5 Altcoins to invest in 2021 ranging from $1 to $2000
The last year was nothing short of terrible for the entire world, considering the global pandemic that has changed the way we live. It also led to an economic meltdown, which is likely only just beginning, with the consequences felt in years to come. But, when it comes to the crypto market, the past 12 months have been the best it has ever had in its entire history.
There are countless digital currencies that have enjoyed massire price hikes, all led by the one and only Bitcoin (BTC) that has itself gone beyond $61,000 per coin. While BTC is an obvious choice for many crypto investors, others are looking for some cheaper yet very promising coins to add to their portfolios.
This article highlights the latest news and project developments to help you better navigate the market and make informed investment decisions when choosing the best altcoins for 2021.
The best altcoins to invest in 2021: 5 cryptocurrencies from under $1 to $2,000
While litecoin (LTC) is typically the coin we all refer to when we say “silver to Bitcoin’s gold”, in reality, ether has been the crypto industry’s second-largest cryptocurrency practically since it emerged. As such, it seems fair to start a list of altcoins to invest in with it.
ETH is known to everyone, since it is almost as big as BTC itself when it comes to its brand. Its price has recently returned to the $2,000 level only to surge even higher. At the time of writing, on April 13, the coin traded at a new all-time high of $2,222.
Currently, it seems like the sky is the only limit for ether, especially given the ongoing process of launching Ethereum 2.0.
This is the largest update that Ethereum has ever seen, and it will completely revamp the project, allowing it to shift from Proof-of-Work to Proof-of-Stake, bring staking to its users and eliminate mining. And let’s not forget all the benefits to its network, such as boosting its speed and scalability.
The platform’s native coin still has a massive journey ahead of it, and that is what makes it one of the best altcoins to invest in now.
Next up on our list of the top five altcoins to invest in 2021 we have ADA. This is the coin that has been seemingly dormant for a long time, sitting at the edge of the top 10 list of largest cryptocurrencies by market capitalisation. At least, that is what things would look like to a casual observer. Those who are familiar with Cardano and its developers have always known that the project’s team has been working tirelessly on new updates that would revolutionise its blockchain and turn it into a technological work of art.
However, Cardano is known for taking things slowly and doing a thorough job, rather than launching a half-done product and then spending years fixing the issues. It never gave in to hype, nor did it rush to catch some vague opportunity only to lose everything along the way. Cardano kept its development process rather quiet, and, only recently, started publishing updates which allowed its native coin ADA to surge quite high in price and rank.
The project’s developments are still far from over, and there is a lot of work to be done. Many investors believe that there will be a lot more opportunities to profit from becoming ADA’s supporters now.
Binance Coin definitely deserves a spot on the list of five promising altcoins in 2021, given that this is the year when it has climbed to become the third-largest crypto, outperforming Tether (USDT), Ripple’s XRP, and ADA.
In short, BNB is the native cryptocurrency of the Binance exchange, and it works as the fuel for its entire ecosystem, which includes subsidiary exchanges around the globe, various platforms like Binance Launchpad, and more. The coin has seen some incredible price hikes in the past 12 months, going from $30 to $550. Over the last week alone, it has gained 42 per cent.
BNB grows alongside Binance, and since the exchange launched its second blockchain, Binance Smart Chain, BNB has also received a big use in the DeFi ecosystem.
Uniswap’s UNI is the first native DeFi token to reach the top 10 list of largest cryptocurrencies by market capitalisation. It is currently sitting as the eighth-largest coin with a price of $35.65 and a market cap of $18.5bn, gaining 10 per cent in the last 24 hours.
UNI is the native cryptocurrency of Uniswap, the world’s largest decentralised exchange. The DEX is one of the best-performing DeFi protocols, offering an anonymous way to trade cryptocurrencies, and it even became the first DEX ever to offer margin trading. It makes listing coins extremely easy, so it offers a large variety of DeFi tokens that anyone interested in the sector can reach in no time.
All of this put together makes UNI one of the best altcoins to buy right now, particularly as its full potential still remains unknown due to the project’s young age.
In fifth place, we have DOGE. DOGE’s story is well-known, but just in case you are unfamiliar with it – it was created in 2013 as a joke, based on the Shiba Inu dog meme.
Essentially, it was made to lighten up the crypto industry, which was taking itself extremely seriously at the time. Not to mention that it was primarily used by tech geeks and cyber criminals during those days, which threatened to take it down a much darker path. DOGE came as a joke to lighten the mood, and no one, including its creator, expected it to last for more than a few weeks, or months, at best.
However, DOGE managed to survive for years, and earlier in 2021, it exploded. One of the biggest reasons for this was Elon Musk, the CEO of Tesla (TSLA), SpaceX, and a number of other tech companies, who also briefly became the world’s richest man this year.
Musk has had his eye on the crypto industry for a long time now, although he never openly invested in it or supported it in any way before 2021. He just tweeted about it, typically through memes, jokes and subtle references. But, as the world’s most popular multi-billionaire, his voice was heard far and wide. So, when Musk started supporting crypto openly, he pledged his support to Bitcoin and Dogecoin. His company, Tesla, invested $1.5bn into BTC, while DOGE itself skyrocketed due to Musk’s constant mentions of the coin on Twitter.
DOGE also surged due to the effort of the Reddit-based group of investors who stood up against institutional investors that shorted stocks of a number of companies, including GameStop (GME). When the group was at the peak of its fame, someone, who later turned out not to be their member, attempted to shift attention onto DOGE, and caused its price to surge to its all-time high of $0.085. For some time, this decade-old cryptocurrency became the best-performing coin in the industry. All of this has proven that no coin should be written off before its time and made us include DOGE in the list of altcoins to watch this year.
What does the future of the altcoin market look like?
The crypto industry’s future remains as fluid as ever. However, for now, it seems to be doing rather excellently, and the involvement of institutions and millions of new traders and investors is certainly a great sign. The end of the bull run could arrive at any time, but most people believe that it is still far in the future, and that now is the time to invest and use every opportunity.
All in all, the market is very bullish and ripe for picking. How long this will go on is anyone’s guess. But, while you should absolutely be prepared for the tables to turn at some point, that still does not mean that you should miss the opportunities in front of you right now.
In the meantime, it is crucial to remember that investing in cryptocurrencies involves high levels of risk due to the market’s immense volatility. We suggest investors and traders exercise caution and do their homework before investing in any cryptocurrency.
If you are not ready to make long-term investment commitments but want to try to profit from the volatility, you can do so by trading cryptocurrencies with contracts for difference (CFDs).
Trading CFDs offers the opportunity to capitalise on both bullish and bearish price fluctuations. You can either hold a long position, speculating that the price will rise, or a short position, speculating that it will fall.
As a leveraged product, CFDs are designed to maximise gains, which can be large on volatile products like cryptocurrencies. However, you should be aware of the high risk involved as CFD trading also magnifies losses if the asset price moves against your position.
