The cryptocurrency market has been very active since the beginning of 2021.
The cumulative market capitalization of cryptocurrencies grew around 300 percent in 2020
However, investing in cryptocurrency can be a rollercoaster, and it’s not without risk
Among the many cryptocurrencies that are trading in the market. Here is a list of top cryptocurrency to buy in 2021
The king of all cryptocurrencies, Bitcoin, is the first of its kind to have the highest liquidity value. This cryptocurrency aims at becoming a fully decentralized, global, peer-to-peer digital cash with no regulations. Despite the volatile nature of the market, Bitcoin is the most stable one. While the name is synonymous with cryptocurrency, Bitcoin’s popularity, demand, and adoption are expected to grow manyfold in the coming years. The future of that is already being shaped with companies opening to the idea of accepting Bitcoins for payment.
Litecoin comes second on our list because of its market capital and liquidity value. Unlike Bitcoin’s 21 million supply, Litecoin is limited to 84 million coins with a block reward of 12.5 LTC, higher than other cryptos. For miners, mining a Litecoin will be faster than any other cryptocurrency as the average time for a Litecoin is just two minutes. The growing popularity of Litecoins makes this the best of the rest in all the altcoins.
Ethereum was the first cryptocurrency to introduce smart contracts that allow developers to create desktop and mobile decentralized applications powered by blockchain technology. Ethereum has maintained its position in the top cryptocurrencies of all time ever since and has a loyal team of investors who vouch for this cryptocurrency. This means Ethereum has a better chance of remaining stable, after Bitcoins.
This is an affordable cryptocurrency that is becoming a cult favorite at a rapid pace. Since its inception in 2015, it has become a strong player in the market with its Ouroboros blockchain, which means having two blockchains instead of one. Here, one blockchain will manage general ordinary transactions while the other will manage smart contracts. The logic behind this is the ability of Cardano to remain scalable and fast as two types of transactions will not slow it down. Another interesting fact about Cardano is that most of the people who have invested in this cryptocurrency are from Japan. Hence, Cardano is also known as the “Japanese Ethereum” because it uses the Proof of Stake algorithm which Ethereum has been planning to do for a long time now. In February 2021, Cardano almost hit the $30.7 billion market cap.
5. Binance Coin
If you own either Bitcoins or Ethereums and want to diversify your portfolio, look no further than Binance Coin. The parent company, Binance, has a strong business history that has created a useful ‘utility token’. The value of Binance Coin comes from its usefulness and its demand which is for traders to use Binance Coins to buy other cryptocurrencies on Binance Exchange. It is worthy to note that Binance Exchange is one of the world’s fastest-growing cryptocurrency exchanges and with every transaction done on the platform using Binance Coins, it is only becoming stronger.
Ripple gets a mention in this list because its vision is a little different from the rest of the cryptocurrencies on this list. Ripple is a venture-backed startup that is known to offer finance settlement services to banks in a way to facilitate transactions directly and instantly across national borders. Over the years, it has collaborated with large banks globally including the Bank of America. This makes it ideal for institutional investment rather than a personal one.
The fact that Dogecoin still stands strong after not being taken seriously is a statement in itself.
First, Redditors spiked the price to new heights in early 2021 as a way to prevent the speculated short-selling of Dogecoins by many Wall Street hedge funds. And then, Elon Musk called himself the “Dogefather” promoting this cryptocurrency further. While many argue the legitimacy of this coin, Dogecoin continues to have its share of market value. In April 2021, Dogecoin hit its all-time high of $0.2917. After a steady growth further, Elon Musk’s SpaceX has now announced that it accepts Dogecoins as a mode of payment.
Did you know Tron was actually founded on Ethereum in 2017? Now with its own blockchain platform, TRON is an independent cryptocurrency that also uses the Proof of Stake algorithm to process transactions. At present, Tron has a market capitalization of $4,406,488,234 which is expected to increase. Compared to Ethereum, this crypto coin hosts more decentralized apps, which is what is making it increasingly popular.
9. Bitcoin Cash
Speculations around Bitcoin’s scalability gave rise to Bitcoin Cash, a peer-to-peer electronic cash system that is supremely scalable. It has a market cap of $8,993,553,011, one of the biggest out of the lot. With the name Bitcoin attached to it, Bitcoin Cash is one of the most-eyed cryptocurrencies by big-time investors.
Zcash can do what Bitcoin cannot. The blockchain that Bitcoin uses is transparent which makes tracking transactions easier but Zcash only allows transaction tracking if the user wants them to be tracked. This means users have the option to hide their transactions for an added layer of privacy. Currently, Zcash is valued at $2,701,320,183 in the market and the researchers predict that the price will drop to open an investment window. If you want to diversify your portfolio, watch out for this.Source: analyticsinsight.net
There’s no question about it: Cryptocurrencies are here to stay. The question becomes, where is the best place to invest your money in this booming new market?
If you’re strictly looking for a quick return on investment and don’t care much for transacting within cryptocurrency’s network of peers then remember that crypto isn’t like other get-rich schemes – instead think long term!