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Top 7 Best Cryptocurrencies To Invest In January 2021 (In-Depth Review)

Last Updated January 9th 2021

Do you want to skip the read and get right to our top picks? Top 7 Best Cryptocurrency to invest in January 2021 is Bitcoin or Ethereum.

Looking for a good cryptocurrency to invest?

If you want to invest or buy some of the top cryptocurrencies quickly and easily check out eToro Exchange!

Cryptocurrency investing even very small amounts can reap big rewards. In this guide, let’s talk about the top 7 best cryptocurrencies to look at in January 2021.

So without further ado…

The Top 7 Cryptocurrencies to Invest in January 2021:

1. Bitcoin

2. Ethereum

3. Tron

4. Litecoin

5. NEO

6. Cardano

7. Bitcoin Cash (BCH)

 

You can buy all of these top cryptos, as well as many others, at eToro and pay 0% fees!

So, have you decided to buy and invest in cryptocurrencies but don’t know 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 January 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 that means more people are looking for the best cryptocurrencies to invest.

But why 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.

Well, there are many reasons to invest in cryptos this month. 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. 

So, do you want to know about the best cryptocurrencies to invest in January 21? What's the top cryptocurrency to invest in this month? Is this the year when the established players will continue to dominate the crypto market? Or is there a plucky upstart that's set to shake things up this year? And what new digital coins have the most growth potential? 

Top 7 Best Cryptocurrencies to Invest in January 2021:

1. Bitcoin

bitcoin logo

 

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 $763B.

Bitcoin allows users to make transactions at low costs and no dependency on third parties. In fact, 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 exactly 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.”

Though Bitcoin has had numerous ups and downs in the past three years - it even skyrocketed up to $30,000 in December 2020 and weeks later, it goes up above $41,000 - Bitcoin prices have become more stable, making it one of the safest options for anyone entering the crypto space for the first time.

And while the heady days of huge returns seem over for now, 2021 could still bring some potential. According to Dave Chapman, Executive Director at BC Group, "Cryptocurrencies assets like Bitcoin are only getting stronger".

Talking about the future of Bitcoin as an investment, it’s also noteworthy that this year we have witnessed another major event - May 2020 Bitcoin halving, a programmed-in event that reduces the number of new coins generated by the network. And for many Bitcoin bulls, this increasing scarcity is part of precisely what underpins this cryptocurrency's real value, making it one of the best cryptos to invest in this month!

At the time of writing, one BTC is trading at $41,141.

Have you considered investing in Bitcoin BTC?

2. Ethereum

ethereum logo

Ethereum is definitely a cryptocurrency that deserves a spot on our Top Cryptos list for this month. Ethereum is a global decentralised platform launched in 2015; a platform powered by its own currency, known as ether.

Created in 2015 by a young team and growing developer community, led by charming Vitalik Buterin, Ethereum has taken the world by storm. 

The most appealing investing aspect of Ethereum is the fact that it supports smart contracts, decentralised apps (dApps), and different ERC-20 tokens. In fact, one of Ethereum’s main goals is to become the king of smart contracts and dApps in order to allow users to write their own software without worrying about censorship and fraud.

In the mist 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. According to data provided by CoinTelegraph, the launch of the ETH 2.0 staking system may be a significant bullish factor that will increase demand and make ETH prices rally over $500 (according to some predictions).

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 $140B. 

Though at $1227.53 per coin (at the time of writing) Ethereum is still a long way off Bitcoin in terms of value, analysts are optimistic about Ethereum's future, predicting steady growth over the next few years.

And guess what! Ethereum has plenty of support from some of the shrewdest investors in the crypto space. To provide an 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 JP Morgan, 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.

Ready to dive into Ethereum ETH?

3. Tron

Tron is another top cryptocurrency to invest in January 2021 - a particularly great investment for blockchain purists. 

Interestingly, Tron was created on Ethereum by the Singaporean organisation Tron Foundation to address the problem of a few powerful corporations controlling the Internet. In 2018, Tron migrated to its own blockchain; in the same year, Tron acquired BitTorrent, establishing its leadership in the field and becoming a major competitor of Ethereum.

Tron is a decentralised platform that uses peer-to-peer technology and aims to build a global entertainment and content-sharing system. To be more precise, Tron’s creators have developed a free, global digital platform with distributed storage technology, allowing users to share content without the need for a third-party intermediary.

By eliminating the need for third parties, costs for both consumers and content creators will be reduced, with users being able to  pay directly to creators. Which is a pure win-win situation! 

After all, we all know that the so-called video streaming war is real and many consumers get frustrated with having to manage different accounts and targeted advertising. No surprise that according to data provided by Deloitte, 44% of US consumers prefer to pay for a service that provides ad-free experiences.

Because of its potential in the entertainment sector, it’s no wonder that, according to analysts, Tron will power the next generation social media platforms for sharing and creating content. 

Tron’s upcoming phases Apollo (mid-2021), Star Trek (mid-2023), and Eternity (late-2025) will also increase its potential, allowing content creators to expand their brands and develop gaming platforms, issue tokens, and also raise funds.

Note that Tron’s native cryptocurrency Tronic (TRX) is currently valued at $0.0336 per coin.

Have you considered investing in Tron TRX?

4. Litecoin

Litecoin is another top cryptocurrency to consider in this month. Launched in 2011, just a couple of years after the creation of Bitcoin, Litecoin is one of the first altcoins or spin-offs of Bitcoin, promoted as “the lite version of Bitcoin” or “the silver to Bitcoin gold.”

As such, Litecoin shares many similarities with Bitcoin and enables cross-border payments and transactions without the need to use central authorities or third parties. 

Another similarity between Bitcoin and Litecoin is the fact that Litecoin is also a crypto that relies on proof-of-work and has a limit on production. Note that there can only ever be 84 million LTC coins; so far, miners have dug up around 55 million.

That said, Litecoin is different from Bitcoin. With a network that is cheaper and easier to maintain, Litecoin is far less resource-intensive

Litecoins main selling point is its speed and usability; 4x faster than Bitcoin, Litecoin makes sending and receiving global payments as easy as pinging somebody an email. This feature is highly attractive not only for investors but merchants. Litecoin’s fees are also lower compared to credit card companies’ charges and bank transfers. 

Not only that! As cryptos rely on the cryptographic integrity of their networks, we should note that unlike Bitcoin (that uses the SHA_256 algorithm), Litecoin uses an algorithm called Scrypt, which is more accessible and may attract more people who want to participate as miners.

Would you invest in Litecoin LTC?

5. NEO

If you are wondering why NEO, formerly called Antshares, is one of the top cryptocurrencies to invest in January 2021, then you should know that NEO has captured the imagination of investors all over Asia.

NEO is an open-source blockchain platform created in 2014 by Chinese computer programmers Da HongFei and Erik Zhang. In fact, it was the first cryptocurrency to come out of China and is often referred to as Chinese Ethereum or a younger version of Ethereum. Actually, the name “neo” comes from the Ancient Greek word “neos”, which means “young, new.”

NEO and Ethereum do share many similarities by providing dApps developers with an easy-to-use platform. 

However, in practice, NEO is far more agile. NEO can process up to 10,000 transactions per second. Through an open-source system run by users, investors, and developers, NEO is now an efficient way to manage digital assets within a decentralised space. It's also where real assets can be digitalised for high liquidity.

No surprise that NEO - described also as “a distributed network for the smart economy” - has a strong chance of dominating the Asian crypto market in 2020.

Here we should note that NEO enables two tokens: NEO and GAS, both capped at 100 million tokens. To be more precise, NEO is designed as a two-tiered system to facilitate transactions, with NEO acting as a proxy for voting rights and GAS used to execute transactions and smart contracts.

A huge pro of investing in NEO is the fact that the Chinese government has vowed to become a market leader in blockchain technology and has put its full support behind NEO during a press conference late last year. 

Though Chinese banks and financial institutions were banned from facilitating Bitcoin transactions, and cryptocurrency exchanges and trading platforms were effectively outlawed in July 2018, NEO is one of the few cryptos allowed in China and may lead to large scale adoption in investment and governmental sectors. 

Have you considered trading NEO?

6. Cardano (ADA)

Cardano is another major cryptocurrency worth considering in 2021. In fact, it is one of the most innovative cryptocurrencies in existence. 

To be more precise, Cardano uses a two-layered blockchain: the Cardano Settlement Layer and the Control Layer used to process transactions and smart contracts, respectively. 

Its hierarchical structure that aims to improve scalability and interoperability across different financial systems is not just a whim. 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.

Another essential aspect of Cardano’s nature is its proof-of-stake algorithm that aims to make mining more energy-efficient. Note that its 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.

Given its progressive nature, it’s no surprise that Cardano is one of the leaders in the cryptocurrency sector. After all, Cardano is defined as a third-generation cryptocurrency that aims to improve the scaling issues of Bitcoin, a first-generation cryptocurrency, and the smart contract deployment principles of Ethereum, a second-generation cryptocurrency.

No wonder that Cardano is currently ranking #7, as per Coin Market Cap. Its native coin ADA is a popular investment asset with an impressive market cap and trading volume.

Note that ADA has a maximum supply of 45 billion coins, with 31,112,484,646 coins being currently in circulation.

Would You Consider Invest in Cardano ADA?

7. Bitcoin Cash (BCH)

Last but not least, let’s talk about Bitcoin Cash - one of the most popular forks of Bitcoin. Bitcoin Cash was created in 2017 in order to improve Bitcoin’s scalability problems, which curiously enough were triggered by its own popularity

Bitcoin Cash was created with larger block sizes of 8 MB, further increased to 32 MB. By increasing the block size, the development team behind Bitcoin Cash allowed more transactions to be processed into a single block. 

Talking about forking, we should note that in 2018, Bitcoin Cash split into Bitcoin Cash ABC and Bitcoin Cash SV, and in 2020, it split into Bitcoin Cash ABC and Bitcoin Cash Node.

That said, just like Bitcoin, Bitcoin Cash uses a proof-of-work consensus algorithm and is capped at 21 million coins.

Because of its tech potential and evident link with Bitcoin - the oldest and largest coin in terms of market cap and trading volume, Bitcoin Cash surged in popularity and gained a wide community of supporters, including Roger Ver (known as the Jesus of Bitcoin).

Believe it or not, Bitcoin Cash skyrocketed to $4.091 in the height of 2017’s crypto mania. Here we should note that Bitcoin Cash’s ticker symbol is BCH, while Bitcoin is listed under BTC. 

And guess what? Even amidst the ongoing coronavirus pandemic, Bitcoin Cash is still one of the most popular coins, currently ranking #6 on Coin Market Cap.

Would You Consider Investing In Bitcoin Cash?

What's the top cryptocurrency to invest in January 2021?

It's going to be another exciting year for crypto markets. And now you've got a few ideas on the top cryptocurrencies to consider in January 2021, it's also a great opportunity to start your research journey. 

Our list of the Top 7 cryptocurrencies to invest in January 2021 gives you a broad overview of your options. It contains info on the established coins that could promise slow, steady returns during 2020, as well as some newer coins with the potential for serious growth.

Your choices depend on what kind of investor you'd like to be and the size of your bankroll. Just remember, any investment includes some risk. So only invest what you can afford and do as much research as possible before making a final decision.

Would you invest in cryptocurrency market? What crypto(s) would you choose to invest in this month?

Did you like our article Top 7 Cryptocurrencies To Invest In January 2021?  If yes, then please share it with anyone who might find it helpful.

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