Top 5 cryptocurrency of 2021 – Potentially Profitable Cryptocurrencies in 2021
2021 started very positive for the crypto market and more and more people are looking for alternatives for their wealth. The Bitcoin price reached new all-time highs and large institutional parties started to show interest in crypto.
More and more people are looking for alternatives for their savings account and end up with shares, cryptocurrency or index funds.
In this article we tell you which crypto coins we think will perform well in 2021 and why, we show this in a top 5.
Note: this is our opinion and certainly not financial advice. Always do good research when investing in crypto and never invest more than you can afford.
Top 5 crypto summary of 2021:
- Bitcoin: The mother of all coins and almost every investor is forced to start with BTC.
- Ethereum: Substantial development towards Ethereum 2.0 and DeFi hype.
- Chainlink: Oracle solutions can have a bright future for crypto.
- VeChain: Transparent recording of raw materials to end product on the blockchain. Prevents counterfeiting.
- Binance Coin: Largest exchange in the world, and you can take advantage of their success.
Bitcoin is the largest and oldest cryptocurrency in the world. Virtually the entire market follows the Bitcoin’s price. If the price goes down, the altcoins often follow as well. Hundreds of miners are daily mining new Bitcoin and hundreds of transactions are processed every day. Bitcoin is always a base currency on exchanges and will remain so for the time being. Crypto cannot do without Bitcoin at the moment and is therefore ranked number 1 in our top 5 of 2021.
When people think of crypto, they often think of Bitcoin. So, it is a popular coin with a high demand. So, chances are that a lot of crypto investors have some Bitcoin in their portfolio, and certainly the bigger investors.
The fact is that both large and small investors have to start with Bitcoin can have a positive effect on the price.
You pay a hefty price for an entire Bitcoin, but you can also buy part of a Bitcoin. This allows you to invest as little as 1 euro in Bitcoin.
Ethereum became especially popular in 2017 when the ETH price rose from $10 to almost $900. Especially for the early investors this was a nice return of investment. Nowadays the Ether price fluctuates around $200 and is at position 2 based on market capitalization. Update January 2020: around $1300.
Ethereum is a second-generation currency which introduced special new features. The introduction of the platform allowed people to create ERC-20 tokens on the platform and execute smart contracts. Especially when ICO’s were very popular, this was widely used.
Ethereum 2.0 ensures that the network can handle more transactions and that you no longer have to mine new coins, but you can stake them. Besides this, more technical solutions are being implemented. This will be rolled out in phases and can take up to 2022. One certain thing is that the team behind the coin is developing a lot. This is a good sign for a project.
The Decentralized Finance (DeFi) hype also plays a big role for Ethereum. Not only ETH benefits from this, but also the DeFi tokens.
Chainlink is another project that is doing great. Not only did Chainlink achieve new all-time-high several times in 2020, but Chainlink’s solutions are also being implemented by other blockchains. For example, they are working on so-called Oracles that make it possible to integrate external data into blockchains. As a result, they collaborate with many other projects such as ICON and Ontology.
In addition, the technology is also used for DeFi platforms and they are entering the Pharmaceutical sector. The sharp price increases in 2020, the new Oracle technique and many collaborations make this a very interesting project.
VeChain has been a household name in the crypto world for quite some time and has a large community behind it. After the rebrand in 2018, the VeChain price went down considerably. Nevertheless, the team is still working hard on the project and have many practical examples for their solutions.
What they mainly do is make the entire process of products or services transparent on the blockchain. For example, you can check if your Nike’s are real by using their solutions. The solutions are so good that they work together with several large companies, including H&M, Mastercard and AliPay.
The project is also highly appreciated by Deloitte and was the crypto of the week on The Street.
The last currency in our top 5 in 2021 is the Binance Coin, this is the native currency of the crypto exchange Binance. This platform is developing new features so fast that holders of Binance Coin can benefit greatly from them. Binance is the market leader in the field of crypto exchanges and offers many other services.
In addition to normal trading, you can also trade in futures. You can stake, lend, save and much more. The CEO of Binance Changpeng Zhao communicates a lot with the community. This gives investors a good feeling and it is partly thanks to this that Binance owes its success.
By having Binance Coin you can grow along with the exchange. Binance was the first to release a native currency after that many other exchanges followed. No other token is as popular as Binance Coin.
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