Which cryptocurrencies’ prices will likely rise 2021?
If you haven’t yet taken notice, Bitcoin has made an incredible recovery in 2020 and is now higher than ever at over $20,000 USD per coin.
In 2017, Bitcoin and other cryptocurrencies experienced a surge in popularity as the public took an interest. Bitcoin crashed, however, from its December 2017 high of $18,640 all the way down to $3,360 in December 2018. It’s been trending upwards ever since, and 2020 has suggested its peak is still to come.
If you’re here, then you’re looking to invest in the next big cryptocurrency. Here is our list of the ones to look out for.
In 2017 and 2018, hundreds of new cryptocurrencies flooded the market with Initial Coin Offerings (ICO). Virtually every single one grew exponentially in value as soon as it was made available to consumers. It was pure crypto-mania!
Unsurprisingly, when the hype died down, most alt-coins didn’t stand the test of time. There are currently more than 5,000 cryptocurrencies available but less than 1,000 are actively traded on exchanges and even fewer have viable economic prospects.
At the risk of making your head spin, here are the cryptos we’re currently watching. Before you take the plunge, ask yourself, “Which of these will be around in ten years?” Cryptocurrency markets are highly volatile and as an investor, you have to have the stomach to tolerate dramatic price fluctuations.
If we’ve learned anything from the crypto market in 2017 and 2018, it’s that what goes up usually comes down — and many coins don’t come back!
The Major Players
Bitcoin, Bitcoin Cash, Ripple, Ethereum, and Litecoin round out the top 5 cryptos. The current market capitalization of all cryptocurrencies is around $237 billion; almost two-thirds of that is represented by Bitcoin and Ethereum.
Ethereum was developed by Russian techie, Vitalik Buterin, in 2015 and carries a current market capitalization of around $40.6 billion. Ethereum was built for creating “smart contracts,” which are ‘If/Then’ commands. It could be something like, “If Sally is never late for work, then she gets paid $xx” or if you input certain data, you’ll get a soft drink. When you put many smart contracts together you get something called dApps, decentralized applications. dApps are tamper-proof as they directly connect the user and provider, cutting out the middle-agent who stores and has control over the information (think Gmail). The vast majority of cryptocurrencies are actually apps that run on the Ethereum blockchain.
Litecoin was launched in 2011 and co-founded by a former Google engineer. It allows for fast, low-cost global payments through its decentralized network. It is supposed to be a faster version of Bitcoin with a larger supply of coins, which led it to often be likened as “the silver to Bitcoin’s gold”. While a very popular choice next to Bitcoin and Ethereum in 2017, it hasn’t hit quite the same recovery as those coins in 2020. Nevertheless, its technical advantages and credibility make it a likely long-term contender in the world of crypto.
Ripple was launched in 2012 and is based in San Francisco with offices in 27 countries. Ripple focuses on multi-currency transactions which are cheaper and faster than Bitcoin. By the end of 2017, the company already has more than 100 international banks signed up to its platform, RippleNet. To date in 2020, the coin is up nearly 300%. Ripple is estimated to have a market capitalization of $332 billion. Its token is called XRP.
The Runners Up
Tether (USDT) is a unique cryptocurrency because its value is “tethered” to the US dollar. Every Tether coin remains valued at $1 USD, which insulates it from the major price fluctuations characteristic of most cryptocurrencies. This has earned it a characterization as a “stablecoin” and may pave the way for the digitization of the US dollar in the future. A tether is a great option for those looking for a stable crypto coin to store value in.
EOS is one of the most actively traded cryptocurrencies on the exchanges. Unlike other cryptocurrencies, the coin launched with a year-long ICO to avoid the characteristic run-up and crash that have plagued pretty much every other coin. As a result, EOS displays less volatility than other coins on the market, which is an attractive feature for those wary of the ups and downs of crypto.
Binance Coin (BNB) was launched in mid-2017 by the Binance Decentralized Exchange or DEX. You can buy and sell thousands of different cryptocurrencies on the DEX, but users get a discount if they pay fees with Binance. Since DEX is the largest cryptocurrency exchange in the world, this incentivizes users to trade Binance, ensuring its longevity and growth.
Stellar Lumen (XLM) was founded in 2014 by Ripple co-founder Jed McCaleb. Stellar is an open-source blockchain that settles global financial transactions, like currency exchange, within 2–5 seconds making it much faster than Bitcoin. Its market capitalization is nearly $9.2 billion.
Tezos (XTZ) is becoming the most popular cryptocurrency for new projects, and as a result, is up by over 85% since the start of 2020. Many are suggesting Tezos might ultimately surpass Bitcoin, as it’s both more scalable and less resource-intensive.
Bitcoin Satoshi Vision or Bitcoin SV (BSV) was created in 2010 by forking the Bitcoin Cash blockchain. The intention was to make Bitcoin more scalable by increases block sizes so they could work faster and carry more information. BSV, however, has not been without conflict and disputes at previous peak-crypto in 2017 and 2018 led to the project being split off entirely from Bitcoin. Despite disagreements and feuds among members, Bitcoin SV still remains a popular choice among crypto investors.
Chainlink (LINK) quietly soared up over 600% in 2020 while everyone was focused on Bitcoin. This Ethereum-based token is gaining popularity and has occasionally surpassed both Bitcoin and Ethereum in single-day trading volume on major exchanges. Chainlink functions to connect smart contracts to external data sources, adding a security layer for large transactions.
NEM (XEM) launched in 2015 and seeks to address the perceived failings of Bitcoin; requires less computational power and has a proprietary feature that sifts out “bad actors” in the network. NEM rewards miners based on their involvement in the “community,” not on their computational capacity or stake size. This coin is up over 500% this year.
Monero (XMR) was created in 2014 with no maximum cap for mining, unlike Bitcoin. It’s regarded as one of the most private and anonymous cryptocurrencies and gained public notoriety when Mariah Carey and Toby Keith sang its praises. While it hasn’t had the major run-up as some other crypto coins on this list, it has definitely come back to life in 2020 and is trading at 3x what it did at the start of the year.
NEO — Launched in China, NEO facilitates smart contracts that also combine digital assets and digital identities. It has a total supply of 100 million tokens and gives holders the right to manage the network and vote for team members. Blocks are generated every 10–20 sections and cannot be forked or withdrawn once validated. While up over 100% this year, it’s down 90% from its previous all-time high.
Where Do I Buy Cryptocurrency?
You can’t buy Bitcoin from your local bank, or even on the stock exchange with your brokerage account. In order to buy and sell a cryptocurrency, you need a digital wallet and platform that allows you to trade crypto.
Wealthsimple launched Wealthsimple Crypto, which allows you to buy and sell digital currency using their Wealthsimple Trade platform, If you’re already a Wealthsimple Invest or Wealthsimple Trade customer, you’ll recognize the same stellar user experience with the Crypto platform.
When you sign up, deposit and trade a minimum of $100, you can get a free $25 cash bonus and commission-free trading on Wealthsimple Crypto.
At present, you can only buy and sell Bitcoin and Ethereum on Wealthsimple Crypto, so it’s more limited than other exchanges. Wealthsimple is always innovating and adding features to their platforms, so we can expect more cryptocurrencies to be supported in the future.
If you find the Wealthsimple Crypto selection too limiting, Coinsquare is your next best bet. Coinsquare supports all major coins such as Bitcoin, Ethereum, Litecoin, Ripple, and more. You can build a much more well-rounded cryptocurrency portfolio on this platform.
Coinsquare stands out above competitors for their ultra-low fees but new deposits are subject to a 7-day hold. With cryptocurrency prices so volatile, a full week hold feels like an eternity when you’re waiting to invest!
Coinbase is another great choice if you’re looking for a cryptocurrency platform that supports a number of different coins. Not only can you buy Bitcoin, Ethereum, and Litecoin, you can also pick up altcoins like Chainlink, Dash, EOS, and Tezos.
Coinbase will let you buy a fixed amount of cryptocurrency on a weekly or monthly basis, making it easy to automate your investment portfolio. You can even directly charge a credit card, making it easy to fund your account and even earn credit card rewards on your cryptocurrency purchases. This convenience comes with a downside. Coinbase charges very high fees compared to its competitors, charging $0.99 to $2.99 USD per trade. If you’re buying bitcoin with a debit card, expect to pay 3.99% in fees. Yikes!
When it comes to investing in cryptocurrency, there’s still tremendous risk and volatility involved. Since crypto’s peak in 2017 and the subsequent crash in 2018, a few coins have shown they’re likely here to stay.
If you’re investing in cryptocurrency, make sure it fits with your overall investment strategy. But the best way to keep your coin and earn more is by investing it. I invest mine coins with Axelar Digital (www.axelardigital.com) and I get a weekly ROI of up to 100% depending on the plan/package i choose. They have one of the traders in the world where they trade coins and give ROI to investors weekly. Reliable, Swift payment, Safe and Secure. Easy money. Just like you wouldn’t invest all your money in a single stock, you shouldn’t put all your money into a single coin. Make sure to diversify your investments in cryptocurrency.
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