Cryptocurrency has experienced a meteoric rise in popularity over the past few years. As more and more people become familiar with cryptocurrency, they are now turning to it as an alternative means of storing wealth or trading. With a wide range of coins to choose from, it can be difficult to know which cryptocurrency to invest in. In this article, we’ll be looking at the top crypto to keep an eye on in 2021, ranking them across various criteria such as liquidity, market capitalization, use cases and development roadmap.
What Is Cryptocurrency?
Before we delve into our list of top crypto to follow in 2021, let’s take a quick look at the basics. Cryptocurrency is a form of digital currency that is secured through cryptography, which is a method of encrypting data. When you buy cryptocurrency, you are buying units of digital currency, stored in a digital wallet on your computer or smartphone. These units of currency can be used to purchase goods and services online, as well as to store or trade in future.
Advantages Of Investing In Cryptocurrency
There are many advantages to investing in cryptocurrency. First, it is incredibly secure. It uses advanced cryptographic algorithms to secure the funds and transactions, making it almost impossible for criminals to access or counterfeit. It is also decentralized, meaning it is not controlled by any government or central bank. And finally, it is extremely cost-effective – it is much cheaper to transfer than traditional payment methods such as credit cards.
Top Crypto To Keep An Eye On In 2021
Now that we’ve gone through the basics of cryptocurrency and its advantages, let’s dive into our list of top crypto to keep an eye on in 2021. Please note that this list is in no way comprehensive – there are hundreds ofcryptocurrency available today, and this is just a small selection of coins worth considering.
- Bitcoin (BTC)
At the top of our list is the most popular and widely used cryptocurrency – Bitcoin. This coin was launched in 2009 as a way to provide an alternative financial system, and it has since grown to become the largest cryptocurrency by market cap. Bitcoin has a huge network of users and is traded on all major exchanges, making it the most liquid coin around. Its use cases include payments, remittances, trading, investments and more. It is also known for its robust infrastructure, featuring key technologies such as the Lightning Network and Segwit to facilitate faster and more secure transactions.
- Ethereum (ETH)
The second coin on our list is Ethereum. This decentralized platform launched in 2015 is used to develop and operate distributed applications (dApps) and operate decentralized autonomous organizations (DAOs). Ethereum’s unique feature is that it allows developers to create their own smart contracts, which are essentially computer programs that can be used to execute transactions and manage agreements between users. Ethereum’s scalability (ability to process transactions quickly) has recently seen some significant improvements, and its roadmap for 2021 looks promising.
- Chainlink (LINK)
Chainlink is a Decentralized Oracle Network that allows users to securely connect their applications to off-chain data sources, such as web APIs or blockchain networks. The Chainlink network features Oracle nodes that obtain external data and feed that data into smart contracts on the blockchain. This makes it incredibly valuable for applications that require lots of external data to function, such as insurance contracts, loan agreements and tokenized assets. Chainlink has seen a tremendous amount of growth over the past year, and aims to expand its services in 2021.
- Ripple (XRP)
Ripple is a distributed ledger and payment technology company based in San Franciso, California. This company has both a currency (XRP) and a payment network (RippleNet) which provides instant payments using XRP and other currencies. RippleNet is very efficient compared to other distributed ledger networks, and is currently being used by major financial institutions to facilitate faster and cheaper payments. Ripple also has an expansive roadmap and a strong team behind it, making it one worth keeping an eye on in 2021.
- Cardano (ADA)
Cardano is an open-source, decentralized, smart contract-based platform designed to enable users to create dApps. It also supports a native cryptocurrency called Ada. Cardano is considered an innovation in blockchain technology, as it aims to combine scalability, safety and interoperability into one platform. Its development roadmap is very ambitious and will likely bring some major changes to the cryptocurrency space in 2021.
- Litecoin (LTC)
Litecoin, the silver to Bitcoin’s gold, is one of the oldest altcoins around. It has been around since 2011 and is relatively popular among traders and investors alike, thanks to its low transaction fees and fast transaction times. Litecoin has also seen some recent improvements to its codebase and is expected to be adopted more widely in 2021.
We hope this article has given you a good overview of the top crypto to keep an eye on in 2021. This list is by no means exhaustive, and there are many other coins available to invest in as well. But these six coins are definitely worth considering if you’re looking to diversify your crypto portfolio. As always, do your own research before making any investment decisions, and never risk more than you can afford to lose. Good luck!
