A Successful Portfolio of Coins Set to Explode in 2021
Looking for cryptocurrencies to invest in 2021? Wondering what the top 10 digital assets are? Planning to build a profitable portfolio of cryptos this year? Then keep on reading and find out what 2021 holds for the cryptocurrency sector.
Despite all the crazy conspiracies regarding the novel coronavirus, it’s a fact that the ongoing pandemic keeps infecting not only people but economies worldwide.
The year 2020 was a challenging year for the financial sector and investors, in particular.
The fear of a global recession, however, led to an increased interest in cryptocurrencies and blockchain technologies. Investors saw an opportunity to invest in cryptos as an alternative to traditional assets and as a hedge against inflation.
Blockchain technology, on the other hand, became something natural - just like the Internet or electricity.
Major financial institutions also recognised the potential of cryptos, which naturally led to broader adoption and a significant boost in prices.
In other words, though 2020 was a challenging year, it helped cryptos cement their place in the financial sector.
The year 2021 started with a bullish call for the whole market.
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The Top 10 Best Cryptocurrencies in 2021:
You can read our in-depth reviews of the top 10 cryptocurrencies this year to make an informed decision.
1. Best cryptocurrency to invest in 2021: Bitcoin
If there is one cryptocurrency that you have likely heard of, it is probably Bitcoin.
The name Bitcoin resonates with crypto investors and blockchain enthusiasts for a reason.
Bitcoin is the first cryptocurrency that transformed the future of finance to a point of no return. Though Bitcoin was created more than a decade ago by the anonymous figure Satoshi Nakamoto, it seems that this crypto will never go out of fashion.
Bitcoin is a peer-to-peer platform used to facilitate online payments for goods and services.
Unlike fiat money, bitcoins don’t have a physical form. Quite the opposite - bitcoins are not printed by any governments; they are mined instead. There are 21 million coins that can be mined, with 18,618,006 currently in circulation.
Perhaps one of the biggest advantages of Bitcoin and other altcoins is the fact they are decentralised and transparent, which has accelerated crypto mass adoption across the globe.
That said, Bitcoin’s history is marked by numerous ups and downs. Though Bitcoin is now considered a store of value, BTC was trading at close to nothing for a few years after its initial release.
Yet, amidst the crypto bubble in 2017, BTC skyrocketed to above $20,000. Last year, when Bitcoin’s third halving took place, Bitcoin managed to recover from the ongoing pandemic and reach new all-time highs.
Bitcoin surged to over $40,000 in January 2021, which was followed by a significant sell-off.
Will BTC price continue to increase in 2021? Experts share strong views on BTC, predicting incredible targets of $100,000, $170,000 and $318,000 in 2021 and beyond.
Some claim that Bitcoin will replace gold as a store of value. Indeed Bitcoin is one of the best cryptocurrency to invest in 2021. One thing is for sure: many coins come and go, but Bitcoin is here to stay far beyond 2021.
2. Ethereum (ETH)
Your portfolio won’t be complete in 2021 without Ethereum. Ethereum is the second-largest cryptocurrency after Bitcoin with a market cap of $176,153,194,295.
Created by visionary Vitalik Buterin, Ethereum is more than a payment system.
Ethereum can be used for the deployment of smart contracts and decentralised applications (dApps). It is also a platform that supports the development of different ERC-20 tokens. In fact, today’s giant Binance Coin was developed on the Ethereum blockchain.
Ethereum also supports different platforms that are active in the Decentralised Finance (DeFi) sector, which is a major advantage today. After all, the DeFi sector is one of the most popular crypto trends that are here to stay long after the end of 2021.
Believe it or not, the number of assets locked in DeFi increased from $3 billion in 2019 to $13 billion in 2020. And guess what: Ethereum was the coin holding 96% of the volume of all transactions!
Not only that, but Ethereum facilitates the development of different blockchain-based games, which is another fast-growing industry across the globe.
Thus, despite the ongoing pandemic, Ethereum climbed from around $125 to over $600 in 2020, which was a surge of more than 380%!
ETH entered 2021 with a bullish start; so many experts believe that it may break through the $2,500 barrier in 2021.
3. Ripple (XRP)
Ripple is another unique coin worth considering in 2021. Released in 2012, Ripple gained a lot of support from major financial institutions globally.
Given its potential to transform cross-border payments at low costs, now Ripple is collaborating with over 300 providers across 40 countries. Some big partners are Banco Santander and JP Morgan.
Here we should note that Ripple is not your average coin. Ripple was created as a better and less costly alternative not only to cryptos but traditional payments systems like SWIFT. And this is one of the reasons to buy XRP!
According to the Official Monetary and Financial Institutions Forum, Ripple can replace SWIFT in terms of security, speed, traceability, cost, transparency and risk management.
While XRP is Ripple’s native crypto, users can choose any currency to transact on the platform. We should note that while Ripple processes around 1,500 transactions per second, the company claims it can scale up to 50,000 transactions.
Note that though Ripple had experienced steady progress throughout the years, a lawsuit from the US Securities and Exchange Commission (SEC) led to its uncertain current position in the crypto market this year.
We can just wait and see what will happen to Ripple this year...
4. Litecoin (LTC)
Litecoin is no doubt one of the best cryptos to invest in 2021. Created as a lite version of Bitcoin, Litecoin has made payments easier and faster. Note that it takes up to 2.5 minutes to process a block on Litecoin, compared to Bitcoin’s 10 minutes.
Its current price is another alluring aspect for investors and traders, making Litecoin an affordable alternative to Bitcoin.
The good news is that Litecoin keeps thriving for innovations. The release of the role-playing video game LiteBringer on the Litecoin blockchain is one of the projects that may lead to a boost in prices. Note that Litecoin transactions exceeded 130,000 after LiteBringer’s release.
No surprise that almost a decade after its initial release, Litecoin is still one of the top-performing coins. Currently, Litecoin is ranking #7, as per CoinMarketCap.
The year 2021 is going to be a promising one for LTC, with experts being confident that the price of Litecoin will continue to increase. Cryptoground, for instance, claims that the crypto asset will climb up to over $347 this year. CoinSwitch, on the other hand, believes that Litecoin can reach a new price target of $600 in 2021.
5. TRON (TRX)
If you want to build a successful portfolio this year, then consider TRON.
TRON is one of the most popular platforms that have the potential to transform content sharing and advertising.
TRON is totally different from any other social media channel, though. It aims to protect its customers and reward them through Tronix all at the same time. This type of monetisation is actually far more transparent than those used on traditional social media channels.
Interestingly, though TRON was created on the Ethereum blockchain, in 2020 TRON’s dApp transaction volume exceeds that of Ethereum. No doubt that this crypto is now one of the biggest powers in the market.
A power that keeps developing! Last year, for instance, TRON’s 4.0 Great Voyage protocol was implemented.
Many experts believe that 2021 will be another positive year for TRON. The fact that TRON is collaborating with giants like Baidu and Samsung is one of the many signs that TRON is here to stay!
6. Bitcoin Cash (BCH)
Bitcoin Cash is another coin worth watching this year. Created in 2017 as a faster and more scalable version of Bitcoin, Bitcoin Cash is now one of the most popular coins to invest in.
Note that Bitcoin Cash was created with eight times larger blocks than Bitcoin, which were further increased to 32 MB. As Bitcoin Cash can handle more transactions, many experts and blockchain enthusiasts believe that Bitcoin Cash can become the main blockchain for executing online transactions.
As its major proponent Roger Ver, the Bitcoin Jesus, tweeted: “Bitcoin and Bitcoin Cash are equally scarce, but Bitcoin Cash can actually be used for payments.”
Of course, increased adoption can lead to increased BCH price ranges. Crypto experts believe that BCH prices may fluctuate between $500 and $1,900 in 2021.
We can only wait and see what this year holds for Bitcoin Cash!
7. Cardano (ADA)
Cardano is a proof-of-stake blockchain platform with unique architecture and algorithm principles.
Cardano hasn’t stopped developing, though. According to its roadmap, the Goguen mainnet will be launched around February-March this year, which will bring Cardano one step closer to becoming a real Ethereum killer.
Besides, the implementation of Hydra - Cardano’s second layer solution - can help Cardano process more than 1 million transactions in the future, which will increase its growth and prices.
In the meantime, we have to mention that the price of ADA rose to 0.25 on January 5, 2020 - its highest levels since the middle of 2018.
No surprise that Cardano attracted a lot of investor attention, currently boasting more than 1,4000 stake pools.
The number of ADA wallets has also increased significantly. Figures show that on January 5, 4,000 new ADA wallets were registered.
Given its potential, many experts believe that ADA can exceed $1.5 per coin in 2021.
8. Tezos (XTZ)
The year 2021 is marked by an increased interest in cryptocurrency and DeFi. As mentioned above, the DeFi sector can revolutionise the whole financial sector - and Tezos is one of the cryptos that can benefit from the increasing interest in DeFi.
Tezos is actually one of the most promising crypto projects from the 2017 Initial Coin Offering (ICO) craze. Its unique and democratic structure to automatically upgrade the protocol (without risking the occurrence of forks) is unique. Stakeholders can stake (or delegate XTZ), which allows them to vote and decide on the future of Tezos.
Despite all the legal issues that followed its initial release, Tezos has experienced steady growth. The year 2020 was no exception: Tezos doubles its market cap from $1.21 billion in December 2019 to $2.32 billion in December 2020.
The best part is that Tezos keeps upgrading to attract new DeFi platforms and non-fungible token (NFT) marketplaces, such as Kalamint.
Delphi, for example, was one of the most recent upgrades that led to a decrease in gas consumption to make advanced smart contracts affordable for developers.
Will Tezos continue to develop through 2021?
9. IOTA (MIOTA)
If you are looking for more cryptocurrencies to diversify your portfolio in 2021, then put IOTA on your watchlist.
IOTA is an open-source platform used to process transactions and exchange data between devices on the Internet of Things. Because the Internet of Things allows billions of devices to extract and exchange data through innovative technology, many experts claim that the Internet of Things can be more beneficial than the Internet.
IOTA’s distributed ledger technology called the Tangle is what makes this cryptocurrency unique. In fact, the Tangle is considered a safer alternative to other blockchain technologies.
Given its potential, we shouldn’t be surprised that IOTA is already collaborating with different automobile and insurance market players. Which, of course, can boost MIOTA prices throughout 2021!
10. Stellar (XLM)
Stellar is another top cryptocurrency to consider investing in 2021.
Created in 2014, Stellar hasn’t stopped developing. Its roadmap is all about growth in terms of public awareness and transactions.
Here we should explain that Stellar uses a federated byzantine agreement (FBA) algorithm instead of traditional mining in order to validate transactions at low transaction costs, which is one of its unique features.
Stellar not only enables quicker transactions but aims to close the gap between cryptocurrencies and traditional payment systems. It is partnering with giants like Deloitte and IBM to establish itself as a global payment rail.
Note that Stellar’s native currency is Stellar Lumen (XLM), which may have a strong approach in 2021.
Bottom Line: Which Cryptocurrency to Invest in 2021?
While there’s no doubt that 2021 is going to be a successful year for crypto traders and investors, we should note that the crypto market can be unpredictable and dependent on factors, such as demand and supply, market sentiment, crypto news and speculations, and tech advancements.
Although lists of top cryptos may differ, all of them could provide some good investing opportunities. However, always do your research before you invest in any cryptocurrency. Track your favourite asset’s price live, analyse its past and current performance, and don’t forget to follow the latest crypto announcements.
In the end, mass adoption of cryptos is a matter of time. So the question is not If but When? So When are you going to dive into the market?
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Virtual currencies are highly volatile. Your capital is at risk.
- The year 2020 led to an increased interest in cryptocurrencies and blockchain technology.
- Despite the ongoing pandemic, the year 2021 is going to be a positive one for the cryptocurrency market.
- The top 10 cryptocurrencies to invest in 2021 are Bitcoin, Ethereum, Ripple, Litecoin, TRON, Bitcoin Cash, Cardano, Tezos, IOTA, and Stellar.
- Crypto prices depend on different factors, including demand and supply, competition, technology, and market sentiment.