The Best Cryptocurrency to Invest in 2021
At the same time, trading cryptocurrency was a lot simpler in its infant stage. In 2021, there are officially 7,000 cryptocurrencies. Each day, a new one seems to appear out of thin air. Some are genuine competitors to the original BitCoin, while others are mere copycats or frauds. With thousands of paths to choose from, it can be quite daunting and overwhelming.
What is the best crypto to invest in? We’ve compiled a list to guide you in the right and most profitable direction. From mainstream cryptocurrencies to hidden gems, let’s look at the 7 best cryptos to invest in 2021.
(These are not order ranked and we recommend choosing based on your individual situation)
What are The Best Cryptocurrency to Invest in 2021?
TABLE OF CONTENT
|Beginning of Article||Start here|
|Ripple||“XRP”||1 of 7|
|Bitcoin||“BTC”||2 of 7|
|Litecoin||“LTC”||3 of 7|
|Ethereum||“ETH”||4 of 7|
|Binance||“BNB”||5 of 7|
|Chainlink||“LINK”||6 of 7|
|Tron||“TRX”||7 of 7|
What Are Cryptocurrencies?
According to Investopedia.com
Before we take a closer look at some of these alternatives to Bitcoin, let’s step back and briefly examine what we mean by terms like cryptocurrency and altcoin. A cryptocurrency, broadly defined, is virtual or digital money which takes the form of tokens or “coins.” While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible.
The “crypto” in cryptocurrencies refers to complicated cryptography which allows for the creation and processing of digital currencies and their transactions across decentralized systems. Alongside this important “crypto” feature of these currencies is a common commitment to decentralization; cryptocurrencies are typically developed as code by teams who build in mechanisms for issuance (often, although not always, through a process called “mining”) and other controls.
Cryptocurrencies are almost always designed to be free from government manipulation and control, although as they have grown more popular this foundational aspect of the industry has come under fire. The currencies modeled after Bitcoin are collectively called altcoins, and in some cases “shitcoins,” and have often tried to present themselves as modified or improved versions of Bitcoin. While some of these currencies may have some impressive features that Bitcoin does not, matching the level of security that Bitcoin’s networks achieves has largely yet to be seen by an altcoin.
Below, we’ll examine some of the most important digital currencies other than Bitcoin. First, though, a caveat: it is impossible for a list like this to be entirely comprehensive. One reason for this is the fact that there are more than 4,000 cryptocurrencies in existence as of January 2021. While many of these cryptos have little to no following or trading volume, some enjoy immense popularity among dedicated communities of backers and investors.
Beyond that, the field of cryptocurrencies is always expanding, and the next great digital token may be released tomorrow. While Bitcoin is widely seen as a pioneer in the world of cryptocurrencies, analysts adopt many approaches for evaluating tokens other than BTC. It’s common, for instance, for analysts to attribute a great deal of importance to the ranking of coins relative to one another in terms of market cap. We’ve factored this into our consideration, but there are other reasons why a digital token may be included in the list, as well.