January 5

Top 10 Cryptocurrencies to Invest in 2021

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Looking for the next coin that will explode? You want to jump on the train before it gets big? I cannot promise you anything, but here are some cryptocurrencies that I think are safe bets to increase in the next 12 months.

Best cryptos to invest in for 2021:

Bitcoin:

New cryptocurrencies might be added to the market on a regular basis and some disappear just as quickly, but Bitcoin is reliable crypto that doesn’t go out of fashion. Bitcoin surprised everybody at the end of November 2020, hitting an all-time high of almost $20,000, and extending its year-to-date gain to just over 170%. What does 2021 look like for Bitcoin? Analysts tend to agree strongly on the future of Bitcoin over the next twelve months and even further into the future, with some predicting huge price targets of up to $318,000.

Some of the key drivers of Bitcoin prices in 2021 including the growing institutional demand for this cryptocurrency, a rise in inflation, and a perception of contemporary monetary policy that is becoming increasingly negative. All of these factors have forced both institutions and individual investors to find alternative options to protect their capital value. Cryptocurrencies with Bitcoin at the forefront have become the ideal solution. Experts believe that Bitcoin is eventually going to break through $100,000 and will be the replacement for gold as a hedge against inflation.

Ethereum:

Ethereum is the most promising cryptocurrency right now, having shown excellent performance during the challenging year of 2020. By December 2020, this cryptocurrency had become the second largest after Bitcoin and had a market capitalization of around $68bn. It began the year trading at around $125 and ended at an average of $600 after a massive surge of 380% over the twelve-month period.

Ethereum is considered one of the best cryptocurrencies to invest in with the opensource blockchain network that has always served as a preferred network for decentralized applications. Ether (ETH) is supported by the platform as its native cryptocurrency along with other crypto platforms such as Aave (AAVE), Uniswap (UNI), and Maker (MKR), all of which are active in the sector of Decentralized Finance (DeFi). DeFi has become one of the fastest-growing trends in cryptocurrency, transforming loans, insurance, and savings programs to make them independent from centralized financial institutions such as banks. DeFi reached new levels in 2020, with a huge growth from less than $3bn to over $13bn in assets over the year.

Ripple:

Ripple was first created as an alternative system of financial payments, aiming to transform and facilitate cross-border payments to make them free, instant, and 100% safe. In the early days of Ripple back in 2013, this platform caught the attention of various financial institutions and has since by adopted by hundreds of financial providers across the world. In 2020, it has now expanded to various global financial institutions including American Express (AXP), HSBC Holdings (HSBA), Banco Santander (SAN), and JP Morgan (JPM). India’s largest bank, HDFC Bank Limited, and the second-largest bank in the US, the Bank of America, are among the most recent supporters of RippleNet.

Throughout 2021, there are several drivers that put Ripple in the category of the top ten cryptocurrencies to invest in. According to an OMFIF (Official Monetary Financial Institutions Forum) report, Ripple is likely to set to position itself as a key alternative to SWIFT by solving major issues with traceability, speed, security, risk management, and transparency. There is also growing support from the European Commission, which is encouraging the transition to digital finance and enabling the use of crypto assets and DLT technology in the financial sector.

Litecoin:

Litecoin is currently one of the most affordable cryptocurrencies to invest in, fluctuating at around $90. While it might not be one of the best-performing cryptocurrencies of the year 2020, it still has a lot of potentials to be one of the top ten most popular cryptocurrencies of 2021. The first decentralized Litecoin-based RPG fantasy game LiteBringer was recently launched, allowing players to make transactions with every move and benefitting the entire blockchain. Right after the game’s launch, Litecoin transactions increased significantly to exceed 130,000. As a result of the boosted performance from the game, analysts from CoinSwitch are predicting a positive price driver with a price target of $600 for Litecoin in 2021. Some analysts believe that the Litecoin price will grow even further in the coming years, with predictions for it to reach around $350 by the end of 2024.

TRON:

TRON peer-to-peer network was originally launched on the Ethereum network with the main aim of democratizing content creation and revolutionizing the entertainment industry. TRON enjoys a number of high-profile partnerships including oBike, Samsung, Baefend, the Chinese version of Netflix, and the Chinese search engine Baidu. TRON works as a content-sharing platform where users who create or share content are rewarded with TRX, a cryptocurrency that serves as a more transparent system of monetization for content compared to those used by traditional social media networks. TRON’s upward movement over the past year could be impacted heavily by the rise in dApps, with the transaction volume of TRON dApps surpassing Ethereum in 2020.

Bitcoin Cash:

Bitcoin Cash was founded in 2017 with the aim of being a faster, more scalable blockchain compared to Bitcoin. Experts believe that Bitcoin Cash could eventually become the main blockchain for making payments online.

Cardano:

By the end of 2021, this proof-of-stake blockchain platform has the potential to exceed $1.50, depending on the release of Hydra, a scalability solution that is designed to help Cardano process over one million transactions each second.

Tezos:

This platform is set to benefit from the increasing interest in DeFi and a partnership with the financial group Elevated Returns, who chose Tezos as a blockchain platform to offer real estate investors tokenized assets worth $1.6bn.

IOTA:

IOTA is an open-source platform designed to process transitions between the Internet of Things (IoT) devices. Investors are predicting a significant price growth for IOTA thanks to several partnerships with key players in the insurance, manufacturing, and automobile markets.

Stellar Lumens:

Created to bridge the gap between traditional finance and cryptocurrencies, Stellar Lumens aims to be the global digital payment rail partnering with major players such as IMB, Stripe, and Deloitte. Its main competitive advantage is that it offers seriously low transaction costs at just a fraction of a penny.

Check how much of each coin you could buy right now:

If you want to buy now, I recommend you read our guide on the best exchanges in the US, or if you're based in Canada read our Canadian guide.


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