New Cryptocurrencies To Invest In 2021
Jump Into The Crypto Market in 5 Different Ways
According to a variety of experts, the best new cryptocurrencies to invest in 2021 are Uniswap, Compound, Polkadot, and Internet Computer.
The cryptocurrency market has made huge strides in 2021. For nearly a decade this sector has been a contentious topic in finance circles. There has been a lot of speculation surrounding cryptocurrency which has put people off over the years. But in recent times more and more people are looking for new cryptocurrencies to invest in.
Early on sceptics were worried about crypto-bubbles forming, and then bursting, which made investment seem too risky for many. As time has gone on and the necessary technology has developed, cryptocurrency is becoming more pivotal to the way we do business globally.
Nothing could have predicted the crypto crash, set into motion by the Coronavirus outbreak, which swept the globe in 2020 and still impacts life today. Times of crisis inevitably have a huge impact on national and global economies and this was no exception. The stock market crashed, as did the cryptocurrency market.
However, no one thought that the crash would actually strengthen the cryptocurrency sector as people searched for alternatives to the central system. The stock markets struggled to recover, but cryptocurrency bounced back. Money moved in from those looking to avoid the inflation panic in traditional banking spheres. Huge numbers of people felt that gold and cryptocurrencies would be better contenders for value retention than the stock market.
The after-effects of this have seen increased adoption of cryptocurrencies in different financial areas and an overall boost in performance for both the leading and alternative cryptocurrencies. After the long periods of resistance and trading in sideways trajectories, there have been surges across the board.
Decentralised finance (Defi) is now more energised than ever before and people are looking to cash in on the momentum that has been created over the last year, and 2021 in particular. With key players like Bitcoin reaching highs of nearly $65,000 per coin in April 2021, there is huge attention being paid to cryptocurrency. Investors are looking to see which coin will be the next to explode and rival Bitcoin for its place at the top of the pile.
When getting into the market there are lots of factors to consider, so here are five new cryptocurrencies to invest in 2021 if you are a newcomer to the crypto sector.
5 New Cryptocurrencies To Invest In:
New Cryptocurrencies to invest in 2021: Five ways to get into the crypto market
1. Uniswap (UNI)
One of the newest cryptocurrencies to invest in is Uniswap’s native coin UNI. Before the native coin was launched Uniswap was already considered the largest decentralised exchange (DEX) in the Defi sector. This gave the Uniswap cryptocurrency a great start in life when it was brought out in September 2020.
The company, like many other promising crypto players, works off of Ethereum blockchain technology. The smart contract transactions that it facilitates occur using this particular blockchain. Uniswap was also the first to make accommodations for margin trading, despite being a newcomer to the industry.
UNI had initial success, reaching a peak of $5.39 in their first month of trading. However, the resistances seen elsewhere in the altcoin market set in. The altcoin then traded sideways for the remainder of 2020, struggling to maintain a $3 share price. In 2021, new growth has now put Uniswap back in the running for top new cryptocurrencies to invest in.
Now that the 2021 upward trends have begun Uniswap is a strong player in the sector, ranking as the 10th largest by market cap at the time of writing. The Uniswap company asserts itself as 6th in their pared-down list of top players, but either way, they are now showing strong performances consistently. The fully diluted market cap currently stands at nearly $15B, making it an altcoin with great potential scalability to offer new investors.
As far as new cryptocurrencies go, Uniswap is a powerhouse due to its pivotal position within the Defi sector. The company maintains liquidity for their users by ensuring that those who are helping to provide liquidity are compensated and incentivized to continue doing so. Their model for this adds tokens to the smart contracts made on the Uniswap system and gives the liquidity providers involved a percentage of the transaction fees.
This novel system is not the only reason Uniswap UNI is a good cryptocurrency to invest in right now. As of the 5th of May, they have also upgraded their protocol from the V2 to the more powerful V3 Mainnet. Uniswap has stated that this new system provides more concentrated liquidity, superior infrastructure and a better trading experience than ever before.
Uniswap UNI is still an affordable choice after correcting to its current price of $25.70 at the time of writing. However, there are big things happening for this company so this is looking like the right time to get Uniswap into the portfolio.
2. Compound (COMP)
This new coin only got off the ground in June 2020. Compound’s ranking across the cryptocurrency sector is relatively low, at 47th in the list with a market cap of just under $3B. Contrasting this, Compound is a big player in the Defi sector. This sector has exploded recently, bringing good news for its top cryptocurrencies.
Compound’s fully diluted market cap is more respectable, standing at nearly $6B, so this is not a coin to be counted out. During its longest resistance period, from September to November 2020, COMP was still generally trading above $100. The 2021 crypto sector boom saw then Compound peak in May 2021; reaching an all-time high of $911.
The last week has seen a corresponding correction period, bring the COMP price down to $575 at the time of writing. However, this is still a vast jump from the previous sticking point. If you are looking to try an altcoin that involves a more substantial initial investment, this cryptocurrency is definitely worth further consideration.
Compound offers interest, which is a huge plus for its investors. This functions through the pools that the platform supports. Each user holds c-tokens to represent the stake they have within the pool. When users are ready to redeem the tokens they have deposited, they use these c-tokens to do this. This set-up creates more layers of profitability for Compound investors. It also incentivises users to lend to others on the system to receive further interest.
COMP has seen particularly bullish periods in February and May 2021, beginning what will hopefully be a pattern of new highs for this altcoin. Catching COMP during a correction drop could lead to impressive returns, which is why this altcoin is one to think about for 2021. If the Defi sector continues to grow, Compound and the other key players should benefit hugely from that expansion.
Polkadot may not be the newest name in cryptocurrency. Instead, it was the launch of their relay chain’s Genesis block in May 2020 that signalled a rebirth for the company. This was the point at which the cryptocurrency sector began to take notice of Polkadot as an important cryptocurrency. Off of the back of this new phase, Polkadot now boasts itself as a frontrunner in scalability, security and innovation.
The Genesis block launch piqued interest from the crypto sector but did not immediately mark Polkadot as the new cryptocurrency to invest in. Throughout the remainder of 2020, a sideways trading pattern continued, hovering around the $5 mark. However, the wave finally broke for this coin at the start of 2021 as the upward surge began.
By the third week of February 2021, this previously uninspiring cryptocurrency had become the new hot investment, surpassing the $40 mark to hit new heights. Despite correction periods following each of its three major peaks, the coin has sustained its forward momentum. On the 16th of May 2021, it hit an all-time high of $49.69 and has now corrected down to stand at $27.11 at the time of writing.
Polkadot now enjoys 8th position in the rankings of cryptocurrencies currently in circulation, making it a good avenue into the crypto market for new investors. The current fully diluted market cap of $32.28B definitely lends credibility to Polkadot’s statements surrounding scalability.
The founders have also placed interoperability as a focal point within Polkadot; using a common set of validators to link numerous blockchains together. By distributing the transactions that they oversee over these parallel blockchains, Polkadot achieves their specific model for vast scalability.
Categorizing Polkadot as a new cryptocurrency, due to its May 2020 springboard period, this cryptocurrency is young enough to be an excellent entry point into the sector. This year has seen sustained growth. However, the lower correction periods, when factored into the early stage of this company’s predicted upward curve, are beneficially low for those just looking to join the Polkadot community.
Polkadot maintains its youthful energy moving forward. The next phase of development is the Parachain section of their timeline. By upgrading the adaptability of their technologies Polkadot intends to achieve its multi-chain system in an even more scalable form. This is currently in its testnet phase. Once actioned, this could prove extremely profitable for investors getting in before the multi-chain systems’ full completion.
Read More: Is Polkadot a Good Investment?
Internet Computer has been designed by its parent company, the Dfinity Foundation, which is a non-profit organisation in Switzerland. Internet Computer has already described itself as the 3rd stage in blockchain innovation, putting their cryptocurrency in a category with Bitcoin and Ethereum.
They view Bitcoin as the initiators of the cryptocurrency movement, stating Etheruem as the 2015 second comers responsible for smart contract technology. They position themselves as the frontrunners for success in 2021 and have pitched their concept as Infinite blockchain.
There is a unique ICP protocol that the ICP coin runs on. Internet Computer claims that it can function as a replacement for mega giants such as Amazon and Google by allowing users the freedom to build software and publish content. Dfinity also supports a platform for ICP which is supposed to be resistant to hacking and extremely cost-efficient to run.
These may seem like bold statements for Internet Computer to be making so early on, but they have produced positive results so far. They are already ranked as the 9th largest Cryptocurrency protocol by market capitalization, reaching $21.6B at the time of writing. The native coin ICP only launched on the 4th of May 2021, making a huge splash in the crypto market.
This altcoin burst onto the market at an impressive $731. After correcting down to $176 soon after its launch, ICP saw another spike of over $500. The coin has since seen a more bearish downward trajectory before entering into a resistance period. However, this is a pattern followed by other altcoins that we have looked at. It stands to reason that ICP would not be immune to the early resistances seen elsewhere.
One reason to invest in 2021 is that ICP could offer an unusual opportunity to get a cryptocurrency into your portfolio before the surge begins. As one of the newest coins available, Internet Computer is still performing in its early phase. This is often characteristically slow across the cryptocurrency sector, but this altcoin is performing well enough to become established in the sector.
By functioning positively within the crypto market, the protocols designed by the company appear to stand up well against competitor protocols. This gives credibility to a possible leap in price, as seen in the coins that ICP is based on. The predictions surrounding ICP mean that when looking at new cryptocurrencies this might be the one to invest in before it climbs to less attainable heights like its predecessor Bitcoin.
5. Cardano (ADA)
Breaching the top cryptocurrencies, presently ranking 5th, Cardano’s native cryptocurrency ADA is clearly one to watch. Cardano was set up in 2015 but the newest phase of this cryptocurrency is where things become interesting. After some initial teething problems, Cardano’s system is finally where it has been aiming to be. It became a fully decentralised protocol in March 2021.
This occurred when the long-awaited Alonzo update finally took place. Alonzo was the final section of Cardano’s Goguen phase. This phase was the company’s mission towards full decentralization where they finally gave their blockchain the smart contract functions needed to move forward. ADA users can utilise these smart contracts on Cardano’s blockchain by going through the Plutus platform, revolutionalising this cryptocurrency’s scope.
Other improvements to Cardano’s process were added in the Shelley stage of the company roadmap, before the Goguen phase. This saw the hard fork come to pass with custom tokens and nonfungible tokens both able to function. These transactions use the same amount of energy as the native coin and so vastly improve Cardano’s processing power.
The energy consumption issue is one of Cardano’s proudest assets. Although their Ouroboros protocol was a new and risky move within the crypto sector, it is one that has massively paid off.
Ethereum, co-founded by Charles Hoskinson who later founded Cardano, is still labouring under the energy-guzzling proof of work (PoW) system. Despite this, Hoskinson chose to have Cardano develop the much more energy-efficient consensus Proof of Stake (PoS) method. There were some worries about the security of this new system. However, the PoS system that Cardano uses has not thrown out any causes for concern and appears to be performing better than anticipated by market experts.
After the resistances that Cardano has seen, the settling of this new system is what makes ADA a newly inviting investment opportunity. Cardano’s all-time high of $2.47 might seem a slow start, but given that this is an 888% increase this year to date, it is a great entry point for new investors looking to jump into the market. With a market cap of nearly $57B, the new face of Cardano is one worth your consideration when next making additions to your portfolio.
Check Out: Cardano Forecast: Will ADA Reach $10?
New Cryptocurrencies To Invest In 2021: Bottom Line
There is a lot to take on board when deciding to invest in cryptocurrency. The market has been unstable at times but it is gaining credibility and stability with each new cryptocurrency success. While cryptocurrency investments can appear nerve-wracking, by researching the coins that you are interested in profitable decisions can be made.
Once you begin to have a handle on the characteristics of the cryptocurrency market it is much easier to make your choices. Preempting the market is never going to be an exact science, but the ups and downs of the share price leave a lot of room for money to be made. There are bearish periods in the crypto market, without a doubt, but the bullish periods seen in 2021 have been staggering. This shows the true potential of the Defi sector.
As the cryptocurrency adoption continues to increase and the Defi sector expands, there is no telling how far some of the more impactful altcoins will go. The scalability on offer is massive and makes for extremely attractive investments. If there are no cryptocurrencies in your portfolio, these newer coins, in their early growth periods, are the ones to look into further.
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