Bitcoin isn’t the only cryptocurrency on a hot streak…
The first half of 2020 was difficult for most people. The Covid-19 pandemic suspended lives and livelihoods around the world.
But it turns out that a crisis has been good for Bitcoin. The leading cryptocurrency by market capitalization has surged in value this year, more than doubling since January.
The Bitcoin bandwagon was packed with new investors looking to cash in on the cryptocurrency craze. However, other digital assets besides Bitcoin also have been seeing serious gains lately.
What is Cryptocurrency?
A cryptocurrency is a digital or virtual asset designed to work as a medium of exchange. It uses cryptography to secure and verify transactions and to control the creation of new units of a particular cryptocurrency. Essentially, cryptocurrencies are limited entries in a database that no one can change unless specific conditions are fulfilled.
They are decentralized, which means they are not subject to government or financial institution control. The prices of cryptocurrencies are volatile and go up and down quickly. This makes them a risky investment, but one with the potential for high returns.
Here are 11 of the most promising cryptocurrencies to buy in 2021:
- Ethereum: The second-largest cryptocurrency by market capitalization, Ethereum has built a reputation as the go-to platform for decentralized applications (dApps). Its native currency, ether, has seen strong demand as a result.
- Bitcoin Cash: A fork of Bitcoin created in 2017, Bitcoin Cash is designed to be faster and more scalable than the original. Its price has risen sharply this year as Bitcoin has struggled with high fees and slow transaction times.
- Litecoin: Often referred to as the “silver to Bitcoin’s gold,” Litecoin is similar to Bitcoin in many ways but with a few key differences. One of Litecoin’s main selling points is its faster transaction times.
- Cardano: Cardano is a relative newcomer to the cryptocurrency world, but it has already made a big splash. The project is notable for its focus on scientific philosophy and peer-reviewed research. Its native currency, Ada, has seen impressive gains in 2021.
- Polkadot: Polkadot is a highly anticipated cryptocurrency project still in its development phase. It promises to offer a blockchain platform that is scalable, secure, and interoperable. Its native currency, DOT, has already seen a surge in value this year.
- Chainlink: Chainlink is a decentralized network of nodes that provides data and infrastructure for smart contracts. The project has seen strong demand from developers looking to build on Ethereum. Its native currency, LINK, has surged in value this year.
- Tether: Tether is a controversial cryptocurrency pegged to the US dollar. While some have criticized Tether for its lack of transparency, it remains one of the most popular digital assets. Its native currency, USDT, is often used as a stablecoin.
- Binance Coin: Binance Coin is the native currency of the Binance exchange, one of the largest cryptocurrency exchanges in the world. It has seen strong demand this year as the exchange has continued to grow.
- Stellar: Stellar is a blockchain platform that focuses on financial inclusion. The project has partnered with major organizations like IBM and Deloitte. Its native currency, XLM, has seen strong demand this year.
- Solana: Solana is a high-performance blockchain platform designed for scalability. Its native currency, SOL, has witnessed a substantial market this year as the project gains more attention.
- Dogie: This is a new cryptocurrency project that focuses on privacy and security. Its native currency, DOGE, has grown this year as the project gains more attention.
Is it Worth it to Invest in Crypto?
This is a difficult question to answer. There are many factors to consider when investing, and each person’s circumstances are unique. Some people may find investing in crypto a good way to earn extra money, while others may lose money. Doing your own research and speaking with a financial advisor before making any investment decisions is important.
There you have it! These are the 11 most promising cryptocurrencies to buy in 2021. These projects have strong teams, active communities, and solid technology. Of course, many other great projects out there didn’t make this list. So be sure to do your own research before investing in any cryptocurrency. And if you’re looking for more general information on investing in cryptocurrencies, check out our beginner’s guide to buying Bitcoin.