Top 10 Must-Have Cryptocurrency List for Investors in 2021
Introduction
Cryptocurrencies have become increasingly popular over recent years, and 2021 was no exception. With the rise of blockchain technology and decentralized finance (DeFi), investors are looking at cryptocurrencies as a potential investment opportunity. While there are over 10,000 cryptocurrencies available in the market, choosing the right ones can be a daunting task. In this article, we’ve compiled a list of the top 10 must-have cryptocurrencies for investors in 2021 to make the decision-making process easier.
Bitcoin (BTC)
When it comes to cryptocurrencies, Bitcoin is undoubtedly the king. It has been around since 2009 and has an enormous market share. Bitcoin’s price has been on an upward trend, and it has a limited supply of 21 million, which makes it valuable and a good investment choice. Also, its acceptance as a payment method by companies like Tesla and Visa adds to its value proposition.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market cap and the most widely used blockchain for building decentralized applications. The Ethereum network provides numerous use cases like smart contracts, Decentralized Autonomous Organizations (DAOs), and non-fungible tokens (NFTs). With the upcoming Ethereum 2.0 upgrade, it promises to be faster, more secure, and have lower transaction fees than its predecessor.
Binance Coin (BNB)
Binance Coin is the native token of the Binance exchange, which is one of the largest cryptocurrency exchanges globally. Binance Coin’s primary use case is to reduce transaction fees on the Binance exchange, where it offers a discount when used to pay for trading fees. Moreover, Binance uses BNB for various other purposes, such as buying virtual gifts, travel bookings, and payment cards, increasing its utility and value.
Cardano (ADA)
Cardano is a blockchain project that aims to provide a more efficient and sustainable platform for decentralized applications. Cardano’s consensus mechanism is proof-of-stake, allowing for faster and cheaper transactions. Additionally, its recent partnership with the Ethiopian government to develop a digital identity system highlights its potential for real-world use cases.
Polkadot (DOT)
Polkadot is a multi-chain platform that enables interoperability between different blockchain networks. Its architecture helps connect, share data, and exchange value between various blockchains. Polkadot’s founder, Gavin Wood, is also a co-founder of Ethereum, making it a promising project in the cryptocurrency space.
Chainlink (LINK)
Chainlink is a decentralized oracle network that connects smart contracts to real-world data sources. Oracles are critical for decentralized applications, as they provide necessary information to the blockchain networks. Chainlink’s partnership with companies like Google, Oracle, and Aave adds to its credibility and usability in the market.
Uniswap (UNI)
Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain that enables peer-to-peer transactions without middlemen. Uniswap’s unique feature is its automated market maker (AMM) model, which allows for liquidity provision and price discovery on the platform. Its utility in DeFi and its increasing trading volume makes it an attractive investment choice.
Dogecoin (DOGE)
Dogecoin started as a meme cryptocurrency but gained mainstream attention due to its celebrity endorsements and tweets. Its market capitalization grew significantly in 2021, primarily due to Elon Musk’s continuous tweets and comments on the currency. Although it is considered a high-risk investment, it’s low price and potential for high returns make it a risky, yet attractive investment choice.
Solana (SOL)
Solana is a high-performance blockchain that aims to provide a scalable platform for decentralized applications. With its transaction processing speed of over 65,000 transactions per second, Solana is the fastest blockchain network available in the market. Its partnerships with prominent firms like FTX and Serum add to its credibility and growth potential.
Litecoin (LTC)
Litecoin is often called the “silver to Bitcoin’s gold” due to its similarities to Bitcoin. It’s a decentralized peer-to-peer cryptocurrency that has a considerably lower transaction fee than Bitcoin. Its founder, Charlie Lee, is also a former Google engineer, and its compatibility with Bitcoin and widely accepted payment methods make it a good investment choice.
Conclusion
The cryptocurrency market is vast and ever-evolving, making it challenging to choose the right coins for investment. The top 10 cryptocurrencies mentioned in this article have robust use cases, market share, and potential for growth, making them a good investment choice for the year 2021. It’s important to do thorough research and consider the risks associated with investing in cryptocurrencies. However, with their unique features and growth potential, the coins mentioned above may be worth adding to your portfolio.
