Are you looking to get involved in the crypto buzz in 2021 and on the lookout to find the top cryptocurrencies to invest in? Here we have picked 21 top cryptocurrencies that look to be the best investment picks in 2021.
21 Cryptocurrencies To Buy in 2021
Cryptocurrency is continuing to make headlines in almost every single angle possible, for both positive and negative reasons. Recently China has placed stronger penalties on cryptocurrencies along with Elon Musk announcing that his company Tesla is no longer accepting Bitcoin as a method of payment are just two major reasons that have contributed to the recent crypto crash. However, China has not banned individuals from holding cryptocurrencies and the crypto market is now in slow recovery.
Looking at the positives, cryptocurrency has pushed forward hugely over the past year where the crypto market is now reportedly worth over $508 billion. Despite holding its challenges, the market has even topped above the trillion threshold hitting $2 trillion at the start of April, almost doubling its market capitalization as retail and institutional investors ramp up to dominate within the space.
With new coins continuously coming to the market, prices continue to reach new highs and pushing further boundaries including more digital currencies now being able to be used as a form of payment when looking to purchase items from various leading brands, has led to strong speculation that digital payments could potentially look to take over banking networks within the near future.
Before we look to jump into looking at the top 21 cryptocurrencies on the market, let's take a more detailed look into what's entailed within these investments as well as the pros and cons of investing in crypto assets.
- What Is Cryptocurrency?
- Pros And Cons Of Investing In Cryptocurrency
- Top 21 Cryptocurrencies To Buy In 2021
- The Bottom Line
What Is Cryptocurrency?
Unlike over investments such as stocks, cryptocurrencies or crypto assets as some may refer to as is a form of digital decentralised currency that looks to grow in value within short periods of time.
Today there are thousands of cryptocurrencies on the market that investors can look to buy. The most popular and one of the most sought after cryptocurrencies over the years that has grown to new highs is Bitcoin (BTC).
Founded back in 2009, Bitcoin has been considered to be the original cryptocurrency that has flourished within the new generation of blockchain technologies. Based on market capitalization, other popular cryptocurrencies on the market today include Ethereum (ETH), Ripple (XRP), EOS (EOS), and Bitcoin Cash (BCH) who have all been receiving more attention recently over Bitcoin due to their stronger various advantages.
The main factors that differ cryptocurrencies from other assets is that firstly, everything is pretty much digital meaning that you do not and will not receive physical cash. The way investors look to hold their cryptocurrency is via a digital wallet or investors can look into obtaining a stored offline hardware wallet which is classed as a safer option as it is less likely to be subject to hacking when looking to buy and sell through an online exchange.
A second notable point that is different about cryptocurrencies is that they are all decentralised peer-to-peer payment networks and are powered by users rather than central banks or governments. In effect currency is created in cyberspace and investors are rewarded with cyber currency.
The way cryptocurrency transactions are carried out is by using the ledger, blockchain. A blockchain is a database where cryptocurrency is bought or sold and is added to the blockchain where it then becomes visible to other crypto investors enabling all users to have control.
Having said that, the only way a group of investors can look to participate is if it is a public blockchain. Take for example Bitcoin that encourages more user activity, but naturally does come with greater risks such as lack of security. On the other hand, you have private blockchain networks such as Ripple (XRP) that is owned and operated by a private company that operates in a more complex way compared to BTC yet is still extremely popular among crypto holders, including being classed as a safer investment due to less group activity and has been proven to be less likely to be subject to fraudulent activity.
Pros And Cons Of Investing In Cryptocurrency
Now having a clearer understanding of what cryptocurrency is and how it operates, now it's time to look at the main features that these investments can offer investors, alongside taking a look at the strong risk elements that these assets also bring to the table before you look to jump into investing in cryptocurrencies.
Pros of investing in cryptocurrency
- Rapid growth - Cryptocurrency is growing as quickly as you can say go. And one crypto that particularly stands out from the bunch is Bitcoin, with it being the most popular crypto on the market where it currently trades at $36,866, a far cry away from its opening price in 2009 at $0. Looking ahead for Bitcoin, some analysts believe that the cryptocurrency could reach $500,000 by 2025. When you look to compare Bitcoin to the leading S&P 500 index, Bitcoin has risen by approximately 130% over the past five years whereas the S&P 500 has risen around 15% over the same period.
- Easily accessible - Cryptocurrency is becoming more popular across the globe, and it is also becoming more accessible for users to buy in on the action. Secondly, as the crypto market continues to rise it is opening up more avenues as within the U.S the digital payment company PayPal made a big leap in 2020 allowing users to buy, sell, hold and checkout with various cryptocurrencies. In addition, Google Pay enabled Coinbase Card payments in 2020 across various countries, alongside tycoon business Amazon Inc (AMZN) unleashing its Amazon Managed Blockchain, a fully managed service that helps users join public and private blockchains networks along with creating new blockchains.
- Liquidity - One thing you can not deny about the crypto market and Bitcoin (BTC) in particular is that it is extremely liquid due to the amount of interest from investors and can look to make a profit within a short period of time. Likewise, investors may see good profits in the long-run if the high demand remains strong. In simple terms, a liquid asset is one that can transform into cash quickly close to its open market price.
Cons of investing in cryptocurrency
- Volatility - When it comes to volatility cryptocurrencies are arguably the most volatile investments available on the market today due to the market being completely unpredictable and most driven by speculation. A sudden burst of news from the media, the continued development of technology and the most recent factor the Covid-19 pandemic are the main reasons why cryptocurrencies can be and have been extremely volatile. And when we say volatile we mean you could see a huge drop. Take Bitcoin as a prime example as it dropped from $61,000 on April 18th 2021 to a close of around $55,000, confirming a drop of over 11% within a 24 hour period.
- Strong hacking online threats - According to a report, Bitcoin has been the subject to the most hacking activity out of all cryptocurrencies that have graced this market. The reasons why such activity is high within BTC is due to transactions being unsecured as it transfers through peer-to-peer without any bank or government involvement to be able to protect the currency. The main way hackers look to steal Bitcoins is by hacking users' digital wallets, which is why strong safety measures are advised when looking to obtain a digital wallet and why many look to have a hardware wallet to lower hacking threats.
Top 21 Cryptocurrencies To Buy In 2021
Having looked at the main aspects of what is involved in investing in cryptocurrency, now it's time to look into the top 21 cryptocurrencies on the market today that look to be the best buys in 2021.
1. Bitcoin (BTC)
The news that Elon Musk’s Tesla is no longer accepting Bitcoin anymore due to environmental concerns, witnessed Bitcoin’s value drop by almost a quarter. But although this news was not what crypto holders were looking for there are still many positives for the largest cryptocurrency on the market.
Firstly, Twitter and Square CEO Jack Dorsey is an avid supporter of the cryptocurrency who potentially could look to take over as being the new billionaire backer. Including Dorsey’s Square (SQ) considering developing and opening its own hardware wallet designed for Bitcoin.
Another strong point for BTC is that more countries are looking to make BTC a legal tender with El Salvador being the latest country to make the move and have Bitcoin treated like another world currency.
Despite the recent downfall, BTC is still the largest cryptocurrency on the market that is looking to break new records across the globe. Bitcoin holds a market price of $36,049 upon writing this report and holds a volume of just under $32 billion shares traded within a 24 hour period.
2. Bitcoin cash (BCH)
Firstly, it's worth understanding that Bitcoin Cash is not the same as Bitcoin, it is a fork created off the popular crypto by Bitcoin miners. Although it works very similarly to BTC it does carry further standout features including that it performs much faster than Bitcoin and the BTC network holds a much larger block size standing at 32MB compared to Bitcoin’s 1MB.
BCH has also witnessed a strong decline over recent days to where it is priced upon writing this report at $571.54, following the crypto crash, a far cry away from its high of $1670 in May 2021 and its all-time high in 2017 of $4,355.
Following the news that El Salvador has given the green light to Bitcoin, causing BTC price to rise by almost 15% following the news, so too did BCH as it rose by around 10%. As the crypto market looks to rise following its huge decline, BCH looks to be one of the top crypto investments based on its price and its potential to create good value to holders.
Check Out: Will Bitcoin Cash Make Me Rich in 10 Years?
3. Ethereum (ETH)
Ethereum’s native coin ether is the second-largest cryptocurrency based on market capitalization behind only the biggest, Bitcoin. Ethereum also works on a much broader scale compared to BTC with its open-source operating system and its main goal being to create and establish a suite of financial products that is open to all individuals across the globe.
In recent weeks, ETH has confirmed that it is looking to switch its consensus algorithm to proof-of-stake (POS) looking to improve transaction speed and looking to use less energy with lower emissions which should look to take place in 2021-2022, making Ethereum a cryptocurrency that is leading the way forward within this fast paced market.
ETH stood at the start of January 2020 at a pre-pandemic price of £130.80. Looking to 2021, ETH sits today at a market price of $2,365 on writing this report and reached an all-time high of $4,196 on May 10th 2021 rising by 7% within a 24 hour period.
Read More: Ethereum Price Prediction Forecast
4. Ripple (XRP)
The payment settlement system and currency network Ripple, services individuals across the globe.
Working differently to other cryptocurrencies on the market, Ripple’s network works on a quicker and on a lower cost scale with transactions confirming in a matter of seconds rather than a matter of hours that Bitcoin can witness.
Secondly, Ripple is a trusted cryptocurrency that is used by many large financial institutions including Santander and Axis Bank that both use the XRP network, confirming that this platform looks to be a slightly safer and trusted option.
The ongoing SEC lawsuit is the only main caution when it comes to XRP which could cause more volatility. But if Ripple comes out on top, you can be sure that it is looking to continue to take over as a leading payment system making this cryptocurrency one that shouldn't be discounted. Ripple currently sits on the market at $0.83.
Read Also: Will Ripple Make Me Rich in 10 Years?
5. Litecoin (LTC)
Similarly being referred to as “silver to Bitcoins gold”, Litecoin comes next on the list as being one of the most valuable cryptos to invest in. Even more so following the news that more privacy and fungibility will be two key features that are being enhanced looking to add more value to this digital token.
Based on the same technology as Bitcoin, Litecoin is designed to be a faster currency that looks to be a digital currency that is used in individuals' everyday reality.
Litecoin is currently down by around 60% from its all-time high of $412.96 on May 10th 2021, to where it sits on the market today at $160.04 following the crypto crash and trades on average 2 million coins per day.
Being one of the oldest cryptos on the market, Litecoin holds stronger reliability within its software and with its new updates coming into play, looks as though it could push LTC’s performance to reach new highs moving forward.
Check Out: 15 Reasons Why You Should Invest in Litecoin
6. Dash (DASH)
The cryptocurrency Dash is one of the most well-known coins within the crypto market space today, and it is looking to strengthen its position within the market with its newly updated Dash platform which is designed to improve speed, offers further security and allows holders to create decentralized apps on its network.
Additionally, Dash announced its latest release DashPay Wallet, which is expected to come to the market mid-late 2021 which could add to the crypto gaining further investor interest.
Dash is currently trading at $163.55, up by 7% from yesterday's low, with analysts being bullish predicting that the DASH token could reach $328.46 by the end of 2021.
Having a solid track history record along with being one of the most trusted coins on the market today, Dash looks to be one the best cryptocurrencies in 2021.
7. Cardano (ADA)
The first point to mention about Cardano is that it is run by Charles Hoskinson, who was the co-founder of the second largest cryptocurrency Ethereum.
Designed similarly to Ethereum, Cardano is more eco-friendly, holds lower fees and supports faster transactions than Ethereum. Another point to mention is that Cardano has a max supply of 45 billion coins outstanding according to data, whereas Ethereum currently has no confirmed outstanding supply.
The proof-of-stake blockchain platform is currently 5th in the line in terms of size and if Elon Musk is looking towards a more eco-friendly cryptocurrency in the future, Cardano looks to be the best bet on the market.
Cardano is currently sitting on a price of $1.46, showing a 7% change from yesterday's price, with analysts predicting that the ADA token could potentially reach double-digits as high as $40.00 in 2022, outbeating its new all-time high on May 16th 2021 of $2.46.
Read More: Is Cardano a Good Buy?
8. IOTA (MIOTA)
One of the main features that makes IOTA different from other cryptocurrencies is that it isn't actually a blockchain, it is a proprietary technology ledger commonly known as Tangle. Tangle is made up of nodes that confirm transactions that makes verifying data much easier. And another advantage IOTA holds is that it has zero transaction fees.
To clarify, IOTA is the distributed ledger and MIOTA is its cryptocurrency.
Currently maintaining its price following the downward trend within the crypto market, MIOTA is currently sitting at $1.06 and holds one of the highest return on investment (ROI) at 178746.87%. According to analysts' predictions, MIOTA could reach above $2.50 within the next 12-month outlook.
Being one of the most versatile cryptocurrencies on the market today, IOTA also looks to be one of the most promising.
9. Stellar Lumens (XLM)
Stellar’s aim is to enable cross-border transactions between different currencies.
The open-source decentralized payment network holds many advantages including its most recent being that Ukraine is now in partnership with Stellar to develop digital currency using Stellar’s blockchain platform. This news caused Stellar to rise by almost 40% on 6th January 2021.
Following the crypto crash, Stellar has dropped to $0.33 where it sits today from its 2021 high of $0.704 back in May, and holds an average daily volume of approximately 75 million. In light of this coin's bright future, and despite the latest crypto crash Stellar Lumens looks to continue to drive forward as it has witnessed over the past year being up by over 200%.
10. TRON (TRX)
To start, TRON is one of or if not the largest blockchain operating system on the market today.
Despite some warning signs that holders have seen in TRON, this cryptocurrency is not one that should be discarded lightly. TRON is vastly catching up in terms of growth to its main target Ethereum, and especially if its dApp increases in activity as anticipated in the coming months the gap between the two may become marginal.
Secondly, TRON is making its way in digitalising the entertainment industry with TRON acquiring BitTorrent (BTT) back in 2019. Alongside, the cryptocurrency is expanding its avenue within the Chinese market with one of its partnerships being with the PRC National Development and Reform Commission in order to accelerate innovation in blockchain technology and business. This should hold strong for TRON, especially as China holds the largest population in the world.
TRON is currently trading around $0.07 per coin, up by 4% within the past 24 hours, with analysts predicting the coin could reach $0.19 by the end of 2021.
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11. Dogecoin (DOGE)
Recently Dogecoin has been on the decline plummeting by almost 40% from its May highs. This is a hefty decline for the cryptocurrency that was dubbed as a joke when it came to the market that has since risen over 250% over the past year alone.
One of the main factors that has helped Dogecoin spur to success it's the likes of celebrity mentions from the likes of Elon Musk and more pushing the crypto to new levels. Another advantage that DOGE holds is that more vendors are now accepting DOGE tokens making it a more attractive crypto asset.
Dogecoin is currently trading at $0.32 which is looking to be a rather attractive discounted price for the positives that shine for this cryptocurrency.
Read Also: Will Dogecoin Make Me Rich In 10 Years?
12. EOS (EOS)
Joining into the crypto-space back in 2017 was the EOS.IO platform developed by the Hong Kong based company block.one that runs EOS as its cryptocurrency.
Taking elements from two of the largest cryptocurrencies on the market Bitcoin and Ethereum, with Ethereum being its main competitor, EOS.IO aims to give investors more speed and scalability with no long-delayed disruptions.
Before the crypto market crash unfolded, EOS had surged to approximately $13 per coin following the news that block.one is looking to launch their new crypto exchange company this year. Post crypto market crash, EOS is steadily making its way up the scale where it is now priced at $4.98 per coin with analysts predicting its price could reach above $9 by the end of 2021.
13. Neo (NEO)
One of the most promising cryptocurrency on the market today is NEO.
The open-source decentralized blockchain works very similarly to the leading Ethereum, although because NEO is more centralised it operates much quicker than the two leading cryptos on the market today. Additionationaly, another advantage for NEO is that of the independent technology company Onchain which was designed to focus specifically to meet specific needs on private blockchains.
NEO is sitting in an attractive spot with it being China’s closest version of Etheruem, and with Onchain coming into play this should push this cryptocurrency in an even further light. NEO is priced at $49.12 and currently holds a volume of $425 million, up by just under 25% within the past 24 hours.
14. Zcash (ZEC)
As more and more individuals look to enter the crypto market, Zcash looks to be a good cryptocurrency that could benefit respectively due to its stronger privacy features, better than the likes of the most popular crypto on the market, Bitcoin.
Zcash has witnessed strong price moves over the years including being pushed to an all-time low back in March 2020 at $18.94 following the pandemic. However, Zcash made a strong recovery, arguably brought on quicker due to the global pandemic to its price today where Zcash sits at $130.08 and has witnessed a 25% rise in volume over the past 24 hours.
Based on individuals valuing privacy highly, this alone should be enough for this cryptocurrency to rebound nicely.
15. Tezos (XTZ)
Another cryptocurrency that has been created to function similarly to Ethereum is Tezos.
Just like Ethereum, Tezos blockchain enables holders to build assets and applications but it wants to be seen better than its competitor by making its infrastructure more advanced and be named as a more secure, solid, eco-friendlier and upgradable network.
Prior to the crypto market crash, Tezos was on a roll gaining over 350% up until the crash took place making its all-time high price of $8.40 dropping down and losing around 50% in value to where it sits today at $3.22 per coin.
But one big positive for Tezos that could look to drive this cryptocurrency forward is its partnership with Formula 1’s Red Bull Racing Honda. The partnership is to develop non-fungible tokens (NFTs) and as part of the deal Tezos logo is placed on their helmets and cars in order to confirm their trusted partnership and a further great way to drive future growth.
16. Compound (COMP)
Compound is another promising cryptocurrency that is on the rise.
Compound is a DeFi lending protocol that enables users to earn interest from their cryptocurrencies by placing them into pools supported by the platform. This is also the main feature that makes Compound so unique compared to other cryptocurrencies. If you are looking to buy COMP tokens there are many ways including depositing assets, bought from third third-party exchanges or by taking out a loan.
Two further points of positivity for Compound is that it looks like DeFi exchanges are coming back better than digital assets following the recent market crash, as Compound today is up by 9.25% within the past 24 hours to $324.35 and has increased volume by 26.91% over the same period. Looking ahead some analyst have predicted that COMP could reach over $700 by the end of 2021
17. Chainlink (LINK)
Chainlink is a decentralised oracle network that looks to provide real-world data into blockchains.
Having launched on Ethereum back in 2019, Chainlink has since been integrated into over 300 projects and has become a key component of decentralised finance (DeFi).
Due to Chainlink being an in-demand cryptocurrency, its native token LINK has grown to become one of the largest tokens based on market capitalization. Despite the fact that LINK is currently down from its all-time high of 56% it archived in May 2021, it is looking to be on the rise again as it sits on the market today at $23.07, up by 8.60% in the past 24 hours.
As the market is on the path to rebound, Chainlink’s latest upgrade Chainlink 2.0 looks to be a growth avenue for the cryptocurrency as it looks to evolve within the space by pushing into the next steps in the “evolution of decentralised oracle networks'”.
Read Also: Is It Worth Investing in Chainlink?
18. Uniswap (UNI)
In the wider cryptocurrency market, Uniswap is one of the most popular DeFi platforms on the market today.
Having built itself on Ethereum’s network, Uniswap has gained the ability to be compatible with Ethereum's tokens including its most significant, the ECR-20 token providing a great outreach. In March 2021 Uniswap announced its updated model, Uniswap v3 that looks to introduce concentrated liquidity and multiple fee tiers allowing individuals to be compensated for taking certain levels of risk.
As the DeFi demand continues to be one of the dominating forces within the crypto market, this has pushed Uniswap’s price to $23.12 upon writing this report after plummeting to a low of $13.09 in May following recent events. This suggests that Uniswap could potentially reach anticipated predictions of $30 within the coming weeks, not far behind its all-time high of $44.97 it reached at the start of May 2021.
19. Yearn.Finance (YFI)
Sticking to the DeFi space one of the strongest contenders within this market has to be Yearn.Finance.
With the DeFi attracting thousands of investors globally, Yearn.Finance services help investors to maximise profits from yield farming and looks to make it easier for individuals who may not fully understand the technical side of this form of investing to be made simpler to grasp.
Yearn.Finance’s token, the YFI has been performing beautifully over the past year.
Opening up at the start of the year at $22.731, to rallying on to reach its all-time high of $99,435 on May 12th 2021 confirms that YFI’s price has dipped in value over 50% but shows it is more than capable of reaching impressive highs moving forward.
And one factor that is looking to help in YFI’s price movement is that Yearn.Fiance have confirmed they are in the process of adding stronger developments to its platform, including adding insurance features, which is predicted to be one of cryptocurrency’s standout attractions.
20. Aave (AAVE)
Sticking to the DeFi world, the Aave platform has dominated.
Aave is a decentralised finance protocol that allows individuals to lend and borrow crypto with lenders being able to earn interest by depositing digital assets into pools and borrowers being able to take out flash loans using liquidity.
Aave has risen well over the past year as the DeFi sector has skyrocketed causing its native token AAVE to rise to a new all-time high on May 18th2021 to $666.86, quite a difference from its all-time low of $25.97 back in November 2020. Another positive for Aave is that it remains one of the most profitable cryptocurrencies on the market with a return on investment (ROI) of 63339.24%.
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21. Decentraland (MANA)
The last cryptocurrency to come on the list of the top 21 cryptocurrencies is Decentraland.
Being arguably one of the most creative platforms on the market, this virtual reality platform is powered by the Ethereum blockchain that allows its user to experience and create content and applications. Having two tokens under its wing MANA and LAND, with the difference between the two being that holders have to spend MANA in order to obtain LAND.
In recent days Sotheby's, the London well-known auction house, announced it is creating a digital replica using Decentraland as they see the space as “the next frontier for digital art”.
As it stands the price for MANA has risen above 9% to $0.71 within the past 24 hours with an increase in volume up by 35% over the same period. Another point to mention for this evolving crypto is that it does hold a relatively okay ROI of 2674%, considering that this sector has not been at the forefront. But be sure if more investors look to engage in more creative activity MANA is only going to be a crypto on the rise.
To recap our top cryptocurrencies to buy in 2021:
- Bitcoin (BTC)
- Bitcoin cash (BCH)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Dash (DASH)
- Cardano (ADA)
- IOTA (MIOTA)
- Stellar Lumens (XLM)
- TRON (TRX)
- Dogecoin (DOGE)
- EOS (EOS)
- Neo (NEO)
- Zcash (ZEC)
- Tezos (XTZ)
- Compound (COMP)
- Chainlink (LINK)
- Uniswap (UNI)
- Yearn Finance (YFI)
- Aave (AAVE)
- Decentraland (MANA)
The Bottom Line
All of the above top 21 cryptocurrencies look to be the best buys available on the market today, as they all come with their own advantages and unique abilities. But one feature they all mostly have in common at present is that they are all sitting at a relatively discounted price brought on due to the recent market crash, making now the most opportune time to look to enter the crypto market if it is on your agenda.
Investing in cryptocurrency has been proven to offer crypto holders impressive value over the years, but these investments do come with much greater and stronger risk factors than other investment options on the market that you have to be aware of before you look to enter this exploding crypto market. It is strongly recommended to conduct additional research before investing in your chosen crypto assets, as well as looking to maintain due diligence throughout your crypto journey.
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Virtual currencies are highly volatile. Your capital is at risk.