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Top 10 Cryptocurrencies in 2021

Cryptocurrency can be defined as a digital coin in the form of a token built on a peer to peer network.  This network is called Gossip network. There are about 5000 cryptocurrencies on the market you can trade with. Bitcoin is one of the most popular coins in the crypto market.

Cryptocurrency can be defined as a digital coin in the form of a token built on a peer to peer network.  This network is called Gossip network. There are about 5000 cryptocurrencies on the market you can trade with. Bitcoin is one of the most popular coins in the crypto market. 

You can trade with any coin but you must have some knowledge of cryptocurrencies to reduce the risk factor. Normally investors take cryptocurrencies as long term investment because it is the most unstable market in the world.

You must know about crypto coins before you start trading. Here we are discussing 10 most popular coins you should buy in 2021.

Criteria of Rating

By doing a quick search you can find a number of recommendations to go with crypto coins. But we have a specific criteria to choose top 10 coins to reduce the risk factor.

  • Age of Coin
    New currencies take time to become mature. Therefore you must know about how old a coin is before starting investment in it. 
  • Track record
    You also need to have knowledge about how a company has performed during its business years. If you didn’t see any stability in price then there may be a big risk of losing your earnings. If you notice that crypto coin is gaining more attraction and becoming more valuable that it’s a good sign to go with it.
  • Technology
    You also have some knowledge about technology to make sure your investments are safe and secure. Mostly crypto currencies use blockchain technology which makes all transactions transparent and easy to track.

1- BTC (Bitcoin)

BTC is the oldest and most reliable cryptocurrency. Even though there are a number of cryptocurrencies, BTC holds about 40% of crypto market cap. BTC became more popular and all other organizations such as Tesla, Paypal and Visa Transacts are now accepting payment through BTC.

Risk in BTC investment

Even BTC became more and more popular, its price fluctuates a lot. Within seconds you can see the price goes up or down by thousands of dollars. You may invest in BTC if you have a long term investment plan otherwise for short term you may face a big loss in it. Here is the Bitcoin price chart from 2013 to 2021.

2- ETH (Ethereum)

Ethereum in short ETH is the second most reliable and alternative of BTC. The basic purpose of ETH is to create a decentralized currency that anyone in the world regardless of nationality, ethnicity or faith has free access. ETH applications run on specific ethereum designed cryptographic platforms. ETH was launched in 2015 and nowadays it is the second most reliable cryptocurrency in the world.   

ETH is now planning to change its “proof of work” algorithm into “proof of stake” algorithm. ETH claims that proof of stake algorithms takes less energy and are more speedy in performing transactions. 

Risk in ETH Investments

Even ETH is developed on blockchain technology but due to its one lane for transaction it takes a long time to perform a single transaction. In 2016 more than $60 million was lost in a hacker’s attack. Now ETH company has proven its security measures but loopholes are always a risky factor. Here is price chart of ETH from 2015 to 2021

3- BNB (Binance Coin)

BNB is the only currency that reaches its peak just in the starting year of its launch. Unlike other cryptocurrencies BNB makes a continuous increasing trend upwards which makes it more reliable. BNB was launched by Binance Exchange to pay fees associated with this exchange. 

A trade discount is given to those who use BNB for payments at Binance Exchange.

Risk in BNB investments

BNB is developed and managed by a company instead of a group of tech people. Therefore there is always a risk factor involved to invest in BNB even company is claims its maintenance and security measures. Here is BNB price chart till 2021

4- XRP (Ripple)

Ripple Labs introduces Ripple to offer international transactions. Banks and other money transfer agencies take upto 10 business days and on the other hand Ripple needs some seconds to perform transactions.  

Now Ripple has agreements and contracts signed with international banks around the globe. This makes ripple more reliable for investors.

Risk in XRP investment

In 2017 Ripple claims that its market cap will jump to 36,000%. But when we look at the real crypto market its stock price is only $2.40. This value is not much more attractive for investors to go with it. Here is XRP price chart

5- USDT (Tether)

USDT is known as the digital form of USD. Therefore it becomes more reliable than all other cryptocurrencies. A dollar reserved in the Federal Reserve Bank for each unit of USDT. This makes it more attractive than other cryptocurrencies.

Risk in USDT investment

Even the Federal Reserve Bank is involved in reserving a dollar for each single unit of USDT. but there is always the doubt factor that there is truly a US dollar or its just a claim only. If this claim disapproves then the USDT market will make a huge crash.

6- ADA (Cardano)

ADA works on small proof of stake algorithms, which makes it faster as compared to other networks. ADA was basically a research based project by Charles Hoskinson and five other members of ETH. ADA aims to convert conventional financial systems into complete digital financial systems. Due to its faster transaction and less energy consumption it gains the attraction of investors.  

Risk in ADA investment

ADA has a much better network than other cryptocurrencies but it is not able to compete with other crypto systems. ADA has fewer adopters as well as fewer developers also. It may take some time to get trust from investors. Here is the price chart of ADA.

7- DOGE (DogeCoin)

Doge was actually invented as a meme for cryptocurrencies in 2013 by Billy Markus and Jackson Palmer. But now it stands in top 10 cryptocurrencies having a market cap of $42 billion.

DOGE has a one minute block interval which makes it faster.

Risk in DOGE investment

DOGE coin has less technical team for maintenance. Currently the demand for DOGE coin is high and less in supply. If this scenario continues then DOGE coin price rises continuously.

8- DOT (Polkadot)

DOT is a new cryptocurrency developed by ETH leader after he broke away from ETH. DOT has a much better algorithm for performing transactions. It has multiple Lanes instead of a single one which makes it more effective and fast. DOT is specially designed for those investors who have concerns about transaction fee and cost. 

Risk of DOT investment

DOT is a very new cryptocurrency with a short trading history. That’s why it didn’t gain the trust of investors till now.  

9 -UNI (Uniswap)

Uniswap coin is designed and developed by Uniswap company. This company built this coin on uniswap protocol. This protocol performs automatic transactions between different crypto currencies by use of smart contracts. In October 2020 Uniswap was known as the largest decentralized crypto exchange which made it more reliable.

Risk of UNI investments

There is 0.3% of trading fee with each transaction.

10- LTC (Lite coin)

Litecoin was establishedi n 2011 as the same as bitcoin. At this time it didn’t get publicity but now  LTC can perform transactions four times faster than BTC. In 2017 LTC performs Lightning network transactions which makes it much more popular and its value increases dramatically. 

Risk of LTC investments

Litecoin price is tightly tied with BTC. As the BTC price goes down, LTC price drops dramatically. If you are not satisfied with BTC volatility then LTC is not a good option for you.

 Conclusion

Cryptocurrencies are not acceptable for everyone and there is no question about its stability. The main question comes into mind is which coin is perfect for investment. You must keep following points in mind to choose the best cryptocurrency according to your criteria.

  • Speed of Transaction
  • Fee associated with each transaction
  • Can you use this cryptocurrency for regular use (purchase or bank transfer).

Cryptocurrency does not make you rich quickly but it is a slow and long term process. You have to show patience after making an investment to get a handsome reward.

Learn more about How to invest in cryptos Here


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