0

What Top 10 Cryptocurrencies To Invest In 2021?

22 Min Read
Last Updated March 27th 2021

Best Cryptocurrencies in 2021 

Planning to invest in cryptocurrencies in 2021? Want to stay ahead of the crypto trends? We’ve made it easy with our complete guide to the top 10 cryptocurrencies to invest in for 2021. 

Beginners having difficulties finding the best cryptocurrency to invest in for 2021, fear not! We’ve all been in this situation, so don’t worry! We understand how confusing it is when looking for new cryptocurrency investments. 

And that’s why Trading Education is here to help!

So, are you also looking for the next cryptocurrencies to invest in for 2021? Do you find yourself wondering: “should I be investing in Bitcoin?” or “should I be investing in Ethereum?”

Or maybe you’ve invested in both already and now you have no idea what to invest in next?

There’s a lot of choices out there. It can get pretty overwhelming. Especially when there are many coins attempting to do similar things or have plans so vast it will take decades for them to be fully conceptualised.

If you want to dive into the crypto market quickly and easily, with 0% fees, check out the eToro Exchange!

In this article, we’ll give you a yearly outlook. At different points in the year, other cryptos might shine. Here we’re looking for coins that offer the most for the whole of 2021.

The Best Cryptocurrencies to Invest in 2021:

1. Bitcoin

2. Ethereum

3. Litecoin

4. Bitcoin Cash

5. TRON

6. Ripple

7. Cardano

8. Tezos

9. IOTA

10. Zcash

 

As 2021 progresses, it’s becoming clear it’s going to be an absolutely crazy ride! Being able to predict new cryptocurrency trends is a key skill for any trader. 

But with more than 7,000 different altcoins on the market, how can you tell which ones will be the best cryptocurrency investments in 2021? 

How can you tell the difference between a coin that’s ferocious dynamite, just waiting to explode and a zombiecoin that’s got no future?

Let’s make one thing crystal clear: the future of crypto is never certain, so making cryptocurrency predictions can be tricky - especially because of the periods of volatility since the start of the coronavirus pandemic. 

However, the good news is that some crypto experts have said 2021 could be the year of crypto, thanks to market recovery and developments such as the long-awaited update to Ethereum. 

In this article, we’ll be explaining which cryptos you should consider adding to your portfolio in 2021. Whether you’re new to cryptocurrency investing or an experienced investor, read on to find out the top 10 cryptocurrencies to invest in 2021. 

By the end of this guide, you’ll know how to find cryptocurrencies to invest in this year. Also, if trading is what you're looking to do, eToro can help you out, too!

Are you ready to find out about the next cryptocurrencies to consider for 2021? Let’s get started!

What Are The Top Cryptocurrencies to Invest in 2021?

Below you will find the best 10 cryptocurrencies to invest in 2021 and beyond.

1. Bitcoin (BTC) - On its path to replace gold as the ultimate store of value?

bitcoin logo

Are you asking yourself, “should I invest in Bitcoin?”, “Is the value of Bitcoin already at its peak?”, or “is Bitcoin the best cryptocurrency to invest in 2021?” 

Well, we wish we knew! However, the following info should help you to decide if investing in the cryptocurrency Bitcoin is a good idea for you.

It should come as no surprise that Bitcoin is at the top of our list of cryptocurrencies to invest in 2021. This so-called ‘King of Cryptocurrencies’ has dominated the market since its birth in 2009 - and there’s no sign that its status will change soon. 

n fact, cryptocurrency predictions suggest that Bitcoin could be set for its strongest year yet in 2021. 

According to Ryan Selkis, the CEO of the cryptocurrency tracking site Messari, Bitcoin and Ethereum will retain their top positions when it comes to market capitalisation. This is in contrast to a variety of other assets, which he predicted will lose their ranking in the top 10 cryptocurrencies in 2021.

So, what’s next? In July 2020, a chart associated with Citibank predicted that the price of Bitcoin could skyrocket to an incredible $120,000 in 2021! This is six times what it reached in December 2017 and more than double its current price at the time of writing. 

There are likely three primary reasons for Bitcoin’s dramatic price increase: 

  • Firstly, in May 2020, Bitcoin went through another ‘halvening’, which is where the reward for mining blocks is halved, meaning that less BTC is being created and introduced into the market;
  • Secondly, due to the coronavirus pandemic, central banks like the US Federal Reserve, have been printing more money to stimulate the economy. So much so that approximately one-fifth of US dollars were printed in 2020. This has meant that the US dollar has declined in value;
  • Thirdly, as a result of the two points above, financial institutions are starting to realise that Bitcoin holds value better than gold as it is the only asset with a fixed amount that will ever exist (not even gold can claim that!).

In January 2021, JPMorgan, the bank that once called Bitcoin a scam, now expects BTC to reach $146,000.

Looking further ahead, the Winklevoss twins believe Bitcoin will eventually reach $500,000 per coin in the next decade and then surpass the gold market cap, which is supposedly between $10 and $11 trillion at the time of writing.

So, is Bitcoin your next cryptocurrency to invest in 2021?

Many experts think Bitcoin could be one of the best cryptocurrencies to invest in 2021.

2. Ethereum (ETH) - The lifeblood of DeFi will have a major update in 2021

ethereum logo

If Bitcoin is the King of Cryptocurrency, then Ethereum could well be their heir! 

This blockchain platform is the world’s major cryptocurrency other than Bitcoin and has maintained a strong market cap ever since its release in 2015. At the time of writing, its market cap is around $209 billion.

Despite the uncertainties surrounding the coronavirus pandemic, which shook the performance of almost every crypto, Ethereum has been strong throughout 2020. 

If you’re looking for top cryptocurrencies to invest in 2021, Ethereum should be a serious contender, finally surpassing its previous record of $1,355 set in 2017 and shooting right past it.

Ethereum Vs. Bitcoin: Is Ethereum a Better Investment than Bitcoin?

In late December, Ethereum’s price hit $1,000 - its highest price of 2020. There are two key factors behind this surge in value. 

One is the growth of decentralised finance (otherwise known as DeFi). The Ethereum platform supports many of the cryptos which are driving the DeFi sector, such as Chainlink (LINK), Wrapped Bitcoin (WBTC), and Maker (MKR). 

All of which use Ether as fuel to function, which means as they grow, the use of Ether grows too.

In fact, Ethereum has processed $13.5 billion worth of decentralised exchanges in 2020 alone - up from under $3 billion in 2019! 

The second factor which secures Ethereum’s place on our list of top cryptocurrencies to invest in 2021 is the launch of Ethereum 2.0. 

This eagerly awaited upgrade is due to be complete by the end of 2021 and will make Ethereum far more efficient by moving from proof of work to proof of stake

Once it’s able to process more transactions more quickly, we could see its price explode. Do note though that the update is being rolled out in stages, and so no one is 100% sure when it will be completed

3. Litecoin (LTC) - The best hedge against Bitcoin by far

litecoin

With a price of around $200, Litecoin might not be the most bullish crypto on this list. 

But with a market capitalisation of $13 billion and strong growth on the radar, it’s worth considering if you’re planning to start cryptocurrency investing in 2021. 

Our list of what is the top cryptocurrency to invest in 2021 cannot be complete without Litecoin. It showed strong performance in 2017 with a growth of more than 8,000%.

Although some investors see Litecoin as the skinny cap to Bitcoin’s full-fat cappuccino (it was launched in 2011 and is generally seen as a Bitcoin spinoff), it’s a mistake to dismiss this crypto outright. 

Looking at the bigger picture, stock traders don’t ignore the stocks just because there’s a more successful alternative. 

For example, just because a stock trader has invested in Amazon doesn’t mean that they won’t consider Alibaba or eBay. Though they may open bigger positions on Amazon, there are other areas to make money as well. 

On top of that, if we apply the logic of stocks to crypto for a moment, typically stocks that grow so incredibly tend to fall pretty hard too.

So, if Bitcoin can explode like this, theoretically, it is the most vulnerable to fall too, which is why it is good to look at alternatives that have lower risks attached to them.

On top of that Litecoin is technologically better than Bitcoin. For example, is it a lot faster than Bitcoin, taking just two and a half minutes to process a block as opposed to 10 minutes. And that’s just one of many advantages.

CoinSwitch has predicted the price of Litecoin could reach $600 in 2021. The Economy Forecast Agency also predicts a modest increase between $348 and $432 by December 2021.

And lastly, because of Litecoin’s close connection to Bitcoin, investors express a good deal of interest in Litecoin, and that is why Litecoin is listed in our top 10 cryptocurrencies to invest in 2021 and one of the top cryptocurrencies to watch.

4. Bitcoin Cash (BCH) - Major update to transaction speed could be coming soon in 2021

bitcoin cash

Emerging in 2017, Bitcoin Cash quickly hit the radar of anyone who’s interested in cryptocurrency investing as a viable alternative to Bitcoin. 

This peer to peer electronic cash system was launched as a scalable branch of the original Bitcoin after there was a split in the Bitcoin community over Bitcoin’s scalability. 

In short, Bitcoin Cash has larger blocks than Bitcoin which means it can handle more transactions in one go, theoretically making it faster.

Today, it’s the world’s eleventh-largest cryptocurrency by market cap, at $10 billion. 

What makes us so excited about Bitcoin Cash in 2021 is the upcoming updates we will likely see in the following year which primarily aims to improve transaction speed using 256 MB blocks (a gigantic increase!).

Although predictions for the price of Bitcoin Cash vary. Digitalcoin has predicted that it will rise to $1,518.85 within the next five years. 

If this is the case, then 2021 could be an excellent time to add Bitcoin Cash to your portfolio as far as the best cryptocurrency to invest goes!

5. TRON (TRX) - About to make a name for themselves in DeFi?

tron

TRON was originally founded in 2017 on the Ethereum network. Its goal is to decentralise the web by giving more power to content creators and publishers by monetising how their content is shared and used.

Since starting on Ethereum it has switched to an independent blockchain platform and uses a proof of stake algorithm to process transactions. 

With a current market cap of $3.7 billion and a price of around $0.052, what can stop TRON from being one of the top cryptocurrencies to invest in 2021? 

As more organisations start to adopt the TRON blockchain platform, the value of TRX will likely increase.

We’ve got our eye on TRON for 2021 because they have signalled their move into DeFi by announcing a hackathon event where developers can win up to $1 million by creating a DeFi project.

What gives TRON a great advantage is that it uses the same coding language as Ethereum, Solidity, which could enable them to win over DeFi applications on the Ethereum blockchain to one less crowded.

The general consensus is that the price of TRON will fluctuate throughout next year, but according to Trading Beasts, it could sporadically hit highs of $0.8 - making it a strong potential cryptocurrency investment opportunity in 2021.

TRON did have some notable price swings over the past years but has become more stable recently. If you’re looking into this coin as the best cryptocurrency to invest in 2021, make sure to do some research, and follow the news.

 6. Ripple (XRP) - More than just a comeback, we might just see a rampage

ripple

Did you know that Ripple XRP was the best cryptocurrency to invest in 2017 with a growth of about 36,000%?

Ripple, one of the more interesting cryptocurrencies to invest in 2021, is the catch-all name to describe the Ripple platform (RippleNet), the company behind its development (Ripple Labs), and its virtual currency (XRP). 

Fortunately or unfortunately (depending on how you look at it), Ripple got into a bit of trouble with the US Securities and Exchange Commission (SEC) which hit the price of XRP quite hard.

It resulted in Ripple moving from the third-largest crypto by market cap to sixth.

But he’s the good news, despite the blow, Ripple has recovered pretty well and though might be a bit late to the party, is actually trading at a higher price than most of its existence.

While the legal case with the SEC might continue throughout much of 2021 (they are suing Ripple for a bit more than $1 billion and claim that they are a security, not a cryptocurrency despite overwhelming evidence they’re wrong), many are pretty optimistic that they will win and if they do, the price of XRP will likely shoot up.

Crypto traders should also be on the lookout for the cryptocurrency Stellar gaining on Ripple

The two are like twin brothers split at birth with a fair degree of rivalry between them. They both have a similar approach to cryptocurrency and similar goals, and if Ripple hodlers get too worried, they may switch sides.

And if you’re planning to invest, it could be sensible to start soon. Although the price of Ripple isn’t going to reach the stratospheric prices of Bitcoin, it does look set for a price increase in 2021. 

According to some cryptocurrency predictions, Ripple is likely to increase steadily throughout the year, reaching potential highs of $2.94 by December.

Ethereum VS. Ripple: Which One Should Be In Your Portfolio?

Prices above $2 might not last long though. The same predictions have placed Ripple’s price at $1.72 by the end of 2022, so one investment strategy could be to buy Ripple to sell it before the price slips from its all-time high.

Note: 2021 might be a good year to invest in XRP, as its price has dropped 72% lower than its all-time high of $3.40 in January 2017. So, Ripple could still be a good option to consider as your next cryptocurrency to invest in 2021.

7. Cardano (ADA) - From zero to hero, is ADA the most improved coin of 2021?

cardano

When Selkis released his predictions for cryptocurrency investing in 2021, he surprised some traders by claiming that the cryptocurrency Cardano could jump from tenth to fifth place in the list of the world’s biggest cryptocurrencies.

As it turned out Selkis was very much correct. As it stands at the time of writing, Cardano is indeed the fifth largest crypto by market cap according to CoinMarketCap

And for a brief moment in late February and late March, rose to third place before BNB and Tether squeezed past.

According to Trading Beasts, the price of Cardano could potentially exceed $1.80 by the end of 2021. This is a nice increase from its current price of $1.16. 

One of the key factors behind Cardano’s growth is the release of Hydra - a layer two scalability solution that promises to give the Cardano network the power to process more than 1 million transactions every second. 

The ability to process payments and smart contracts off-chain (not as part of the blockchain) will help Cardano become one of the fastest systems in the world. 

With such huge developments on the horizon, Cardano, as with any other best cryptocurrency out there, is definitely one of the top cryptocurrencies to invest in 2021. 

8. Tezos (XTZ) - Silently becoming a major part of DeFi?

tezos

Tezos is currently the 23rd largest cryptocurrency in the world by market cap - but its performance across 2021 could potentially see it move much further up the list. 

According to Trading Beasts, the blockchain network (which opened via a record-breaking ICO in 2017) is set for a period of slow but steady growth and could increase to $4.92 by December 2021

After a years-long streak of losing value in both 2019 and the first half of 2020, the prospect of growth (however small) is an encouraging prospect for many Tezos investors. 

This growth is largely down to the fact that Tezos was selected by the financial group Elevated Returns (ER), which was looking for a blockchain platform where it could offer tokenised offerings worth $1.6 billion to real estate investors.

Thanks to increasing interest in the world of DeFi, this investment from ER is excellent news for the once-straggling crypto. The utility token, which will be called ERX, is due to start operations before the end of 2020. 

9. IOTA (MIOTA) - Huge update to decentralise coming in 2021

 

iota

With a market cap of $3.7 billion, the open-source ledger and cryptocurrency IOTA is designed to process transactions between devices on the Internet of Things (IoT) network

It’s partnered with organisations in the automobile, manufacturing, and insurance industries - meaning it’s well-placed to capitalise on the growth of the DeFi sector. 

Although cryptocurrency exchanges differ on the exact figures, the industry seems to agree that IOTA is forecasted notable growth in the next few years. 

The crypto news site Smartereum has even suggested that the currency could reach $38 at some point before 2025, which is a huge leap from its current price of $1.35. 

Even if this projection is optimistic, we’re unlikely to see prices fall, with a safe estimate perhaps hovering around $4

What makes IOTA a gamechanger in 2021 is the ‘Coordicide’ update where they will remove ‘the coordinator’, which is a temporary component to help keep it secure. By doing this, they will finally become fully decentralised.

According to Cointelegraph, it should take place by June 2021.

Traders should be warned though, there are those out there that dislike IOTA because it uses a DAG instead of a blockchain, and many feel in the crypto community that this makes it technologically inferior.

Because the IoT is also predicted to grow throughout 2021, IOTA is a strong contender for anyone who’s looking to start investing in the top 10 cryptocurrencies next year. 

10. Zcash (ZEC) - Halvening could make this the most valuable privacy coin

zcash

Based on Bitcoin’s codebase, the cryptocurrency Zcash (which launched in 2016) aims to make digital payments more private. 

While the Bitcoin blockchain is designed to be completely transparent, enabling every user to track past transactions, Zcash has a policy of ‘selective transparency’. This means that payments can be shielded to preserve the privacy of users. 

Currently, in 31st place in the list of the world’s biggest cryptocurrencies, the price of Zcash is $134.55 and its market cap is $1.5 billion at the time of writing. 

According to The Economy Forecast Agency, the price of Zcash is likely to decrease in 2022 - but this could follow some sudden spikes throughout 2021, perhaps during April, May, and June. 

But 2021 could potentially be Zcash’s best year after completing a halvening in November 2020

Just like Bitcoin, we could see a major increase in the value of Zcash and it just might become the most valued privacy coin. The only issue is knowing when this will happen.

If you’re just starting out in cryptocurrency investing, Zcash might not be the right addition to your portfolio. 

But if you’re an experienced investor with a robust risk management strategy, it might be possible to cash in on these price spikes, as long as you play your cards right. 

Investing in Zcash now when the price is low, with the intention of selling during periods of high growth, could be a smart strategy. Don’t forget - when it comes to successful cryptocurrency investing, timing is everything.

Want to Start Investing in the Top 10 Cryptocurrencies? 

Now you know the top cryptocurrencies to invest in 2021, you’ve got a solid foundation to start your cryptocurrency investing. The next step is to find a reputable cryptocurrency broker. 

On the multi-asset platform eToro, you can start investing in all of the top 10 cryptocurrencies that are mentioned on this list. 

Whether you’ve traded cryptos before or are just breaking into this form of investment, its user-friendly service is a great way to compare currencies and start trading today.

If you are a crypto beginner who’s looking for the best cryptocurrency exchanges in 2021, eToro’s innovative CopyTrader feature could provide you with some valuable insights into the best cryptocurrency trading strategies. 

This functionality enables you to watch the actions of experienced investors in real-time, and then automatically copies their decisions. It’s a great way to try out different strategies before finding the winning formula for you. 

eToro – Buy Cryptocurrencies with 0% Commission

etoro broker

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Remember, though, that even the best cryptocurrencies aren’t guaranteed to make you a profit. 

This means it’s vital to do your due diligence and find a robust risk management strategy before you start to trade on your chosen cryptocurrency exchange

If you want to discover the top 10 cryptocurrencies to invest in for 2021, it’s not enough just to research ‘what is the best cryptocurrency’. You’ll also need to find the best cryptocurrency trading strategy for you.

Trading is certainly the answer when it comes to investing in cryptocurrencies, the market has grown to a position where traders are offered the best ways to make profits, including margin trading, shorting and the use of traditional strategies. 

Although there’s no such thing as a perfect trading strategy, different tactics work for different people. Here are some key things to consider when choosing your cryptocurrency strategy: 

  • Which cryptocurrencies are you planning to invest in?
  • Do your chosen cryptocurrencies tend to fluctuate at particular times? 
  • How much time can you spend monitoring the cryptocurrency markets
  • What are your ultimate cryptocurrency trading goals? 

Once you’ve got the answers to these questions, you’ll be in a much stronger position to find the best cryptocurrency trading strategy for you. (You may need to experiment with a few different strategies at first.)

Whether you like to make quick-fire decisions or prefer to play the long game, let’s take a look at some of the most popular cryptocurrency trading strategies for 2021. 

Long-term cryptocurrency investment strategies 

As its name suggests, long-term cryptocurrency investment strategies are ones where you expect the value of your chosen asset to perfect better in the long run. Rather than cashing in on sudden price fluctuations throughout the day, long-term strategies rely on careful planning and self-control. 

A long-term investment is generally given a time-frame of between one and two years. However, some traders can choose to hold their investments for up to a decade or even more. 

You can choose whether you want to pledge your full investment at the start of this period or invest varying amounts over a length of time. 

If you’re wondering whether a long-term cryptocurrency investment strategy is for you, here are some of the factors which could help you decide: 

  • How do you expect your chosen cryptocurrency to perform over the next year? 
  • What unexpected events could make you want to sell your asset? How likely are these events to happen? (You may wish to consider the introduction of new regulations, potential breakout competitors, and the scalability of its technology). 
  • Are you happy to hold an investment without watching the market all the time? 

There are many benefits to choosing a long-term investment strategy, but it’s not the right plan for everyone. 

Often, they are best suited to investors who have day jobs or other demands on their time which mean they aren’t planning to monitor the market on a minute-by-minute basis. 

Long-term investment strategies can also be effective if you’re investing in a crypto that you truly believe in. 

As an example, let’s say you think the best cryptocurrency for 2021 will be Bitcoin BTC. You carry out your due diligence and, in the process, discover that the company is filling a huge gap in the market, have compelling plans for the future, and have recently invested in some new capabilities. 

This means you have good reason to believe that Bitcoin will become more valuable in the long run. Strong cryptos will be able to weather short-term fluctuations without abandoning their general upward trajectory. 

Long-term strategies might not be suitable for cryptos that are going up and down a lot. In such cases, it might make more sense to buy whenever the price is low and sell high, which is more like short-term trading (more on that below).

Also, if you’re in it for the long-term, remember to take profits here and there. This can reduce risk. You can also increase your position during dips or if you feel the crypto stands a chance of doing particularly well.

If you believe an asset will perform better over time, finding a long- term trading strategy could be a smart move. 

Short-Term Cryptocurrency Investment Strategies

A short-term cryptocurrency investment strategy is one that theoretically enables you to make quick wins. The definition of short-term can be broad -anything which lasts from a couple of months right down to a couple of seconds is described as short-term, with the precise time-frame depending on various factors.

These strategies are designed around the principle of cashing in on price fluctuations, rather than because you expect a cryptocurrency to grow over time. 

Most cryptocurrencies are incredibly volatile. When the price of Bitcoin crashed $1,000 in just an hour back in February 2021, for example, it was only its fifth-largest hourly price drop since its launch in 2009 - its record was a staggering $20,000 in December 2017! 

Could a short-term cryptocurrency investment strategy be the right decision for you? These are some of the key factors to consider before taking the plunge: 

  • Losses are always a probability when investing in cryptocurrency, even if you choose one of the top cryptocurrencies to invest in 2021. How much of a loss can you accept?
  • Do you have enough time to monitor the crypto markets on a very regular basis and respond to price fluctuations instantly? 
  • Will a short-term strategy yield greater potential profits than a long-term strategy for your chosen assets? 
  • Are you familiar with technical analysis? (This is a good idea if you’re planning to start using a short-term strategy, so you should familiarise yourself with it before you begin). 
  • How much, and how often, has the price of your chosen crypto fluctuated in the past?

Short-term cryptocurrency investment strategies can be a potentially fruitful strategy, as long as it suits both your lifestyle and your chosen assets.

They are particularly suited to cryptocurrencies which have a low market cap but a high trading volume. This means that lots of traders are currently buying and selling, which will keep the price moving. 

It can also be a good strategy if the cryptocurrency has recently been in the news - even if it’s not one of the top cryptocurrencies to invest in 2021. 

When the Financial Conduct Authority (FCA) carried out a study to see how many people in the UK had heard of different cryptocurrencies, the results were telling. 

Unsurprisingly, Bitcoin came out on top, with 78% of respondents reporting that they had heard of the crypto. But the next most widely recognised, which just 22% of respondents had heard of, was Facebook’s Libra (now rebranded as ‘Diem’). 

This crypto hasn’t even started operations yet, so its notability has been entirely a result of its media coverage. This means that any cryptos which have been in the news are far more likely to receive interest from traders, regardless of whether they’re deemed one of the ‘best cryptocurrencies’ or not. 

Other cryptocurrencies which are well-suited to short-term investment strategies are those that are available via an initial coin offering (ICO). 

Investors can usually secure these cryptos at a very low price, which is almost certain to fluctuate as interest in the ‘next cryptocurrency on the market’ starts to grow. 

Investing in a cryptocurrency at the start of its launch isn’t necessarily a good idea for a long-term investment strategy unless you’re an experienced investor who truly believes that the crypto will do well (and has a diversified investment portfolio to minimise the risk). 

However, if you’re simply looking to take advantage of quick-fire fluctuations, it could be a smart short-term investment strategy. 

Read More: How to Identify Cryptocurrency and ICO Scams

Cryptocurrencies such as IOTA (which you can read about in our list of top 10 cryptocurrencies to invest in 2021 above) could be a strong candidate for this kind of investment strategy. 

This is because such cryptos aren’t yet major household names, but still rank reasonably well when it comes to the biggest and best cryptocurrencies in the world.

However, there are of course some disadvantages to short-term cryptocurrency investment strategies. You should be aware of these before embarking on any short-term trading plan: 

  • They require you to be able to monitor the market on a moment-by-moment basis. This makes them unsuitable for anyone who isn’t planning to become a full-time investor. 
  • It’s a riskier strategy than long-term cryptocurrency investing strategies.
  • It can be incredibly stressful! Making investment decisions when you’re feeling emotional can lead to impulsive actions which potentially ruin an otherwise well thought out strategy. If you do decide to choose a short-term trading strategy, make sure that you always prepare for the worst and feel confident controlling your emotions.

Further Reading:

Cryptocurrency Day Trading

Top Cryptocurrencies and Their Challenges

How To Trade Cryptocurrency with $100

How to Find The Best Cryptocurrencies To Trade them

What’s next for the cryptocurrency market in 2021? 

When Bitcoin was launched back in 2009, the world of cryptocurrencies was dismissed as a bit of a fad. 

Fast-forward to 2020, and there are now supposedly more than 7,000 different cryptocurrencies with a combined market cap of well over $1 trillion (Bitcoin alone makes up the majority of this). 

With 78% of UK respondents telling the FCA that they had heard of the most famous cryptocurrency, Bitcoin, it’s obvious that cryptos are rapidly entering the mainstream. 

Although you shouldn’t expect cryptocurrency to become the world’s payment method of choice just yet (remember that only 11% of Americans currently own cryptocurrency), it’s undeniable that it’s becoming more widespread.

 More online businesses are starting to accept payment in some of the top cryptocurrencies, and we’ve even seen the establishment of crypto ATMs in our shopping centres and streets. 

Read More: Most Popular Cryptocurrencies In The USA

As the demand for DeFi and dApps grows, it’s understandable that some experts are predicting that 2021 will be ‘the year of crypto’. If this is the case, it will have some tough competition. 

2017 is currently the most crypto-friendly year so far - it saw the launch of thousands of new currencies around the world, causing the total market cap to explode by 4,000%! 

Best Cryptocurrency to Invest in 2021 - Key Points

There are many opportunities to invest in cryptocurrencies in 2021, but what has become clear this year is that it is worth looking to the best possible projects and coins. Below are the top key points for cryptocurrency investment in 2021.

  • 2021 is being heralded by some experts as ‘The Year of Cryptocurrency’.
  • Bitcoin is the top cryptocurrency to invest in 2021, with prices potentially hitting $120,000, according to some predictions.
  • The growth of DeFi (Decentralised Finance) is driving interest in cryptos such as Ethereum and Tezos.
  • Choosing which top cryptocurrencies to invest in 2021 will depend on your appetite for risk, with options such as Zcash offering potential benefits to more experienced investors.
  • It’s important to find the right trading strategy for you and your schedule.
  • Timing is everything when it comes to successful cryptocurrency investing (you need to pinpoint the best moments to get in and out).
  • Long-term cryptocurrency investment strategies can be a good choice for cryptos on the up.
  • If you believe your chosen investment will perform well over time, you could be suited to a long-term strategy.
  • Short-term cryptocurrency investment strategies are designed to cash in on rapid price fluctuations. 
  • Short-term strategies can be riskier than long-term strategies and require you to monitor the market constantly. 
  • Facebook’s Diem (formerly known as Libra) is the second most widely recognised cryptocurrency in the UK - despite the fact it hasn’t actually been launched yet.
  •  

Investing in any of these top cryptocurrencies in 2021 is an idea worth giving proper consideration, the forecast is promising for all of them to a different extent, and the investment is easy as never before.

We hope our list of the top cryptocurrencies to invest in 2021 has been helpful. Whatever your investing strategy, keeping track of the current trends and predictions is the best way to build a strong portfolio full of the best cryptocurrencies in 2021.

Best Cryptocurrencies In 2021 - FAQs

Is cryptocurrency a good investment in 2021? 

It’s important to know that cryptocurrency is always a risky investment with no guarantee of making a return. This is because most cryptocurrencies are incredibly volatile. 

However, many crypto enthusiasts believe that 2021 could be the best year for cryptocurrency yet. If you decide to invest, always do your due diligence before investing in the top cryptocurrencies for 2021. 

Which cryptocurrency exchange is best for beginners? 

We believe the multi-asset brokerage platform eToro is the best cryptocurrency exchange for beginners. 

Its CopyTrader feature allows you to watch the trading decisions of experienced investors in real-time and copy their actions automatically. 

This provides a great introduction to the world of cryptocurrency trading in 2021. 

How to find the best cryptocurrency to invest in? 

Although cryptocurrency predictions 2021 should never be treated as fact, it’s crucial to research crypto trends in order to find the best cryptocurrency to invest in. 

Whatever you do, don’t just stick to the top 10 cryptocurrencies by market cap. There’s so much more going on that just those few coins!

Staying ahead of the game will help you identify breakout cryptos, secure them while their price is low, and hopefully sell them on for a profit. 

Which cryptocurrency is growing the fastest?

So, far Bitcoin has grown the most in 2021 so far. Aside from Bitcoin, though, Cardano is a clear winner of recent, jumping several spots to momentarily become the third-largest by market capitalisation.

What’s next for Bitcoin? Will Bitcoin crash again? 

There’s good news for anyone who was alarmed by Bitcoin’s little crash back in March 2020 (and previous crashes before). 

This was most likely a result of uncertainty caused by the coronavirus pandemic and most experts believe we’re unlikely to see a repeat of the downfall in 2021. 

However, remember that Bitcoin is very volatile and it’s impossible to predict its future with certainty. 

Of course, at some point, there inevitably will be a crash, but it is probably not something you need to be immediately worried about.

What is the best cryptocurrency?

Bitcoin consistently tops lists as the best and most successful cryptocurrency. It has the largest market cap and the most investors around the world. 

However, the answer to this question depends on how you define ‘best’. Some traders believe that Bitcoin is unsustainable and alternatives such as Bitcoin Cash will make a better long-term investment. 

How does cryptocurrency trading work? 

Cryptocurrency trading is the act of buying and selling your chosen cryptocurrency to profit from its price fluctuations. To trade cryptocurrency, you need to buy and sell on an exchange, using crypto stored in your own personal digital wallet. 

What are the different types of cryptocurrency?

Cryptocurrencies can be divided into different groups in several different ways. 

Some like to divide them based on the ‘generation’ they belong to. For example, Bitcoin, as the first crypto is the first generation. Ethereum, which came a few years later, is a second-generation, and everything that followed Ethereum is classified as the third generation.

We can also divide them based on if they use proof of work, proof of stake or another algorithm for mining.

And finally, we can group them by their use. E.g., Zcash (mentioned above) is a privacy coin as it focuses on anonymity. Monero and Dash also fall into this category.

Other categorisations include utility tokens such as Binance Coin and stablecoins like USD Coin (created by the Coinbase exchange) or the cryptocurrency Tether.

How can you analyse the crypto market? What’s the best way?

Analysing the crypto market is not easy and can be done in a plethora of different ways.

The primary ways include technical and fundamental analysis. Either way, you must learn to read charts and analyse historical prices.

Further to that, you’ll also have to learn everything you possibly can on your chosen crypto and keep yourself informed by following the news and joining groups such as those on Reddit where they can be discussed.

The more you know, the better you will be able to assess the value of cryptocurrencies and set appropriate goals.

Now you know what top cryptocurrencies to invest in 2021 are. If you’re feeling inspired to start trading cryptocurrency, you may be pleased to know that eToro provides the ability to buy crypto assets on up to 90+ cryptocurrency pairs. Crypto traders can build a diversified portfolio with the most popular coins.

Which cryptocurrency would you invest in 2021?

We hope our article What Top 10 Cryptocurrencies To Invest In 2021 was useful to you and saved you some time in your research.

Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk and Past performance is not an indication of future results.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.