Ever wonder, what are the Best Cryptocurrencies to Invest in 2021? Cryptocurrency is regaining popularity as interest in it increases. The term “crypto” in cryptocurrencies refers to the complex cryptography that enables the development and processing of digital currencies and their transactions through decentralized systems.
Why invest in cryptocurrency?
Apple, Google, Tesla, Samsung, Facebook, PayPal, and Deutsche Bank are only a few well-known companies that have recently included cryptocurrencies in their long-term strategic plans. So, it is the best time to know the best Cryptocurrencies to Invest in 2021. One method is to look at a company’s market capitalization, which is the total monetary worth of its stock. In this aspect, it is difficult to go past Bitcoin and Ethereum, which offer significant advantages over their respective competitors.
This list aims to introduce you to the top ten best Cryptocurrencies to Invest in 2021. The currencies have experienced significant growth in the past. And, it will continue to be in the mainstream, especially for their pricing graphs or R&D.
Here are the top best Cryptocurrencies to Invest in 2021.
1. Bitcoin- BTC
Bitcoin (Bitcoin) is a cryptocurrency, created in 2008 by an anonymous individual or group of people who went by the name Satoshi Nakamoto. It is a decentralized digital currency that can be sent from user to user on the peer-to-peer bitcoin network without the use of intermediaries. It has no central bank or single administrator. Network nodes use cryptography to verify transactions, which then registered in a public distributed ledger called a blockchain.
If its price rises or falls, there is no denying that bitcoin will continue to dominate the cryptocurrency sector. Traders will benefit from high liquidity regardless of market stability as long as it continues to exist. Although bitcoin is unpredictable, it has a steady upward trend.
With a market capitalization of $1.01 trillion, BTC, as it is known by its market ticker, is the most popular cryptocurrency. Developed as a means of facilitating decentralized transactions as well as a store of value.
2. Ethereum- ETH
It is also a decentralized software platform that allows Smart Contracts and Decentralized Applications (DApps) to be designed and run without the need for third-party downtime, theft, control, or intervention. Ethereum is a also permissionless, non-hierarchical network of computers (nodes) that generate and achieve consensus on an ever-growing sequence of “blocks,” or batches of transactions referred to as the blockchain.
The platform’s native cryptocurrency is Ether (ETH). After Bitcoin, it is the second-largest cryptocurrency in terms of market capitalization. Vitalik Buterin, a programmer, proposed Ethereum in 2013. The network went live on July 30, 2015, with an initial supply of 72 million coins, after crowdfunded in 2014. Ethereum is used for decentralized finance, the production and exchange of non-fungible tokens (NFTs), and many Initial Coin Offerings (ICOs).
3. Tether- USDT
Tether, previously known as Realcoin, launched in 2014 and is one of the first cryptocurrencies to be pegged to the US dollar. It is a blockchain-based cryptocurrency whose crypto coins are backed by an equal sum of conventional fiat currencies kept in a specified bank account, such as the dollar, euro, or Japanese yen. The Tether is a stable coin, a form of cryptocurrency that aims to hold cryptocurrency prices stable, as opposed to the large fluctuations seen in the prices of other common cryptocurrencies including Bitcoin and Ethereum. Tether was the third-largest cryptocurrency by market capitalization in January 2021, with a total market capitalization of $24.4 billion and a per token value of $1.00.
4. Cardano- ADA
Cardano is a cryptocurrency network and open source project to create a public blockchain platform for smart contracts. Ada is the internal cryptocurrency of Cardano. Charles Hoskinson, a co-founder of Ethereum and BitShares, started developing the platform in 2015 and released it in 2017.
Charles Hoskinson, one of Ethereum’s five original founding members, was a co-founder of the project. After some disagreements with Ethereum’s course, he left and later assisted in the development of Cardano.
5. Polkadot (DOT)
Polkadot is a one-of-a-kind proof-of-stake cryptocurrency that aims to provide blockchain interoperability. Its protocol links permission and permissionless blockchains, as well as oracles, allowing systems to interact under one roof. Created by Gavin Wood, Thiel Fellow Robert Habermeier, and Peter Czaban. Gavin Wood is a co-founder of the Ethereum Project and was previously the Chief Technology Officer. Via the Polkadot relay chain, Polkadot also enables an internet where independent blockchain can share information and transactions in a trustless manner. Moreover, Polkadot aims to make creating and connecting decentralized apps, utilities, and organizations easier.
6. Ripple- XRP
It is also a cryptocurrency and a digital payment network for financial transactions that was first released in 2012. Ripple Labs created XRP as a payment token, used on its decentralized payment system. XRP is used with a network of validation nodes rather than a blockchain, as the company started with a blockchain-based system.
7. Uniswap- UNI
Uniswap is also a cryptocurrency exchange protocol that operates on a decentralized basis. The name of the company that created the Uniswap protocol is also Uniswap. Through the use of smart contracts, the protocol allows for automated transactions between cryptocurrency tokens on the Ethereum blockchain.
8. Dogecoin- DOGE
Dogecoin is a cryptocurrency, founded as a joke by software programmers Billy Markus and Jackson Palmer, who wanted to make fun of the rampant cryptocurrency speculation of the time. On May 9, 2021, SpaceX announced a Dogecoin-funded rideshare journey to the Moon, making it the first cryptocurrency-funded space trip.
9. Binance Coin: BNB
Binance Coin (BNB) is an Ethereum-based ERC20 token, launched by the prominent cryptocurrency exchange Binance. You can pay a commission for transactions on the exchange using this coin. With a total quantity of 200 million tokens, the token was created. Binance intends to utilize 20% of profits each quarter to buy back and burn BNB until 50% of the total BNB supply (100 million) burnt.
10. Bitcoin Cash- BCH
Bitcoin Cash is a cryptocurrency, created in 2017 as a fork of Bitcoin. The goal of Bitcoin Cash’s creation was to allow for a larger block size than Bitcoin, allowing for more transactions to be stored in a single block. Despite their differences, Bitcoin Cash and Bitcoin share some technical similarities, including the use of the same consensus mechanism and a supply limit of 21 million coins.
Given the popularity of cryptocurrencies, investing in them needs severe caution. Before investing in a cryptocurrency, investors must carefully assess its potential prospects. I hope, this list of best Cryptocurrencies to Invest in 2021 will help you to make an informed choice.