Top 10 Most Promising Cryptocurrencies to Invest in 2021

With over 7000 cryptocurrencies in circulation worldwide, selecting promising assets becomes a challenge for investors. This article will help you identify notable coins based on market capitalization, liquidity, and technological platform.

Why Invest in Cryptocurrency?

Cryptocurrency is not just a futuristic concept but also a practical investment choice with many advantages:

► Divisibility: You can invest with very small amounts because cryptocurrencies can be divided into millions of tiny units.

► High liquidity: 24/7 trading platforms allow investors to trade anytime, anywhere.

► Transparency: All transactions are recorded on the Blockchain platform, publicly accessible for network members to review.

► Portfolio diversification: There are over 5000 different cryptocurrencies built on diverse technological platforms, helping investors optimize their portfolios.

► Low transaction costs: Transfer fees via Blockchain are significantly lower than traditional banking methods.

Top 10 Promising Coins in 2021

1. Bitcoin (BTC) - The King of Cryptocurrency Markets

Bitcoin is the first cryptocurrency launched in 2009 and remains the market leader. In 2020, when the global economy faced difficulties, Bitcoin was considered a “safe haven” store of value and surged past $40,000 USD. With a market cap of approximately $635 trillion USD at the end of 2020, Bitcoin has the highest liquidity in the entire crypto market. Forecasts for 2021 indicate Bitcoin will continue to lead the price rally.

2. Ethereum (ETH) - Smart Contract Platform

Ethereum is not just a cryptocurrency but a technology platform for (Smart Contracts). Developed by Vitalik Buterin, Ethereum allows developers to create decentralized (DApps) and issue their own tokens. With a market cap of over $152 billion USD, Ethereum has deeper application potential than Bitcoin, attracting strong interest from the investor community.

3. Litecoin (LTC) - Upgraded Version of Bitcoin

Litecoin is one of the most recognized and widely traded cryptocurrencies. As an improved version of Bitcoin, Litecoin processes transactions four times faster due to shorter block times. The total supply of Litecoin is 84 million coins, four times Bitcoin’s supply. In 2017, Litecoin became the first coin to implement Lightning Network transactions, transferring 0.00000001 LTC from Zurich to San Francisco in just one second.

4. XRP (Ripple) - Digital Banking Power

Ripple is known as the “leader in digital banking infrastructure” with transaction speeds surpassing traditional Internet Banking and the lowest costs worldwide. Major financial institutions like American Express and JP Morgan have adopted Ripple technology. Currently, Ripple is negotiating with large international central banks such as the Saudi Central Bank and Chinese financial groups.

5. Bitcoin Cash (BCH) - Daily Payment Solution

Bitcoin Cash is a smaller block size version of Bitcoin, designed for practical daily payments. With a market cap of about $12 billion USD, Bitcoin Cash maintains steady development due to its close ties with Bitcoin.

6. EOS - Free Decentralized Application Platform

EOS is a platform similar to Smart Contracts but with a unique feature: all transactions are free within the EOS ecosystem. Although it does not experience sharp price fluctuations like Bitcoin or Ethereum, EOS’s market cap and daily trading volume are gradually increasing, indicating it is a cryptocurrency worth watching.

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

Tezos is a newcomer in the cryptocurrency world but possesses huge potential with an annual profit rate of 6-7%. Unlike traditional mining methods, Tezos uses Proof-of-Stake, allowing you to receive periodic dividends just by holding Tezos in your wallet.

8. MakerDAO (MKR) - Stable Digital Currency

Maker is a platform built on Ethereum aimed at stabilizing the value of the DAI token, which is always close to $1 USD. MKR tokens are created or burned depending on DAI’s price fluctuations. MKR has operated effectively and stably over the past two years, even during volatile market periods.

9. TRON (TRX) - Decentralized Content Platform

Tron is a decentralized application platform designed to reward users for sharing content. Tron’s market capitalization has risen to over $2.2 billion USD, and its adoption is expected to continue expanding as monetization models for shared content become more popular.

10. Cardano (ADA) - Next-Generation Blockchain Technology

Cardano was developed by Charles Hoskinson, co-founder of Ethereum. Its key features include scalability, interoperability, and sustainability. With a market cap of over $10.6 billion USD at the end of 2020, Cardano’s technological infrastructure is highly regarded within the crypto community.

Methods to Generate Profit from Cryptocurrency

Long-term Investment

The simplest method is holding promising cryptocurrencies for a long period. As more people adopt cryptocurrencies, their value will naturally increase. It’s advisable to choose safe coins with high liquidity such as BTC, LTC, XRP.

Advantages: Easy to buy and sell, no need for constant price monitoring

Disadvantages: Long profit realization period

Cryptocurrency Mining

Cryptocurrencies are created through mining using computers solving cryptographic algorithms. This method is suitable for those with technical knowledge and programming skills.

Advantages: Highest profit potential, no need to buy at exchange rate differences

Disadvantages: High technical requirements, significant electricity costs

Contributing to the Ecosystem

Platforms for smart contracts allow you to earn money by sharing content, data on decentralized applications, or playing games to earn tokens.

Advantages: Easy to start

Disadvantages: Requires time, earnings are relatively small

Conclusion

Investing in cryptocurrencies properly requires understanding each project and disciplined portfolio management. Diversify your portfolio with various cryptocurrencies, just like building a stock portfolio. The coins listed above each have their own characteristics and growth potential in 2021. Conduct thorough research before making your investment decisions.