With more than 6,000 crypto assets, choosing the best cryptocurrencies to trade in 2021 is not an easy task for crypto traders, but there is a list of ten coins that will help meet the expectations of traders.
Cryptocurrencies with the highest potential for growth
According to many crypto analysts, 2021 will be the best year for cryptocurrency trading. The cryptocurrency market has long been a subject of interest due to the rapid development of digital platforms. Crypto trading turned out to be more interesting and fruitful compared to trading traditional assets, such as commodities and stocks. This is why there is a list of the most reliable crypto assets in terms of trading.
What cryptocurrencies do traders choose to trade in 2021?
Since the crypto market has a large number of coins, amateurs may find it difficult to choose the right currency to trade in. But as experienced crypto traders say, there is a list of crypto assets that will never let you down. Here are 10 major cryptocurrencies worth considering:
Bitcoin (BTC)
Bitcoin has been called the gold of the crypto space, although back in March 2020, it went through a major test due to the outbreak of a pandemic that led to the loss of $ 4,000 per coin. Bitcoin, as usual, has shown a rapid recovery rate, and the coin is currently undergoing a healthy correction, and is valued at $ 34,220, and according to CoinMarketRate, the market capitalization at the moment is more than $ 636 billion, which experts estimate will also grow.
Forecasts of a sharp rise in the Bitcoin market predict a jump in the price, which could rise to $ 100.00 by the end of 2021. Citibank indicated that the market value can even reach up to $ 300,000, which is 15 times higher than the current values.
What drives the price of Bitcoin?
- Supply and demand;
- Market competition;
- Regulation and adoption.
Ethereum (ETH)
Ethereum ranks second in the list of cryptocurrencies with a solid market platform. Recently, the value of Ethereum fluctuates, but CoinMarketRate19 January recorded that the Ether reached its all-time high in 2018, and its value was $ 1,432.
Moving to Ethereum 2.0 with more decentralized frameworks is the most compelling reason to trade Ethereum. The key advantages of trading Ethereum include the second most fluid and dynamic currency, support for a reasonable and smart contract, as well as accounting for decentralized portable applications, dApps.
What drives the price of Ethereum?
- Innovation from the developers;
- Triangular Arbitrage of Ethereum, Bitcoin, and Ethereum Classic;
- The profitability of mining
Ripple (XRP)
Significant advantages of this coin include an incredibly low conversion scale and an instant notification system for exchanges due to the verification process that bypasses the national bank.
Similarly, Ripple uses its administrations to help banks and other money funds, which therefore increases its reliability. The best and ideal opportunity to buy Ripple at the moment, although the price is still very low and reasonable, especially in contrast to the other coins available today: $ 0.28.
What drives the price of Ripple?
- Technology;
- Hyper Drift
- Ripple Holders
Litecoin (LTC)
The price of Litecoin has risen, and it has recently shown promising potential. The total capitalization of Litecoin is raised to 9 362 450 903 dollars, with 66 245 618 LTC at the moment says CoinMarketRate. The cost of LTC increased to $ 144.6 and, according to analysts, will reach staggering highs by the end of the year.
A lot is expected from Litecoin, because it is now the seventh largest digital asset in the world. This happened because the project changed its technology. Litecoin has gained recognition due to the fact that it informs about confidential transactions with the elimination of the problem of interchangeability. This was a huge leap in turning LTC into an individual. This type of confidential transaction will solve the problem of using the product, which is typical for open blockchains.
In a statement, Oracletime said that Litecoin’s advantage over Bitcoin will attract the attention of many users. Their forecast for Litecoin by the end of 2021 is at least $ 1,000, but could rise to $2,000. There is another forecast from Investingpr that most traders prefer to trade Litecoin only because they want to diversify their portfolio and Bitcoin so that they can reduce risks.
What drives the Litecoin price?
- The competitiveness of coins;
- The increase in the number of adoption;
- Post-crisis Covid-19;
- The appetite for risk.
IOTA (MIOTA)
Given IOTA’s past market capitalization, its market value has always declined until 2020, but this cryptocurrency has started to improve and increase its value by the end of the year. IOTA entered 2020 with a market capitalization of $ 446 million, and at the end of 2020, this coin has already exceeded 900 million, gaining more than 100%, although the road was not easy and full of difficulties. At the moment, the value of this crypto asset is at the level of $ 0.44, with a market capitalization of $ 1,207,668,435.
The reason this coin is different from the others is because of its IoT-enabled technology. This coin can continue to grow, as it did during the cryptocurrency boom of 2017. At that time in 2017, out of all the altcoins, IOTA amassed a huge market cap and volume, which helped the coin lift its market and soar to an all-time high of over $ 5 per MIOTA token.
What drives the price of IOTA?
- Media attention;
- Corporate partnership
Dash (DASH)
The explanation for why numerous tech enthusiasts invest in this coin is that it differentiates their portfolios and can be considered as an alternative means to Bitcoin. 2021 could be a very productive year for Dash traders as investors establish extended partnerships with payment system providers.
Dash is a more affordable and practical currency, offering more functionality, and is therefore easy to spend. Features that distinguish a crypto asset include:
- Spork
- Chain lock
- PrivateSend Protocol;
- The InstSend protocol.
These features can help the coin acquire a much greater value – $ 2,000 per asset. If the desire for a practical cryptocurrency continues until the end of 2021, the cost may even be an illustrative step in the adoption of cryptocurrencies.
What drives the price of the Dash?
- Competitive advantage;
- The level of acceptance.
Cardano (ADA)
The Cardano – ADA coin has a number of attributes that could make it a major trademark in the coming years. The cryptocurrency has a clear set of features, such as payment methods and voting tools for ADA holders. Cardano helps its users maintain security by creating transaction verification in the block chain.
Cardano can be stored and exchanged on multiple currency wallets, and it has a fairly decentralized approach. Cardano has its own wallet called Daedalus, which helps users keep investments and serves as a tool for trading. It also benefits its users by giving them rewards, and holders can earn coins.
Key features that make Cardano stand out in the world of cryptocurrencies:
- A progressive team responsible for development and updates;
- Unlimited scalability capability;
- Fast and cheap transaction systems;
- Decentralized applications;
What drives the price of Cardano?
- Decentralization;
- The number of dApps.
Ethereum Classic (ETC)
Trading Ethereum Classic can be quite confusing, as an online forecasting service called “Long Forecast” predicts that Ethereum Classic may continue to face challenges in 2021 and is thought to be priced at $ 8.44. This will be 30% more than the previous price values.
However, the indicators say that the final price of ETC may be about $ 10.
What drives the price of Ethereum Classic?
- Adoption of Ethereum Classic;
- Network attack.
Stellar (XLM)
The combination of Stellar with IBM and its widespread use in the South Pacific, where the company is now responsible for 60% of cross-line payments in retail, pays off. In a shorter time period, Stellar Lumens has been showing the value of a downward curve that has fallen by 11.5% in the last 24 hours, but don’t let that mislead you. The crypto asset is trading at $ 0.27, with a market capitalization of 6,148,233,774, which is already telling.
What drives the price of Stellar?
- Society’s influence;
- Market competition;
- The level of acceptance.
NEO (NEO)
NEO’s capabilities are impressive, as its distinctive features make it stand out in the market compared to other cryptocurrencies.
The platform allows users to record, consume, sell, transfer, and exchange a range of crypto assets. What NEO does exclusively is that it allows its users to link their physical assets to digital avatars on the network.
However, let’s be clear: NEO’s valuation is somewhat questionable. This is a great crypto project, with a huge potential for investment, but…
Currently, you should hope for unpredictability, as the vulnerability affects the future of this cryptocurrency. In the medium to long term, the situation may be quite orthodox, because the Chinese government will begin a complete crackdown on digital forms of money, in which case you should hope that the value of NEO will survive a serious crisis.
What drives the NEO price?
- Competitiveness;
- Media attention
Conclusion
Summing up the above, we can say with confidence that over the past years, the listed crypto assets have established themselves as a reliable investment tool for crypto traders around the world. But no investment should start without a thorough personal research. Never forget that the cryptocurrency market is always an increased risk. Also, the crypto space should be approached taking into account the legislative acts of the country in which you live.
