There are more than 50,000 existing cryptocurrencies, but knowing the best cryptocurrency to invest in 2021 is not a simple task. Over the years, crypto assets have proven to be among the most profitable investments. The likes of Bitcoin, Ethereum, Litecoin, Ripple, Dogecoin, etc., have all performed greatly in recent times. As we start off 2021, there are a number of cryptocurrencies that you should watch out for. These crypto-assets have the potential to give you a great return on investment if you have the courage to bet on them.
The best crypto to buy in 2021 is dependent on your familiarity with crypto assets and risk tolerance. If you are searching for the best cryptocurrency to invest in 2021, we have listed quite a few here. You must carry out your due diligence before investing your money in any crypto asset. Don’t take anybody’s word for it; do your own research and findings.
Best Cryptocurrency to Invest in 2021
This list follows no particular order. Take your time to study these crypto-assets before investing in them. Here is our pick for the best crypto-asset investment in 2021:
- Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market capitalization, second only to the first developed cryptocurrency (bitcoin). Currently, the price of Ethereum is on the rise. This is proof of confidence on the part of crypto traders and investors on the ETH coin’s value. The success of Ethereum can be traced to its recent upgrade and the decentralized finance system. Ethereum blockchain supports smart contracts and allows for decentralized mobile applications (dApps).
To further reiterate the enormous potential of Ethereum, a great number of global business brands created an Ethereum Enterprise Alliance (EEA). Notable members of EEA include Microsoft, JPMorgan Chase, Toyota, IBM, Goldman Sachs, etc. The number one rule of investing is to invest in value, and the value of Ethereum is glaring for all to see.
- Bitcoin (BTC)
Bitcoin hit an all-time high in price in the first few weeks of 2021. We witnessed the influx of institutional investors buying up and investing their money in bitcoin. When firms like Grayscale, MicroStrategy, PayPal, Square, etc., embraced bitcoin. This is proved that it is a good investment. These firms will not invest in bitcoin if the returns aren’t worth it.
However, such companies invested in bitcoin is no guarantee that bitcoin is a good investment. But it shows you that it is technically a good investment. Bitcoin is also the most liquid cryptocurrency in the world. Therefore, it is undoubtedly one of the best cryptocurrency to invest in 2021.
- Ripple (XRP)
Although 2021 hasn’t been quite good for Ripple, we believe that things will certainly turn around for good. Ripple has its own currency, followed by an innovative digital platform widely used at RippleNet. The Ripple platform aims to make inter border transfers fast and cheap. The price is currently on a nose dive due to a lawsuit against Ripple Company by the U.S. Securities and Exchange Commission.
We believe that Ripple will scale through the court case and come out stronger. If there is ever a time to invest in XRP, now is the best time. Most other crypto assets work to eliminate the traditional financial system, but Ripple is building a collaboration. It uses its services to cooperate with banks and other traditional financial institutions. This is further evidence of the reliability of Ripple, thus a favorable growth price.
- Polkadot (DOT)
Polkadot is one of the best altcoins cryptocurrency to invest in 2021. It aims to improve the scalability of the blockchain chain network, just like Ethereum. Recently, Polkadot replaced Ethereum on the “Ethereum/Binance coin” pair on the Binance exchange. Binance is the largest crypto exchange by trade volume. For Polkadot to dislodge the Ethereum pair on Binance is a sign of great things to come.
Polkadot is currently the fourth cryptocurrency in terms of market capitalization, only behind Bitcoin, Ethereum, and Tether.
- Litecoin (LTC)
Litecoin is a peer-to-peer crypto asset and open-source software project. It is a clone of bitcoin and has been performing greatly on the crypto market. It is the seventh cryptocurrency by market capitalization. Since the beginning of this year, the price has been soaring, and there seems not to be anything stopping Litecoin this year. It is a good investment opportunity that you should explore.
This list of the best cryptocurrency to invest in 2021 is only informative; you shouldn’t take it as investment advice. Before you invest, take your time to study the crypto market and its trends to enable you to make an informed decision.
Okereke has a passion for researching blockchain and cryptocurrency. He enjoys creating long form educational content to inform others on the opportunities in this space.