Top 10 most promising cryptocurrencies of 2021
Let's try to understand which cryptocurrency to invest in in 2021. To do this, we gathered recommendations from leading analysts and experts who told us which cryptocurrency to invest in.
1. Bitcoin
The very first answer to the question: what cryptocurrency to invest in in 2021, and certainly the first place in our impromptu top is bitcoin. This is a must for the novice or experienced player in the digital currency market. Moreover, there is an assumption that the quantitative easing program leading to dollar depreciation will continue, which will have a positive impact on BTC.
It is no coincidence that leading investment funds are increasing the share of BTC in their holdings. This process cannot be ignored in order not to miss a possible strong growth wave.
2. Ethereum
The second most popular answer to the question of what cryptocurrency to invest in, and the main contender for the main coin of 2021 for private investors.
Analysts predict a long-term upward trend for this coin, primarily related to the transition to the second version of the network (Ethereum 2.0). This promising cryptocurrency heavyweight will have a stacking feature that allows for passive income by simply storing ether in one's wallet.
Investors on the one hand will buy up some coins to provide the necessary "stack", and on the other hand will start to create pools, again pulling the coin from the market space. The less coins, the less speculative component. And this is a direct path to the harmonious growth of investment in this cryptocurrency.
The second point, why, when answering the question of which cryptocurrency to invest in, investors increasingly name ether, is the stable and consistent growth of cryptocurrencies, which also run on the Ethereum blockchain. Another positive trend is the growing popularity of decentralized financial applications (DeFi), which also use ether.
Whereas two years ago, ether was given around $450 per ether, in the middle of last year, the price of the coin was dropping to $320. And if during all that time ether did not try to show growth, now it has taken off like a rocket following its eternal rival - bitcoin - reaching the $1700 mark in February 2021, showing growth of almost 700%.
3. Bitcoin Cash
Another promising altcoin is Bitcoin Cash. This digital asset has an excellent chance of reaching new heights thanks to its acceptance by PayPal. This cryptocurrency is said to be even more suitable for retail transactions due to the fact that it has a larger block size: 8MB compared to BTC's 1MB.
Roger Wehr, one of the masterminds behind this altcoin, believes that BCH could double its value this year.
4. Litecoin
Litecoin is another candidate for an effective and promising altcoin. Investors are often interested in those crypto-assets that have not yet been able to return to their record highs of 2017-2018. LTC remains lucrative for mining farms around the world, and on the back of a rise to $100, it could get new momentum for mining.
Litecoin recorded its all-time high on December 18, 2017 at $360.66, which means that at least double the potential for growth is present.
A number of experts believe that Litecoin has a great future, especially since this crypto-asset has also gained support from PayPal.
5. BINANCE coin
Binance launched its ICO in July 2017. Investors immediately bought the entire quota of coins that hit the exchange during the offering. All in all, the ICO managed to raise over $15 million.
The cryptocurrency itself is issued on the Ethereum blockchain and is developed on the universal protocol ER20. A total of 200 million BNB tokens were issued during the ICO.
Half of this amount "went" to the market. Another 40% was reserved for the needs of the team, and the remaining 10% received the first investors. After being added to the listing, the cryptocurrency was only worth $0.1. But further the rate went up. BNB reached its high of $24.46 on January 12, 2018. Now, after a prolonged rise, the coin has more than tripled its record high, its price has reached $73.
6. EOS
EOS is a platform for developing highly efficient and scalable decentralized applications. EOS network processes about 5,000 transactions per second (for comparison, Ethereum processes 30). Later the developers are going to raise this figure to 1 million transactions.
According to researchers at the China Center for Information Technology Industry Development (CCID), EOS is the most promising altcoin on the market. The center's researchers draw their conclusions based on three subcategories: the effectiveness of the underlying technology, the practical application, and the creativity of the project.
EOS is trading at $3.17 in early February.
7. Dash (DASH)
Cryptotrader Ben Armstrong, known in the industry as BitBoy Crypto, believes that in 2021 the answer to what cryptocurrency to invest in is four letters. It's DASH, one of the forks of bitcoin, a digital payment solution with a private send function - the fastest of all cryptocurrencies.
According to Armstrong, the project's sheer volume and its relatively small number in circulation of 10 million make the coin a solid candidate for a 20-fold rise from its all-time high of $1532.
8. Chainlink (LINK)
Another place in the list of promising cryptocurrency investments rightfully takes Chainlink. It is worth noting that four years ago, during the rapid growth of the market, the coin did not show its potential.
The stellar moment for LINK came in 2020 in the form of an impressive and prolonged rally with the achievement of a price high of $19.85 in August. The coin now trades at $25.
The benefits of the token are that the system has blockchain features and smart contracts, but remains decentralized. Information from external resources is verified for authenticity and validity, and safe and reliable transactions are guaranteed by oracles.
9. TEZOS (XTZ)
Tezos (XTZ) created its own blockchain network for smart contracts. The project seeks to avoid the mistakes of Ethereum and Bitcoin. The main advantages are adaptability, open structure, and the impact of validators on the network. Tezos applications could also include NFT, video games and the film industry.
The token reached its all-time high of $4.44 in August 2020. However, there was a deep correction later, and the asset now trades at $3.17.
10. VeChain (VET)
Ben Armstrong praises the prospects for investing in this cryptocurrency, believing that supply chain tracking will be the most used niche in blockchain in the next year.
According to the expert, when it comes to supply chain tracking, there is no single project capable of being a dominant force like VeChain.
Armstrong believes that a 20-fold increase from the historical high of $0.026 is a conservative target, and that VeChain will be priced at least $2 per coin.
