Over the year, cryptocurrency is becoming an increasingly popular investment option. Bitcoin made US$50,000 in August, bringing it closer to its record-setting high of US$60,000. Watching the crypto trends and headlines, traders feel confident about investing in cryptocurrency, given the bullish run.
Here is the list of the top 7 cryptocurrencies to invest in 2021:
Bitcoin dropped to US$30,000 from US$30,000 at the beginning of 2021, when the crypto market crashed. The price of bitcoin rebounded in August, and it now trades at $47,000. Investing in Bitcoin in the current market is a good idea for those who are new to crypto.
Ethereum is the second biggest cryptocurrency after Bitcoin. With its blockchain network, it reformed the DeFi sector and paved the way for decentralising applications. Ethereum recently released its highly anticipated update, which improved transaction fees and reduced Ether inflation. By making this change, investors can clearly understand the value of investing in Ether, and miners will receive a fair price.
A utility token like XRP is among the most popular on the market. The XRP blockchain platform, created by Ripple, aims to enable cross-border currencies without friction. Numerous banks have become aware of the functionalities of this token since its launch, causing the volume of transactions here to increase over time.
In contrast to most cryptocurrencies, Tether is a stable coin. In the digital environment, stable coins are digital tokens with a fixed value and pegged to fiat currencies, such as the Euro or the Dollar. Tether has a similar price at $1 or equivalent and maintains a US$1 reserve for every Tether issued.
- USD Coin
The USD Coin is a more popular stable coin since it is denominated in US dollars only. It is safer to invest in stable coins because they can withstand market fluctuations better. USD Coin is an excellent entry-level investment for new investors.
The digital currency Cardano is well known for its network of proofs of stake. Decentralised and open-source, built on the blockchain platform. It is possible to conduct peer-to-peer transactions via its native token, Ada. One of the most reliable cryptocurrencies to invest in is Cardano, founded by Ethereum co-founder Charles Hoskinson.
Originally produced as a meme, Dogecoin has since become a legitimate cryptocurrency. Thanks to Elon Musk, it has made enough headlines. As a result of all the hype, this coin’s value has grown by more than 50% since its inception. Aside from this, this coin is one of the cheapest cryptocurrencies to buy.