Introducing the Top 10 Cryptocurrencies for Investment in 2021
These projects have the most attractive ROI
Macroeconomic data suggests 2021 will be unique for the cryptocurrency market
International consortium of news organizations developing transparency standards.
BeInCrypto’s editors analyzed the cryptocurrency market and selected the ten most attractive coins from an investment point of view for 2021
Macroeconomic landscape suggests the coming year will be unique for the cryptocurrency market.
But which cryptocurrencies should you buy? Which projects are more likely to be successful? Will the parabolic growth that began in 2020 continue? Where is the best place to invest to reduce risk and increase potential profitability? What Crypto Projects Will Peak in 2021? Read on to find out!
Top 10 ranking methodology
When choosing projects in the top 10, we used three criteria. Although any such ratings are arbitrary to one degree or another, we disclose our methodology and give the reader the opportunity to independently evaluate the list..
- Position in the CoinMarketCap rating
When selecting promising coins, we focused on cryptocurrencies from the list of 30 largest cryptocurrencies according to CoinMarketCap, with a good reputation and transparent trading history..
We did not set ourselves the goal of analyzing thousands of cryptocurrency projects to find an unpolished diamond that could grow 100 or 100 or 10,000 times next year..
With the same probability, they can collapse to zero at any moment. We focus on reliable projects with the most attractive risk / reward ratio.
- Annual return on investment
The graph contains historical data for selected coins and compares the return on investment (ROI) that traders could have received during 2020.
This graph is often referenced by Benjamin Cowen. In the video, he talks about which cryptocurrencies showed the highest profitability in the period from March to December 2020. Altcoins LINK, VET and ADA are among the top three, followed by XLM and ETH.
- Crypto market experts’ opinions
This is the most arbitrary criterion. The cryptosphere has spawned a slew of influencers, commentators and analysts of all stripes, but each has a different opinion about their authority..
We only focus on famous personalities such as Cowen, Kevin Swenson and Lark Davis.
The description of each coin includes a summary of its characteristics and operating principles, the latest news that suggests a strong entry in 2021, and a forecast for long-term price action..
10. Bitcoin (BTC)
Current rate: $ 31,000
Market cap: $ 583 billion
CoinMarketCap Rating: 1
Top Most Promising Digital Currencies for 2021 Starts with the Orange King of the Crypto Market, Bitcoin (BTC).
Created by a certain Satoshi Nakamoto in early 2009, the first cryptocurrency, in fact, is a distributed decentralized ledger, in which users send funds directly to each other, in a peer-to-peer network, without intermediaries.
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A person who has been in the cryptocurrency environment for some time will hardly have to convince for a long time about the return on investment in bitcoin. Especially after the coin has updated several all-time highs and came close to the $ 35,000 mark.
Bitcoin is one of the most profitable assets in history today. In terms of profitability, he left big names like Amazon, VISA, Microsoft and JP Morgan far behind..
But some people are wondering if it is profitable to buy bitcoins for more than $ 20,000? Anyone else buying? It turns out yes! And these are not random retail players who missed the sale during the March crisis, when bitcoin fell below $ 4,000), but serious financial institutions.
BeInCrypto recently wrote that giants like MicroStrategy, 3iQ or CoinShares are investing in BTC.
Grayscale Foundation is the main intermediary between the cryptocurrency market and institutional investors. In addition, it recently became known that Guggenheim Partners and MassMutual have also recently invested in cryptocurrency..
This is the first cycle that the rally is driven by institutional interest. Bitcoin holders have been waiting for this for years, and now the new trend can bring them unprecedented profits, proving once again that Bitcoin is a cryptocurrency for long-term investments..
Top 10 Cryptocurrencies GOING MAINSTREAM into 2021!! | Best Altcoin Investments in December 2020
Some investment decisions can provoke excitement and loss of profits in the market. For example, JP Morgan estimates that 1% of the capital of pension funds and insurance companies in Europe, Japan and the United States will be enough to pump an additional $ 600 billion into the crypto market..
The participation of large financial institutions and the influence of other macroeconomic factors could provoke an explosive rise in BTC prices in 2021.
9. Stellar (XLM)
Current rate: $ 0.15
Market Cap: $ 3.3 billion
CoinMarketCap Rating: 13
Stellar (XLM) is a blockchain network for storing and transferring money. The project was founded in 2014 to improve financial integration in various regions of the world and help companies transfer funds.
The main goal of the network is to offer an inexpensive payment service with transaction fees of only 0.00001 XLM.
Stellar has managed to integrate with several fintech companies. Several years ago, he co-launched World Wire with IBM. The platform provides transactions between various assets such as stablecoins.
It is also based on the idea of decentralization. The Stellar Network enables voting in decision-making when adding companies to the ecosystem.
XLM gets a boost after Grayscale Investments set up a separate trust for the coin.
BeInCrypto recently reported that the oldest bank in Germany, Bankhaus von der Heydt, announced the creation of the Euro (EURB) stablecoin on the Stellar blockchain. This is the first token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More of this type issued by a banking institution.
XLM’s price movement after the March crisis is impressive. The cryptocurrency is among the top five coins that brought the highest ROI to investors. XLM is up nearly 800% from March low of $ 0.026 to November high of $ 0.23.
Stellar is currently undergoing a deep but healthy correction. The price recently tested the 0.5 Fibonacci retracement area against the long-term upward movement. The all-time high (ATH) was reached in January 2018 at $ 0.94 and is still quite distant, which gives the coin a lot of upside potential in 2021..
8. Tezos (XTZ)
Current rate: $ 2.2
Market cap: $ 1.6 billion
CoinMarketCap Rating: 20
Tezos (XTZ) has created its own blockchain network for smart contracts. The project aims to avoid the mistakes of Ethereum and Bitcoin. Adaptability, open structure and the impact of validators on the network are its main advantages.
A recent update to Tezos’ network called Delphi should cut gas fees by 75% and attract DeFi developersDecentralized Finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More ecosystem. However, Tezos’ applications do not end there, they include the latest cryptocurrency market trends such as NFT, video games, and the film industry..
Welcome to Delphi! #Tezos upgraded at block 1,212,417. pic.twitter.com/XjnQmAefjN
– Tezos (@tezos) November 12, 2020
Tezos recently announced a partnership with European film producer Logical Pictures for a $ 121 million project. It is one of the first film and TV tokenization initiatives to enable investment in the film industry using cryptocurrency.
It is possible that Tezos is now setting a new standard for investment in Hollywood films, providing higher ROI and transparency in the film industry..
Since the launch of the Tezos mainnet in 2018, the value of XTZ has grown steadily. Token hits all-time high of $ 4.48 in August 2020.
Later, however, a deep correction took place, pushing the price back to the 0.786 Fibonacci retracement relative to the entire upward movement since March 2020. XTZ now needs to double its price to return to its all-time high.
However, the sensational results of the first half of 2020 and the structural strength of the uptrend make Tezos one of the most promising cryptocurrencies. There is a large selection of coins for investment in the cryptocurrency market. Each project team strives to attract maximum funding. Startups are forced to fight each other … More for investment in early 2021.
7. Binance Coin (BNB)
Current rate: $ 38.8
Market Cap: $ 5.7 billion
CoinMarketCap Rating: 9
If 2021 is the year of cryptocurrency, trading platforms will be in the spotlight and reap a lot of benefits. Cryptocurrency exchanges will benefit the most from the coming crypto frenzy.
Despite the fact that cryptocurrency trading is actively shifting to decentralized exchanges, cryptocurrencies continue to march across the planet, increasingly becoming a mainstream phenomenon and finding new areas of application. People buy bitcoin, … More, their well-managed, centralized big sisters are still in the lead. And the biggest is Binance.
Launched in China in July 2017, Binance has the highest trading volume and offers access to a wide range of assets. The platform is founded by the charismatic Changpeng Zhao (CZ), who has long been a cryptocurrency celebrity and one of the most recognizable characters in the industry..
CZ was listed on Bloomberg 50 published in December 2020. The list includes 50 people who shaped the global financial, political, technological and scientific landscape in 2020.
Binance has had a huge impact on the cryptocurrency market for years. Binance Earned Between $ 800 Million To $ 1 Billion In 2020, According To CZ Statement.
In 2019, the profit reached $ 570 million. By 2020, this record figure is likely to double. In addition, the launch of Binance Smart Chain allowed the exchange to enter the DeFi market. The platform promises fast and cheap processing of transactions with various asset classes.
Binance’s growth prospects can’t help but impact the platform’s own token, Binance Coin (BNB), which is likely to be a great investment choice. BNB appeared a few days after the exchange opened in 2017.
In June 2019, the token reached an all-time high of $ 39.57. It fell to 6.41 during the March crisis, but has since recovered to 40.17. This is a new all-time high reached on December 29.
An added benefit of owning BNB is lower or zero trading fees on Binance and the ability to use it to buy other tokens in recurring sales..
6. Uniswap (UNI)
Current rate: $ 5.29
Market Cap: $ 1.4 billion
CoinMarketCap Rating: 22
Binance is a prime example of how money flows to cryptocurrency exchanges. And if we combine the growing potential of trading platforms with the biggest crypto hits of 2020, which undoubtedly include Decentralized Finance (DeFi) and Decentralized Exchanges (DeX).
The leader in this niche is the Uniswap exchange with its UNI token. Although an impressive boom in the DeFi market collapsed in early September, the industry will continue to grow in popularity in 2021..
According to reports, the number of users in the DeFi space has more than tenfold over the past year, from less than 100,000 to over 1 million..
Uniswap is the leader among decentralized exchanges in many ways. The Total Locked Value (TVL) is $ 1.47 billion. Users have already created 600,000,000 DeFi related addresses.
In September, the exchange created and released its own governance token, UNI. As with Binance, this move opens up new investment opportunities for Uniswap users..
Source: DeFi Pulse
5. Ethereum (ETH)
- Price: $ 1030
- Market cap: $ 117 billion
- CoinMarketCap Rating: 2
Listing the most promising cryptocurrencies, one cannot but recall Ethereum. The coming year 2021 promises to be successful in many ways for this second largest crypto project and its currency Ether (ETH).
Unlike Bitcoin, the Ethereum blockchain is a decentralized system that provides a platform for many other cryptocurrencies and smart contracts..
The creators of the Ethereum project are pursuing an ambitious goal of building a worldwide network for decentralized applications (dApps) that would allow the development and use of software that would be protected from fraud, technical delays and censorship..
The developers’ journey towards achieving this goal has been long and arduous. Only at the end of 2020, after many months of preparatory work, the crypto community finally waited for the launch of Beacon Chain – phase zero of the updated Ethereum 2.0 protocol, which laid the actual foundation for the long-awaited transition of the Ethereum blockchain from the PoW (Proof-of-Work) consensus mechanism to an algorithm PoS (Proof-of-Stake).
This significant event happened on December 1, and the price of the cryptocurrency broke the $ 620 mark.
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The application potential of applications developed on the Ethereum blockchain is truly enormous. In fact, it is on it that the entire segment of decentralized finance is built (DeFi). Moreover, this ecosystem is always open to new investors..
Many institutional investors have already joined Ethereum through the Grayscale Fund (ETHE). Canadian company 3iQ followed the example of Grayscale, which also intends to launch an ETH fund for its clients..
According to the latest reports, CME Group, the world’s largest financial derivatives exchange, is preparing to launch ETH futures contracts..
Judging by this news, in 2021 the interest of institutional investors in cryptocurrencies will not be limited to one bitcoin..
This may be partly due to the fact that, unlike bitcoin, Ether has not yet been able to absorb the previous all-time high of $ 1,432 in January 2018. There is still room for improvement in the currency, which means that the potential profit on ETH could be much higher..
4. Polkadot (DOT)
- Price: $ 9.49
- Market Cap: $ 8.5 billion
- CoinMarketCap Rating: 6
Polkadot (DOT) is an open source sharding-based protocol that allows data and tokens to be transferred between different blockchains. This interoperability is intended to create a fully decentralized and private network for developing applications and services..
The native token of the DOT project performs several functions at once. It is a management token, an operational token, and also enables the creation of parallel circuits (so called parachains).
The inclusion of the token in the listing of most of the leading cryptocurrency exchanges pushed the DOT price up to an all-time high of $ 6.84 in early September. Despite the subsequent correction, the token rate stabilized and accelerated the growth rate. This potentially bodes well for him in 2021..
Source: Polkadot Nework
Polkadot is confidently heading towards joining the club of the most significant cryptocurrency projects. In the current cycle, Polkadot may have the same impact on the cryptocurrency market as Ethereum did in 2017, according to Lark Davis, a popular YouTube crypto investor and analyst. This young and growing ecosystem is already beginning to seriously squeeze the competition, Davis believes..
Recently, the founder of the project, Gavin Wood, who was also involved in the creation of Ethereum, stated that Polkadot should not be seen as an “Ethereum killer.” Rather, the project is a “killer of blockchain maximalism”.
The Polkadot example should clearly demonstrate that you don’t have to focus and place all your bets on a single blockchain. Instead, it is more efficient to build a “network of networks”, in which the most important aspect will be the creation of bridges and interactions between different blockchains..
In an interview with Laura Sheen on the Unchained Podcast, Wood noted:
“If Ethereum is ultimately a network open to interoperability and bridging […], Polkadot and Ethereum will have very high chances of a peaceful and happy coexistence.”.
3. Cardano (ADA)
- Price: $ 0.23
- Market Cap: $ 7.4 billion
- CoinMarketCap Rating: 8
Cardano (ADA) is another ambitious project. As stated by the head of the Cardano team, renowned crypto enthusiast Charles Hoskinson, his goal is to provide the tools that creators, innovators and dreamers need to change the world for the better..
Cardano wants to redistribute power, taking it from faceless centralized structures and handing it over to individuals who are ready to create a safe, transparent and just society..
The project roadmap looks complicated and sophisticated. She breaks down the history of testing, launching and developing the network into five eras: Byron (foundation), Shelley (decentralization), Gauguin (smart contracts), Basho (scaling) and Voltaire (management)..
At the moment, the project is in its second phase, while intensively preparing for the next era of Gauguin. It should be launched by the end of February 2021.
The native token of the ADA project has existed for three years. At the dawn of its existence, at the end of 2017, it demonstrated parabolic growth, which pushed the price up to a historic high of $ 1.33.
This was followed by a sharp drawdown in ADA, and as a result, the token stabilized below the $ 0.10 mark, where it was traded for more than two years. Subsequently, he managed to recover above $ 0.10 and move more confidently to new highs of the year.
The dynamics of ADA in 2020 gives the token every reason to confidently take the third place after LINK and VET in the rating of projects with high market capitalization and the highest return on investment (ROI).
According to blockchain enthusiast @CardanoDan, ADA may soon surpass LINK in this regard..
Updated look at performance of #crypto majors compared to #stocks & #metals since March lows. # Cardano $ ADA could make a bid to overtake #Chainlink $ LINK SN. pic.twitter.com/lRByZmIa1e
– Card ₳ no Dan (@CardanoDan) December 15, 2020
Overall, Cardano can indeed deliver exceptional results this year – not only in terms of technology, but also in terms of investment..
2. VeChain (VET)
- Price: $ 0.025
- Market cap: $ 1.6 billion
- CoinMarketCap Rating: 21
VeChain (VET) has carved a niche in the blockchain ecosystem focused on decentralized business applications, supply chain management and the Internet of Things (IoT).
VeChain’s goal is to improve the efficiency and transparency of all shipping procedures, as well as reduce associated costs and give individual users more control over the situation..
The project genuine innovation to an industry that has remained dormant for many years. Now, companies seeking to optimize transparency, efficiency and control are seeking to use blockchain technologies in their business activities..
VeChain recently announced a partnership with American seafood company KnowSeaFood. Thanks to this collaboration, consumers will now be able to recognize the true origin of the products they buy..
The VET token rate bounced off the March minimum and marked a historic maximum of $ 0.023 in August. The price growth was 1478%, but it was followed by a correction of about 63%. However, further VET was able to win back the lion’s share of losses, form strong support and resume growth.
According to analyst Benjamin Coven, investments in VET in the period from March to December 2020 showed a record return on investment (ROI), second only to the LINK token.
If VET maintains its recent dynamics in the new year, it will have every chance to renew its historical maximum in 2021 and start parabolic growth again..
1. Chainlink (LINK)
- Price: $ 14.3
- Market Cap: $ 5.7 billion
- CoinMarketCap Rating: 10
2020 was a breakthrough for Chainlink (LINK). The coin of this project firmly established itself in first place in the segment of blockchain oracles, and also broke into the top 10 cryptocurrencies..
The fundamental drivers behind Chainlink’s increasingly active development are the healthy growth of its ecosystem (which currently has over 350 partnerships) and growing mass adoption in a variety of sectors of the global economy..
#Chainlink announced 27 integrations in November!
With todays announcement from @CoinCodex, the $ LINK ecosystem now boasts 342 partnerships. # DeFi is the most popular sector with 117 DeFi projects having announced their plans to use Chainlink # oracles. # PoweredByChainlink pic.twitter.com/fkoZLPRdCZ
– TheLinkMarine (@ TheLinkMarine1) November 30, 2020
In early July, the LINK rate broke through the resistance at $ 5 and in just a few weeks soared to an all-time high around $ 20. The scale of the subsequent correction was 65%, but this did not scare away LINK enthusiasts, and the project began to increase its value again.
LINK hodlers have grown by 59% between August and December 2020 and stood at 285,361 at the time of writing..
Co-founder and iconic figure of the project Sergey Nazarov took second place in the recent awards ceremony for the main DeFi-persons of the year (“DeFi Person of the Year”). In terms of the scale of influence in the crypto space, Nazarov was bypassed only by André Cronier, the creator of the acclaimed Yearn Finance project.
This selection of the nominee confirms that Chainlink is becoming the standard solution when it comes to data management in the blockchain oracles segment..
In the list of cryptocurrencies with the highest return on investment (ROI) between March and December 2020 prepared by Benjamin Coven, Chainlink came in first place.
This is confirmed by analyst Kevin Swenson. He points out that in 2020, the LINK rate rose from $ 1.50 to $ 20. This growth has made this coin the most profitable project among the top 20 currencies..
If this trend develops further, LINK has a chance to become one of the main cryptocurrencies in the new year..
#Chainlink went from $ 1.50 -> $ 20.00 in the Year 2020 … absolute face melter. Top asset in the top 20 cryptocurrencies.
This is likely to continue. $ LINK will likely melt faces once again in this next bull cycle seeing prices $ in the hundereds.
– Kevin Svenson (@KevinSvenson_) December 19, 2020
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Conclusion: Top 10 Cryptocurrencies
The list presented in this article is purely subjective and is based on the criteria set out at the beginning of this article. In fact, in the crypto space, there are a huge number of other promising projects and currencies, which have also shown great potential recently..
Examples include Litecoin, Aave, Kusama, Zilliqa, or Theta. However, the author was unable to include them in this rating, since the competition is very high, and the list is not limitless..
On the other hand, you should always remember that CoinMarketCap currently monitors more than 8 thousand cryptocurrencies, and most of these coins will sink into oblivion and deprive hodlers of their investments. In this regard, always very thoughtfully, carefully and responsibly approach what cryptocurrency to invest in, since this space still remains the “Wild West”.
Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinion of the author set forth in this forecast may not reflect the views of the editorial staff of BeInCrypto.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
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