What Top 10 Cryptocurrencies To Invest In 2021?
Best Cryptocurrency Investments 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 for 2021.
Beginners have difficulties finding the best cryptocurrency to invest in 2021. 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 here to help.
So, are you also looking for the next cryptocurrencies to invest in 2021? Do you find yourself wondering “should I be investing in Bitcoin?” or “should I be in investing in Ethereum?”
By the end of this guide, you’ll know how to find cryptocurrencies to invest in 2021. Also, if trading is what you're looking to do, eToro can help you out, too!
Now that we’ve entered Q4 2020, many cryptocurrency investors are starting to look forward to 2021. Being able to predict new cryptocurrency trends is a key skill for any trader. But with more than 6,000 different altcoins on the market, how can you tell which ones will be the best cryptocurrency investments in 2021?
The future of crypto is never certain, so making cryptocurrency predictions can be tricky — especially since the periods of volatility in the wake 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 Ethereum upgrades.
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.
Are you ready to find out about the next cryptocurrencies to invest in 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)
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 if we know! However, the following info should help you to decide if investing in Bitcoin Cryptocurrency 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 launch in 2009 — and there’s no sign that its status will change soon. In fact, cryptocurrency predictions suggest that Bitcoin could be set for its strongest year yet.
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.
After its market value took a tumble in March 2020, Bitcoin made a rapid recovery and both its price and market cap have skyrocketed ever since. From lows of $4,721 in late March, when coronavirus restrictions started coming in around the world, the cryptocurrency had reached prices of approximately $9,000 by June and July. At the time of writing in late September 2020, its price is now $10,786.74.
This is a healthy recovery rate, with its price more than doubling in just over six months. While this rate of change isn’t unusual for a cryptocurrency that’s famous for its volatility, it should be encouraging for any Bitcoin investors who were worried by the sudden crash in March.
So what’s next? Some experts believe this recovery is only the beginning. In July, a chart associated with Citibank predicted that the price of Bitcoin could skyrocket to an incredible $120,000 in 2021! This is 6 times its previous highest price, $20,000, which it reached in 2017.
So, is Bitcoin your next cryptocurrency to invest in 2021?
Many experts think Bitcoin could be one of the best cryptocurrency to invest in 2021.
2. Ethereum (ETH)
If Bitcoin is the king of cryptocurrency, then Ethereum could well be the 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 $41,271,483,278.
Despite the uncertainties surrounding the coronavirus pandemic, which shook the performance of almost every crypto in late March, Ethereum has been strong throughout 2020. If you’re looking for top cryptocurrencies to invest in 2021, it should therefore be a serious contender.
In early September, the price of Ethereum hit $480 — its highest price of 2020. There are two key factors behind this surge in value. One is the growth of decentralized 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). In fact, Ethereum has processed $13.5 billion worth of decentralized 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 2020 and will make Ethereum far more efficient. Once it’s able to process more transactions more quickly, we could see its price explode.
3. Litecoin (LTC)
With a price of just $46.82, Litecoin might not be the most bullish crypto on this list. But with a market capitalization of $3,041,812,279 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 8000%.
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. Not only is it a lot faster than Bitcoin, taking just 2 and a half minutes to process a block as opposed to 10 minutes — it’s also unveiled some exciting developments throughout 2020.
The launch of the role-playing game (RPG) LiteBringer, which runs on the Litecoin blockchain, has caused a surge in transactions. According to the Litecoin Foundation, LiteBringer caused the number of transactions to triple in a week, with more than 75% of them now caused by the game. This performance is so encouraging that the platform CoinSwitch has predicted the price of Litecoin could reach $600 in 2021.
Last word, Because of Litecoin close connection to Bitcoin, Investors are very interested in Litcoin, and that is why Litecoin is listed in our top 10 cryptocurrencies to invest in 2021 and for the next cryptocurrency to watch.
4. Bitcoin Cash (BCH)
First launched in 2017, Bitcoin Cash quickly hit the radar of anyone who’s interested in cryptocurrency investing. This peer-to-peer electronic cash system was launched as a scalable branch of the original Bitcoin, after traders raised concerns over Bitcoin’s scalability. It’s now the world’s fifth largest cryptocurrency by market cap, at $4,290,477,304.
Although predictions for the price of Bitcoin Cash vary, the cryptocurrency trading platform StormGain has predicted that it will rise to $500 within the next 5 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)
TRON was founded in 2017, originally on the Ethereum network. It’s now switched to an independent blockchain platform and uses a proof-of-stake algorithm to process transactions. With a current market cap of $1,879,650,945 and a price of $0.026230, why could TRON be one of the top cryptocurrencies to invest in 2021?
As more organizations start to adopt the TRON blockchain platform, the value of TRX will increase. It currently hosts more decentralized apps (dApps) than Ethereum, leading many investors to speculate that TRON has a bright future in 2021. The general consensus is that the price will fluctuate throughout next year, but according to Coinpedia, it could hit highs of $0.4 — making it a strong potential cryptocurrency investment opportunity in 2021.
Tron did have some notable price swings over the past years, but has recently been stabilizing. 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)
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 both the Ripple platform (RippleNet) and its virtual currency (Ripple XRP). XRP is currently the world’s fourth biggest cryptocurrency, with a famously low price of just $0.024. If you’re looking to start investing in top 10 cryptocurrencies in 2021 without having to spend a lot of money, Ripple could be a great choice for more cautious investors.
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.
Prices above $2 might not last long. 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 in order 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 it’s an all-time high of $3.4 in January 2017. So, Ripple could still be a good option to consider as your next cryptocurrency to invest in 2021.
7. Cardano (ADA)
When Selkis released his predictions for cryptocurrency investing in 2021, he surprised some traders by claiming that Cardano could jump from tenth to fifth place in the list of the world’s biggest cryptocurrencies. The proof-of-stake blockchain platform has a current market cap of $3,234,470,460, but this would have to rise to over $4,000,000,000 to help it secure a place in the top 5.
Is this possible? According to many predictions, it could well be. Market capitalization is dependent on price, and the price of Cardano could potentially exceed $1.50 by the end of 2021. This is a huge increase from its current price of just $0.103961.
One of the key factors behind Cardano’s growth is the release of Hydra — a layer 2 scalability solution which 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)
Tezos is currently in the top 20 biggest cryptocurrencies in the world — but its performance across 2021 could potentially see it move further up the list. According to TradingBeasts, the blockchain network (which opened via a record-breaking ICO in 2017) is set for a period of slow but steady growth, increasing from $2.15161 at the end of November 2020 to $2.21197 at the end of April 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 tokenized 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)
With a market cap of $797,046,120, the open-source ledger and cryptocurrency IOTA is designed to process transactions between devices in the Internet of Things (IoT) network. It’s partnered with organizations in the automobile, manufacturing, and insurance industries — meaning it’s well-placed to capitalize 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 $0.286756. Even if this projection is optimistic, we’re unlikely to see prices fall, with a safe estimate perhaps hovering around $4.
Because the IoT is also predicted to grow throughout 2021, IOTA is a strong contender for anyone who’s looking to start investing in top 10 cryptocurrencies next year.
10. Zcash (ZEC)
Based on Bitcoin’s codebase, the cryptocurrency Zcash (which was 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 $68.37 and its market cap is $694,132, 501 at the time of writing. According to long forecasts, 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.
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 the periods of high growth, could be a smart strategy. Don’t forget — when it comes to successful cryptocurrency investing, timing is everything.
What Are The Best Cryptocurrency Trading Strategies 2021?
If you want to discover the top 10 cryptocurrencies to invest in 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.
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 1 year and 2 years. However, some traders choose to hold their investments for over a decade. 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 which you truly believe in. As an example, let’s say you think the best cryptocurrency for 2021 will be Ripple XRP. 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 Ripple will become more valuable in the long run. Strong cryptos will be able to weather short-term fluctuations without abandoning their general upward trajectory. 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 which 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, 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 will 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 recognized, which just 22% of respondents had heard of, was Facebook’s Libra.
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 ones which 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 minimize the risk). However, if you’re simply looking to take advantage of quick-fire fluctuations, it could be a smart short-term investment strategy.
New cryptocurrencies such as NEO, Stellar, and IOTA (which you can read about in our list of top 10 cryptocurrencies to invest in 2021 above) could all be strong candidates for this kind of investment strategy. This is because they aren’t yet major names, but still rank reasonably well when it comes to the biggest and best cryptocurrencies in the world (all of them come in under the top 30 according to CoinMarketCap.com).
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.
What’s Next For The Cryptocurrency Market 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 more than 6,000 different cryptocurrencies with a combined market cap of over $450 billion. With 78% of UK respondents telling the FCA that they had heard of 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 5% 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 making the prediction 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 4000%!
- The cryptocurrency market is recovering well after the confidence knock caused by COVID-19
- 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
- The growth of decentralized 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 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
- 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 more risky than long-term strategies and require you to monitor the market constantly
- Facebook’s Libra is the second most widely recognized cryptocurrency in the UK — despite the fact it hasn’t actually been launched yet
- If 2021 is to be the year of crypto, it has 2017 (the industry’s record year) to beat
Want To Start Investing In Top 10 Cryptocurrencies?
Now you know what the top cryptocurrencies to invest in 2021 are, 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 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.
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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.
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 as we head towards 2021.
Best Cryptocurrencies In 2021 — FAQs
Is cryptocurrency a good investment 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 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. 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?
Litecoin is currently one of the fastest-growing cryptocurrencies, thanks in part to the release of LiteBringer. This is why some traders expect it to surpass its record level of growth next year.
What’s next for Bitcoin? Will Bitcoin crash again?
There’s good news for anyone who was alarmed by Bitcoin’s mighty crash back in March. As this was a result of uncertainty caused by the coronavirus pandemic, 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.
What is the best cryptocurrency?
Bitcoin consistently tops lists of the best and most successful cryptocurrencies. 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 with the intention of profiting 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.
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Which cryptocurrency would you invest in 2021? Let us know in the comments below.
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.