What cryptocurrencies to buy in 2021? We look at the top digital assets and the main trends of this market — the most promising cryptocurrencies of 2021 in the review of experts of the MINE.
Cryptocurrency market forecast for 2021
In 2020 alone, the cryptocurrency market’s capitalization has almost quadrupled, and the total value of all altcoins has increased by 270%. Last fall, PayPal opened up the ability for customers to buy and sell four cryptocurrencies using their accounts. Bloomberg reported that 28 million users of the service took advantage of it. In Google, the search number of queries about buying cryptocurrencies in February 2021 was 35% higher than during the cryptocurrency boom in 2017.
Part of the increase in interest in digital assets is due to the depreciation of traditional currencies and investors’ desire to preserve their savings. Cryptocurrency forecasts for 2021 are also optimistic: Bitcoin’s price doubled by April alone and continues to rise.
Top Cryptocurrencies of 2021
Analysts’ opinions on the attractiveness of cryptocurrencies may differ because there are many assets with different potential in the market now. According to most financial and analytical organizations, here is a brief list of cryptocurrencies with high reliability and prospects.
Bitcoin (BTC). Bitcoin is among the most profitable assets in history, surpassing Apple, Amazon, and other giants. Major countries’ recognition of digital assets plays into the growth of user confidence and makes the prospects for cryptocurrency in 2021 very bright.
In addition, the limited number of bitcoins (the initial code stipulates that the number of coins cannot exceed 21,000,000) inspires confidence that the price of bitcoin will not fall in the face of additional issuance. It will still be profitable to buy it. Therefore, despite its relatively high price (at the time of writing, it exceeds $60,000), bitcoin remains an attractive asset. Now, individuals and large financial organizations are investing in bitcoins, which makes experts optimistic about the dynamics of this currency shortly. Even considering the availability of thousands of other assets, including the emergence of new cryptocurrencies in 2021, 40% of the market capitalization is still in bitcoin. Its primary disadvantage is its high volatility. Fluctuations in price amount to thousands of dollars within one month, which can make an inexperienced investor nervous.
It is possible to exchange traditional currency for bitcoin on cryptocurrency exchanges and through exchangers. As the most popular cryptocurrency, it is present on all platforms. Mine allows you to make an exchange and get coins to your wallet in minutes. Profitable rate, 24-hour support, thousands of daily transactions, and positive customer feedback confirm it.
Ethereum (ETH). The second most popular cryptocurrency also shows good dynamics: its rate grew by 1000% in the last two years. Ethereum is a platform for many other cryptocurrencies and smart contracts. The potential for their growth is quite immense. This platform is also a segment of decentralized finance (Defi); the amount of investment in 2020 was $ 13 million. This year, analysts predict the growth of Ethereum to be up to $4-5 thousand and some up to $10 thousand.
Ripple (XRP). The ripple coin saw the light of day in 2012. Only 100 billion XRP was issued, and no more coins will be issued. Now the interbank payment system RippleNet includes more than 300 countries, making it comparable to SWIFT. Although XRP has not shown recent growth trends due to several lawsuits, the potential for this asset in the long term is very high.
Stellar (XLM). Stellar was issued by the non-profit organization Stellar Foundation in 2015. It now ranks ninth in terms of market capitalization. The advantages of this currency include scalability and being open-source; it quickly processes thousands of transactions with confirmation in seconds, making Stellar a worthy alternative to traditional bank transfer services. Most analysts believe Stellarly bottomed out in March 2020 and will continue its steady, strong growth through 2022.
Cardano (ADA). A rapidly growing third-generation cryptocurrency. Cardano now ranks third after Bitcoin and Etherium in terms of market share. The dynamics of the token’s price for the past year give hope for its growth in the future, which is supported by investments in the project. At the same time, the risk of investment is still relatively high.
Litecoin (LTC). A fork of bitcoin that was launched in 2011. Litecoin is distinguished by the speed of transactions – 4 times faster than bitcoin. The issue of these coins is also limited, and the rate fluctuates with the bitcoin rate.
Binance Coin (BNB). A token of the cryptocurrency exchange Binance. Traders use it to pay trading commissions and make exchange offers. From the beginning of this year to the middle of April, Binance Coin increased 17 times, and experts believe that the growth will continue. The main driver of this trend is the rising popularity of the cryptocurrency, leading to an increase in the number of investors on the world’s largest exchange, Binance.
Tether (USDT). Stablecoin, which is pegged to the U.S. dollar. Bloomberg predicts this year; that it may overtake Etherium in capitalization and become the second-largest digital currency after bitcoin.
Polkadot. The flagship project of the Web3 Foundation of Switzerland. The Polkadot network allows different blockchain networks to work together, facilitating the creation of decentralized organizations, applications, and services. The PolkaDot token has grown nearly five-fold since the beginning of this year and continues to hold positive momentum.
Several analysts add Monero, Chainlink, Bitcoin Cash, and other altcoins to the list of the best cryptocurrencies of 2021.
Is it worth investing in cryptocurrency in 2021?
Many analysts believe the cryptocurrency market is overheated, so making significant investments is not a good time. Moreover, if you are a beginner, it is better to start buying a few well-known cryptocurrencies for small amounts to get used to working with the wallet and minimizing risks.
Summary
The cryptocurrency market in Russia in 2021 shows upward trends. New digital assets are appearing, and the number of investments in them is growing. Despite this, the top promising cryptocurrencies most significant largest are Bitcoin and Ethereum. Investments in them with a high probability will justify themselves. At the same time, Cardano, Polkadot, Binance Coin, and other altcoins show rapid growth.
