchain, however, users can trade various tokens on this crypto’s blockchain such as Bitcoin (BTC), Ethereum (ETH) and many more.
Looking ahead, Cosmos’s ecosystem seeks to continue expanding with its latest development being the Gravity DEX protocol, a decentralised exchange that enables token swaps with lower fees that is connected to the Cosmos hub and to the vast majority of tokens on the market today. One big advantage of the Gravity DEX protocol is that it allows users to be able to buy tokens from projects from Cosmos hub that have not yet been listed.
According to Cosmos data, this crypto has over USD 63.83 billion in digital assets and holds a market capitalization presently of $2.4 billion, making this crypto the 38th largest cryptocurrency on the market based on market capitalization.
Cosmos is currently trading up by 10.40% to $11.30 up from yesterday’s price.
The leader of cryptocurrencies is that of Bitcoin (BTC).
For those new to the crypto world, Bitcoin (BTC) is a decentralised cryptocurrency which first came to the market back in 2009 that enables users to make online transactions from one party to another without having to hold any permits for this activity or to facilitate this currency.
Besides the fact that Bitcoin is the largest of them all, this crypto is also becoming known for much more. Having been world recognized and established within the DeFi (decentralised finance) market it has also become known as a prime investment to hedge against inflation just like another popular asset, Gold.
Despite Bitcoin being on the decline over recent weeks including Bitcoin’s help in making the market decline by approximately $90 billion in recent days, this crypto still looks to be a buy as it seeks to switch its downward momentum.
Following the announcement from Elon Musk yesterday that his company Tesla (TSLA) will more than likely start accepting Bitcoin again, alongside his aerospace company SpaceX now entering into Bitcoin has helped fuel more growth as Bitcoin’s price rose by 8% following the news.
If it wasn't clear previously it's worth reiterating that cryptocurrencies perform subject to market happenings. And in this case, Bitcoin has had a lot of attention which is why it can be one of the most volatile cryptos on the market.
Looking ahead for Bitcoin, analysts have given an optimistic but yet achievable outlook for this cryptocurrency as they are aiming for Bitcoin to potentially reach a high of $50,000 with a low of $10,000 by the time 2021 is out. This isn't unachievable for the largest crypto player who reached a record high back in April 2021 of just above $60,000 ahead of the market crash.
As it stands today Bitcoin is currently trading at $31,978.16, above from where it peaked below $30,000 over the past few days, and holds a current market capitalization of just under $600 billion with a volume of just under $25 billion tokens traded within the past 24 hours.
The second-largest cryptocurrency and one that follows closest behind Bitcoin (BTC) is Ethereum (ETH).
Ethereum (ETH) is an open-source decentralized blockchain that enables users to use other cryptocurrencies on its platform as well as using its own popular Ether token. Ethereum’s smart contracts is a standout feature for this crypto which are computer programs that enable automatic agreements between various parties without using a middle man to give the go-ahead.
Over the past year, ETH rose by just above 450%, to end the year at a price of $737.8 whilst becoming widely recognised as being one of the biggest cryptocurrencies in the world.
Fast forward into the crypto craze of 2021, Ethereum has witnessed gains of over 500% so far this year and currently sits at $1,988,71 upon writing, 4.26% up from yesterday and sitting just below 55% from its all-time high it gained in May 2021 reaching $4,362.35.
So what elements are causing this crypto to improve?
Hitting the headlines today is the news that business mogul Elon Musk owns both Ethereum and Dogecoin (DOGE) within his collection, sending both of these cryptocurrencies up causing the overall market to increase in value.
Aside, Ethereum also has a pipeline of new technology upgrades that seeks to further strengthen this crypto’s future such as the Berlin hard fork, which was released back in April 2021 that is made up of four Ethereum Improvement Proposals (EIPs) that can play with gas prices and welcomes new types of transactions. Lastly, the anticipated release of Ethereum’s London hard fork which is on a bigger scale to the Berlin fork including having five EIPs, is set to be unleashed at the beginning of next month. This new route is set to hold many updated advantages including to look at lowering down gas fees, which was a huge concern for Elon Musk which led to his suspension of Bitcoin on his Tesla products.
With its energy-saving ways and its strong innovative road ahead analysts believe that Ethereum will take over Bitcoin to be the largest on the market going into 2022, with an average price target for ETH set to reach above $3,500 before the year is out.
Bitcoin Cash (BCH)
Currently ranked the 12th largest cryptocurrency based on market capitalization is Bitcoin Cash (BCH), a spin-off to the largest crypto Bitcoin (BTC). Despite these two cryptocurrencies holding the same first name they do hold their own differences.
Bitcoin Cash was created when crypto miners of Bitcoin were initially worried about the crypto market and its ability to move forward. The main differences between the two are that BCH has an increased block size which stands at 32 MB, whereas Bitcoin currently has block capability of 1 MB meaning that Bitcoin Cash can make quicker processed transactions at a lower cost than that of its originator. The second difference between the two is that Bitcoin Cash uses a separate hash algorithm that seeks to eliminate replays between blockchains.
In many ways, you may say that Bitcoin Cash holds similarities to Bitcoin (BTC), but it is a much quicker and cheaper version that holds similar scope and capability to grow very well in the future.
Currently trading at $440.64, up by 3.02% from yesterday, alongside volume being up by 13.63% within the past 24 hours to just over $1.2 billion trades, shows that momentum is flowing. By the end of 2021, some analysts have predicted that BCH could reach $1,000 if the market sways towards the bulls which is a strong move closer to its all-time high of $4,355.62 it reached back in 2017.
Arguably one of the most talked-about cryptocurrencies on the market today is Dogecoin (DOGE).
Ranked currently as the 8th largest cryptocurrency in the world, Dogecoin is an open-source digital currency that initially started out as a joke back in 2013, that has since only been a laughing matter for how well this crypto has performed over the years.
Very similar to Bitcoin (BTC), Dogecoin enables peer-to-peer transactions across its decentralised network. However, Dogecoin works at a much greater speed and has lower fees to name two standout features against the biggest cryptocurrency on the market.
A cryptocurrency that is based on a dog meme is also a firm favourite of Tesla’s CEO Elon Musk, who has helped push this cryptocurrency’s market capitalization reach above $25 billion, slightly down by 4.67% over the past 24 hours due to the recent pullback.
Being more than just a meme coin, Dogecoin has surpassed many expectations this year by rising above 14,000%, despite the market crash, and even achieving a new all-time record hitting just above $0.70 cents back in May 2021. Today Dogecoin is trading at a minute cost compared to Bitcoin of $0.1925 and holds increased volume over the past 24 hours of $2,981,181,11, up by just over 9%.
Despite recent negative headlines and contributing factors, analysts are being bullish on this cryptocurrency to strike back, with DOGE anticipated to reach $0.38 before the year is out. And if the Dogecoin and Elon Musk craze continues, this price is looking highly achievable.
Compound (COMP) is a unique DeFi lending platform on Ethereum that supports the borrowing and lending on various cryptocurrencies. And what makes Compound unique is that it enables crypto holders to gain money without selling their assets as interest is paid on their crypto investments. The way that Compound works is by a forced collateralization that is in place that knows exactly how much each pool will gain on the back of interest.
Other unique qualities that Compound holds includes users that hold its native token COMP, are able to propose changes on the protocol, debate and vote on behalf of others on changes, make changes on how the token is distributed and much more without being a part of the management team.
In recent days, the trusted asset management company Grayscale Investments are entering the DeFi space with the release of their Decentralised Finance (DeFi) Fund. The fund allows its investors to have exposure to various tokens which includes Compound, Aave (AAVE) and Uniswap (UNI).
Before the market downturn, COMP token reached its all-time high in May 2021 reaching above $900, taking arguably the biggest hit following the crash to where it sits today at $410.65, up by 5.97% from yesterday. As of today, COMP is all in green including an increase in market capitalization placing COMP the 43rd largest cryptocurrency in the world.
According to analysts, the COMP token could potentially rise to $500 by the end of 2021. And as the DeFi sector has already grown above 320% over the year so far, it confirms that this cryptocurrency could reach new highs hitting $1,000 by the end of 2022 if the DeFi market remains bullish as analysts predict.
One top blockchain-operated system that works at a much greater speed than most performing cryptocurrencies on the market is that of Tron (TRX).
Aside from this cryptocurrency working on a quicker transaction speed, this decentralised platform offers something different to others as it focuses on sharing digital entertainment content at effective costs. What makes Tron further unique is its ability to enable direct contact between its content creators and their audiences by taking away decentralised platforms, which also works out more cost-effective. Tron also gives its content creators the authority to launch their own personal tokens and other unique advantages.
As the world continues to become ever more digitalised with the entertainment sector strongly pushing through, this should leave Tron a step ahead of the game and drive this crypto forward to reach new highs in the future.
Tron is currently trading at $0.05517, 2.00% up from yesterday and is currently ranked 25th on the market in regards to its market capitalization that sits just under $4 billion today.
Looking at the future, analysts are forecasting that Tron could reach $1 by the close of 2021, whilst predicting this crypto to grow to $10 by 2025, showing an upside of 3228% if this crypto manages to continue with its success.
Ranked 5th largest cryptocurrency in the world based on market capitalisation as it currently sits at $37.5 billion upon writing this report and also being classed as one the most advanced cryptocurrencies today is Cardano (ADA).
Cardano (ADA) is one of the most popular cryptocurrencies on the market today with crypto investors. For reasons such as this crypto is a more eco-friendlier choice amongst other big players such as Bitcoin (BTC), as it seeks to use less energy with its proof-of-stake (PoS) protocol against Bitcoins proof-of-work protocol. Cardano can also make more transactions per second as it currently holds the title of 1 million transactions per second, whereas Ethereum currently holds 20 transactions per second upon its latest release of Ethereum 2.0 which is looking to see 10,000 transactions per second. Additionally, Cardano has been dubbed the ‘Ethereum Killer’ and holds very strong similarities with this cryptocurrency, apart from Ethereum does not have Cardano’s superior technology which may just edge Cardano to be a winner in the long term.
Upon writing this report Cardano is trading at $1.17, down by 52% from its all-time high it reached in May 2021 of $2.46. According to Coin Price Forecast, Cardano could look to reach $2.24 by the end of 2021 and could reach $4.23 by the end of 2022, showing a 261% increase over the year.
As the Cardano team is standing firm on enhancing and progressing this cryptocurrency to the best of its ability to solve more issues within blockchains, it looks as though Cardano has a bright future ahead that could potentially put this cryptocurrency within the top 10 cryptocurrencies within the next year or two.
One of the most exciting cryptocurrencies that many analysts are advising is the one to watch or be a part of right now is Polkadot (DOT).
Created by Ethereum co-founder Dr Gavin Wood who is one of three founders, Polkadot is aiming to be number one on the market in terms of scalability, security and innovation as its blockchain looks to strengthen areas where the likes of Ethereum (ETH) and Cardano (ADA) lack.
Even though Ethereum (ETH) may hold the title as being the second largest crypto in the world, this crypto still has disadvantages when compared to Polkadot who are slightly ahead in the game. For example, because Polkadot is a shared multi-chain network that helps blockchains connect together by allowing cryptocurrencies to communicate, which should eliminate problems and increase smoother transactions including improving scalability as it operates smoother.
Currently ranked 9th on the market, Polkadot’s network has the strong capability to grow on an international scale and is proving this by where it stands today as it is currently trading at $13.13, up by 5.68% and holding a market capitalization of $12.8 billion upon writing this report.
Based on analysts' predictions, Polkadot could reach a high price of $27.99 before the year is out, showing a strong upside of 115% from today's price.
How To Invest In Cryptocurrencies
Unlike traditional investments such as stocks, investing in cryptocurrency works in a slightly different context.
As stocks are bought on various international exchanges, cryptocurrencies can be bought, held and sold on dedicated cryptocurrency exchanges such as the leading online trading platform eToro, Coinbase and many more that offer crypto brokerage services.
Before you look to buy cryptocurrencies your next step is to then look at how to store your crypto assets, whether it be in a digital wallet or a hardware wallet that is advised for extra safety measures to prevent hackers. Having said that, digital wallets do hold their own advantages as they are more accessible than hardware wallets due to being online availability, and they don’t hold the risk of experiencing any hardware failures. It all falls down to you as an individual of what suits you best to progress within your crypto journey.
Investing in cryptocurrencies is an exciting yet risky journey, but one that could pay off nicely if chosen correctly.
All of these top 9 cryptocurrencies look to hold the greatest future growth prospects from the list of thousands of cryptocurrencies that are currently surrounding the market today. As these top cryptos continue to further evolve their systems with further updates and new technology, these crypto’s look to give their crypto holders impressive value in return.
Whilst most cryptocurrencies on this list sit on more attractive and affordable prices, aside from Bitcoin’s costly price, they do hold just as stronger risk elements than that of the biggest player. This is where it pays to use due diligence before looking to invest into any crypto asset on the market and seek to maintain all the way through your cryptocurrency journey.
eToro – The Best Platform to Buy Cryptocurrencies
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.