Cryptocurrency, which first came into existence in 2009, has only recently gained the attention of the masses; some of it owing to the huge boost in the value of Bitcoin within a year and the rest, due to Elon Musk's stirring tweets. While people have come to realize the potential of crypto and the possibility of it becoming an asset class across the globe soon, the primary question that all newbies still find themselves asking is - ‘What crypto to buy and invest in?’
With more than 9,000 cryptocurrencies in circulation at present, the question only gets trickier to answer. If you are a beginner crypto investor and have found yourself wondering what crypto to buy in 2021, we are here to help solve the riddle for you. Sit back and let's dive into the world of crypto and learn all that there is to know about the best investable cryptos!
The Concept Of Crypto Altcoins
If you are hoping to become a crypto investor/ trader you must first learn about some basic, frequently used terms in the crypto universe and one such popular term is 'altcoin.' So, what is an altcoin? To put it simply, any cryptocurrency that is not Bitcoin is an altcoin. Short for 'alternative coin,' an altcoin is every cryptocurrency apart from Bitcoin. This also implies that if you are to invest in cryptocurrency except for Bitcoin, you will be investing in altcoins.
So, What Altcoins Are Dangerous To Invest In?
It is generally assumed that altcoins are risky to invest in, given the existence of thousands of altcoins in the crypto world. While altcoins may be riskier than Bitcoin itself, not all altcoins are the same.
It must be noted that owing to the volatility and the constantly changing dynamics of the crypto world, an altcoin that may be booming today might sink in value tomorrow. Which altcoin to invest in and which to not is a decision that the investor needs to take on their own with due diligence and self-education.
Cryptocurrency Investment Options in 2021
If one was to go purely by the most obvious answer and recommendation followed by everyone in the crypto universe, Bitcoin, Ethereum, Dogecoin, Cardano, and Ripple are the most popular cryptocurrencies to invest in. However, as a crypto investor or trader, the goal must not be to only go by popular opinion. You must aim to educate yourself to come to a relevant investment decision based on your investment goals, the level of experience, and the personal goal (investment versus trading).
On that note, here we have a list of the top 10 cryptocurrencies with neutral and factual opinions about each to let you decide what crypto to buy for yourself. These ten have been chosen purely based on their market capitalization and value as of May 2021. Let's get started, shall we!?
What Crypto To Buy: The Top 10 Cryptocurrencies Of 2021
1. Bitcoin (BTC)
Bitcoin, also known as the ultimate cryptocurrency or the 'king' of all cryptocurrencies, is hence the most obvious crypto recommendation to invest in. It is widely believed that a future in crypto exists only as long as Bitcoin exists and if BTC were to die, the crypto world would undoubtedly come crashing down in no time.
Bitcoin, as the first cryptocurrency to ever exist, was introduced to become a global, peer-to-peer, digital cash form, absolutely detached and free from any form of regulation, thus fully decentralized. All cryptocurrencies that followed have tried to replicate or adapt the same idea. Bitcoin, the currency that is already being accepted as an official mode of payment in some parts of the world, is only forecasted to boom in the coming years given the demand and mass adoption. Bitcoin’s price is also expected to rise substantially as there exists a market cap of 21 million coins on BTC.
Offering the highest liquidity and the most stability in the crypto market, Bitcoin will always be the first and the most obvious answer you'd get when wondering what crypto to buy in 2021.
How much will Bitcoin be at the end of 2021?
1 single Bitcoin is expected to touch $100,000 by the end of 2021!
2. Ethereum (ETH)
Ethereum, after Bitcoin, is supposed to be the safest crypto or the most reliable altcoin to invest in owing to the following factors:
- It was the first major coin to introduce smart contracts which allowed developers to launch desktop & mobile decentralized applications (dApps) on the back of blockchain technology
- It is the second most liquid cryptocurrency which makes it easy to sell for instant cash
- It has already established for itself a loyal team and community
The above factors are assumed to not only boost Ethereum's value in 2021 alone but also, in the long-term future of crypto. Besides, Ethereum tokens are also expected to give competition to Bitcoin or Litecoin resulting in lesser scale issues and lesser chances of becoming a ‘closed economy.’ This is because the Ether token fuels the dApp ecosystem and millions of developers/ developing companies will need to back it for their interest.
How much will Ethereum be at the end of 2021?
As per the Economy Forecast Agency, Ethereum is supposed to rise to a range of $12,357 and $15,337 by December 2021.
3. Dogecoin (DOGE)
The coin that came into existence as a meme coin and was joked about for the longest time has now become a hot-favorite altcoin of the masses, partially thanks to its Godfather Elon Musk and the rest to the Redditors who have been pumping its price like there's no tomorrow.
Supported by the Reddit community and suspected to be accepted by Tesla as an official mode of payment, Dogecoin only recently had a senior Goldman Sachs employee make millions on it.
Dogecoin, it must be noted, was widely circulated as a mode of 'tipping' among Redditors to people who supplied funny or informational content on the community as they wanted to prevent the Wall Street hedge funds from short-selling Dogecoin.
How much will Dogecoin be at the end of 2021?
According to the precision of DigitalCoin, Dogecoin could reach $1 by December 2021, reflecting a 59.94% increase in its value.
4. Cardano (ADA)
Cardano, one of the other strongest altcoins sworn by most as a long-term investment coin, came into existence back in 2015. It is supposed to be a coin of reliability owing to its Ouroboros blockchain, which is two blockchains that work in tandem with each other, thereby ensuring scalability and speed. It must be noted here that Cardano's has one blockchain that deals with general, ordinary transactions, while the other handles smart contracts. The idea of two blockchains ensures that two types of transactions do not slow each other down and instead, complement each other.
Moreover, Cardano is a third-generation cryptocurrency that mirrors most of what Ethereum already does and in fact, going a step further by using a “Proof of Stake” algorithm. Cardano also uses epochs (time slots) where transaction blocks have to be created within a certain time frame by ‘slot leaders’ who are voted for by stakeholders.
How much will Cardano be at the end of 2021?
Also popularly known as Japanese Etheruem, given the huge number of Cardano holders in Japan (nearly 95% of all Cardano holders), Cardano, according to CoinPedia, could reach as high as $10 by the end of 2021.
5. Ripple (XRP)
Rated as number 7 in market capitalization, the concept and ultimate goal of Ripple is quite different from all other coins which make it a unique and subsequently valuable coin. It is essentially a coin that caters more to large institutions than to individual users. As a venture-backed startup, Ripple offers financial settlement services to banks, allowing them to make direct and instant transactions across national borders.
Ripple has already partnered with multiple global banks, including the Bank of America. The SEC (U.S. Securities and Exchange Commission) believes that Ripple should be classified as a security and hence, one can expect a boom in its value soon. Additionally, it has even been formally assessed by the Financial Crimes Enforcement Network (FinCEN) as a virtual currency.
How much will Ripple be at the end of 2021?
As per the predictions of City Telegraph, Ripple can go up to about $2.5 per coin in 2021.
6. Binance Coin (BNB)
The Binance Coin was mined by Binance, the company that also has the world's most popular crypto trading app by the same name: Binance. It is known to be backed by a solid business history and operates on the concept or the idea of making this altcoin a ‘utility token’. It is widely believed to become the next big coin owing to its utility and demand on the Binance exchange app that provides a discount to traders who use it to buy other cryptocurrencies.
One of the most volatile yet liquid coins in circulation right now, Binance Coin has not only multiplied in the past year alone, but the volume also shows consistent future growth making it one of the best cryptocurrencies to buy in popular opinion.
How much will Binance Coin be at the end of 2021?
As per The Economy Forecast Agency, the Binance coin is supposed to exhibit bullish growth and would cap between $500 and $800 by December 2021.
7. Polkadot (DOT)
One of the newest coins in the market launched only in August 2020, Polkadot has already made it to the top ten list on CoinMarketCap, making it one of the most viable coins for the near future as per most crypto investors.
Polkadot has gained popularity primarily for its unique ultimate goal: to facilitate ‘cross-chain transfer, enabling a variety of different assets that can be shared amongst blockchains and not limited only to cryptocurrency. Polkadot works on the idea of making all cryptocurrencies work with each other instead of against one another and hence its popularity even in such a short period. A lot of people may still be suspicious owing to its youth but if looked at theoretically, Polkadot seems to be doing everything right on point.
How much will Polkadot be at the end of 2021?
According to Sahana Vibhute of CoinPedia, Polkadot could reach an impressive $160 by the end of 2021!
8. Chainlink (LINK)
Chainlink, it is only safe to say, is one of the most disputed yet one of the top decentralized finance (DeFi) coins in the market today, let us tell you why. LINK runs on ‘oracles’ to connect blockchains with the outside world, each oracle essentially being a source of information. Once you enable a blockchain to use an oracle, smart contracts can automatically react to events happening outside the blockchain.
Having said that, it must be noted that Chainlink has still managed to establish partnerships with Everipedia and The Associated Press in October 2020.
How much will Chainlink be at the end of 2021?
As per DigitalCoin, Chainlink is predicted to touch $91.39 by December 2021.
9. Bitcoin Cash (BCH)
Bitcoin cash, supposedly found by Roger Ver (Bitcoin Jesus), was introduced for the fact that the original Bitcoin changed far too much from what it was intended to be, and hence, there had to be an alternative. The BCH team is primarily driven to implement smart contracts, which many believe is a huge contraction.
As for the BCH supporters, they also particularly point to the fact that Bitcoin Cash is not only cheaper to invest in but also has a very low transactional fee, making it a crowd favorite.
How much will Bitcoin Cash be at the end of 2021?
Though BCH came into existence just in 2017, it has already made quite a name for itself as per the predictions of DigitalCoin. Therefore, it may reach $2,317.46 by the end of 2021 or by January 2022.
10. Uniswap (UNI)
Speaking of top cryptocurrencies, the last name we have on the list is UNI. This particular coin that was in the news even before it became tradeable in 2020, operates on the Ethereum network. As a decentralized exchange (or DEX), Uniswap essentially is used to trade cryptocurrencies and other tokens and hence, it will be no shocker if DEXs completely overhaul how trading traditionally works. By cutting out the middleman, the trade becomes easier and cheaper as the only involved parties are the buyer and seller.
It may also be noted that Uniswap is backed by Andreessen Horowitz, a venture capital firm that already holds quite some high investment stakes in Twitter, Coinbase, Ripple, Lyft, and Oculus VR.
How much will Uniswap be at the end of 2021?
Uniswap, despite being quite young in the market, as per Coin Price, is expected to achieve a 117% increase by the end of 2021 and reach $83.85.
Final Thoughts: Crypto Security
If you are reading this list of the best top cryptocurrencies to buy in 2021, you are likely new to the crypto world, and hence, let us give you our two cents about crypto security. Most crypto traders tend to ignore security which not only crumbles their investment but also takes away their interest and faith in crypto at all. If you are looking to invest in crypto, we highly recommend taking crypto protection seriously by reinforcing your security.
Your crypto can be secured by following some very simple practices as:
- Make sure you enable 2FA (two-factor authentication)
- Never leave your coins in an exchange
- Invest in a hardware wallet
- Continuously strive to educate yourself to avoid falling prey to crypto scams
After all, crypto is indeed a risky and volatile class of assets to invest in but if done smartly and from a knowledgeable position, it is also a class of digital assets that could make you a millionaire one day!