Published on: 10/06/2021

Best Crypto for 2021 – What is the top cryptocurrency this year?

It’s been yet another record breaking year for cryptocurrencies and we’re here to show you the best crypto for 2021. While cryptocurrencies have received plenty of negative attention, there is no doubting the fact that these represent some of the most exciting investment opportunities.

After all, the value of cryptos like Bitcoin have skyrocketed over the past decade, and it’s little wonder that so many people are eager to see the best cryptocurrencies in 2021. This is despite the huge risks faced, as trading these cryptos can amount to little more than crypto gambling. So, as long as you don’t mind the risks associated, take a look below at our picks of the best crypto for 2021.

Why most people think Bitcoin is the best crypto for 2021

We can’t talk about the best cryptocurrencies in 2021 and not mention the one that started it all – Bitcoin. Last year was perhaps the best-ever in the history of the cryptocurrency as it defied all the odds to break its own value record multiple-times over. Obviously, there were more than a few dips as was expected, but most investors maintain that Bitcoin is a smarter investment decision than mere crypto betting.

Bitcoin has been with us for well over a decade and it remains the world’s most popular cryptocurrency. Its use of blockchain technology has become one of the leading arguments for the adoption of decentralised currencies and BTC has started gaining traction in mainstream markets.

This can be seen in the fact that major companies like Starbucks, Subway and Microsoft accept Bitcoin payments. Plus the past year has seen Bitcoin enjoying a further massive boost due to the fact that PayPal allowed the crypto to be used as a payment method.

Obviously, no discussion of Bitcoin would be complete without mentioning the volatility of the crypto. True to form, Bitcoin had a rocky few months in the spring of 2021 after enjoying historic gains over the previous year. But whether Bitcoin will suffer another massive fall like the 45% drop in value experienced in late 2017 remains to be seen. All of which means that while investing in Bitcoin looks like a popular option, you should still be careful about placing too much faith in this crypto.

Could Ethereum be one of the best cryptocurrencies in 2021?

Ethereum has enjoyed yet another strong year and is well on course to be one of the best cryptocurrencies in 2021. It’s easy to forget that the price of the Ether coin was well below $500 as late as November 2020, but since then we’ve seen its value rocket to over eight-times that amount. This being a crypto, it was followed by a spectacular fall in May 2021, but expectations are that ETH should make up for some of this lost ground.

Ethereum is currently the second largest crypto in the world in terms of market cap. It was never meant to have been such strong competition for the likes of Bitcoin, as the Ether coins were only devised to power transactions on the Ethereum network – the open source, decentralised software platform that was launched in 2015.

But with no supply cap on these Ether coins, many suggest that ETH won’t suffer the scalability issues that have hit Bitcoin. All of which means that Ethereum could be in with a chance of being the best crypto for 2021.

Big things expected from ADA/Cardano this year

Cardano has grown to become a popular crypto due to the fact that it was created for non-profit purposes by a team of academics. This hasn’t stopped the Cardano coin becoming a popular investment opportunity. From the start of 2021 alone, we’ve witnessed the value of ADA growing at a four-fold rate, and there’s no reason to suggest that things are going to slow down any time soon. This is especially true as it has been suggested that the Cardano network will soon be able to handle smart contracts.

Why Stellar XLM could be the best crypto for 2021

You don’t buy Stellar coins. Instead you’ll be investing in Lumen which is the crypto that powers the Stellar blockchain payment system. This was devised as a way of decentralising payments in developing markets and Stellar is notable for featuring a special algorithm, rather than relying on mining to validate transactions and add them to the blockchain. All of which are just some of the key features that have helped drive the value of XLM up nearly seven-times over in the past six months.

Can Dogecoin be one of the best cryptocurrencies in 2021?

What started off as a joke has somehow become one of the biggest crypto stories of the past year. Dogecoin was introduced in 2013 as a satire on the rapid growth of alt-coins, but it is packed with features that has helped it become perhaps the best crypto for 2021. This is because DOGE has no supply cap, has a relatively low unit price, and enjoys much faster transactions than the likes of Bitcoin. Despite this, it was still hugely surprising to see DOGE rise in value by as much as 1400% in less than one month earlier this year. Whether Dogecoin can sustain this phenomenal growth remains to be seen.

Should you invest in the Shiba Inu coin this year?

Just to prove the point that 2021 is a year like no other, the SHIB token that is based on the Shibu Inu dog breed has somehow managed to become one of the biggest success stories on the crypto scene. Again, the SHIB coin was started as something of an internet in-joke that was based on the popularity of the Dogecoin, but it looks to have paid off with some spectacular growth rates on the market. Such meme-coins might not seem like being a mature investment decision, but there is little denying the success of the SHIB coin.

XRP Ripple expected to go from strength to strength

In a year of dog-themed cryptos, it’s been reassuring to find that the XRP coin is still enjoying immense popularity. The XRP coin was launched to power transactions on the Ripple network that was released in 2011. The Ripple network has enjoyed massive uptake among financial and banking institutions and the XRP coin can be exchanged for many other currencies. All of which has helped Ripple maintain its position as one of the best cryptocurrencies in 2021.

Why is Tron TRX so cheap at the moment?

Tron only came on the scene in 2017. While it was launched in a bid to offer further decentralisation of applications on the internet, the TRX coins have developed a life of their own with an eight-fold increase in value between January and April 2021. Sadly, this was followed by a spectacular fall in the following month.

More candidates for the best cryptocurrencies in 2021

Naming a handful of the best cryptocurrencies in 2021 is almost as tricky as trying to narrow down the top 10 crypto casino games. After all, there are plenty of cryptos not named above that remain a decent investment opportunity.

Is GRT crypto a good investment? Well it’s a relatively new kind of token on the Ethereum network that powers The Graph – a decentralised method of processing data from blockchains. While it’s too early to say where GRT will go from here, it’s evident that it’s already made a big impact.

Litecoin was established to be the ‘silver to Bitcoin’s gold’, and while it hasn’t paralleled Bitcoin’s growth over the past decade, LTC has still managed to enjoy a 700% rise in value over the past 12 months.

Similarly, Bitcoin Cash was created out of a ‘fork’ in the original Bitcoin as it was feared that Bitcoin’s rapid growth would have scalability issues and suffer from slower transaction times. After a fairly flat 2020, BCH has been enjoying plenty of price rises in the current year and could be a surprise contender for being the best crypto for 2021.

A word of warning about trying to predict the best crypto for 2021

While cryptocurrencies remain hugely popular, it’s essential to remember that all cryptos have suffered from massive drops in value. The sad fact is that more people will lose money out of investing in cryptocurrencies than profit, and that is one of the reasons why the US Treasury Secretary, Janet Yellen, warned that the likes of Bitcoin remain little more than a speculative asset. This means that you’d almost have as much luck in playing at the best crypto casino as you would in buying and selling cryptocurrencies.

As a result, it’s better to be cautious when looking to invest in the best cryptocurrencies in 2021. Rather than filling your portfolio with a volatile asset such as Bitcoin, it would be far wiser to opt for a more diversified investment portfolio. Balancing the best crypto for 2021 against more stable assets like commodities and major stocks would enable you to ride the rigours of the market without losing everything. So always be cautious when investing in cryptocurrencies.