Analyzing the 10 most notable cryptocurrencies for investors in 2021

Why Should You Pay Attention to Potential Coins?

The cryptocurrency market is currently growing rapidly, with over 7,000 cryptocurrencies listed. In this context, choosing projects with potential to become successful is a major challenge. Investors often evaluate cryptocurrencies based on market capitalization, popularity, and underlying technology.

Initially, digital currencies were just a purely conceptual idea, but in recent years, they have become a valuable asset class. Since Bitcoin was launched in 2009, the industry has grown from 1,500 types of cryptocurrencies (in 2013) to over 7,000 today.

Advantages of Investing in Cryptocurrency

Divisible Units: Cryptocurrencies can be divided into very small decimal amounts, allowing investors to start with any capital amount without worrying about minimum investment thresholds.

High Liquidity: Cryptocurrency exchanges operate 24/7, providing flexible trading opportunities at any time.

Transparency: Blockchain technology records all transactions publicly, creating trust and clarity.

Low Costs: Transaction fees on blockchain networks are significantly lower compared to traditional banking services.

Portfolio Diversification: With thousands of different cryptocurrencies, investors have many options to diversify risk.

Top Most Promising Coins to Watch

1. Bitcoin (BTC) - The King of the Market

Bitcoin remains the leader in market value and popularity. This first digital currency was created in 2009 and continues to assert its dominance.

• Current Price: $88.83K
• Market Capitalization: $1,773.73B
• Total Supply: 19,967,281 BTC
• 2020 Return: 235.1%

During the COVID-19 pandemic in 2020, Bitcoin was considered a safe-haven asset by many analysts. Its price hit $40,000, demonstrating strong appeal to investors.

2. Ethereum (ETH) - Smart Contract Platform

Ethereum ranks second in market capitalization but has broader application potential than Bitcoin. Developed by Vitalik Buterin, it provides a platform for decentralized applications (dApps).

• Price: ~$3,000 (based on market trends)
• Market Cap: ~$360B
• 2020 Return: 470.2%

Ethereum’s strength lies in its ability to create custom tokens and support a wide ecosystem. Many experts believe ETH has greater upside potential than Bitcoin.

3. Litecoin (LTC) - Upgraded Version of Bitcoin

Litecoin is considered the “silver” to Bitcoin’s “gold.” It processes transactions four times faster than Bitcoin.

• Current Price: $77.24
• Market Cap: $5.92B
• Total Supply: 84 million LTC
• 2020 Return: 216.0%

Notably, Litecoin was the first cryptocurrency to implement transactions via the Lightning Network in 2017, transferring 0.00000001 LTC from Zurich to San Francisco in just 1 second. This capability opens significant potential for daily payment applications.

4. XRP (Ripple) - Banking Technology

XRP, developed by Ripple Labs, focuses on international money transfer infrastructure.

• Current Price: $1.88
• Market Cap: $113.70B
• Total Supply: 99.99 billion XRP
• 2020 Return: 14.52%

XRP stands out for its fast transfer speeds and low fees. Major companies like American Express and JP Morgan have adopted Ripple technology. This is why XRP is gradually becoming a preferred choice in financial transactions.

5. Bitcoin Cash (BCH) - Digital Cash

Bitcoin Cash is a modified version of Bitcoin, aimed at being used as daily payment method.

• Current Price: $604.97
• Market Cap: $12.08B
• Total Supply: 21 million BCH
• 2020 Return: 74.73%

BCH uses larger block sizes to facilitate transactions. With support from developers and the community, BCH continues to expand its applications.

6. EOS - Free Transaction Platform

EOS offers technology similar to Smart Contracts but with a unique advantage: zero transaction fees.

• Market Cap: $2.5 billion USD
• Total Supply: Unlimited
• 2020 Return: 0%

Although it hasn’t experienced dramatic price movements like Bitcoin or Ethereum, EOS is steadily accumulating market strength. The number of daily transactions is continuously increasing.

7. Tezos (XTZ) - Proof-of-Stake System

Tezos promises an annual yield of 6-7% through its Proof-of-Stake mechanism.

• Market Cap: $2.1 billion USD
• 2020 Return: 48.1%

Unlike mining coins, Proof-of-Stake allows token holders to receive periodic rewards. It’s similar to dividends—just hold XTZ in your wallet.

8. MakerDAO (MKR) - Stablecoin Generator

MakerDAO operates on the Ethereum platform, aiming to keep the value of the DAI stable near $1 USD.

• Market Cap: $1.4 billion USD
• Total Supply: 1 million MKR
• 2020 Return: 27.62%

MKR has demonstrated stable performance over two years, even during market volatility.

9. TRON (TRX) - Content Sharing Platform

TRON is designed to reward content sharing on decentralized applications.

• Current Price: $0.28
• Market Cap: $26.43B
• Total Supply: Unlimited
• 2020 Return: 106.9%

TRON’s market cap has grown to over $2.2 billion. The trend of rewarding shared content is becoming more popular, providing a foundation for TRX’s growth.

10. Cardano (ADA) - Sustainable Technology

Cardano, co-founded by Charles Hoskinson (Ethereum)’s co-founder, focuses on scalability, interoperability, and sustainability.

• Current Price: $0.36
• Market Cap: $13.02B
• Total Supply: 45 billion ADA
• 2020 Return: 436.36%

Cardano’s technological infrastructure is highly regarded by experts. It represents a comprehensive approach to blockchain technology.

Ways to Profit from Cryptocurrency

Long-term Holding

This is the simplest method. Investors select promising cryptocurrencies and hold them long-term, waiting for prices to rise with increased demand. Safe and highly liquid coins like BTC, LTC, XRP are good choices for beginners.

Advantages: Easy to implement, requires minimal monitoring. Disadvantages: Long wait to realize profits.

Mining Cryptocurrencies

Cryptocurrencies derive their value from the effort required to mine them. Bitcoin is mined by solving cryptographic puzzles with computers, requiring advanced programming knowledge.

Advantages: High returns since you don’t buy at exchange rate differences. Disadvantages: Not suitable for those unfamiliar with technology.

Community Participation

On platforms built with Smart Contracts, investors can earn money by contributing content, data, or playing games combined with tokens.

Advantages: Easy to access, no large initial capital needed. Disadvantages: Requires effort and time; initial income is small.

Trading with Derivatives

Instead of owning cryptocurrencies, investors can trade through contracts for difference (CFD). This method allows leverage and margin trading without holding actual coins.

Advantages: Profit from both rising and falling markets, no e-wallet needed, T+0 quick trading, potential for increased profits via leverage. Disadvantages: Pay interest costs, not suitable for long-term holding.

Conclusion

The cryptocurrency market is opening new opportunities for investors. When choosing promising coins, focus on those with large market caps, solid technology platforms, and stable community development.

The cryptocurrencies introduced in this article—from Bitcoin’s leadership, Ethereum’s rich ecosystem, to new coins like Tezos and Cardano—each have their own advantages.

When investing, remember the principles of diversification, only invest what you can afford to lose, and always stay updated on market information. Whether you choose long-term holding, mining, or trading derivatives, the key is to understand your strategy before starting.