Cryptocurrency is becoming increasingly popular among investors, not only for short-term gains, but also as a vehicle for long-term investments. Having observed the incredible and remarkable growth of cryptocurrencies in 2021, there is no doubt that digital currencies are the new future. The underlying technology used in popular cryptocurrencies like Bitcoin, Ethereum, etc. is a blockchain-based technology that has the potential to revolutionize many industries like healthcare, banking, supply chain, etc.
Below are the top 6 cryptocurrencies to invest in 2021 according to Forbes Advisor:
1. Bitcoin
Bitcoin (BTC) is the original cryptocurrency created in 2009 by someone going by the alias Satoshi Nakamoto. Like other popular cryptocurrencies, Bitcoin runs on a blockchain, or ledger logging transaction, distributed across a network of thousands of computers. Because every addition to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called Proof of Work, Bitcoin is safe and secure from fraud or security leaks. Bitcoin has become a household name since its price skyrocketed.
2. Ethereum
Program developers prefer Ethereum for its potential applications, such as smart contracts that run automatically under programmed conditions, and non-fungible tokens (NFTs). It is both a cryptocurrency and a blockchain platform. Like Bitcoin, the value of a single Ethereum has skyrocketed and has shown tremendous growth.
Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers for its potential applications such as smart contracts, which execute automatically when conditions are met, and non-fungible tokens (NFTs).
Ethereum has also seen tremendous growth. In just five years, the price has gone from around $11 to over $3,000, increasing by more than 27,000%.
3. Tether
Tether is the first cryptocurrency backed by the US dollar. It is blockchain based and is usually backed by the same value of conventional currencies like the US dollar, euro or Japanese yen. As a result, it maintains a value almost identical to any of these currencies. Tether is a stablecoin instead of Bitcoin and Ethereum, whose prices have large and frequent swings from time to time. Therefore, investors prefer investors who do not want to risk investing in other highly volatile cryptocurrencies.
4. Binance Coin
Binance Coin is an Ethereum-based token form of cryptocurrency that allows you to trade and pay fees on Binance, one of the most well-known crypto exchanges in the world. It can also be traded and exchanged for other forms of cryptocurrencies such as Ethereum and Bitcoin. It was launched in 2017 specifically to facilitate trading on Binance’s exchange platform, which has now expanded its reach for smooth payment processing, etc. Now it can be used for commerce, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency such as Ethereum or Bitcoin.
The price in 2017 was only $0.10; by August 2021 it had risen to over $419, a gain of almost 419,000%.
5. Cardano
Cardano was developed in 2017 by Charles Hoskinson, co-founder of Ethereum and BitShares. It is a cryptocurrency network that speeds up transaction time and reduces energy consumption by removing the transaction verification aspect present in other cryptocurrency platforms like Bitcoin. It is similar to Ethereum in that it enables smart contracts and decentralized applications powered by ADA, Cardano’s internal cryptocurrency.
Cardano’s ADA token has seen relatively modest growth compared to other major cryptocoins. In 2017, the price of ADA was $0.02. In August 2021, the price was $2.11. That’s an increase of over 10,000%.
6. Dogecoins
Dogecoin is a cryptocurrency originally created as a meme/joke by two software programmers, Billy Markus and Jackson Palmer, to poke fun at the cryptocurrency’s rising popularity during this time. Coincidentally, it was the Dogecoin-based humor shared in the community as memes that contributed to its rapid progress. Unlike other cryptocurrencies like bitcoin etc. there is no cap to control how many Dogecoins can be created. Dogecoin has remained popular due to endorsements from famous figures like Elon Musk. On May 9, 2021, Elon Musk’s SpaceX announced a Dogecoin-funded trip to the moon, making it the first cryptocurrency-funded space trip in human history.
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