Bitcoin has been a trendsetter since the inception of cryptocurrencies; however, it is not the only coin that is making waves in the market. There are over 7,000 cryptocurrencies in existence today and with a wide range of coins to choose from, investors often get confused about which to pick.
Although Bitcoin is the first thing that comes to mind whenever the topic of crypto trading or investing is raised, investors can also find out about other viable coins discussed on cryptocurrency and forex blogs. Mentioned below are the top cryptocurrencies to look out for in 2021.
Ethereum
This is a decentralized network that hosts decentralized apps (dapps) and smart contracts without the risks of fraud, downtime, third-party interference, and control. Ethereum’s goal is to create a collection of financial vehicles that can be accessed worldwide, irrespective of location, nationality, or ethnicity.
The network plans to pivot to the proof-of-stake algorithm in 2021, leaving behind Bitcoin’s proof-of-work algorithm that it had used in the past. This move means that the Ethereum network will witness an enhanced transaction speed while also reducing energy consumption. As of writing, Ethereum has a market capitalization of $326,468,195,445.69 with its current price at $2821.77 per token after hitting an all-time high of $4356.99 in May 2021.
Polkadot
Polkadot is an outstanding proof-of-stake token designed to be interoperable with other blockchain networks. Its algorithm connects oracles, non-permissive and permissive networks to work hand-in-hand. The network uses a relay chain as its major component, allowing interoperability across other blockchains.
Parallel blockchains that host their native tokens can also operate on the Polkadot network. Polkadot is different from Ethereum because it allows developers to create different blockchains on the network while using Polkadot’s security infrastructure. As of writing, Polkadot’s market cap sits at $23,228,382,938.71 with a token value of $24.84 after reaching an all-time high of $49.78 in May 2021.
Bitcoin Cash
This token is one of the earliest altcoins in history and is reputed for being the most successful Bitcoin hard fork. Forks happen in the crypto world when miners, developers, and other stakeholders of a network fail to reach a consensus on how things should operate. When this happens, the token is split and a coin with a new set of codes emerges.
Bitcoin Cash was created in August 2017 after some users of the Bitcoin network raised their concerns about its scalability. The token was created to be a faster and more scalable version of Bitcoin and it has been making waves ever since. Currently, the market cap of Bitcoin Cash is $12,515,010,393 with its market price at $667.20.
Binance Coin
This is an exchange token of the Binance Exchange. Users who make payments with Binance Coin are allowed to trade at a discount on the exchange. Popularly known as BNB, the Binance Coin blockchain also serves as a platform for the Binance exchange.
The proof-of-stake network upon which it operates sets it apart from numerous tokens in the market. BNB has been making major moves in the market after moving from $44.26 in January 2021 to an ATH of 692.24 in May 2021. Its current price is $404.34 but experts believe that the coin will surpass its all-time high soon.
There you have it! The coins with the most potential in 2021. If you have been confused about where to put your money as an investor, the aforementioned coins can be starting points; however, you must conduct your research and understand the risks involved before investing in any token.