With cryptocurrency and blockchain continuing to grab the headlines, we wanted to look closely at the top ten best coins to invest in 2021.
All the top cryptos in circulation typically have standard features you need to know about. For example, every crypto coin is, in essence, a computer code that uses a private key – usually random letters and numbers that unlock a virtual vault with a specific cryptocurrency inside. This private key can be tracked on a blockchain where all transactions are recorded.
We will exclude Bitcoin from this list, although it deserves mention. Bitcoin was the first crypto coin in circulation and is the most popular globally. It is head and shoulders above its competitors in terms of its value. With a market capitalisation of over $740 billion, there’s no wonder it is the cryptocurrency of choice for many investors.
Whether you use cryptocurrencies for investment, trading, or playing at the best crypto casino, we have you covered. Read on as we explore ten coins making waves in 2021.
When Investing, Keep In Mind That:
When trying to figure out the best coins to invest in, always consider how quickly the transactions are processed, the fees associated with each transaction type, and how flexible that specific cryptocurrency is for standard purchases and bank transfers.
Remember that investing in cryptocurrencies is not a get-rich-quick scheme that can make you a millionaire overnight.
In light of that, you must study the different coins on the market and make an informed decision.
- Large-cap coins will offer more stability but the lowest returns.
- Mid-cap coins will provide a great combination of profitable returns and even stability.
- Low-cap coins offer the most significant returns but are known to be the most volatile.
Top Tokens and Best Coins To Invest In This Year
- Cardano (ADA)
Cardano is a blockchain platform based on Ouroboros, a proof-of-stake protocol which separates its native coin, ADA, from others that rely on proof-of-work protocols.
Cardano’s network is smaller than most, which investors find appealing. Less energy is required to complete a transaction, and transaction fees are cheaper. This is in stark comparison to bigger networks like bitcoin, where transactions are slower and more expensive.
ADA can be bought through an exchange and stored in a digital or cold storage wallet. It is thought to be more adaptable and secure than most coins in circulation, with regular improvements being made to keep hackers at bay.
The Cardano developers have big plans for this promising crypto coin. But, for the plans to materialise, investors require a higher adoption rate. Its market cap is currently at over $49 billion, with a unit price of $1.54 and a circulating supply of over 31 billion ADA.
2. Litecoin (LTC)
Litecoin (LTC) is one of bitcoin’s initial competitors, having been founded two years after bitcoin in 2011. It is a decentralised cryptocurrency that relies on the cryptographic integrity of the blockchain network and operates under a proof-of-work ecosystem that shares many similarities with bitcoin.
Unlike BTC, though, it has transaction speeds of up to four times faster and uses a cryptographic algorithm called Scrypt. You can buy LTC from an exchange and store it in a digital or cold storage wallet.
With the help of an intermediary to process the transaction, you can use Litecoin to make payments across the globe. Currently, it has a market cap of over $11 billion with a unit price of $168.98 and a circulating supply of over 66 billion LTC.
3. Stellar (XLM)
Stellar is a decentralised open-source protocol created by the Stellar Development Foundation and operates as a link between banks and blockchain networks.
It is a distributed ledger based on blockchain technology that helps users facilitate cheaper cross-asset transfers of value. Stellar can convert any currency and trade it across channels, making it more affordable and quicker than traditional banking systems.
Stellar’s currency, the Lumen, is one of the best-performing altcoins in the past five years. It has a market cap of over $7.7 billion, a unit price of approximately $0.33 and a circulating supply of over $23 billion XLM. With such incredible potential, this is undoubtedly one of the best coins to invest in.
4. Beam (BEAM)
BEAM is a Decentralised Finance platform that operates on a combination of the LelantusMW and MimbleWimble protocols. Its focus is primarily on security and user privacy, as all transactions are private by default. Moreover, addresses are not stored in the blockchain.
While BEAM mirrors Bitcoin by using an Unspent Transaction Output model, BEAM offers a greater level of security as its values are encrypted by blinding factors. To give the network the highest level of privacy, Beam uses LelantusMW, which offers an anonymity set of up to 64 kilobytes.
BEAM is created as a deflationary coin with a capped supply, halving every four years and stopping emissions completely after 133 years. It has a market cap of over $59 million, a unit price of $0.67 and a circulating supply of over 90 million BEAM.
5. Grin (GRIN)
Like BEAM, Grin uses MimbleWimble technology with a high focus on the security and privacy of users and transactions.
It ensures privacy by not using amounts or addresses and hides the origin of transactions by allowing them to go through a subset of peers before being broadcasted. To an observing outsider, all transactions appear to be randomised.
Grin can be bought through an exchange and stored in a digital or cold storage wallet. Through the cryptography of MimbleWimble, Grin removes previous transaction data that prevents the coin from collapsing under the weight of too much data being stored on its chain.
Grin’s network is easy to download and verify, totally anonymous, and very compact. It has a market cap of over $29 million, with a unit price sitting around $0.39 and a circulating supply of over 75 million GRIN.
6. Monero (XMR)
Monero is an open-sourced private digital currency that enables users to be their banks. It makes use of an opaque blockchain that disguises the addresses of participants, making transaction details and amounts anonymously. Mining Monero is relatively simple for investors with their CPUs, so no special hardware is required.
By default, all Monero users are anonymous, with the amount of each transaction facilitated. With Monero’s high level of security, outsiders cannot view individual user activity or balances. This is possible through three specific security measures employed by Monero, i.e., Ring Signatures, Ring Confidential Transactions (RingCT), and Stealth Addresses.
With Ring Signatures, a sender can hide their identity from other users in the group. This is done through anonymous digital signatures that don’t reveal who signs a transaction.
To create a Ring Signature, Monero combines the sender’s account keys with public keys on the blockchain, making it unique and private. The sender’s private identity makes it impossible to ascertain which group member was used to create the Ring Signature.
With RingCTs, users can hide the number of their transactions, while Stealth Addresses provide additional privacy with randomly generated addresses for one-time use upon each transaction.
Monero is one of the best coins to invest in, with a market cap of over $4.9 billion, a unit price sitting at $275.67, and a circulating supply of over 17 million XMR. XMR can be bought through an exchange and stored in a digital or cold storage wallet.
7. Horizen (ZEN)
Horizen prides itself on being a privacy-focused cryptocurrency and blockchain network that has concentrated its efforts on scaling and security improvements.
Its native currency, ZEN, uses Zendoo technology and enables developers to create private or public blockchains. It is based on a proof-of-work operational model and offers two types of addresses, i.e., T-Addresses and Z-Addresses.
T-Addresses are transparent and public and are mainly used for Bitcoin-type transactions on the blockchain. On the other hand, Z-Addresses are anonymous and private and effective at shielding transactions. Horizen users can choose which type of address they want to use to control their privacy.
Horizen has a market cap of over $923 million, with a unit price of $82.74 and a circulation supply of over 11 billion ZEN.
8. Dash (DASH)
DASH is a payment cryptocurrency and was created as an almost immediate form of funds transfer. It is open-source and offers affordable and fast global payments to its users through a decentralised network.
The name DASH originates from Digital Cash. It includes features like a two-tiered network, instant settled payments, instant immutability on the blockchain, and optional transaction privacy.
DASH aims to be the most scalable payments-focused cryptocurrency in the market and relies on a network of master nodes to provide advanced services securely. The currency is used by individuals, financial services, merchants, and traders.
Its market cap is over $1.7 billion, with a unit price of around $174.61 and a circulating supply of over 10 billion DASH.
9. ByteCoin (BCN)
ByteCoin is a cryptocurrency that CryptoNote Technology powers. It aims to develop untraceable payments, unlinkable transactions, and a scalable blockchain.
Bytecoin hopes to be the first cryptocurrency on the market that is private and untraceable. This is possible as the ByteCoin blockchain makes all addresses opaque and uses Ring Signatures to combine different outputs into a single transaction.
These techniques make for a safer transacting environment as it becomes almost impossible to ascertain the source of the funds. ByteCoin also enables users to generate one-time addresses by using a single set of keys and in doing so, make addresses and transactions unlinkable.
The currency’s market cap is over $88 million, with an incredibly low unit price of $0.0004 and a circulating supply of over 184 billion BCN. This certainly puts it in the frame as one of the best coins to invest in.
10 .Polkadot (DOT)
Polkadot is an open-source platform that enables the cross-chain transfer of all data or asset types, allowing for blockchain interoperability. It aims to create a fully decentralised and secure web that is private and controlled by its users.
The platform has plans to develop new applications, services, and institutions that will connect to private and public chains, permissionless networks, and oracles while allowing the secure sharing of information between independent blockchains.
Polkadot is unique in the crypto market as it is a sharded multi-chain network with the ability to process multiple transactions on different chains in parallel. This drastically improves scalability and is flexible with the ability to adapt. Its currency is known as DOT.
DOT’s market cap is over $23 billion, with a unit price of approximately $24.35 and a circulating supply of over 945 million DOT. It can be bought through an exchange and stored in a digital or cold storage wallet.
Bonus Token – NEO (NEO)
Neo is a developing ecosystem in the crypto market that wants to create a new economy that combines digital payments, assets, and identities. It is an open-source platform initiated in China and has developers across the globe that contribute towards its progress.
Since NEO is in the development phase, its potential is massive as it is future-proof and can sustain a possible surge in demand when required. NEO offers some exciting features, including enhanced network security and higher transaction speeds compared to similar coins currently in circulation.
NEO makes use of Delegated Byzantine Fault Tolerance that is capable of facilitating thousands of transactions per second. It has a market cap of over $3.5 billion, with a unit price sitting around $50.33 and a circulating supply of over 70 billion NEO making it one of the best coins to invest in.
The Bottom Line
There is no doubt that cryptocurrencies are here for the long haul. Despite some wild swings in the market recently, there is much hope that cryptos will become the currency of choice for people around the globe. With the exciting recent announcement of El Salvador making Bitcoin an official means of tender in the country, other cryptocurrencies are bound to benefit from such positive news.
Good luck with your investment!