After a flurry of bullish activity for the first half of 2021, the cryptocurrency market has turned bearish. Look at any crypto chart right now, and you see indecision and uncertainty. That said, a few interesting setups are emerging. But what is the most promising cryptocurrency for 2021?
Over 10,000 listed cryptocurrencies exist, ranging from Bitcoin at the top, priced around $30k, to coins at the bottom priced way below a cent.
Is Bitcoin a good investment for 2021?
Bitcoin is a high-ticket price for anyone other than the wealthy investor. But, buying cheap cryptos isn't always a viable investment decision either. So which cryptocurrency has the best future? And how do you choose the right cryptocurrency to invest in?
Any coin listed in the top ten listed cryptocurrencies is worthy of a look.
The top 10 list of the most valuable crypto assets are the following:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- Cardano (ADA)
- USD Coin (USDC)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Binance USD (BUSD)
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in July 2021 most crypto assets have dropped 50% from the highs in May. Of course, a rapid bull to bear market shift is not unusual for cryptocurrencies. We appreciate that cryptocurrencies are volatile and unpredictable.
So, what's the best cryptocurrency to buy in 2021?
Experts choice today for the best cryptocurrency to buy in 2021 is Cardano. We will explain in this article why they think Cardano is the best crypto asset to consider for 2021 and beyond.
Cardano is the crypto to watch, and we believe Cardano has a bright future.
Cardano ticks every box on our list for what to look for when investing in cryptos. We will discuss technical analysis for Cardano and document our research by assessing the daily chart for Cardano. You can learn what makes Cardano a good investment and how to buy Cardano. And, as a bonus, you can stake Cardano for ADA token rewards.
We'll take a brief look at the possibility that Cardano could overtake Ethereum by market capitalization. Is Cardano better than Ethereum? It may seem a crazy question considering that the price of Ethereum is around $2,000 and Cardono price is hovering around $1.20. But, it's not all about the price of a crypto that makes it a viable investment.
What makes a crypto good for investment?
Find out more later in the article.
- How to Choose a Cryptocurrency to Invest in
- Technical Analysis for Cardano
- Is Cardano Better than Ethereum?
- Recap of What's the Best Cryptocurrency to Buy in 2021
Charles Hoskinson, ex-co-founder of Ethereum, started developing the Cardano platform in 2015. Launched in 2017, the price of Cardano began at $0.02. It rose to a high of $0.10 in 2019, dropping back during a bearish crypto period, then made small incremental increases.
In March 2020, Cardano (ADA) dropped to $0.25. Several countries were contemplating the effects of the forthcoming lockdown due to the Covid-19 pandemic. All financial markets went into an immediate tailspin, and cryptos were no exception. But, in the crypto bull run in May 2021, Cardano (ADA) price rose to $2.47.
Many factors determine the investment potential for cryptocurrencies. Small investors rarely know how to choose a cryptocurrency for investment. So, let's take a look at what makes a cryptocurrency suitable for investing.
How to Choose a Cryptocurrency to Invest in
Not all cryptos are created equal. First-generation cryptos like Bitcoin lag in technology and use out-of-date, expensive and energy-intensive mining proof of work (PoW) protocols.
You want to make a profit from your cryptos, so it's essential to avoid random purchases. If you plan to invest in cryptocurrencies, there are several factors to be considered.
1. Is the technology scalable?
First-generation cryptos all employed proof of work (PoW) protocols. As explained earlier, this is ponderously slow, expensive and not environmentally friendly.
With increasing government focus on global warming, it's unlikely that PoW can continue long-term. Third-generation cryptos latched on to faster, more economical proof of stake (PoS) mining protocols. Many new cryptos emerged with the learning from first-generation cryptos mistakes.
Currently, Ethereum is upgrading to Ethereum 2.0, so they can switch from PoW to PoS and enable smart contract technology. The first component began in December 2020 and expects to complete in 2022. A time-consuming and costly rollout, which won't be necessary for the next generation of cryptos.
2. Fundamental analysis
Who are the founders, and what is their vision for their cryptocurrency? Do they have prior experience in a crypto environment? That can be a significant factor in developing crypto technology and scalability.
3. Technical analysis
what is happening on the chart and with cryptos in general. Is there a bearish or bullish bias? Is the crypto at a level of support or resistance or forming an identifiable pattern on the chart?
Assessing technical analysis can help you avoid paying too much for a cryptocurrency. We take a look at technical analysis for Cardano later in the article
4. Is there a strong community?
The crypto market, as are all financial markets, is sentiment-driven. If there is strong belief and support for a cryptocurrency, there are greater expectations for growth.
5. Technology and utility
How advanced is the technology, and is the utility scalable? Can other blockchains piggyback on the platform? The latter is of great value for the growth potential of a cryptocurrency.
6. What is the company vision?
is the company focused on short-term goals, or are they visioning ten years into the future? Short-term thinking delays growth because there cannot be foresight for potential obstacles. A future-based, solution-focused vision can help anticipate issues.
Just because the crypto price is low or reduced doesn't mean it is time to buy crypto.
Consider the above factors before buying a cryptocurrency. Running these crypto checks may seem time-consuming, but it may save you money from buying useless cryptos and help you make money from investing in cryptos with growth potential.
Technical Analysis for Cardano
The above image is ADA/USD daily chart
At the bottom left, in September 2020, ADA started a gradual ascent.
In November, the price sprang up, then retested the trendline in December, then off it went. A resistance zone at $1.45 formed from February 2021 to April 2021, when the price broke through and surged to $2.47.
Today, July 2021, the price of ADA is $1.04. It fell beneath the resistance area, having retested $1.45 at the beginning of July. The possibility is that the price may now be forming a descending channel, as shown on the chart.
Where the channel crosses with the ascending trendline, the price area is around $0.50.
Could the price of Cardano drop to $0.50 or below?
There are a few potential scenarios for Cardano's next move:
- The price breaks out of the descending channel and breaks resistance at $1.45 before the price goes higher
- The price drops within the descending channel and breaks out above the channel when it hits the ascending trendline.
- The price breaks through the ascending trendline, falls beneath it, retests and continues down
No. There is too much uncertainty. If you want to buy Cardano, wait until something definite happens that gives you a signal to buy Cardano. Wait for a channel break or a trendline break and look for a retest.
If the price of Cardano goes up again, be aware of the four times tested resistance zone at $1.45.
Check Out: What Will Cardano ADA Be Worth in 10 Years?
Is Cardano Better than Ethereum?
The Cardano network set out to rectify many of the limitations and shortcomings of the Ethereum network.
Charles Hoskinson was a co-founder for Ethereum and the founder for Cardano. It makes logical sense that Charles Hoskinson would improve on what he learned from the development of the Ethereum network.
Throughout the article, we have discussed scalability. The Ethereum blockchain can support 15 transactions per second (tps), which will increase to 100,000 tps after the Ethereum 2.0 upgrade completes.
Cardano currently supports 257 transactions per second, but compared with mainstream payment processors such as VISA (30,000 tps), Cardano is still lagging. However, the Cardano team released a paper indicating a layer two scaling solution (HYDRA), enabling 1,000,000 tps.
If Cardano transactions per second can out-perform VISA and leave Ethereum's 100,000 tps standing, the potential for Cardano is vast.
Ethereum is still on early PoW consensus protocols for network validation.
The Ethereum 2.0 migrates to PoS consensus, which removes the requirement for Ethereum miners. Right now, Ethereum still relies on miners for validating blocks of transactions to secure the Ethereum network.
You can stake Cardano today and earn rewards, and you have full access to your Cardano (ADA). If you stake Ethereum, you cannot access your ETH or ETH reward tokens until Ethereum 2.0 completes.
Cardano uses a consensus mechanism called Ouroboros, which is a chain-based PoS protocol for super-fast transactions. Cardano is not reliant on miners to secure the network. The proof of stake networks are validated by regular users staking Cardano (ADA) in their network wallets
Cardano improved the Ethereum Networks development process by creating a full-stack programming environment on Haskell (the market-leading functional programming environment).
As the #2 listed crypto, Ethereum dominates the crypto sector, but perhaps many Ethereum investors don't yet realise or understand the potential for Cardano.
Cardano is developing a thriving community, and Ethereum has a vast community of loyal followers that believe in Ethereum 2.0.
Ethereum will likely remain a leading force in the crypto market, but as Cardano rapidly expands, it could give Ethereum a run for the money.
Why should you buy Cardano instead of Ethereum? Well, that's not what we are saying. Ethereum is listed #2 for a good reason. But, if you are a small crypto investor, it's the difference of $1,800 for Ethereum and just over a dollar for Cardano.
If Cardano achieves 1,000,000 tps with the Hydra upgrade, they exceed VISA tps. The Ethereum 2.0 upgrade still only manages 100,000 tps. Out-performing mainstream payment providers, such as ViSA, would be a momentous achievement and would undoubtedly encourage more support from major corporations.
That has to affect the price of Cardano.
Read Also: Ethereum vs Cardano
Recap of What's the Best Cryptocurrency to Buy in 2021
When you are considering investing in cryptocurrencies, there are at least six factors to consider:
- Is the technology scalable?
- Fundamental analysis
- Technical analysis
- Is there a strong community?
- Technology and utility
- What is the company vision?
There are other factors, but the above six are the main criteria for choosing crypto for successful investment.
We chose Cardano as the best cryptocurrency to buy in 2021. You can buy Cardono, and you can stake Cardono, earning around 5% APY in ADA rewards.
Cardano is proof of stake (PoS) consensus with infinite scalability. Many crypto industry experts predict that Cardano could overtake Ethereum as the #2 listed cryptocurrency. Indeed, Cardano is now the #5 listed cryptocurrency by market cap.
The current price of crypto does not measure the success of a coin. So even though, the price of Cardano dropped 50% over the last few weeks doesn't detract from the fact that Cardano has a bright future.
Is now a good time to buy Cardano?
If you want to buy Cardano today, consider the current market position by checking the technical analysis on the charts. Right now, Cardano is in a descending channel.
Don't Miss: Will Cardano Make Me Rich in 10 Years?
There are two options for buying Cardano:
- You buy at today's price and, if the price of Cardano falls, add a little more Cardano to your portfolio
- Wait until there is direct activity on the charts for Cardano. Potentially, the price could drop as low as $0.50 if it fell to the ascending trendline.
Of the two options for buying Cardano, the second option is the lowest risk. Learning to be patient is one of the biggest attributes an investor can develop and, ultimately, will make you a more profitable cryptocurrency investor.
The masses of uneducated crypto investors suffer from FOMO. They worry that they will miss out if the price of Cardano rises. But, if you believe the price of Cardano can go lower in this bearish market, you will happily wait for a better price to buy Cardano.
Please note that the above information is not providing advice on tax, investment, or financial services. We provide the above information without consideration for risk tolerance and a specific investor's financial circumstances.
Trading or investing in cryptocurrencies may not be suitable for all investors. It does involve risk and the possibility of a loss of capital.
eToro – Best Platform to Buy Cardano
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Virtual currencies are highly volatile. Your capital is at risk.
Is Cardano the best buy for 2021?
Cardano is the first peer-reviewed crypto. As third-generation crypto, Cardano has a lot to offer. Cardano was the first cryptocurrency to launch with proof of stake (PoS) consensus, starting with energy-efficient mining and scalability and staking reward options.
Although different to Ethereum, Cardano focuses on smart contracts, like Ethereum. It has a clear roadmap for the future and, from the start, always anticipated potential future roadblocks.
Another significant benefit is that you can stake Cardano, earning around 5% on various platforms. So, as you are holding Cardano as an investment, you can earn rewards from doing so.
What is the price prediction for Cardano in 2021?
With the remaining for 2021, industry experts suggest further bearish movement for the crypto market. The price of Cardano could drop to less than a dollar by the end of the year.
Considering the technical analysis section above, if the price heads for the ascending triangle, the price of Cardano could fall as low as $0.50 before the year-end.
Much depends on whether the crypto bear market continues. Cardano has been bullish for most of 2021 and stayed bullish longer than most other cryptos. The price of ADA topped at $2.47 and has lost over 50% of the gains, as have most cryptos.
What price will Cardano be in 2030?
It's not unrealistic to anticipate that Cardano could be as high as $8 by 2030, possibly higher. When the price of Cardono breaks resistance, it will surpass the last high of $2.47.
There are a few scenarios to consider.
Could Cardano overtake Ethereum as the #2 listed coin? If that happened – and it is a big if – the price of Cardano could take off.
Ethereum has a target for 2022 for completion of the Ethereum 2.0 upgrade. But, delays to ETH2 could weaken belief in Ethereum.
Nobody can predict the future of cryptos because, as the world changes, digital assets could become mainstream currency or remain as investment and trading opportunities.
As more blue-chip companies show support for cryptocurrencies, that can only be good for the growth of the top listed cryptocurrencies.
Will Cardano reach $100?
The market cap determines the price of crypto.
Currently, market cap for Cardano is $39,100,349,030.
To reach $100 per coin would require a 3 trillion dollar market cap, which is more than the entire market cap for all cryptocurrencies, and Bitcoin alone has a market cap of $601,318,908,370
Nobody can predict the future of cryptocurrencies. There are so many variables ahead. We can only speculate on crypto prices for the future, and who knows, maybe Cardano could reach $100 sometime in the future.
Cardano capped the supply at 45,000,000,000 ADA. The current circulating supply is just over 32,000,000,000.
Is Cardano better than Dogecoin?
Dogecoin is still a proof of work (PoW) consensus. Although you can earn community rewards with Dogecoin, you cannot stake it until Dogecoin upgrades to proof of stake (PoS) consensus protocols.
We have an article on how to stake Dogecoin, which explains how to earn rewards from Dogecoin. You could add DOGE to your portfolio at today's price of less than $0.17.
At the height of the bull run, DOGE was $0.64
Recently, the Dogecoin co-founder Jackson Palmer publicly slammed the entire crypto industry as managed by powerful and wealthy cartels.
Jackson said about cryptos that it is "right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight and artificially enforced scarcity." (Source: CBS News)
Jackson claimed the crypto industry is a giant scam intent on taking money from uneducated investors.
Unsurprisingly, the price of Dogecoin fell by a massive 40%. When a co-founder negatively rants about the industry, it's not encouraging public confidence in Dogecoin, as shown in the mass sell-off of DOGE.
Can I stake Cardano?
Yes, Cardano is PoS consensus. When you buy Cardano, you can stake Cardano for ADA rewards.
See the next question for details of where to purchase and stake Cardano.
For more information about staking Cardano, you can read our article on how to stake Cardano.
How to buy Cardano
Find a trustworthy platform to buy Cardano, and, at the same time, you can, if you wish, stake Cardano and earn rewards. Below are three recommended platforms for buying and staking Cardano.
- eToro – eToro is an established, trusted broker. It is the leading social trading platform. You can buy Cardano with fiat currency, which isn't always possible with other platforms. eToro pay monthly staking rewards
- Kucoin – an established cryptocurrency exchange where you can buy and stake Cardano
- Binance – an established cryptocurrency