There are currently more than 10,000 cryptocurrencies in the market. When we talk about the word crypto we mean digital currency which is not a part of a central system. No government has any control over the inflow and outflow of the currency and thus it is known to be decentralized.
We are here to talk about the best cryptocurrency to invest in 2021. It is not an easy task to choose among the thousands of options in the market. Well, to what we feel it is entirely based on how you are able to read the market and the project behind that particular coin. Well, if you are a newbie and have no idea how everything works, you can always choose to know more before putting your money into something.
Before we get down with the list of best cryptocurrency to invest in, there are a lot of basic aspects you need to know about Cryptocurrency.
What is Cryptocurrency?
Cryptocurrencies work on Blockchain technology and are known to be a form of Digital Currency. You can exchange it for goods and other services as well as choose to invest your money in it for profit. As we said, the number of cryptocurrencies has been growing tremendously over the past few months and the current count stands at 10,000.
A lot of companies have issued their own coins in exchange for the goods and the services they are selling. Well, the biggest reason for using such a technology is its security and everything is saved in the form of a ledger that is potentially safe in the long run. Furthermore, since it is believed to be not a part of the central system and no Government body or band can control it, gives Crypto investors much more power.
However, these digital currencies are highly volatile and act according to how the market fluctuates. Investing in these requires a lot of risks just like you would think before inciting in stocks. Hence, proper research is required about each of the coins you invest in.
7 Best Cryptocurrency to invest in 2021 for Long- Term
As we mentioned, it is not an easy task to choose among the different coins available. However, based on our analysis and research about the project behind it, we have listed the best Cryptocurrency to invest in 2021.
1. Bitcoin (BTC)
To start with, Bitcoin is on the top of our list for the Best Cryptocurrency to invest in 2021. Well, you might have already heard about it that led you to this guide. It is one of the largest and most popular cryptos in terms of market volume as well as the entire project running behind it. There can not be a good time to invest in Bitcoin. Even in future prospects, our first choice will always be Bitcoin.
As of now, the current value of Bitcoin is around ~$35500. The value dropped from ~$60,000 to this and continues to fluctuate. Even if there is no better investment to start with if this is your first, you always need to be aware of the risk involved since with market fluctuations you can lose money.
Overall, there is no denying the fact that Bitcoin has a massive potential to reach over $100,000 this year itself. A lot of companies and brands have started to accept Bitcoin as their currency and people can purchase their products directly through this.
2. Ethereum (ETH)
Our second option here is Ethereum or ETH. You can buy this particular crypto similar to all the others on multiple platforms such as Binance, WazirX, etc. ETH is the second largest Cryptocurrency in the market after BTC and the valuation has skyrocketed over the last few months.
There are multiple scholars and other enthusiasts who believe that Ethereum may take over Bitcoin soon and there is no doubt about it. It has grown over 10 times in these past few months not simply in value but the network has allowed the birth of multiple other coins that have been adding value. ETH has valued at around ~$4000 in April and now it has slipped to $2200. Along with this, multiple altcoins that are dependent on it, fall as well such as UNI, MATIC, BAT, AAVE, LINK, etc.
Furthermore, we have ETH 2.0 coming soon that might bring in a lot in terms of security, could be much faster, highly efficient, and much more. In the days to come, ETH 2.0 will allow the entire network chain to be more decentralized and have more users on board than usual.
3. Litecoin (LTC)
Litecoin was launched in 2011 and since then it has been consistently amongst the most popular in the market. Well, even though it was launched alongside BTC, it did not perform well in the same manner as Bitcoin but has massive advantages leading to all those looking to invest in it for the long term.
It has a much faster block generation rate that you will hardly find in any other coin in the market. Similarly, you can experience a faster transaction confirmation time on this particular coin that marks it even better than Bitcoin itself in a certain manner. To add more to this, Litecoin has a much lower transaction fee as compared to Bitcoin that makes it even more favorable. Furthermore, the current market value of LTC is around $156, which is massively low since we are currently in a bearish market. It touched it’s all-time high at $410 in May.
There is a massive scope of LTC in future prospects, however, since it is linked to the Bitcoin network, the price fluctuates based on the value of BTC. As per what we know, if you are in for the long term, it can yield you greater benefits, since LTC is also one of the oldest cryptos along with BTC and ETH.
4. Cardano (ADA)
You might have come across this massive hype surrounded by Cardano (ADA). However, it is listed amongst the top cryptocurrency in the market, since it has massive potential that not a lot of people have understood yet. Well, ADA was founded by none other than one of the founders of ETH and a team filled with engineers, cryptographic experts, and other mathematicians.
A project that is led by a genuine group of people putting in their efforts to make this a success has a lot to offer. If you are thinking of investing your money into it, it is never too late. Cardano works on a peer-to-peer transaction network that makes it highly flexible, faster, and secure. Unlike many other coins in the market, it adds real value to the Blockchain network that brings in better execution of transactions as well as executing smart contracts.
Currently, it is valued at $1.4 and hit an all-time high in May at $2.45. It grew massively since last year to almost 200% even when the market had hit a drastically low. Why choose ADA? Well, the only answer that you need to know now is that it has a strong group of experts leading the project and has a lot to offer in the days to come.
5. Polygon (MATIC)
You might feel a little surprised seeing Polygon so early in the list. It is one of the coins that took everyone by surprise and has been performing really well for months now. The foremost aspect you need to know about this particular coin is that it is faster and has a very low transaction rate. In fact, Polygon previously known as MATIC has partnered with numerous organizations and other networks, making itself stronger every single day.
Not to forget, MATIC is built on ETH blockchain and offers scalability and security at its finest. Well, MATIC worked on a technology namely Plasma that was meant to solve the issue you will find with ETH. The technology originated in India with the sole motive to lower down the gas fees associated with the ETH network and make it highly scalable keeping the security intact.
As of now, the current price of Polygon (MATIC) is $1.36 with an all-time high in May at $2.62. It is believed to reach $3 within months or even sooner given the scalability and how it remained highly unaffected even with the market going down drastically over the weeks.
6. Polkadot (DOT)
If a coin can be a huge competitor to some good projects such as ADA and MATIC, it has to be DOT. As we know, the most pressing issue currently with Crypto technology is Interoperability. Well, Polkadot not only allows you to transfer tokens from one network to another. But also tackles the issue of interoperability and allows its users to transfer data as well across networks. This is the biggest reason that it is head-to-head in competition with other popular coins.
However, there is a lot to be offered by the developing team itself. The price did shoot up high like never before and gained massive value within months. But in terms of value and scalability, there is a long road to take. Now, the biggest question is would you go for DOT over other coins, and is it intended to sire high in the coming months. Well, when it comes to the Crypto market, no one can surely predict what’s coming.
But if you look at the project and invest based on it, you are never likely to fail. Moving on, the current price of DOT stands at $20.5 that had been an all-time high in May at $49. Within a year, the price rose to a massive 600% that can help you understand the potential it has in the coming days.
7. ChainLink (LINK)
ChainLink is another decentralized cryptocurrency that is amongst the top 20 most valuable coins based on Market Cap. It was created in 2014 and introduced in 2017. Since then it has performed pretty well over the years. In Dec 2020, the coin valued at $11.41 gained about $23.28, which is around a 96% increase. However, with the market currently declining over multiple reasons, it has come down yet again to ~$19.
Moving on, speaking of the technology behind ChainLink, it specializes in issuing smart contracts with the help of other third-party integration. Not only this, it works on the Oracle network and narrows the gap between real-world data and smart contracts.
ChainLink is responsible to solve major issues where the individual Oracle tends to gather the data for Smart contracts might defeat the entire purpose of decentralization, hence with LINK, you can keep the system decentralized and also fulfill your purpose. Furthermore, seeing the current price of the market is a great opportunity to bring LINK into your portfolio. It was ATH in May 2021 at $52 which has now dropped to $19 within a month based on the Bitcoin movement.
Here is all you need to know about the top 7 cryptocurrencies that you can invest in if you are in for the long term. Well, we surely are not the financial advisors, but based on the projects, the team, and the market cap, these are some of the best we can think of. Whether you are a newbie or pro-investor, you can never go wrong with these coins at all.
In fact, there is a lot to learn before you enter the market. Each coin has multiple events and activities coming into place that tend to manipulate the price. You can keep track of them on their official page or on other social media platforms like Twitter.
If you are looking to get started, the best platform you go with is Binance or WazirX (In India). Also, you can let us know about your thoughts and which coins you feel have better potential. It will help us understand more and get you more insights based on your queries.