When it comes to investments, there are few topics that people talk about more than cryptocurrencies. There are many best cryptocurrency to invest in 2021 options out there, but which one is best for you? In this blog post, we will discuss the best cryptocurrency to invest in 2021 and how they can help you become a millionaire by 2023!
What is cryptocurrency?
“What is cryptocurrency?” is a common question, so here’s an answer.
Cryptocurrency is what keeps the World Wide Web free from censorship, high transactional costs and government control. It’s hard to understand for those who are not yet part of its rapidly growing community. If you take your time to read this guide you will understand the basics of cryptocurrency and how it may change your life, either by making you a lot of money or by opening new horizons.
If you want to know what is cryptocurrency in simple terms – it’s just electronic money, which isn’t tied to any bank or government and allows users to spend their funds in many locations, like PayPal, but with many advantages over traditional currencies.
What is cryptocurrency’s history?
Before we start explaining what is cryptocurrency let’s see where it all started. At first this digital currency was just a subject of discussion which has been going on since the late 1980s, but only in the last ten years it really started to take off. It all began with an article called “Bitcoin: A Peer-to-Peer Electronic Cash System” written by someone under the pseudonym of Satoshi Nakamoto who is to this date unknown, even hackers couldn’t crack this name.
In 2009 a person or a group of people operating under the same name introduced the first ever cryptocurrency called Bitcoin. In the next couple of years many other cryptocurrencies appeared, but none of them were able to hold their position for too long.
The first big rise in 2013 pushed Bitcoin’s price above $1,000 and since then it never looked back. Cryptocurrency has become stable enough to be used as a method of payment with over 100,000 merchants accepting it as a form of payment.
Bitcoin and other cryptocurrencies (altcoins) were created with the idea to replace traditional currencies and make transactions cheaper, more secure and private. By now many people see value in using cryptocurrencies instead of fiat money for their daily needs. The price is not directly connected to the economy or monetary policy of any country. It’s rather based on supply and demand, which means that it may skyrocket overnight while bad news can drive the price down just as fast.
How to buy a cryptocurrency?
You’ve probably heard of Bitcoin by now. Maybe you’ve even dipped your toe into the great ocean of cryptocurrencies and bought some Ether, Litecoin or Monero. But wait! Don’t go jumping straight in head first with how to buy a cryptocurrency without getting scammed . You need to know about exchanges that work for newbies like us.
What is an exchange?
An exchange is a place to buy or sell cryptocurrencies. You’ll need one in order to start trading Bitcoins, Ethers and Litecoins for example. Since there are certain inconveniences regarding how to buy cryptocurrency on mobile , some institutions allow you to trade your fiat money (EUR, USD etc.) for cryptocurrency. So, basically the cool kids are calling it by its true name: trading.
How to buy a cryptocurrency with fiat money on an exchange?
To do this you’ll need to find an exchange that allows you to use your local currency. There are currently over 150 exchanges that sell cryptocurrencies in one way or another. The most famous exchanges are Coinbase, FTX, Binance, Bittrex, and Kraken. But there are considerably more that you can find here .
Check out more Top best crypto exchange for 2021
A quick tip to avoid scams
If an exchange is new or just doesn’t have the reputation it should have for being trustworthy, don’t buy any cryptocurrency with your fiat money through it without first putting it on the table. Let’s say an exchange doesn’t have a good reputation and you want to buy ETH with USD – do this:
Create new Ether wallet (Mist, Parity or any other). Don’t send your ETH to that address yet! Deposit fiat money into that wallet through your bank account or credit card (in some cases this is instant). You can buy Ether on most exchanges with your credit card, but this comes with high fees. Withdraw the Ether to that wallet. Once you’ve withdrawn your cryptocurrency, send it to an exchange of choice. Now you can sell the ETH for fiat money (USD, EUR etc.) and withdraw it to your bank account or credit card.
Always remember to do the above steps in this order. Otherwise you might get scammed by an exchange, even one with a good reputation. We recommend using Coinbase if you want to buy Bitcoins (or ETH or LTC) with fiat money because it’s very easy to use and has low fees for credit card transactions (1% fee). To start, go to Coinbase and sign up.
How to buy a cryptocurrency with cryptocurrency on an exchange?
The process is pretty similar, but this time you’ll have to register on a crypto-to-crypto exchange. An example of this would be Binance . It doesn’t deal in fiat money, so you’ll need to send your Bitcoins (or ETH, LTC etc.) from wherever you have them stored. Then follow these steps:
Register on the exchange of your choice by entering your email address and password. You’ll be sent an email with a link to activate your account. Once activated, log in to the exchange. After logging in, click to deposit on the top right corner. A window will pop up with all your wallets (including fiat money). Now send the cryptocurrency you bought earlier to this wallet using the address shown in the popup. It can take a while for your coins to arrive, so keep checking back until it’s done. Once they’re there, find the cryptocurrencies you can buy with them, search for them and click to add to your cart. Now you can check out, choose which cryptocurrency you want to get in exchange for the one you just bought, enter how much coins you want and then complete your order!
Note: some exchanges don’t allow new users to make a deposit on their platform. If this is the case, you’ll have to transfer your purchased Bitcoins from one wallet to another. You can create a new wallet on blockchain.info .
3 easy steps that will save you money when buying cryptocurrencies
Don’t trust anyone who says they’re giving away free cryptocurrency because there’s no such thing as a free lunch. If it’s too good to be true, it probably is. And also remember that people who seem nice and trustworthy can still scam you out of your hard-earned cash. So here are some tips to avoid getting scammed:
Never invest or spend more money than you can afford to lose – especially if there’s a chance it could all go up in smoke.
You can’t believe everything you read on the internet – especially if it seems far-fetched or too good to be true. Check multiple sources to verify anything you’re not 100% sure about.
If something sounds like it’s straight out of a spy movie, there’s probably something fishy going on (someone somewhere is probably trying to scam you).
So there you have it folks! Now you know how to buy cryptocurrency in 3 easy steps. Again, if this is your first time with cryptocurrencies, then I recommend using Coinbase or Coinmama . They’re easy to use and great for buying Bitcoins (or ETH, LTC etc.). If not, then you might consider one of the exchanges mentioned in step 3 on this list. Now get out there and buy some digital gold!
Best cryptocurrency to invest in
1. Bitcoin (BTC)
There is no doubt that bitcoin has the potential to grow exponentially in the next few years. But given its volatility and unpredictability, it is difficult for many investors to invest in bitcoin right now . However, if you are willing to take a risk with bitcoin, there is still plenty of room for growth. Bitcoin has a market capitalization of approximately $70 billion, which is much higher than many other cryptocurrencies.
The latest news on bitcoin suggests that it might be close to bottoming out as some investors are becoming more confident about its performance in the coming months. A good number of financial institutions have been working on some kind of exposure to cryptos. For example, Goldman Sachs is planning to launch a bitcoin derivatives trading product soon.
If you are expecting the price of BTC to go up this year, it might be time to buy some bitcoin right now . The recent fall in its price has created an opportunity for investors who are willing to take a risk with their money. While many pundits are expecting the price of bitcoin to go down even further, it might not be a bad idea for investors with a high risk appetite.
2. Ethereum (ETH)
Ethereum has been referred to as “the next bitcoin” by many people in the past due to its potential applications and the way it is being embraced by major corporations all over the world. However, unlike bitcoin, it is easier to predict the price of ETH because its value is closely linked with the number of companies adopting Ethereum as a payment method.
Currently, many large corporations are working to integrate Ethereum within their existing infrastructure. For example, Microsoft has integrated Ethereum into Azure and Amazon Web Services . Other major corporates such as J.P. Morgan , Santander, Toyota, ING and Deloitte are also working to develop Ethereum applications .
All these companies are rapidly increasing the demand for Ethereum to process transactions on their platforms effectively. This will ultimately result in higher ETH prices in the coming years if they successfully adopt it in their operations. Not only that but Ethereum’s community is also growing with an increasing number of developers working on applications that use Ethereum.
3. Ripple (XRP)
Ripple has been designed to improve the speed at which transactions are processed in the banking industry. While bitcoin has been criticized for slow processing speeds, Ripple can process 1,500 transactions per second . That makes it one of the most attractive cryptocurrencies for investors in the banking industry.
Some banks have already started working on Ripple’s blockchain technology to process their transactions, while others are using Ethereum. However, banks will start adopting Ripple when it becomes clear that it is more stable and scalable than Ethereum . The next few years will be crucial in determining whether Ripple can become the go-to cryptocurrency for the financial industry.
The good news is that Ripple seems to be on its way to becoming one of the most important digital currencies in the future due to its growing number of partnerships with banks. For example, it joined forces with SBI Holdings last year with plans to create a new remittance app using Ripple’s technology. Since then, more than 100 Japanese banks have started working with Ripple to process their transactions.
4. Litecoin (LTC)
The price of LTC has been under pressure lately as the altcoin market struggles to recover from China’s ban on digital currencies . That said, a number of industry experts agree that Litecoin is one of the most promising cryptocurrencies with its price expected to go up significantly in the next five years. For example, Charlie Lee , who founded Litecoin with a number of upgrades over Bitcoin believes that “Litecoin will continue to be one of the best performing cryptocurrencies.”
If you are looking for altcoins with an exciting growth potential, Litecoin stands out as the best option, thanks to its potential for mass adoption by merchants and retailers. Unlike bitcoin, Litecoin can be processed four times faster which is useful for small-time retailers that need quick transactions confirmation.
Litecoin has one of the biggest communities in the cryptocurrency world with a large number of developers working on custom applications that are used by merchants to process their transactions . For example, TenX created a wallet that allows people to spend Litecoin or bitcoin at any store that accepts debit cards.
5. Solana (SOL)
This is a new cryptocurrency that has been designed to process transactions at a faster rate than bitcoin. Solana uses Proof of History (PoH) algorithm, which prevents the network from centralization and other issues found in other blockchain networks. This will ultimately attract more people into using SOL tokens to take advantage of its high transaction speeds.
That’s because SOL can process 6,000 transactions per second which is more than PayPal’s 24,000 TPS. That’s one of the main reasons that it has caught the attention of major financial firms around the world. For example, it has already partnered with IBM to build an application on its blockchain network.
Also, Solana is working on developing a lightning network that will allow people to process micro-transactions on its blockchain . That’s a feature that has been requested by many cryptocurrency users around the world because it would significantly improve the scalability of cryptocurrencies.
6. Axie Infinity Shards (AXS)
If you are looking for a cryptocurrency that focuses on players building their collections, Axie Infinity is your best bet. This Ethereum-based game allows users to buy and sell virtual pet tokens using its own tokens .
Players can use Ether or other cryptocurrencies like bitcoin to purchase different pets known as Axies. Each pet has its unique set of abilities that allows them to battle against other pets. This game has experienced an explosive growth in popularity due to its strong community and continuous development by Axie Infinity .
However, the most impressive feature of this game is that it uses shards which are subcategories that allow players to take part in specific battles. The hiring process is open for gamers who want to participate in these fights while the losers get rejected. This is a unique feature that gives gamers more control over their gameplay, which has helped Axie Infinity become one of the most exciting Ethereum-based games on the market today.
7. Cardano (ADA)
This is one of the most exciting cryptocurrencies because it uses a unique algorithm called Ouroboros. This algorithm has been designed to ensure that anyone can become a stakeholder and receive rewards for validating new blocks on the network .
The process is decentralized and allows people from all parts of the world to create their own nodes and receive ADA tokens as rewards for their participation.
This is one of the reasons that Cardano has become very popular in countries like Japan and South Korea, which are some of the largest cryptocurrency markets in the world. For example, earlier this year South Korean cryptocurrency exchange Bithumb processed more than $500 million worth of ADA transactions .
On top of that, Cardano has one of the best reputations in the cryptocurrency community because of its professional development team. The founder of Cardano, Charles Hoskinson , is one of the most respected developers in the industry and helped Ethereum co-founders create this cryptocurrency .
8. Binance Coin (BNB)
This is one of the best cryptocurrencies to invest in because it has attracted the attention of leading investors like billionaire Peter Thiel. That’s because Binance Coin can be used as a trading token for people who want to take advantage of low fees on this popular cryptocurrency exchange . Also, users can receive discounts when they use their Binance tokens to pay fees for their transactions.
An even more impressive fact is that Binance Coin has become very popular in Japan and South Korea because it can be used on the crypto exchange called Coincheck . That’s the most popular cryptocurrency exchange in these countries because of its strong infrastructure, large customer base, and solid management team.
Anyone who wants to make transactions on the Coincheck network can use Binance Coin, which has played a major role in making this cryptocurrency one of the best investments on the market today.
These are just some of the top cryptocurrencies that you should consider buying because they could generate significant profits for their investors. If you want to find other promising coins like these, be sure to do your research and get help from an experienced professional.
9. Wilder World (WILD)
This is one of the most promising cryptocurrencies on the market today because it has attracted a lot of attention from large investors like Tim Draper and Fidelity. Anyone who invests in this cryptocurrency could see significant returns on their investments because it grew more than 1,000% in less than three months .
Also, Wilder World will become an even better investment because it uses a unique architecture that allows anyone to create decentralized applications . This infrastructure is open-source and could attract more developers who want to use this blockchain to create innovative Dapps.
Another important fact about Wilder World is that its digital asset, WILD tokens, are the native cryptocurrency of the platform. That means they can be used to create market transactions, vote on important decisions that affect the network , and more.
10. Tether (USDT)
Tether is one of the most innovative cryptocurrencies on the market because it has a stable value and can be used as a digital replacement for standard currency. It’s important to note that USDT tokens are 91% backed by fiat money that’s been deposited in commercial banks .
In other words, this cryptocurrency should have a fixed price that investors can rely on when they buy digital assets. As a result, Tether has become one of the best currencies to invest in because it offers stability during periods of volatility .
That’s why USDT tokens are so popular among traders because they can use them as a collateral to create and manage Stop Loss orders . It also means that you could earn profits if you buy and sell this cryptocurrency at the right time.
However, Tether is also controversial because there’s still no proof that its tokens are backed by real money. That’s why many people don’t trust this cryptocurrency and think it should not be used as a digital replacement for fiat currency .
Regardless of controversies surrounding USDT, investors who know how to use this cryptocurrency could benefit significantly. That’s because it can be used as an effective hedge against major problems that affect the market every day . Also, Tether is very liquid and can be bought or sold easily on most exchanges.
11. Dash (DASH)
Dash is an open-source digital currency that’s designed to make transactions easy and efficient. This platform uses a two-tier network architecture, which means it can support thousands of independent miners who provide services to the blockchain .
This infrastructure makes Dash one of the most promising cryptocurrencies on the market today because it has strong security protocols and no risk of centralization (which could slow down its growth). That also means that more developers are likely to join this network in 2018 because they want to create their own Decentralized Apps on Dash’s blockchain.
Also, you should keep in mind that this cryptocurrency claims to offer fast transactions with minimal fees for users . That’s important because many currencies experience long delays when processing payments. But Dash can make transactions in seconds, which is revolutionary for digital currency.
Another important fact about Dash is that it’s the official token of the Alt Thirty Six platform . This system will allow merchants to process payments in any location, which means they could accept Dash coins as a legitimate payment method. They would also be able to convert cryptocurrency into standard money without incurring high fees .
12. USD Coin (USDC)
USCoin is a cryptocurrency that’s pegged to the US dollar. That means its main function is to provide stability and security for traders who use this system to avoid risks associated with volatility .
The coin’s value is maintained at a 1:1 ratio thanks to a reserve fund that ensures every USDC token has the same fiat value as a US dollar. Investors can buy or sell digital assets on most cryptocurrency exchanges, which makes it easy to convert USD Coin into other cryptocurrencies or vice versa.
In other words, this platform could become one of the best options for investors because it offers stability in an unpredictable market . What’s more, it’s likely that more people will start using this blockchain in 2018 , which would further increase demand for USDC tokens.
Also, it’s important to note that this cryptocurrency is developed by the CENTRE Consortium , which includes Circle and Coinbase . The platform’s infrastructure makes it easier for traders to create digital wallets and store their assets securely . This will likely encourage more people to use this system because they can send money without worrying about its safety.
13. Stellar (XLM)
Stellar is an open-source protocol for digital currency that’s designed to make secure payments on a global scale . It has strong scalability thanks to its consensus method, which means the XLM network can support thousands of transactions per second without slowing down or experiencing delays.
This blockchain claims to be able to process cross-border payments in just a few seconds and at a fraction of the cost of most transactions . It uses Lumens as its main cryptocurrency, which can be traded on all major exchanges.
Stellar is supported by the Stellar Development Foundation , an entity that provides financial support to help reduce global poverty . Therefore, more merchants will likely start using this network in 2018 because they want to promote sustainable economic development worldwide.
14. Monero (XMR)
Monero is a secure, private and untraceable digital currency that was created in April 2014. This means it has become very popular among traders who use this platform to make anonymous transactions with complete privacy and security . However, unlike many cryptocurrencies on the market today, its not controlled by any central bank or entity.
In other words, you can use Monero to make secure transactions from your online wallet without worrying about the safety of your personal information . Users can also store this digital currency on hardware wallets, which makes it even more secure.
What’s also important to note is that the price of XMR has risen significantly in 2017 , which means many traders are buying this cryptocurrency. If they do so in 2018 then its value will likely increase exponentially . Also, it’s worth noting that most investors promise not to hoard Monero tokens because they plan to prevent inflation by constantly using their coins/tokens for transactions
15. Tronix (TRX)
Tronix is another decentralized peer-to-peer cryptocurrency that was created in September 2017. This means it’s very new, which is good news for traders because many of them prefer to invest in platforms with a wide user base .
Tronix has become so popular that its current market capitalization is well over $2 billion , which will likely continue to rise as more people start using this network. It has also received support from the Tron Foundation, an entity that focuses on expanding this cryptocurrency’s infrastructure worldwide .
What makes Tronix unique are its features, especially its ability to process transactions quickly and at low costs. Also, if you store your TRX tokens in an online wallet then they won’t be affected by inflation because their total supply will remain constant.
In fact, the number of tokens is expected to rise until it reaches a total supply of 100 billion items . If more people start using this cryptocurrency in 2018 then its value will likely skyrocket.
16. Polkadot (DOT)
Polkadot is a blockchain-based technology that allows different cryptocurrency systems to communicate with each other. It was first proposed by Gavin Wood (one of Ethereum’s co-founders) in 2015, and its expected to be operational sometime in 2018.
This means Polkadot will likely become very popular because its infrastructure allows users to easily switch between different cryptocurrencies . For example: if someone uses Bitcoin as their preferred platform for making transactions then they can instantly switch to Litecoin or any other cryptocurrency.
As more investors start using this network, the price of DOT tokens will definitely increase . What’s also worth noting is that its core feature makes it very secure because it broadcasts information through a wide network of blockchains. Thereby, creating a secure link between each user’s blockchain transactions.
17. Dogecoin (DOGE)
Dogecoin is basically a Litecoin fork that was launched in December 2013. This means it’s one of the oldest cryptocurrencies on the market today, which is actually good news for traders because many of them prefer mature platforms .
What’s also important to note is that this token has low transaction fees , especially when compared to other popular coins/tokens like Bitcoin or Ethereum. However, what makes Dogecoin unique are its features, especially its large supply of tokens. For example: there’s no limit on how many coins can be produced by miners while processing transactions.
Dogecoin has managed to remain relevant up until today mainly because millions of people use this blockchain platform to make transactions online . Also, despite the fact that there are over 100 cryptocurrencies that have emerged since then, its market capitalization is still well into the millions .
18. ChainLink (LINK)
ChainLink is a blockchain-based technology that allows smart contracts to access external data. It was created by Sergey Nazarov and Santhana Krishnan, two highly respected developers in the cryptocurrency world .
However, what makes ChainLink different from other decentralized applications is that it helps smart contracts interact with external systems (such as payment processors). That way, you can easily use this blockchain platform to process transactions . As more investors start using this network then its value will likely increase significantly .
What’s also worth noting about Chainlink is that its one of the few cryptocurrencies on the market today which supports both Bitcoin and Ethereum tokens through their Ethereum Virtual Machine. This means if you invest in LINK tokens in 2018 then you can easily switch between BTC and ETH while processing transactions.
19. Uniswap (UNI)
Uniswap is an automated exchange platform based on Ethereum’s blockchain technology. It was created by the team at Republic Protocol, a peer-to-peer dark pool for cryptocurrency trading .
What makes Uniswap unique is that it allows traders to instantly exchange tokens using smart contracts. This decentralized application also has no fees whatsoever because the people who maintain this network are compensated directly from users’ funds .
As more investors start using this protocol then its value will likely increase significantly in 2018. Also, if you want to access other cryptocurrencies while processing transactions then UNI tokens will be your best choice since they support every token/coin on Ethereum’s blockchain.
20. EOS (EOS)
EOS is a blockchain-based platform that’s designed to run decentralized apps (dapps) and smart contracts. Despite being launched in June 2018, it has quickly become one of the most popular platforms on the market today .
Most people prefer this network because you can easily exchange tokens using its native currency EOS without having to pay exorbitant fees . That’s unlike traditional banking systems where you have to pay high processing fees whenever you want to send or receive money.
However, what makes EOS even more attractive are its features . For instance, there’s no limit on how many transactions it can process per second because it uses parallel processing instead of individual servers like other cryptocurrencies. Also, since it automatically performs security checks before sending transactions then it becomes very difficult for hackers to exploit any vulnerabilities.
While EOS is still in development at the moment, you should definitely consider investing in this token if you want to make instant transactions whenever you want . It also costs nothing when it comes to sending or receiving payments (especially compared to traditional banking services).
This post has highlighted some of the best cryptocurrencies to invest in for 2022. It is not an exhaustive list and there may be better investments than these, but it should provide you with a good starting point when researching your investment options. You can also reach out if you want more information on any of these cryptocurrencies. Remember that investing is risky so do your research before making decisions about what to buy!