Cryptocurrency investing, even very small amounts, can reap big rewards if you get in at the right time and make the right choice, but that’s not to say there are no risks involved (if anything, the risks are bigger).
This requires crypto traders to think more about the options available to them before making a choice. To look at the ins and outs and become an expert on different cryptos.
But let’s face it, that’s pretty time-consuming!
So, what is the top cryptocurrency to invest in for July 2021? We’ve compiled a list of 7 options for you to consider and will take a deep dive into why each coin is special this month.
Without further ado, let’s get stuck in!
The Top 7 Best Cryptocurrencies to Invest in July 2021:
1. Bitcoin (BTC)
2. Cardano (ADA)
3. Ethereum (ETH)
4. Polkadot (DOT)
5. Binance Coin (BNB)
6. Ripple (XRP)
7. Stellar (XLM)
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So, have you decided to invest in cryptocurrencies but don’t know which is the best one to choose? Fear not! We will take you through a list of the best cryptocurrencies to look at this month.
List of The Top Cryptocurrencies To Consider In July 2021
With the global economy still reeling from the Great Coronavirus Lockdown, speculators and part-time investors are looking for alternative ways to store wealth and turn a profit.
And this has led more people to look for the best cryptocurrencies to invest in.
But where do you start?
After all, entering the crypto space is an overwhelming experience for first-timers. And even seasoned investors can struggle to keep with these rapidly evolving technologies and applications.
Too much choice can result in cognitive overload. Usually referred to as ‘overchoice’. It prevents us from making decisions...
Well, there are many reasons to invest in cryptos this July. Cryptocurrency investing is a great way to diversify your portfolio and reduce risks while increasing the possibilities for potentially storing wealth.
When it comes to investing, knowledge really is power. Knowledge is the thing that can keep you ahead of the curve, giving you a chance to spot the next trends before they even happen.
Looking for the best cryptocurrency to invest in for July 2021? Or Maybe even the next crypto to explode? Well, here are the 7 best choices this month!
1. Bitcoin (BTC) - The original cryptocurrency is still the most valuable and trusted
As the granddaddy of cryptocurrency, Bitcoin was the first crypto to record financial transactions on a decentralised blockchain.
Though Bitcoin was launched more than a decade ago in 2009, Bitcoin is still the number one choice for existing and new investors, with a market cap of slightly over $1 trillion.
The main purpose of Bitcoin was to revolutionise traditional financial systems and eliminate the need for government-issued currencies by enabling innovative technology and secure payment architecture.
Interestingly, in the early days, many people started buying Bitcoins because of its promising future. As Bitcoin expert Andrew Badr said: “The best part of owning bitcoin is the feeling of participating in the future”.
Pros: Why invest in Bitcoin?
Though Bitcoin has had numerous ups and downs in the past three years - it skyrocketed up to $30,000 in December 2020 and weeks later, it went above $44,000.
Since then, Bitcoin prices have become more stable, making it one of the safest options for anyone entering the crypto space for the first time.
Looking at the future of Bitcoin as an investment, it’s also noteworthy that this year we have witnessed another major event - the May 2020 Bitcoin halving, a programmed-in event that reduces the number of new coins generated by the network via mining.
For many Bitcoin bulls, this increasing scarcity is part of precisely what underpins this cryptocurrency’s real value, making it perhaps the best cryptos to invest in for 2021!
Then in February 2021, Tesla invested $1.5 billion in Bitcoin and started to accept the crypto as payment for its products. The price of Bitcoin hits a new record of $56,000 per coin after the news broke.
But there is also potentially a much bigger reason Bitcoin’s price might launch upwards this year.
We might see another price rise in Bitcoin as the US approves the $1.9 trillion coronavirus stimulus bill as financial institutions move to find a better store of value.
Typically, this would be gold, but it appears that many figures on Wall Street are starting to work out that Bitcoin holds value better. Again, this is precisely due to its scarcity.
Cons: Why Bitcoin could be a bad investment
As much as we love Bitcoin, it would be irresponsible to pretend that it is a perfect investment (if such a thing exists).
Though people talk about it less these days, it should be remembered that there are plenty of other coins out there that are supposedly more technically sound.
Litecoin, for example, is heralded as four times faster than Bitcoin and potentially a better coin for making transactions. But that’s just the beginning.
And then there is this notion from many politicians and central banks that Bitcoin’s sole purpose is to conduct illegal activity. While this myth has been debunked hundreds of times, it still persists.
In actuality, using Bitcoin for illegal purposes would be a pretty bad idea for criminals as you can trace transactions via the distributed ledger. Cash, on the other hand, is much harder to trace.
Despite this, the misconception continues.
Should I invest in Bitcoin?
For the time being, Bitcoin appears to be reaching lows of $50k and highs of about $60k. These appear to be the new levels of support and resistance. So, with this in mind, it might be a good idea to buy at $50,000 and sell at $60,000.
Bitcoin predictions for July 2021 are looking pretty good. The Economy Forecast Agency estimates that for July, Bitcoin will have a minimum price of $29,567 and a maximum value of $43,634 per coin.
While previsioni bitcoin believes that by July 2021, Bitcoin’s minimum price could be as high as $50,122 per coin.
And there are so many predictions that Bitcoin will reach even higher levels, such as one made by Anthony Pompliano who now believes Bitcoin could reach $500,000 or even $1 million per coin by the end of the decade.
Read our article on Bitcoin here.
Have you considered investing in Bitcoin (BTC)?
2. Cardano (ADA) - The most improved coin of 2021 so far (aside from Bitcoin)
Cardano is defined as a third-generation cryptocurrency that aims to improve the scaling issues of Bitcoin and the smart contract deployment principles of Ethereum.
To be more precise, Cardano uses a two-layered blockchain: the Cardano Settlement Layer and the Control Layer, the former used to process transactions and the latter to process smart contracts.
Its hierarchical structure that aims to improve scalability and interoperability across different financial systems is not just a whim.
Pros: Why invest in Cardano
Firstly, Cardano’s protocol had undergone a rigorous review process (conducted by researchers and academics) before its release in 2017, making Cardano one of the first peer-reviewed blockchains in existence.
Cardano’s algorithm is called ‘Ouroboros’, which is the name of an ancient symbol representing a dragon eating its own tail.
The Ouroboros algorithm also implements novel mining principles and incentives, which is an attractive feature for miners and blockchain enthusiasts.
In February and at the beginning of May 2021, Cardano had some of its best performance ever, gaining over 720% since the start of the year.
Slow and steady progress and a big update led Cardano to shoot up when most other altcoins were down. At one point Cardano momentarily took the third spot of the largest cryptocurrency by market capitalisation.
Cons: Why investing in Cardano could be risky
While it’s great to see Cardano receive some recognition, it is undoubtedly in new territory and we really don’t know where it’s heading.
You have to remember that there are a lot of traders who might now be thinking to sell off their ADA. Traders who probably have held it for years to get to this point.
If that happens, we could see a big selling spree and who knows when it might recover to the same levels.
Is Cardano a good investment?
For the time being, in July 2021, Cardano definitely looks like it could be a great investment. But it is hard to say if the good times will last for the rest of the year.
Cardano price predictions for July 2021 are generally favourable. The Economy Forecast Agency estimates Cardano will reach $1.11 at the lowest and $1.75 at the highest.
Meanwhile, previsioni bitcoin is very bullish, giving it a minimum of $5.16 for July 2021.
Read our article on Cardano here.
Would you consider investing in Cardano (ADA)?
3. Ethereum (ETH) - A trader’s second choice and a pioneer in technological advancement
Ethereum is a global decentralised platform launched in 2015 and led by co-founder Vitalik Buterin.
It is hugely popular and is the second-largest cryptocurrency by market cap for a long time.
One of Ethereum’s main goals is to become the king of smart contracts and dApps to allow users to write their own software without worrying about censorship and fraud.
On top of that Ethereum is a platform for decentralised apps (dApps or DApps) and hosts hundreds of other coins on its blockchain (ERC-20 tokens).
Pros: Why investing in Ethereum could be good
In the midst of the pros of investing in Ethereum, one of the most anticipated events among crypto investors is the launch of Ethereum 2.0 that will shift from proof of work to proof of stake (which is seen as more efficient).
Because of its tech and investment potential, it’s no surprise that Ethereum is the second-largest cryptocurrency platform, with a market cap of over $211 billion, according to CoinMarketCap, at the time of writing.
Many see Ethereum as the second most important development in cryptocurrency after Bitcoin.
For example, Cameron and Tyler Winklevoss bought 120,000 Bitcoins for $10 a coin back in 2012; after turning a tremendous profit, the twins reinvested over $300 million back into crypto, buying up a significant amount of Ethereum in the process.
That’s not everything! Behemoths like JPMorgan, Amazon, and Microsoft Azure have also embraced Ethereum’s blockchain technology to stay ahead of other financial giants, which is a factor that drags the attention of more and more investors worldwide.
Cons: Why investing in Ethereum could be risky
Ethereum has a tonne of rivals who claim they can do what Ethereum is doing but better. Cardano, which is also on our list, is one of these rivals.
While Ethereum is the torchbearer when it comes to leading the way with blockchain technology, if rivals are able to outmanoeuvre Ethereum, it could be quite troubling.
Another reason why Ethereum could be risky is that there is an unlimited number of coins. For whatever reason, if they needed to create more it would decrease the value of the Ethereum.
Is investing in Ethereum a good idea?
Ethereum is still a long way off Bitcoin in terms of value, but despite this, analysts are very optimistic about Ethereum’s future, predicting steady growth over the next few years.
As said above, Ethereum is usually the second favourite choice after Bitcoin and it’s hard not to see why.
Ethereum price predictions for 2021 are quite exciting. The Economy Forecast Agency believes it will reach $1669 at the lowest and $2769 at the highest in July 2021.
Also, by the end of 2021, they predict that Ethereum could reach as high as $3102.
Read our article on Ethereum here.
Ready to dive into Ethereum (ETH)?
4. Polkadot (DOT) - Connecting the entire crypto ecosystem
To get straight to the point, we now live in a world where there are thousands of cryptos and it’s becoming clear that we won’t have a situation where one comes out as the winner that will be used for ‘everything’.
Instead, we need to accept this and cryptos need to start collaborating better. And that’s where Polkadot steps in.
Polkadot’s purpose, as they explain on Medium, is: “to become the new internet of blockchains that are going to seamlessly communicate with each other”.
Essentially, they want to become the mid-point where all blockchains can share information.
Pros: Why investing in Polkadot could be a good idea
If we were talking about Polkadot one year ago, no one would know anything about it. It was just altcoin that could be easily forgotten about.
Then suddenly, out of nowhere Polkadot made some utterly incredible gains and is now, at the time of writing, the 8th largest cryptocurrency by market capitalisation.
Part of Polkadot’s appeal is Dr Gavin Wood, the mastermind behind the project who also co-founded Ethereum alongside Vitalik Buterin (yup, that’s right, Buterin didn’t do it all by himself!) and is credited as the inventor of the coding language Solidity.
Cons: Why investing in Polkadot could be risky
Polkadot is one of the youngest cryptos on our list and while it has grown tremendously, it perhaps needs more time before we can see how trustworthy it is.
We have no gauge of how well it will do. What is likely to happen if the price plummets?
And just like Ethereum, Polkadot does not have a limit on the number of coins that can be created.
Is investing in Polkadot a good idea?
Polkadot is fast becoming something the crypto community relies on and is the only real connection between different cryptos.
It will likely become an integral part of how many of them work and what this will probably mean is may become ‘too big to fail’.
Polkadot price predictions for 2021 look pretty healthy. previsioni bitcoin is very bullish on Polkadot, believing it will reach $70.70 by December.
Meanwhile, The Economy Forecast Agency gives a perhaps more realistic prediction of between $13.83 and $17.16, which is still an amazing increase.
5. Binance Coin (BNB) - Growing directly from market volatility
Binance Coin is the native cryptocurrency to the Binance Chain, which is the blockchain used by the Binance Exchange (before this, it started as an ERC-20 token on the Ethereum network).
It is characterised as a ‘utility token’ and its primary purpose is to provide traders with a discount when they pay for fees on the Binance Exchange, which is the largest crypto exchange by a substantial margin.
Pros: Why investing in Binance Coin could be a good idea?
Whenever there is a lot of volatility in the crypto market, swarms of people flock to the Binance Exchange and it ends up dragging the value of BNB up.
In fact, in February, the price of Binance Coin reached its highest point ever, approximately $329 per coin.
But the second and perhaps bigger reason why Binance Coin is great to invest in right now is that the Binance Smart Chain is one of the primary blockchains used for DeFi projects, which are booming right now.
Cons: Why investing in Binance Coin could be risky
Binance Coin relies heavily on the Binance Exchange. If for whatever reason the Binance Exchange crashes, gets taken down or if another exchange becomes more popular, Binance Coin’s value could plummet.
Further to that, the rise of DEXs (Decentralised Exchanges) could pose a risk to the Binance Exchange in the near future.
Is investing in Binance Coin a good idea?
Having a decent amount of Binance Coin could really pay off if we see a flurry of trading at the Binance Exchange in the not-too-distant future and the interest in DeFi coins continues to grow.
Looking at Binance Coin price predictions for 2021, it is clear they are expected to continue growing.
Read our article on Binance Coin here.
Is Binance Coin (BNB) the best investment for the future?
6. Ripple (XRP) - Moving forward after SEC fiasco?
Ripple is a global remittance platform that mostly works with large financial institutions, to help them work together more efficiently without the need of banks.
It uses the XRP token to move value. For example, let’s say we have a company in Japan that needs to pay a company in Germany.
The Japanese company pays using yen which gets converted into XRP and sent to the German company who can receive it in euros.
Arguably, it is in some senses more like an exchange than a cryptocurrency.
Pros: Why investing in Ripple could be a good idea
In 2021, Ripple moved into helping central banks create private ledgers based on Ripple’s ledger. These private ledgers will then be used for CBCDs (Central Bank Digital Currencies).
It is also important to remember that Ripple, for a very long period, held the position of third-largest cryptocurrency by market capitalisation.
And so, with that history, it might be very possible for it to return to these heights. People have seen what Ripple can do.
Cons: Why investing in Ripple could be risky
The primary concern with Ripple right now is the SEC (Securities and Exchange Commission) in the US.
Before all this drama, it was believed that Ripple had a good relationship with the SEC.
It started to look like Ripple was failing at one of the most important things it was supposed to be good at: working with US government agencies.
Is investing in Ripple a good idea?
Despite the above, the announcement that the SEC was taking Ripple to court only temporarily damaged Ripple’s price.
Though Ripple slid a few places down in terms of market capitalisation, it is now trading at a higher value than it has for most of its existence.
On top of this, many believe that Ripple will win the case. Primarily because Ripple has already been classified as a currency by FinCen, not a security.
Anyone who has really researched Ripple will see that the SEC has greatly misunderstood it.
Digitalcoin appears to be positive on Ripple’s future price, believing it will reach up to $1 at some point in 2021 and $1.14 in 2022.
The Economy Forecast Agency is not so positive. While they suggest Ripple could reach as high as $0.95 in July, they seem to believe the price will continue to decline.
This prediction, though, is perhaps too focused on the situation with the SEC, and if Ripple moves past this ordeal, it may very well be the next cryptocurrency to explode in 2021.
Read our article on Ripple here.
Do you see the value in investing in Ripple (XRP)?
7. Stellar (XLM) - Stepping into Ripple’s shoes when no one’s looking?
Stellar is a very similar project to Ripple. In fact, Jed McCaleb, one of Ripple’s co-founders, left the company to set up Stellar after disagreeing with the direction Ripple was taking.
Essentially, what the two do is more or less the same, but for different markets. While Ripple targets financial institutions, Stellar focuses more on working on banking the unbanked. That is people with no access to a personal bank account.
Stellar uses the Lumens token, which is also commonly referred to as just XLM.
Pros: Why investing in Stellar could be a good idea
Just like Ripple, Stellar has gotten into helping central banks create CBCDs, though arguably with even more luck.
Big news came at the beginning of 2021 that they will work with the government of Ukraine to create one
Cons: Why investing in Stellar could be risky
The high number of similarities with Ripple make it hard for the average trader to see the purpose of trading Stellar except as a hedge against Ripple.
If Ripple manages to deal with the SEC successfully, Stellar may fade away into the background.
Is investing in Stellar a good idea?
In comparison to Ripple, it might be a more stable investment, at least for the time being.
Price predictions for Stellar’s Lumens for 2021 are largely positive.
Read our article on Stellar here.
Is Stellar (XLM) the kingmaker you’re looking for?
What’s The Top Cryptocurrency To Invest In July 2021?
It’s going to be another exciting month for the cryptocurrency market!
Now you’ve got a few ideas on the top cryptocurrencies to consider in July 2021, it’s a great opportunity to start your research journey.
Our list of the Top cryptocurrencies in July 2021 gives you a broad overview of your options.
It contains info on established coins that could promise slow, steady returns during 2021, as well as some newer coins with the potential for serious growth.
Undoubtedly many in the crypto community are betting big on Bitcoin, which has already shown the biggest improvement in the entire cryptocurrency market.
What makes it particularly interesting this time around is that it’s holding its value really well.
We’re not seeing a repeat of the crypto winter of 2017/18 where after reaching $20k, Bitcoin shrunk back down to $8k.
Cardano and Ethereum should probably be a crypto trader’s second-best choices for July 2021. Ethereum is well-known as the second-largest crypto and has so much going for it (it has its tentacles in every aspect of crypto).
And Cardano is clearly starting to stand out as the most improved crypto in terms of value (aside from Bitcoin), this year so far.
Following on from there, we have newcomer Polkadot that is starting to prove itself as a major player but perhaps needs a little bit more time before it starts seeing real investment from other traders.
Then there is Binance Coin which stands to gain a lot from buying sprees which we might see this year if Bitcoin has another leap upwards in price. But also, it stands to significantly gain from the rise in DeFi.
Finally, there is Stellar and Ripple. Though the two have slightly different approaches and philosophies, the similarities make them very real rivals.
While ultimately Ripple is the leader, Stellar has a chance now to change the tables.
In the end, your choices should depend on what kind of investor you’d like to be, your knowledge of each crypto and the size of your bankroll.
Just remember, all investments include some risk. So, only invest what you can afford and do as much research as possible before making a final decision (don’t invest money you need to live!).
Important cryptocurrency events for July 2021
- The US approving the $1.9 trillion coronavirus stimulus bill, and the effect it may have on crypto.
- Any news surrounding Ripple and the SEC.
- News related to Ethereum moving closer to releasing 2.0 (more likely they will be moving onto the next stage, not releasing the whole thing).
- Any progress with Stellar or Ripple moving forward with CBCDs.
- Bitcoin still stands out as the best cryptocurrency to invest in for 2021. Many experts expect more activity from Bitcoin as the year progresses.
- Cardano and Binance Coin stand out as the best alternatives to trade for July 2021.
- Ripple and Stellar are both moving into CBCDs. If they are successful, it could boost their prices.
- Polkadot is an up-and-coming outsider. After a great 2020, Polkadot continues to make gains.
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