The market cap for the global cryptocurrency market rises and falls, but during January of 2021, it reached a staggering $1000 billion. The cryptocurrency market outlook is relatively positive, with the most recent five-year trend showing cumulative increases in value.
But with so many cryptocurrencies from which to choose, investors may struggle to select the best option. Allow us to reveal some of the best cryptocurrencies to invest in, helping you save time while also improving your portfolio’s diversity and valuation.
Cryptocurrencies To Watch Out for in 2021
By the time the cryptocurrency market cap hit $1000 billion, more than 4,000 distinct cryptocurrencies were available to consumers and investors. But many of these currencies are small potatoes when compared to more dominant, established cryptocurrencies like:
- BitcoinCash (BCH)
- Cardano (ADA)
- Tezos (XTZ)
- IOTA (MIOTA)
- Chainlink (LINK)
These ten cryptocurrencies are some of the most popular, stable, and valuable cryptocurrencies to invest in this year. By taking the time to learn more about them now, you could make 2021 (and beyond) the most financially rewarding year that your investment portfolio has ever seen.
Unless you’ve been living in a remote region of the world for the last decade, you’ve likely already heard of Bitcoin and its burgeoning success as one of the most primary forms of cryptocurrency.
However, Bitcoin is also one of the riskiest cryptocurrencies due to its hefty value and dramatic buy/sell periods. Still, the market capitalization for Bitcoin could rise as high as $1 trillion in 2021, making it one of the most sought-after cryptocurrencies.
- A single Bitcoin may fetch upwards of $30,000 throughout 2021
- Bitcoin could become the standard for digitized assets
- Due to widespread acceptance from banks, credit card companies, and a wide variety of other financial institutions, Bitcoin is one of the most accessible crypto options
Ethereum is second only to Bitcoin in terms of popularity and usage, especially in decentralized cryptocurrency. This platform offers Ether instead of Bitcoin, and a single Ether may trade for $1,000 or more.
- A natural competitor to Bitcoin with a market cap of $149 billion
- Transactions often contain some form of executable code on the Ethereum platform
- May struggle to compete in the consumer market due to its niche applications and functions
Ripple is the company that’s at least partially responsible for the XRP digital payment technology. Interestingly, this tech also doubles as its own form of cryptocurrency, XRP.
One of the most notable advantages of using this currency is the fast processing times. Of course, the minimal transaction fees are also a significant plus!
- Unlike Bitcoins, all XRP tokens are pre-mined and ready to go
- Because of the consumer-friendly nature of this option, it may become widely adopted by commercial industries or retailers
- Already boasts an impressive market cap of about $12 billion
Litecoin is often considered one of Bitcoin’s oldest rivals, though it’s one of the more successful Bitcoin forks (see BitcoinCash further below). Still, you might not know it by examining the trade value of this cryptocurrency.
While Bitcoin has garnered massively steep highs and lows in terms of valuation over the last five years, Litecoin’s peaks and valleys tend to be far more temperate and sloped. As such, Litecoin remains a popular option for investors who find Bitcoin’s dramatic shifts too risky.
- This is an open-source P2P currency that’s similar to Bitcoin in several ways
- It could be an excellent diversification option for Bitcoin investors
- Trade value can range between $25 and about $190
TRON is a decentralized blockchain operating system that is often compared to Ethereum and Bitcoin. It’s native to the TRX system and has a market cap of $2 billion. While the trade value for this currency is low ($0.02883), this makes it a prime opportunity for first-time investors.
- Consistently valued higher than many other smaller forms of cryptocurrency, including Dogecoin
- A low-risk investment opportunity for all
- Tronix allows for fast processing and fewer transaction fees
6) BitcoinCash (BCH)
Perhaps the most notable difference between Bitcoin and its successful fork, BitcoinCash, is each mined block’s size. With Bitcoin, the block size is typically limited to 1 MB. BitcoinCash’s blocks are 8 MB large.
This difference exemplifies an alternate solution to the early Bitcoin verification process and makes BitcoinCash slightly faster in processing than its predecessor. Generally, the trade value for BitcoinCash varies between $200 and $600, though it may rise far higher as developers and miners opt-out of Bitcoin and into smaller ventures.
- Market cap is sitting at just below $8 billion
- The price may climb steadily as competition against other cryptocurrencies ignites
- Potential disagreements concerning protocol may cause another fork, which is something to watch for
7) Cardano (ADA)
At just about $0.33 in trading value, Cardano cryptocurrency isn’t likely to break the bank. At least, not if you invest now. This bounding open source project is already becoming a contender, having experienced a value increase of 700% over the last year!
- The substantial market cap of over $10 billion is worth noting
- Has experienced a steady increase in value over the last twelve months
- A budget-friendly investment opportunity that may soon become far pricier
8) Tezos (XTZ)
This open-source blockchain network has a native coin cryptocurrency that’s often likened to Ethereum or Chainlink. This option’s decentralized nature may attract investors, and developers looking for more excellent stability may want to take a moment to investigate Tezos a little better.
- Tezos market cap sits at around $2.1 billion
- The trade value generally holds at around $3, an affordable price
- The ability for stakeholders to vote on protocol may make this a more widespread currency in 2021
9) IOTA (MIOTA)
Functioning as both a cryptocurrency and an open-source distributed ledger, IOTA (MIOTA) is undoubtedly one of the riskier options—But only if you’re hoping for high returns. Though it does sport a market cap of just over one billion dollars, the trade value hardly varies beyond the $0.25 to $0.50 range.
When you compare these values to the spectacular, multi-thousand trade values that Bitcoin sports, it’s easy to see why IOTA could be the better option for low-stakes investors or those willing to bide their time.
- Has held a reasonably constant value since November 2018
- Trade value may increase considerably during 2021 as more investors shy away from Bitcoin
- One of the
10) Chainlink (LINK)
Chainlink (LINK) is a currency that consumers should undoubtedly keep their eye on. In 2020, LINK traded at less than $5. But in just one year, that price inflated to over $20. And in many ways, it functions like Tezos (XTZ).
Chainlink is an insanely popular oracle network that is only likely to become more prevalent (and relevant) within the coming years. The market cap for this currency sits just shy of $9 billion, which is quite an impressive feat.
- One of the fastest-growing cryptocurrencies of 2021
- Already valued highly and likely to increase in value
- An affordable option for the average investor
Which Cryptocurrency is Right for You?
Now that you’re more familiar with some of the top cryptocurrencies, you might be wondering which option is right for you. Frankly, there isn’t a single one-size-fits-all option that’s far better than the others.
To find the best cryptocurrency for you, you’ll need to consider quite a few factors and weigh some priorities and preferences. For example, if you’re a first-time investor with few or zero assets, you might not want to invest in Bitcoin or Ethereum right off the bat.
A single unit of either of these currencies can cost between $1,000 and $35,000, which may be too risky for the average consumer. Additionally, those hoping to make a quick profit and sell their cryptocurrency soon after acquiring it may want to steer clear of Cardano (ADA) and Litecoin.
Both of these currencies show long-term upwards trends with minute momentum. This makes them safer options for first-timers but terrible opportunities for a quick profit. Be sure to consider your experience and the desired term length of your investment before committing to your final pick.
When you’ve got your priorities in line, you can go ahead and choose:
- The Best Options for First-Time Investors: Tezos (XTZ), Chainlink (LINK), Litecoin
- The Best Options for Experienced Investors: Bitcoin, Ethereum, BitcoinCash (BCH)
- The Best Options for Short-Term Investments: Ethereum, Bitcoin, Ripple
- The Best Options for Long-Term Investments: Litecoin, Cardano (ADA), Chainlink (LINK)
Bottom Line – Which One To Invest in 2021?
All of the signs point toward a future that is free of paper currency and metallic coins. And while some types of cryptocurrency may not survive the long push toward all-virtual transactions, others are likely to become powerhouses within their industry. Investing now could be the smartest move for yourself and your family.
But while the right cryptocurrency investments might bring you good fortune, the drastically rising and falling values that currently plague cryptocurrencies could make you want to pull your hair out at the roots. You’ll need to pay close attention to emerging trends in the market (and competing crypto companies) to stay ahead.