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Best Altcoins to Trade in 2021

Last Updated November 20th 2020

Trading Education Picks the Top 5 Altcoins to Trade in 2021

Best Altcoins to Consider in 2021

Wondering what are the best altcoins to look at in 2021? You are not alone!

The crypto industry is like a rollercoaster of ups and downs, with thousands of coins in existence. No surprise that choosing an altcoin to trade in 2021 might be a challenging task, especially for beginners. Like finding your way out of a maze!

While some cryptos like Bitcoin are well-known across the world, others remain undervalued despite their potential. Thus, to help you enjoy the ride to your crypto trading success, we at Trading Education pick the top five altcoins to trade in 2021.

In addition, we provide different crypto trading courses that can guide you on your trading journey in the constantly-changing world of cryptocurrency.

Are you ready to dive into the awe-inspiring universe of crypto trading?

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Why Should I Invest in Altcoins in 2021?

With this turbulent year finally coming to an end, many cryptocurrency traders wonder what 2021 might hold for the world of crypto trading. Which altcoins will explode in 2021? Which altcoins should traders avoid? Let’s not forget that the ongoing pandemic has led to high levels of unemployment, financial insecurity, and collapsing economies, so investing in dodgy coins is simply unreasonable. 

But no need to worry anymore! We at Trading Education are here with our top picks for 2021. 

But first, let us explain why investing in cryptocurrency is a good idea in the first place. Crypto trading is an exciting financial venture that can eventually lead to high profits. No wonder that - despite the high volatility in the world of cryptocurrency -  there are more than 50 million active traders across the globe, as per Statista.

Cryptocurrency trading also provides traders with the opportunity to learn new skills and strategies and diversify their portfolios.

Last but not least, we should acknowledge the fact that many altcoins are based on blockchain technology, which has the potential to revolutionise the world far beyond the financial sector. To provide an example, during the ongoing pandemic, blockchain-based technology can be used to transfer real-world medical data in a transparent way. Blockchain technology can also change gaming, voting, and supply chains to a point of no return.

With so many applications, investing in altcoins in 2021 is definitely worth it, don’t you think?! But which are the top altcoins to trade in 2021?

Top 5 Altcoins to Consider Trading in 2021

With thousands of altcoins in existence, many crypto traders wonder which are the best altcoins to trade in 2021.

If you are a newbie in the world of cryptocurrency trading, though, let’s start with the basics first. Altcoins are coins that are alternative to Bitcoin, hence called altcoins. And as we know, Bitcoin is the first and most popular crypto to trade, with a market cap of $343,941,459,923, as per CoinMarkerCap.

Though Bitcoin is considered the king of all cryptos, many altcoins come with promising features and special functions. As a result, crypto traders are becoming more and more interested in trading altcoins.

To help you choose an altcoin, we at Trading Education present five of the top altcoins to trade in 2021.

1. Litecoin (LTC)

litecoin price chart

When it comes to well-known altcoins to trade in 2021, we should admit that Litecoin is a great investment option. Being one of the first alternatives of Bitcoin, and often called the silver to Bitcoin’s gold, Litecoin is a major player - one of the top 20 largest cryptocurrencies by market cap.

Interestingly enough, Litecoin was created in 2011 as a hard fork of Bitcoin with a supply limit of 84 million coins, which is four times more than Bitcoin.

We should also mention that Litecoin uses a proof-of-work consensus mechanism called scrypt, which is more efficient than the algorithm employed by Bitcoin. Litecoin is also cheaper and faster, which may help Litecoin become the industry leader in the future.

If you are interested in trading Litecoin, you should know that as of November 2020, one LTC is $82, with a 24-hour trading volume of $6,550,578,125. That said, according to some price predictions, its price might rise, with the potential to become a good investment to consider in 2021. 

litecoin price prediction

Source: Capital

Are you ready to Trade Litecoin?

2. Ethereum (ETH)

ethereum price chart

Perhaps you are not surprised to see Ethereum on our list. Ethereum is definitely one of the best altcoins to look at in 2021. Though Ethereum is facing some strong competition in the face of other altcoins, such as EOS and NEO (known as the Ethereum of China), nobody can deny the fact that Ethereum is the second-largest coin after Bitcoin, with a total market cap of $57,538,729,514.

Unlike Bitcoin, Ethereum is more than a virtual coin. The team behind Ethereum - with charming Buterin at the helm - believes that blockchain technology has numerous applications beyond crypto trading. Ethereum supports the use of smart contracts and decentralised apps (with their own tokens), which has a wide range of advantages across different areas, including commodities trading, sciences, and businesses.

Here we should note that Ethereum was divided into Ethereum (ETH coin) and Ethereum Classic (ETC coin) in 2016, so always double-check the ticker symbols of the coins you want to buy and sell.

At the time of writing, one ETH is $506, with some experts being optimistic about its future growth. Thus, though ETH is much smaller than Bitcoin, Litecoin will still have a place as one of the top altcoins for traders in 2021.

Are you ready to trade Ethereum?

3. Ripple

ripple price chart

While Bitcoin and many altcoins aim to replace our financial system by eliminating the need for central banks and traditional payment networks, Ripple is a unique altcoin that aims to change the actual system in place.

Ripple’s XRP was designed to act as a bridge between currencies, both fiat and crypto, in order to facilitate cross-border payments. Just imagine its potential! While the current SWIFT system employed by major banks worldwide comes with long transaction times and high fees, Ripple can make international transfers in seconds.

Since Ripple’s main purpose is to facilitate transactions beyond borders, its main adopters are large financial institutions. Yet, more and more crypto traders are interested in trading this revolutionary altcoin. making it a valuable altcoin for the coming year and beyond.

Ripple Price Predictions: How Much Will Ripple Be Worth In 2021 And Beyond?

Note that at the time of writing, one XRP is $0.315 with a 24-hour trading volume of $5,585,735,383 and a market cap of $14,282,237,249. 

Would you consider trading Ripple?

4. Tezos (XTZ)

tezos price chart

Tezos is another promising altcoin to invest in 2021. What makes it special? Well, Tezos is perhaps the most adaptive altcoin ever; it’s a democratic blockchain project that focuses on on-chain governance and better consensus. After all, governance is vital to improve a coin’s usability, decision-making, and evolution over time.

Just imagine if you could also propose changes to the coin you are interested in, without fearing hard forks that make it harder for altcoins to be adopted. To ensure that changes are discussed by the community as a whole and improve stability for users, Tezos focuses on a decentralised autonomous organisation.

Tezos also relies on proof-of-stake and formal verification to ensure that transactions and smart contracts are correct, respectively.

Given its unique features, Tezos is here to stay. Despite its challenges and rough start linked to its notorious Initial Coin offering (ICO), there’s no doubt that Tezos is one of the top altcoins to consider.

Should you trade Tezos?

5. IOTA (MIOTA)

miota price chart

Last but not least, let’s analyse IOTA – one of the best altcoins to trade in 2021. While most cryptos are based on blockchain technology, IOTA is different. 

First of all, IOTA is a directed acyclic graph (DAG), not a blockchain. Meaning? Well, instead of placing transactions in a chain, IOTA places transfers in a web or the so-called Tangle.

According to experts, this structure facilitates transactions and processing times and ensures high scalability for the whole Internet of Things (IoT) ecosystem. And given that IOTA can establish a huge network of interconnected IoT devices, its potential is simply impressive. This makes IOTA one of the top altcoins to invest for those looking to diversify away from the traditional and popular altcoins.

Thus, though IOTA’s MIOTA is often overlooked, we at Trading Education believe that MIOTA is one of the most promising altcoins to trade next year. In fact, based on price predictions, MIOTA may reach a potential high of $7.10, compared to its current value of  $0.2619.

Are you ready to trade IOTA?

Other Altcoins to Trade in 2021

While the five coins analysed above are our top picks, we should admit that there are many more coins to buy and watch. Other well-known altcoins to trade in 2021 are Bitcoin Cash, EOS, Cardano, Tether, TRON, and ChainLink.

Bitcoin Cash: Bitcoin Cash is a fork of Bitcoin, launched in 2017. It aims to make transactions faster and easier. As a result, many successful Bitcoin investors support trading BCH in 2021, with a current price of $255 and a 24-hour trading volume of $1,614,271,051.

EOS: EOS is an impressive smart contract platform that aims to facilitate transactions and improve performance. Thus, though one EOS is much smaller than one ETH ($2.78 at the time of writing), many believe that EOS can outperform Ethereum in 2021.

Tether: Tether is another altcoin increasing in popularity. Since Tether is a stablecoin, with one USDT being equal to $1, investing in Tether is ideal in times of financial uncertainty. In fact, according to CoinMarketCap, Tether ranks third by total market cap.

TRON: TRON is another innovative altcoin that can make torrenting methods and content-sharing more secure and effective. The good news is that users have full control of their data and coins, so it’s no surprise there are more than four million TRON users. As of November 2020, TRX ranks 16th on the list of the largest cryptos by market cap.

ChainLink: ChainLink is another altcoin worth investing in 2021. It is a decentralised oracle network that can bridge the gap between smart contracts and real-world data. Given its unique features, it’s no surprise that LINK, ChainLink’s digital asset token, is among the top cryptocurrencies by market cap.

How to Choose An Altcoin to Trade in 2021?

Cryptocurrency trading is attractive, changing, and risky all at the same time, so choosing an altcoin to trade in 2021 is a serious task.

While the top altcoins presented above have some impressive capabilities, always do your research and consider potential risks before you start trading cryptocurrency.

Here we should note that liquidity, volume, market cap, and volatility are some of the major factors to consider when choosing an altcoin to trade, along with market sentiment and tech innovations. Do not forget that crypto news may play a crucial role in popularising or demonising an altcoin, so always follow the news to stay up-to-date.

In the end, whether you choose to invest in a privacy coin like Monero or a stablecoin like Tether, always pay attention to Bitcoin and its price fluctuations

And do not forget that proper crypto trading education and self-discipline are essential to help you master the art of crypto trading. Invest in courses, seminars, and books to find out more about the most popular altcoins to trade in 2021 on your way to becoming a successful crypto trader. 

Of course, once you’ve acquired enough expertise, do not forget to familiarise yourself with the crypto regulations in the country you are based in. After all, no matter if you trade full- or part-time, crypto trading is a serious financial venture that might be subject to taxation and other legal regulations - not just a hobby.

Best Altcoins to Trade in 2021: Key Points

  • Cryptocurrency trading is an attractive investment option in 2021.
  • While there are thousands of cryptos out there, certain altcoins are here to stay for a long time.
  • Some of the top altcoins to trade in 2021 are Ethereum, Ripple, Litecoin, Tezos, and IOTA.
  • Other interesting altcoins to trade next year are Bitcoin Cash, EOS, Tether, TRON, and ChainLink.
  • Before choosing an altcoin to trade, always do your research and pay attention to Bitcoin.
  • Proper education and self-control are also vital to help you trade altcoins in 2021.

Do you want to know more about altcoin trading? We at Trading Education are here to guide you on your crypto trading journey and help you choose the best altcoins to trade in 2021. 

Do you think some altcoins are better than Bitcoin? Would you consider trading altcoins? Which altcoin would you choose to trade in 2021? 

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Best Altcoins to Trade in 2021 - FAQs

Is cryptocurrency a good investment in 2021?

Though cryptocurrency trading can be a risky venture, many experts are optimistic about crypto trading and its potential in 2021. To provide an example, some believe that the increasing use of blockchain-based technology during the ongoing pandemic in areas beyond the financial sector may change social attitudes towards cryptocurrency and attract more and more crypto enthusiasts. 

What cryptos will explode in 2021?

Though many factors affect the world of crypto trading, including demand and supply, technology, and market sentiment, experts believe that some of the top cryptos that will explode in 2021 are Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, TRON, Cardano, Tezos, and IOTA.

What will happen to Bitcoin in 2021?

Despite the increasing numbers of altcoins, Bitcoin - the king of all cryptos - is here to stay. Many experts believe it could hit all-time high levels, as stated by Forbes. At the time of writing, one BTC is $18,542, and many expect that soon Bitcoin will become a store of value that will be much more significant than gold.

Disclaimer: Nothing is guaranteed

Our Picks” are those we find most interesting based on our research, and are not recommendations for any individual. This is not to be taken as advice to buy or trade.

Virtual currencies are highly volatile. Your capital is at risk.

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