If you are looking for a cryptocurrency to invest in, you are probably confused. This is because there are thousands of cryptocurrencies out there and deciding which one to buy can be an uphill task.
Even those who know the best crypto to invest in still find themselves between a rock and a hard place because cryptocurrency investment can be risky.
Yes, you can invest thousands or even millions of dollars in it and lose everything or see over 90% of its value sliced overnight. However, investing in the right crypto can also pay handsomely.
In 2020 we already covered the best cryptocurrencies to invest back then, but one year has passed and a lot has changed.
So, which is the best cryptocurrency to buy in 2021? In this article, we are going to look at some of the cryptos that have been around for a while, and which have a great potential. Read on!
The Cryptocurrency Market Today
Bitcoin, exchanges, blockchain, Initial Coin Offerings, DeFi, and more are some of the terms that have caused an uproar in online forums, mainstream media, social conversations, and even in boardrooms across the globe.
The buzz around these terms have created a massive interest around cryptocurrencies. Originally known for their reputation as havens for money launderers and other criminals, cryptocurrencies have come a long way with regards to popularity and technological advancements.
Today, the cryptocurrency market cap is projected to be way over $2 trillion, and is expected to rise even more by the end of 2021. Moreover, the technology underlying cryptos is said to have powerful applications in a wide range of industries, including media and healthcare.
Despite some cryptocurrencies such as Bitcoin gaining insane values and enjoying massive adoption, we cannot run away from the fact that they are still controversial. Critics including Warren Buffet and Paul Krugman have dubbed Bitcoin “evil”, while some, such as venture capitalist Marc Andreessen call cryptos “The next internet.”
Large companies such as Tesla and PayPal have adopted cryptocurrencies, and this is a testament that they are set to be the next wave of the democratization of finance.
Cryptocurrency to invest in 2021
Still the king of cryptocurrencies and dominating the crypto world in market cap and popularity, Bitcoin is, without a doubt, one of the best, if not the best crypto to buy now. This crypto makes the headlines in online and mainstream media, and it is the cryptocurrency that people think about when they hear or read the word cryptocurrency.
Bitcoin was created by an anonymous person or people by the name Satoshi Nakamoto. It is touted as the cash for the future. Of course, you cannot use BTC to pay for your cup of coffee since the transaction cost will be too high but think of it as the gold for the future instead of money you can use for your daily transactions.
It has limited supply just like gold, and this is what makes it attractive to investors. Only 21 million Bitcoins will ever be released, and this makes the cryptocurrency inflation-proof.
Today, the value of Bitcoin is around $39038, and the price is expected to rise significantly by the end of 2021. Find the best Bitcoin wallets list here.
Ethereum is another great crypto to invest in. initially, it was seen as the coin that would shove BTC off as the dominant currency. Even though this didn’t happen, Ethereum is the 2nd biggest cryptocurrency by market cap and popularity.
Ethereum provides several enhancements over BTC. They include smart contracts and five times higher transactions per second (TPS) than BTC.
A new version of Ethereum is expected to be launched soon. Ethereum 2.0 is said to be 99.95% more environmentally friendly than the current version. Who well it will perform over other cryptocurrencies is something that remains to be seen. The currency value of Ethereum is $2,854.41.
Learn the major differences between Bitcoin and Ethereum here.
Launched in 2017 by the Binance Cryptocurrency Exchange, the Binance Coin is one of the newest kids in the block, but one that has proven its worth as a great cryptocurrency to invest in. during the initial coin offering, it sold over 100 million coins at $0.15 per coin.
The coin can be used to trade other cryptocurrencies or pay transaction costs in the Binance exchange. Additionally, it can be used to pay for goods and services.
It’s worth mentioning that every quarter, Binance uses 20% of its profits to buy back BNB in circulation and destroying them. This is set to continue until 50% of the total supply is destroyed; thus marking it scarcer, more valuable, and more inflation proof. Currently, Binance Coin trades at $375.
Tether, unlike other coins in this list is unique in its own making. It is the biggest cryptocurrency in a category known as stable coins. They are called “stable coins” because they are pegged to a traditional currency such as USD.
One Tether Coin is equal to one USD, and this will always be the case. You can buy, sell, and use Tether tokens at different exchanges including Binance, Kraken, Coinbase and Tezro. Check out why you should choose Tezro and what features we offer.
Litecoin is quite similar to Bitcoin in its infrastructure. However, its transaction fees are much less than Bitcoin at around $0.35 per transaction. Additionally, its TPS is higher than that of Bitcoin. This cryptocurrency has $81 million cap on coins that will ever be mined.
This means that Litecoin might see an increase in price in future. Ranking #5 as the largest cryptocurrency by Market Cap and Popularity, there is no doubt this is the best option if you are wondering which crypto to buy apart from Bitcoin.
Known as Zerocash protocol in full, Zcash is a derivative of the BTC codebase. The main difference is that in Zcash, transactions are anonymous. In Bitcoin, however, all transactions are recorded on a public ledger for everyone to verify.
When you pay with ZCash, nobody will have to know anything about you, unless you want them to. There is no way to trace the origin or destination of transactions. They remain confidential to the sender and receiver.
ZCash has been steadily gaining value over the past few years and has proven itself as a potentially valuable cryptocurrency. It is ideal for investors looking to use the bitcoin codebase but with higher transaction speeds and more anonymity.
Stellar Functionality is quite similar to Ripple, but on the surface. When you dig deeper, you will understand that it is a little unique. Both cryptocurrencies are essential for those looking for faster transaction speeds at low costs.
Unlike Ripple, however, Stellar uses credits and remittance companies to achieve this. It ensures transactions are completed within 5 seconds at a fraction of the cost.
Investing in Stellar provides for diversification of approaches within the cross border transaction space. This Cryptocurrency have been gaining value steadily, and investing in it now could mean more returns in the near future.
Launched in 2017, Cardano is one of the best cryptocurrencies that have proven the test of time as Ethereum’s contender. It runs on a blockchain platform that supports applications, systems, and real-life businesses.
It is a good crypto to invest in, although it has a lot of catching up to do with Ethereum in terms of features such as transaction speeds and network size.
Cardano is also hailed as an environmentally friendly cryptocurrency. Currently, it trades at around $1.76, which means you don’t need thousands of bucks to add several coins to your portfolio. It’s a great place to start as a novice in the crypto space.
Chainlink jumped leaps and bounds over the past year and has continued to grow for the better part of 2021. It promising value has seen it among the #10 cryptocurrencies by Market cap and popularity. This makes it a good cryptocurrency to invest in.
Oracles communicate off-chain information to blockchains; hence activating smart contracts. For instance, think of a smart contract that is set to be activated when it rains. It can only receive this kind of information through an oracle since the smart contract is only embedded in the blockchain and not in the physical world.
A recent report shows that Chainlink provides about 50-80% of all DeFi applications with oracle services. This means that we are highly likely to see more of this cryptocurrency in the coming years. It is projected that this crypto will hit $43.706 by the end of 2021, and this one of the reasons why you need to consider investing in it now.
NEM allows both private and public transactions on its blockchain network. If you want to integrate blockchain technology in your organization, you can write NEM in a wide range of programming languages. This has an attractive commercial appeal since your company will not need to bring in a tech team to integrate a blockchain.
You can use the NEM API to customize your blockchain; hence making it easy to create your own cryptos, tokens, smart contracts, reward points, notarizations, and more. Currently, it ranks #10 on CoinMarketCap and has a value of just over $1.02.
This is a cryptocurrency that has a potentially better commercial adoption than other cryptos, and this is why it should appear at the helm of your ‘which crypto to buy in 2021’ list.
Do you want to use blockchain technology with IoT devices? If your answer is affirmative, then IOTA is the best cryptocurrency to buy now.
IOTA’s blockchain makes communication between IoT devices seamless and more efficient. It is more focused on secured interactions between these devices while offering dynamic scalability and zero transaction fees.
One of the reasons why Ripple appears in our list of the best cryptos to invest in is because it has something that makes it stand out – it is the fastest digital asset. It enables near real-time global payments.
It is why some payment providers have embedded XRP in their systems to lower foreign exchange costs and settle payments swiftly. This coin trades at just over one dollar – and thus making it a great place to start for new investors.
The main goal of Polkadot is to enable a completely decentralized web where users are in control. Launched in 2020 as a flagship project o the Swiss Web3 Foundation, Polkadot have grown to become a reliable and potentially valuable crypto investors should consider.
Just like Zcash, Monero is highly focused on anonymity of transactions in the blockchain network. These cryptocurrencies use different algorithms to accomplish this, but experts suggest that Monero is more technically advanced when it comes to ensuring anonymity of transactions.
This explains why this cryptocurrency has a large following, especially from those who want to keep their transactions private.
It is a cryptocurrency known for having a rigid developer platform which consists of 30 developers. Consistent innovation is critical for all alt coins that want to stick out from the crowd and Monero seems to be investing a lot in this area.
If you are looking for a crypto that will offer you with military-grade security, inability to be traced, and privacy, then Monero is the best cryptocurrency to invest in 2021.
So, Which Is The Best Cryptocurrency To Invest In 2021?
Cryptocurrencies such as Bitcoin and Ethereum might be way valuable than others in this list, but it doesn’t mean you should break your bank or immerse yourself in a sea of debts trying to invest in them. When it comes to digital assets, none is superior to the other because no one knows what the future holds for each of them.
Therefore, there is no crypto you should choose over the other. Consider factors such as business proposition, price history, total and circulating supply, developer and community activity, as well as your budget before deciding on the best cryptocurrency to buy.
Try and invest in as many coins as you can, and you will increase your profit potential in no time. You can store and trade your crypto in Tezro app with full commodity and total privacy.