Want to know the best cryptocurrency to invest 2021? Deciding which blockchain technologies to invest in can be difficult. With so many different cryptocurrencies to choose from, where do you start? In this guide, you'll learn about 5 of the most promising, best cryptocurrencies to invest 2021.
We developed this list by ranking Bitcoin and other digital currencies using a proprietary formula and research tool. Also, as an added bonus, we’re going to reveal a secret cryptocurrency that nobody is talking about yet. Developing an effective cryptocurrency trading strategy can help you improve your trading outcomes, even in times of uncertainty.
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Best Cryptocurrency to Invest in 2021
Just like we had the best cryptocurrencies of 2019, this year is full of investment opportunities.
At the time of writing (April 2021), there are 9,019 cryptocurrencies being traded according to CoinMarketCap. This amounts to a total market cap of $1.87 trillion.
So, when is the best time to buy cryptocurrency?
The best time to invest in cryptocurrencies is when you’re able to buy reputable coins at a discounted price. And, without a doubt after a retracement or a crash, these digital coins are going to be volatile, and cheap.
However, it’s hard to make money in the cryptocurrency market when blockchain technology has been shaken up by the Coronavirus (Covid-19). The 2020 Coronavirus financial crash wiped out over $100 billion in market cap and Bitcoin price plunging more than 50%.
Check out the chart below highlights the cryptocurrency performance leaders as of March 30, 2021:
This means that Bitcoin and other altcoins are trading at a heavily discounted price.
This raises several questions:
- What cryptocurrency should you buy in 2021?
- What are the best practices when investing in cryptos?
- Should you buy one cryptocurrency or diversify your portfolio with several cryptocurrencies?
The answers to these questions and much more will be discussed below.
Let’s first discuss the secret formula we used to buy the best cryptocurrency 2021.
How to Find the Best Cryptocurrency Coins 2021
If you don’t know how to pick a cryptocurrency to invest in, we’re going to reveal our proprietary formula. When comparing cryptocurrencies, variables such as price, trading volume, and volatility will all be very important.
Many crypto fanatics will recommend buying one cryptocurrency or choosing another digital coin and that will double in no time.
A word of caution:
Don’t listen to them!
It’s not that they can’t be right. It's because you didn’t do your research.
Many experienced crypto traders would agree that what is much more important than picking the "flavor of the week" is knowing how to identify when any currency is about to experience a price swing.
This way, you'll be able to not only trade successfully in the short-term but continue executing successful trades in the future.
It’s not wise to base your entire investment process on someone else’s hand. However, there is nothing wrong to check out what other experts are buying. But, before you risk any of your hard-earned money, it’s wise to do your own research before you buy cryptocurrencies. Read here about the best penny cryptocurrency picks.
If you don’t know how to research on your own, don't worry. In this guide, we’re going to reveal a set of rules that helped us pick the best cryptocurrencies currently on the market.
You can apply these rules to qualify and quantify cryptocurrencies before you buy them.
We evaluate the potential of cryptocurrency to invest in the long-term trends aka HODL.
How to evaluate a cryptocurrency before you invest:
- Read the whitepaper.
- Verify the cryptocurrency circulating supply and its price.
- Analyze trading volume.
Rule #1: Best Cryptocurrencies 2021 – Study the Whitepapers
Rule number one involves studying cryptocurrency whitepapers. Crypto whitepapers are designed to explain the purpose and utility of the coin. What goal is this coin trying to achieve? It’s essential to understand what problems the token is trying to resolve and their plan of execution.
The team behind the cryptocurrency will also be revealed in the white paper.
So, the first step before you buy cryptocurrencies in 2021 is to understand the white paper. This explains the blockchain technology behind each digital currency.
Rule #2: Best Cryptocurrencies 2021 – Market Capitalization
The second step is to check the circulating supply and price of your cryptocurrency.
Make sure you only invest in cryptocurrencies that have at least 80% of their coins in circulation. Cryptocurrencies that have partially circulating coins can see price drops after new coins are mined or released into the market.
The cryptocurrency price only reflects the perceived value of a coin. Price should not be a deciding factor behind your investment. Only the technical and future potential cryptocurrency prices are the driving factors.
Pro Tip* Don’t buy cryptocurrencies simply because they are cheap!
Rule #3: Best Cryptocurrencies 2021 – Check the Trading Volume
The liquidity and the volume of the coin is an important metric that can reveal what cryptocurrencies are more established.
Cryptocurrencies with high volume reflect a high perceived value by the trading community. The most popular cryptocurrencies must be confirmed by higher trading volumes.
As a general rule, we only invest in digital currencies with at least 10 million dollars in trading volume. Many of the best cryptocurrencies will have trading volumes in the billions. The probability to invest in a winner increases if you follow this simple rule instead of chasing miracle trades.
Let’s see what are the best cryptocurrencies to invest in for 2021 (hand-picked by our experts).
What is the Best Cryptocurrency to Invest 2021?
As history has proven only the cryptocurrencies with the strongest fundamental emerges as the winners after each crash. Digital currencies lacking a solid fundamental will be left behind.
Make sure you first check out this popular guide to cryptocurrency trading strategies for beginners.
The top 5 cryptocurrencies to invest in for 2021 are listed below.
Are you ready?
Best Cryptocurrency to Invest 2021: Bitcoin
If you’re wondering:
Is investing in Bitcoin still a good investment in 2021?
The short answer is: YES!
Bitcoin remains the benchmark standard and every cryptocurrency portfolio needs to include some Bitcoin.
Here are the top 3 reasons to buy Bitcoin right now:
- Cryptocurrencies are going mainstream outside of Wall Street. Because of the limited Bitcoin circulating supply of around 18 million coins, the price of Bitcoin has the potential to increase in value. Bitcoin supply is scarce and it’s one of the leading factors to drive BTC price higher.
- Bitcoin market capitalization is more than 5 times bigger ($1.1 trillion) than the world’s second-best cryptocurrency Ethereum. Bitcoin has the highest daily trading volume with more than $57 billion worth of crypto being traded. This makes it easier to go in and out of this digital currency.
- Future worldwide cryptocurrency regulation will decimate the crypto community. Many of the scam tokens and projects will go bust creating more demand for stable cryptocurrencies. Bitcoin was the first created cryptocurrency and remains the most trusted one. This is another reason for the Bitcoin price to surge in 2021 and beyond.
We hope these 3 reasons will convince you to buy Bitcoin today. Learn more about day trading cryptocurrency here.
Bitcoin doesn’t have only strong fundamentals, but the technical pattern looks very promising.
See Bitcoin chart below:
Here is what we can learn from the Bitcoin technical pattern:
- Holding above the 200 exponential moving average (extremely bullish reading).
- The key support level and the big psychological number of $4,000 is keeping the bullish trend alive.
- Price history shows us that Bitcoin price surged 390% and 258% when we approached the $4,000 support level.
Let’s see the second cryptocurrency that has the potential to make you profit in 2021.
Best Cryptocurrency to Invest in 2021: Dash
Dash cryptocurrency has emerged out as the leader from the coronavirus-fueled crash. YTD, Dash is up 65.20% (as of 26 March 2020).
Dash has strong fundamentals, good technical behind, and a relatively small circulating supply.
See Dash chart below:
This is the only receipt for success when investing in the cryptocurrency market.
Right now, the smart money is accumulating this coin at a very deep discount price. You can follow their lead and start by accumulating Dash coins a little bit every week and see where it goes from there.
According to Coinmarketcap, with a little over 9.4 million coins in circulation, Dash ranks as the 19th world’s best cryptocurrency.
Below we’ll outline the third-best cryptocurrency to invest 2021:
Top Cryptocurrency to Buy 2021 - Ripple
Ripple is a top pick for 2020. Now could be the best time to invest in Ripple XRP.
The price of XRP is trading at a huge discount. Actually, Ripple (XRP)'s price hasn't been this low since the summer of 2017.
Here are 3 things to know about Ripple before you buy it:
- Ripple works directly with the world’s biggest banks. If Ripple sees a massive adoption by the banks it will positively impact XRP price in the long-term. This makes XRP a good candidate for HODLing.
- Ripple was designed to move currency like we do information, which is instant. With Ripple XRP you can transfer money instantly to the other end of the world in less than 4 seconds. The fees for the transfer are a fraction of the commission you pay your local bank. By comparison, Bitcoin transactions can take over 1 hour to be confirmed.
- XRP can handle over 1,500 transactions per second. In contrast, Bitcoin can only handle 5 transactions per second.
Back in 2017, Ripple Price went from $0.006 to over $3 in 12 months. At the moment of writing this article, Ripple's price stands at $0.1615 and if it were to replicate the same move that happened 3 years ago, XRP will be worth more than $3.
See Ripple chart below:
Let’s explore other great cryptocurrencies to buy in 2021.
Best Cryptocurrencies to Invest 2021: Monero
Another promising crypto to buy in 2021 is Monero (XRM).
You might be asking yourself:
What’s so special about the cryptocurrency Monero?
Here are 3 solid reasons why Monero is a top cryptocurrency to buy 2021:
- The first reason to buy Monero is privacy. Monero is the world’s most established privacy coin. If you’re looking to make anonymous transactions Monero is the preferred digital currency in the crypto space. The non-traceability feature has allowed people to transact without any government oversight.
- Limited Monero circulating supply of around 17 million coins is another reason to keep an eye on Monero in 2021.
- The double-digit price of around $50 is proof of a solid cryptocurrency.
See Monero chart below:
We know you must be eager to find our last cryptocurrency recommendation for 2021.
Best Cryptocurrencies to Invest 2021: Ethereum
The best cryptocurrency to buy right now in 2021 is Ethereum.
We saved the best for the last.
Many of the top cryptocurrencies that you can invest today, present attractive opportunities. However, if we were to pick one cryptocurrency that has the biggest potential that would be Ethereum (ETH). Out of the coronavirus crash, Ethereum can emerge as the potential biggest winner.
Here are our top 3 reasons to buy Ethereum right now:
- Reason number one: Ethereum has more applications than Bitcoin.
- Ethereum is backed by multiple Fortune 500 companies like Intel, Microsoft, or JP Morgan.
- Ethereum limited circulating supply can boost ETH price.
See the ETH chart below:
We don’t want to leave you in the dark, so here are three additional signs to keep an eye on before you buy cryptocurrencies.
Three Trading Tips Before You Invest in Cryptocurrency
Our team of experts will share three trading tips to keep an eye on so you know when to buy cryptocurrencies.
The first thing you need to do to spot a good buying opportunity is to learn the technical price pattern of cryptocurrencies. In other words, try to learn the seasonal pattern of cryptocurrencies.
Right now the best time to buy cryptocurrencies is in September – November. Also, the cryptocurrency market tops out at the beginning of the year in January.
See ETH chart below:
Secondly, cryptocurrency upcoming announcements and partnerships can trigger a price pump.
And last but not least, in the long-term, the best time to buy cryptocurrencies is after a pullback or a deep retracement.
Check out our guide How to Profit from Trading Pullbacks.
Best Cryptocurrency to Invest FAQ
What is the best cryptocurrency to buy under $1?
The best cryptocurrency under $1 is the meme coin Dogecoin. There are many tokens valued under $1 but no cryptocurrency enjoys so much hype as Doge. The co-founder and CEO of Tesla, Elon Musk is one of the most prominent figures to back the Dogecoin cryptocurrency.
The growth potential is the main reason why you should consider buying cryptocurrency under $1.
Dogecoin has already seen stellar growth in 2021, currently has a market cap of around $5.7 billion and it’s ranked in the top 20 most valued cryptocurrencies on CoinMarketCap rank.
Which is the best cryptocurrency to buy and hold?
The cryptocurrency to buy and hold for the decade to come remains Bitcoin. Bitcoin is considered the best crypto asset and the king of all cryptocurrencies. After all, the crypto-mania started with BTC, which as of today is the world’s most expensive digital currency. Bitcoin is also in the top 10 most valuable global assets, more valuable than Facebook, Alibaba or Tesla.
Here are 3 reasons why you should buy Bitcoin for the long-term:
- Bitcoin adoption is increasing exponentially – the upside potential is unlimited.
- Bitcoin has survived through many crushes and it’s still here to stay.
- The blockchain technology that allows Bitcoin to function is constantly upgraded.
What is the best cryptocurrency to mine in 2021?
The most profitable crypto coin to mine in 2021 is Ravencoin (RVN). You can mine Ravencoin directly from a home computer that can be categorized in the GPU mining cryptocurrencies. The Ravencoin algorithm used for proof-of-work mining is ASIC resistant. Find out how profitable it is to mine Ravencoin with this mining profitability calculator.
What is the best cryptocurrency to buy 2021 according to Reddit users?
According to Reddit users, blockchain stocks like MARA and RIOT are two of the most favorite investments mentioned in the WSB subreddit. Users from the Reddit message board WallStreetBets, known as the WSB that was behind the GameStop squeeze have a “no cryptocurrency” rule. However, buying stocks in companies related to blockchain technology is perfectly fine with the moderators at WSB.
Conclusion – Best Cryptocurrencies to Invest In
The bottom line is that the coins featured in the best cryptocurrency to invest 2021 guide are our preferred digital currencies. The cryptocurrency market is still dominated by high volatility so you need to expect some up and down swings in your portfolio. Before you buy cryptocurrencies 2021, make sure you research the cryptocurrency by reading the white paper and verify its circulating supply and price.
In summary, here are our top cryptocurrencies to buy 2021 (in no particular order):
If you have your preferred cryptocurrencies, and you believe in the blockchain technology behind the project, please share your recommendation with us.
Thank you for reading!
Feel free to leave any comments below, we do read them all and will respond.
Also, be sure to check out this guide on crypto trading signals.
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