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Top 21 Winning Cryptocurrencies of 2021
Top 21 Winning Cryptocurrencies of 2021

Top 21 Cryptocurrencies you should know about in 2021

Two months have already passed since the beginning of 2021, and already a lot of things have happened in the cryptocurrency world. One of them is that Bitcoin hit the $50K mark today. This guide will present you with the top 21 cryptocurrencies you should need to know this year. It doesn’t matter if you are investing or trading cryptocurrencies or not. In a way or another, you will hear about them this year because these cryptocurrencies are set to disrupt the current financial system as we know it.

So it doesn’t matter if you want to invest in them and make an excellent return of your funds, or you want to stay on the fence. Here are the top 21 cryptocurrencies you will hear more about in 2021.

What are the best cryptocurrencies in 2021?

In 2020, several reputable financial institutions had already recognized crypto’s potential.

To give you several examples: JP Morgan started banking Coinbase and Gemini. Visa and Mastercard provided services to crypto companies, and PayPal launched a new service, enabling users to buy, sell and hold cryptocurrencies.

Fidelity started a new Bitcoin index fund, which appears to be wall Street’s latest play for high-dollar institutional crypto bets.

But there are more than 7,000 cryptocurrencies on the market today.

With such a broad range of cryptocurrencies to choose from, how do investors know which is the best cryptocurrency to invest in?

From the most popular cryptocurrencies making headlines worldwide to lesser-known digital currencies you may never have heard of, here are the best cryptocurrencies to buy in 2021.

Best Cryptos in 2021
Best Cryptos in 2021 – Vote for your favorite

Do you have thought that I will start with Bitcoin? Well…no. I think Ethereum is going to lean in 2021.

Continue reading to find out why.

1. Ethereum (ETH)

  • Market Cap: $212B
  • Established: 2015
  • Transfer Cost: $12
  • 1Y return: 655%

Ethereum was created by Vitalik Buterin and went live on 20 July 2015. It has the objective of utilizing a blockchain to replace web third parties — those who store information, transfer mortgages and keep an eye on complicated financial instruments.

The team developing Ethereum has started implementing a series of upgrades called Ethereum 2.0, which includes a transition to proof of stake and an increase in transaction throughput using sharding.

Ethereum blockchain network has always served as a preferred network for decentralized applications (dApps). In addition to its native cryptocurrency, Ether (ETH), the platform supports other crypto platforms such as Uniswap (UNI), Maker (MKR), and Aave (AAVE), which are active in the Decentralised Finance sector.

DeFi is considered one of the fastest-growing crypto trends, transforming insurance, loans, and savings programs, making them independent from banks and other centralized financial institutions.

2. Bitcoin (BTC)

  • Market Cap: $1022B
  • Established: 2009
  • Transfer Cost: $15
  • 1Y return: 350%

Bitcoin is the first cryptocurrency invented. It was released by someone called Satoshi Nakamoto. We don’t know if this person exists or is just a pseudonym. According to this article, Satoshi’s BTC account holds 1,148,00 bitcoins, which in today’s money should be around 46 billion USD, but the coins have never been moved and keep adding up.

Bitcoin is still the 1st cryptocurrency with a 748 billion USD market cap and a daily transaction volume of 70 billion USD. Today (Feb 17), for the first time in its history, 1BTC was traded for $51K.

Being the main entrance door for people in the cryptocurrency market and the most known cryptocurrencies will make it relevant for years to come. But in my opinion, it’s importance will continue to fade as better blockchain systems appear. We can mention the high transaction fees, low transaction volume (up to 7 per second), and the high energy costs to mine it for downsides.

3. Cardano (ADA)

Cardano logo
  • Market Cap: $28B
  • Established: 2017
  • Transfer Cost:$0.07
  • 1Y return: 980%

Cardano is the largest third-generation cryptocurrency, and it’s packed with plenty more upside potential in 2021.

ADA, which runs on the Cardano network, is one of the most technologically exciting cryptocurrencies to date. Its proof-of-stake system means it can operate more efficiently than the standard proof-of-work system. And its use of smart contracts means that it can keep track of transactions like Bitcoin while handling payments like Ethereum. In short, it’s a third-generation coin that improves on its predecessors.

4. Polkadot (DOT)

Polkadot Logo
  • Market Cap: $30B
  • Established: 2020
  • Transfer Cost: Nominal
  • 1Y return: 650%

Polkadot is an open-source project founded by the Web3 Foundation and has commissioned five teams and over 100 developers. The leading figure of Polkadot is Dr Gavin Wood, which some of you may know as one of the founding fathers of Ethereum and author of the Solidity smart contract programming language.

The Polkadot project aims to enable a completely decentralized web where users are in control. Polkadot facilitates an internet where independent blockchains can exchange information and transactions in a trustless way via the Polkadot relay chain.

From a technological standpoint, Polkadot’s key difference is its use of parachains — multiple blockchains that can run parallel. That solves a massive issue for bitcoin, a single, growing blockchain that all miners (and transactors) need to store.

Interoperability and scaling are the next major steps in the blockchain industry wich Polkadot is aiming to resolve, making it a reputable cryptocurrency.

5. Ripple (XRP)

  • Market Cap: $25B
  • Established: 2012
  • Transfer Cost: Nominal
  • 1Y return: 48%

Ripple was created as an alternative financial payments system to transform and facilitate cross-border payments, making them 100%  safe, almost free and instant.

According to the report by OMFIF (the Official Monetary and Financial Institutions Forum), Ripple, with its distributed ledger technology (DLT), could “position itself as an alternative to SWIFT,” solving five significant issues: security, speed, traceability, cost, transparency and risk management.

On 22 December 2020, the SEC announced that it had “filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.”  After this, many big US cryptocurrency exchanges dropped Ripple’s support, but the price remains relatively stable as XRP sees considerable support overseas, especially in Japan.

6. Stellar (XLM)

Stellar logo

  • Market Cap: $11B
  • Established: 2014
  • Transfer Cost: Nominal
  • 1Y return: 433%

Stellar offers low-cost, cross-border transactions. 2021 is shaping to become Stellar’s year. After lagging bitcoin in 2020, Stellar surprised analysts and investors alike by rocketing 200% in the first week of January.

Much of its success comes from XRP’s misfortunes. That’s because, much like XRP, Stellar was designed to facilitate cross-border transactions.  In January 2021, the Ukrainian government announced a partnership with Stellar Development to create a national digital currency.

XLM is gaining additional global adoption after Grayscale Investments created a dedicated trust.

7. Chainlink (LINK)

  • Market Cap: $14B
  • Established: 2014
  • Transfer Cost: Nominal
  • 1Y return: 433%

The problem with smart contracts or agreements on a blockchain network is that these transactions can only occur on a platform like Ethereum. They need some way to draw real-world data into the platform to execute smart contracts when certain conditions are met. The solution is data providers called oracles.

While several crypto platforms have created ways for oracles to retrieve data for their network, Chainlink has developed a reputation system that guarantees the data is accurate, ensuring smart contracts’ validity. This system builds confidence in the platform, and the growing popularity of decentralized finance, or DeFi, helps make Link a contender for the best cryptocurrency.

The robust development of the ecosystem (already over 350 partnerships) and the increasing adoption in various global economy areas are just some of the fundamental reasons making Chainlink an increasingly accelerating enterprise.

So we can expect the LINK cryptocurrency to be one of the dominant cryptocurrencies in 2021.

8. Aave (AAVE)

Aave
Aave
  • Market Cap: $5B
  • Established: 2020
  • Transfer Cost: Nominal
  • 1Y return: 1000%

The Aave project is a decentralized lending system that helped drive the DeFi sector’s interests to new heights. This next-gen protocol was one of the first to enable users to lend, borrow and earn interest on crypto assets. Best of all, there is no need for a middleman when you use Aave because the entire system is run autonomously via smart contracts that live on the Ethereum blockchain.

One of Aave’s best features is that the protocol allows a borrower to gain exposure to various cryptocurrencies without owning them outright. Using Aave, you can earn rewards without the need to trade your favourite digital assets. This strategy reduces the risk of loss.

9. Yearn.finance (YFI)

  • Market Cap: $1.5B
  • Established: 2018
  • Transfer Cost: Nominal
  • 1Y return: 3004%

Yearn.Finance is a portal to various DeFi products. And given that DeFi now has nearly $8 billion in crypto assets committed to it, mainstream traders could start rolling in any day. If that happens, a front door might end up being very valuable.

10. Tether (USDT)

Tether USDT

  • Market Cap: $33B
  • Established: 2015
  • Transfer Cost: Nominal
  • 1Y return: 0%

Tether is called a “stablecoin” because it was initially designed to be worth $1.00, maintaining $1.00 in reserves for each tether issued. Stable coins are useful for entities and individuals that want to store or pay using cryptocurrencies but don’t want to risk market fluctuations. Cryptocurrencies traders sell cryptocurrencies like BTC, ETH, XRP and buy stable coins when the market is bear and sell them when they predict the market will go bull.

There is some controversy around Tether. On 14 March 2019, they claim that the funds are based not only on US dollars but also on loans to affiliate companies. Tether’s price decreased to lows of $0.90 on 15 October 2018 on speculation that investors are losing faith in the token.

We’ve included Tether/USDT in our top because if it’s a huge market cap but we recommend caution using it.

Here are several other stable coins you can use to preserve value: USD Coin (USDC), Binance USD (BUSD),  PaxG (1PaxG – 1 Gold oz.)

11. Bitcoin Cash (BCH)

Bitcoin Cash

  • Market Cap: $13B
  • Established: 2014
  • Transfer Cost: Nominal
  • 1Y return: 433%

Instead of Bitcoin, which has a low number of transactions and increases transaction fees, Bitcoin Cash has blocks that can store 8 MB of data, allowing for faster and more frequent transactions with lower fees.  That’s why in August 2017, some Bitcoin developers created their version of Bitcoin and called it Bitcoin Cash.

Bitcoin Cash may be more recent and less popular than its predecessor. Still, its scalability means it has incredible potential for growth and puts it in the running for the best cryptocurrency.

12. NEO

Neo Logo

  • Market Cap: $3.3B
  • Established: 2016
  • Transfer Cost: Nominal
  • 1Y return: 102%

Formerly known as Antshares, NEO is one of China’s earliest and largest cryptocurrency ventures. The coin fell hard in 2018 as the Chinese government cracked down on cryptocurrency exchanges. But in 2021, the coin staged a remarkable resurgence as Chinese regulators turned their ire to Ant Group, a payments processor.

13. Uniswap (UNI)

Uniswap Logo

  • Market Cap: $6B
  • Established: 2020
  • Transfer Cost: Nominal
  • 1Y return: 500%

Uniswap is a decentralized cryptocurrency exchange that facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through smart contracts. It is estimated to be the largest decentralized exchange and the fourth-largest cryptocurrency exchange overall by daily trading volume.

On traditional centralized exchanges, there needs to be a buyer for you to sell a currency. But on a decentralized cryptocurrency exchange, some providers are getting incentives to provide liquidity. Also, there isn’t owned and operated by a single entity. Read this guide to find out more about Uniswap.

14. Binance coin (BNB)

  • Market Cap: $50B
  • Established: 2017
  • Transfer Cost: Nominal
  • 1Y return: 212%

Even though more cryptocurrency trading is moving towards decentralized exchanges, their well-managed centralized older sisters still dominate.  Binance is the largest cryptocurrency exchange in the world based on volume.

Binance Coin was initially hosted on Ethereum until the Binance decentralized exchange, or DEX, went online in 2017.

The Binance DEX is a platform much like Ethereum, albeit with a different mission. The Binance DEX is a decentralized platform where users can buy and sell Binance coins and use BNB to convert other cryptocurrencies from one to another.  Most importantly, the Binance DEX offers a discount to users who pay transaction fees on the exchange with BNB – an innovative strategy that keeps users on the platform and helps sustain Binance Coin’s growth.

Binance Coin have a clear purpose (offering smaller fees on transactions through the Binance network) and is powered by the largest cryptocurrency exchange in the world, so it has all the ingredients to grow aggressively in 2021.
Buy Binance Coin (BNB) on Binance Exchange
Buy your first Binance Coins (BNB) on Binance Exchange

15. Celsius (CEL)

  • Market Cap: $1.3B
  • Established: 2018
  • Transfer Cost: Nominal
  • 1Y return: 3004%

Celsius is a cryptocurrency with the potential to become a bank.

Considering the Celsius’ extreme 2020 rise makes it a currency worth considering.  The network looked to write $6.2 billion in loans, making it more like a bank than money. And by registering as an exempt issuer with the SEC, Celsius has soared even as other cryptocurrencies like XRP have struggled.

Still, Celsius has plenty of risk behind it. As companies from Bear Stearns to Lehman Brothers found, bad loans can quickly sink your battleship. And Celsius itself could blow up if loans aren’t well-vetted. But until then, investors stand to make a lot of hot-money returns.

16. Elrond (EGLD)

Elrond

  • Market Cap: $2.4B
  • Established: 2020
  • Transfer Cost: Nominal
  • 1Y return: 212%

Elrond is a blockchain designed for immense scalability and significant transaction throughput thanks to its adaptive state sharding system, enabling transactions to be handled rapidly by multiple validators.

Whereas Bitcoin can handle just a maximum of seven transactions per second, Elrond claims to be able to push through 15,000 transactions per second as of now at only $0.001 each, with instant finality.

 

17. Litecoin (LTC)

Litecoin Logo

  • Market Cap: $15B
  • Established: 2013
  • Transfer Cost: Nominal
  • 1Y return: 100%

Former Google employee Charlie Lee created Litecoin to improve transaction times (roughly 2 1/2 minutes) and lower transaction fees. It has a substantially faster block generation rate than Bitcoin. And unlike most cryptocurrencies, the list of merchants that accept Litecoin is snowballing.

Even if it has a large merchants pool, I consider that Litecoin is losing momentum to Ethereum and DeFi movement. Litecoin is based on Proof of Work (PoW) mining instead of proof of stake, which gets more extensive acceptance in the cryptocurrency world. On a positive note, Litecoin has a large fan base, which will keep it relevant in 2021.

18. Dogecoin (DOGE)

Dogecoin

  • Market Cap: $7B
  • Established: 2013
  • Transfer Cost: $0.03
  • 1Y return: 1865%

Dogecoin is a cryptocurrency invented by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system that is instant, fun, and free from traditional banking fees.

Created as a joke, Dogecoin was co-founded by IBM software engineer Billy Markus from Portland, Oregon, and Adobe software engineer Jackson Palmer, who made a peer-to-peer digital currency that could reach a broader demographic than Bitcoin.

In January 2021, Dogecoin went up over 800% in 24 hours due to Reddit users’ attention, partially encouraged by Elon Musk and the GameStop short squeeze. In February 2021, Dogecoin hit its all-time high price following Twitter encouragement from Elon Musk, Snoop Dogg, and Gene Simmons.

19. TRON (TRX)

  • Market Cap: $4.2B
  • Established: 2017
  • Transfer Cost: Nominal
  • 1Y return: 128%

The Tron project is a blockchain-based decentralized platform that aims to build a free, global digital content entertainment system with distributed storage technology and allows easy and cost-effective digital content sharing.

The Tron network uses its cryptocurrency called Tronix (TRX). Content consumers can use Tronix to pay for the content they want to access. These coins would then go to the content producers’ accounts, where they can be exchanged to other cryptocurrencies or can be used to pay for blockchain services.

On January 23, Tron’s Justin Sun met the chairman and CEO of Berkshire Hathaway, Mr Warren Buffet, for dinner after placed a record-breaking $4.5 million bid at the Glide Foundation last year. In a statement after the dinner, Sun said it “was an honour, and I’m grateful for Mr Buffett’s dinner, wisdom and vision.”

He added that he would “take Mr Buffett’s advice and guidance to make TRON a better ecosystem, business with all the partners in the blockchain space and beyond,” though he did not provide specifics.

20. Compound (COMP)

Compound

  • Market Cap: $2.1B
  • Established: 2020
  • Transfer Cost: Nominal
  • 1Y return:

Compound cryptocurrency is a decentralized, blockchain-based protocol that allows you to make money by lending and borrowing crypto — and have a say in its governance with its native COMP token. The project is part of Ethereum and, more broadly, DeFi.

The Compound ecosystem is created by Robert Leshner (Linkedin), which is a former economist. Compound raised $25 million in its Series A funding round, which prominent venture capital firm Andreesen Horowitz led. The protocol also received $1 million in USDC from Coinbase’s “USDC Bootstrap Fund.”

 

21. Swipe (SXP)

Swipe (SXP) Cryptocurrency

  • Market Cap: $300M
  • Established: 2021
  • Transfer Cost: Nominal
  • 1Y return: 161.9%

Swipe wants to be the leading company that brings cryptocurrency to commerce and standard banking.

With Swipe, you can access over 50 cryptocurrencies, stable coins and fiat currencies. You will also easily buy and sell crypto with a linked debit card, credit card, or bank account. 

Through their app, you will be able to manage your swipe visa debit card quickly. You can access your Swipe Wallet balance at over 60 million locations worldwide that accept Visa.

The Swipe Visa Card comes in four options that enjoy benefits such as up to 8% cashback, no foreign transaction fees, Apple/Google/Samsung Pay, top-brand rebates, virtual cards, and real-time security features. Even better, all the cashback funds will be paid in bitcoin so you can earn even more.

22.Reef Finance (REEF)

Reef Cryptocurrency

  • Market Cap: $114M
  • Established: 2021
  • Transfer Cost: Nominal
  • 30D return: 131%

This top will not be complete without REEF.  Reef cryptocurrency is positioned as a hub for DeFi and other cryptocurrency financial services on Polkadot. As a founding member of the Polkadot DeFi Alliance, it will support and grow the ecosystem’s overall success as a cross-chain solution with a cohort of members and partners, such as Interlay, Equilibrium and Moonbeam.

Besides that, I see the Reef team committed to developing the project by adding new features and market it to the world.

I see it as a project that will get much exposure in 2021, so if you like to gamble on cryptocurrencies, my bet is on Reef.

Top Cryptocurrencies FAQ

Here are several cryptocurrencies questions and answers I got overtime. If you have one that is not listed here, please post it in the comments section, and I will do my best to answer it ASAP.

How to make money with cryptocurrency?

There are several ways you can make money with cryptocurrencies.

  • The first one is to invest in cryptocurrencies by creating a wallet on a specific coin.
  • The second way is to do day trading on a platform like Binance and analyze the charts to purchase a coin and sell it higher.
  • The 3rd way is to deposit your coins in a service like BlockFi, which offers you interest for your coins as they are offering loans. Check the next questions to get more details.

How to invest in cryptocurrency?

When you invest in cryptocurrency you should first pick a cryptocurrency that you believe will increase in value over time.

After you did your research the next step is to get a wallet on that specific coin like Bitcoin, Ether or Polkadot to keep your coins. I recommend owning a hardware wallet like Ledger or SafePal for complete security. Then using an exchanger like CoinMamma, CoinBase, or Binance, transfer cash from your credit card or bank account into your wallet.

Do not to sell in fear and wait till you are happy with the profit. Keep in mind that these cryptocurrencies can loose up to 90% of the value, but most of them will get back if you are patient and don’t sell in fear.

When you purchase cryptocurrencies on eToro or Robinhood, you do not actually own the cryptocurrency but order on that crypto. You only own the cryptocurrency when you have complete access to the wallet.

What is the best cryptocurrency to invest in?

That’s not an easy question to answer because I don’t have a crystal ball to predict the future. However, I have my own rules when I decide to invest in cryptocurrency.

These are:

  • [1] I pick a cryptocurrency that solves a real problem and people use it for other reasons rather than speculating on its price.
  • [2] I take a look at the technology used and the whitepaper.
  • [3] Do research on the project team and their project’s roadmap. If they do what they promised, then it’s a winner.
  • [4] I look at market adoption and the response from the investors. I’ve seen man awesome technologies that the market rejected.
  • [5] I monitor the cryptocurrency for several months before I invest the funds and then I also do it to see how it performs.

I hope these pieces of advice offered you a good start to find your best cryptocurrency to invest in.

How to day trade cryptocurrency?

To do day trade on the cryptocurrency market, you should pick a volatile cryptocurrency. It would help if you aimed for coins that grow and decrease because you will make money whenever you purchase on low and sell on it’s high.

Signup with a platform like Binance and analyze the charts. Don’t get in love with a coin. Keep in mind that the purpose is to sell when you make a profit. Day trading smaller cryptocurrencies can be a very lucrative business, but there are higher risks. Crypto prices can crash just as fast as they have risen, so if you don’t have time to look on charts and take immediate action, you better avoid day trading.

Which cryptocurrency will explode in 2021?

That’s impossible to predict, but considering the current evolution of the cryptocurrency market, I think the DeFi projects will see a huge increase in 2021.

Vote your favourite cryptocurrency

Now you can vote for your favourite cryptocurrency. So wait no more! Let us know which one you consider the best cryptocurrency, and then see the poll results.

Conclusion on Top Cryptocurrency

So there you have it. Here are 21 top cryptocurrencies that you should know in 2021. I’ve left out of this top with so many crypto coins, but I check them regularly. I will post them in the next update of this article.

What about you? What is your top cryptocurrency? Let me know in the comments below.

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed here are those of the author and do not necessarily represent or reflect the views of Monetize.info.

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About Daniel S.

Daniel is the founder of MediaDigi.com digital agency and digital marketing manager here at Monetize.info. For over 14 years he has helped hundreds of customers to establish a presence online and win the digital race.

One comment

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