Cryptocurrency will explode as we head into the second half of 2021. But amongst the over 7000 crypto assets available for purchase, how do you know the best ones to buy? Choosing the right coin to purchase is not easy.
Most of the coins available on popular crypto exchanges have exciting and promising projects, increasing their value with time. But you can’t buy every crypto asset. Despite how promising most cryptocurrencies are, some of them will fail.
But if you invest in the cryptocurrency market at the right time, you can make huge returns on the right coin. Exploring the right time to invest in cryptocurrency is beyond the scope of this article. Instead, we’ll provide a comprehensive breakdown of the top cryptocurrencies to invest in before the end of 2021.
Some decades ago, investments had a different form. Then, it was either you invested in gold, in stocks and bonds. The advent of cryptocurrencies means investing has never been easier.
But, there’s still a need for risk management. Because it’s still a relatively new market, the value of crypto assets can be volatile. Therefore, investing in the crypto must-haves on this page doesn’t guarantee your success as a trader. Expertise in trading also comes into play.
Should I Invest in Bitcoin in 2021?
In April 2021, Bitcoin hit an all-time high, going north of $60,000 in value. It’s the most valuable cryptocurrency and is less prone to volatile changes in price. If you’re looking for a secure store of money, then you should invest in Bitcoin.
Conversely, if the goal is to enjoy exponential returns on your 2021 crypto investments, Bitcoin may not necessarily be the right pick for your portfolio. Instead, you want to look towards investing in altcoins. Every cryptocurrency asset that isn’t Bitcoin is an altcoin.
Many altcoins have a bright future ahead of them from research, and 2021 is the year many cryptocurrencies will explode. In terms of value, for most altcoins, the best is yet to come.
What Cryptocurrency Should I Invest in 2021?
The best crypto asset to invest in is not the most valuable one. As we say in the “cryptosphere”, the best coin to invest in is one that’s about to moon. Using recent market movement and use cases to inform our decision, here’s our list of seven cryptocurrencies set to explode in 2021.
- Dogecoin (DOGE)
When Dogecoin hit an all-time high of $0.4377 on April 16, the crypto world began to pay attention. Dogecoin’s growth has been a testament to the power of the internet, especially with the value of cryptocurrency.
DOGE is a meme coin, which started as a joke. The use-case of the coin is simple. It’s a crypto asset with which internet users can tip each other to discover helpful or funny information. There was no plan for Dogecoin to gain any serious traction. But when Reddit users and big tech CEO Elon Musk came into the scene, the coin’s value took leaps.
Redditors began investing heavily in Dogecoin upon tips that Wall Street Hedge funds will short-sell the coin. Short-selling is a situation where traders predict a stock (or coin) will decline in value, so they sell now to buy back later when the price falls.
With the intervention of Redditors and the subsequent fandom of Elon Musk, Dogecoin’s value now promises a better future. There are speculations that Tesla, Elon Musk’s company, may start to accept Dogecoin as payment. The serious conversations around Dogecoin have set the ground for predictive valuations at $1 (100% increase) by the end of 2021.
If the hype around Dogecoin continues, the cryptocurrency will explode further soon.
- Cardano (ADA)
On every recent list that details the best crypto assets in 2021 deserving of your money, you’ll find Cardano. Since its launch in 2017, Cardano has proven to be an excellent crypto asset to own. As of now, the Cardano blockchain is undergoing further development. The continuous project developments around the coin make the project viable and valuable.
Whether you are a crypto investor looking at the long-term or a trader for short-term gains, ADA is worth your money. The Cardano coin is just getting started. With the last milestone – Shelley mainnet, which the ADA ecosystem achieved, the coin briefly became the third-largest in terms of market cap.
The utility around Cardano is also responsible for the success it records. ADA allows for the easy writing of smart contracts while also enabling execution. Beyond the writing of smart contracts, the ADA coin provides power to the system. Smart contracts are a system of self-executing agreements between buyers and sellers written directly into code lines. Cardano makes this process easier.
In January 2020, the price of ADA was $0.02. However, as of June 2021, the price is about $1.25. ADA is a cryptocurrency with potential, which makes now the next best time to invest. Predictions envisage the coin hitting a $10 price per unit by the end of the year.
Many experts think the Stellar coin will replace Ripple. The projects driving the two coins are similar. A co-founder of Ripple left the coin to create Stellar. Jed McCaleb, the brain behind Stellar, thought that Ripple was taking the wrong direction. The disagreement in direction at Ripple led him to develop XLM.
As similar projects, the major difference between Stellar and Ripple is the market they target. Ripple focuses its efforts on financial institutions. On the other hand, Stellar directs its resources towards enabling people without personal bank access.
In pursuance of its use-case, Stellar took a pivot into helping central banks create their CBDCs – Central Bank Digital Currency. There are reports of work with the Ukrainian government for such a project. Embarking on projects like CBDCs, amongst others, are the premise on which the XLM cryptocurrency will explode.
Owing to the similarities of Stellar to Ripple, some persons don’t see its purpose. However, XLM has distinguished itself, taking up the form of the more stable alternative of the two coins. If everything goes right, Stellar should sell between $0.75 and $0.96 by December 2021.
The valuation above is not a prediction set in stone. As with any other cryptocurrency worth investing in, Stellar’s volatility and triggering events aren’t something anyone has control over. XLM is currently worth $0.26; hence, the predictive price of $0.75 and $0.96 is feasible by all standards.
Binance Coin (BNB)
If the words of bullish analysts are anything to go by, then Binance coin will hit $1,321 per unit at the end of the year. BNB may not be the primary coin to own, but it’s a viable option if you are looking to diversify your portfolio.
Binance coin is the token of the crypto trading platform, Binance. Binance, as a company, has a vast history, and the token further facilitates its mission of making it easy for people to invest in crypto.
On the Binance exchange platform, BNB is useful for buying other cryptocurrencies. The coin’s success infers that investors and traders are becoming better at the economics of cryptocurrencies. The usage of BNB portrays a high growth potential due to more investors divesting into cryptocurrency.
With the current cryptocurrency trend, BNB will be around for a long time and at a high value. Binance coin is the next best crypto asset you need in your portfolio.
As controversial as the TRX coin seems to be, it’s still one of the cryptocurrencies that will potentially explode in 2021. The coin has been at the top of the market capitalisation chart for a long time. If a bullish crypto market returns, it’s undoubtedly going to make several people millionaires.
Tron has, over the years, built a reputation of being stable. Upon completing its acquisition of BitTorrent in 2018, Tron’s potential profit margin doubled. Tron’s stable reputation will draw in more investors from now on, which will subsequently heighten its value.
Blockchain development has been taking leaps in recent years, and Tron is in the middle of it all. Tron is a coin that facilitates the building and deployment of quality decentralised applications.
These decentralised applications range from online games to yield farms to decentralised exchanges and open lending platforms. As the world continues to see more decentralised financial applications, the use of Tron will scale. More importantly, its price will shoot for the moon.
Chainlink is a top Defi coin right now. Defi is an acronym that stands for Decentralized finance.
The primary use of Chainlink is to connect the blockchain ecosystems to other parts of the world. The connection allows for smart contract’s reaction to events outside of the blockchain.
The world is all about interconnectivity, and Chainlink aims to connect the world better to the blockchain. This project has enormous potential for increase.
Chainlink plans to go big on partnerships with already existing traditional entities. There is already talk of a collaboration with Everipedia and The Associated Press to securely distribute election race calls in the United States securely on the blockchain. Distribution of election race calls on blockchain depicts transparency. Blockchains can also handle the verification of election data.
Experts predict a $91.39 price per unit for LINK coin by year-end, up from the current $18.71 as of writing.
Bitcoin has come a long way and remains relevant through the peaks and dips in the crypto market. It remains the most valuable cryptocurrency, with a market valuation north of $650 billion. Bitcoin trading in different countries is growing at a rapid pace. In 2020, the United Kingdom ranked as a country with one of the highest bitcoin trading volumes.
Bitstamp, a major United Kingdom exchange platform, has a Bitcoin trading volume of over $425,000,000. With countries like El Salvador taking steps towards adopting bitcoin as a legal tender, more will follow. An increase in the use-case of Bitcoin contributes steadily to its value.
Bitcoin doing a steady rise to about $100,000 per unit in the next 12 months is not impossible. Bitcoin is one of the best cryptocurrencies for investing in 2021. Upon inception, the cryptocurrency had the primary function of decentralising currency control, revolutionising the world’s financial system, and making government-controlled currencies obsolete.
Over the years, Bitcoin has proven true to these purposes. The ease with which it facilitates cross-border transactions is exceptional, which brought the coin to the attention of the world’s governments.
As with every other coin, trending issues can influence the price of Bitcoin. For instance, there are debates as to the energy implication of bitcoin mining. Tesla had previously invested in bitcoin but later took a pause, owing to the massive use of non-renewable energy sources in the mining.
To counter this, Twitter’s CEO, Jack Dorsey, through his other company, Square, published a white paper that claims bitcoin as being “key to an abundant, clean energy future.”
Bitcoin’s scarcity is worsening, which potentially will make the cryptocurrency explode later in the year. Though, to make remarkable gains from your Bitcoin investment, you need hefty starting capital. If you can’t invest amounts ranging into thousands of dollars, it’s best to focus on altcoins.
Bitcoin is not yet perfect, but it’s the safest and arguably the best crypto to buy.
Not all cryptocurrencies will explode, despite the promising project backing them. However, investments are rarely certain; they are always risk-related. Above, we have been able to provide a list of crypto coins set for serious growth in 2021.
Whichever cryptocurrency you choose to invest in, remember that research is the first step to investing in cryptocurrency. Also, ensure you are always up-to-date on any news relating to the coin. The crypto market is a never-ending learning journey. Start investing both time and money in crypto assets for your portfolio.