Keeping tabs on the leading altcoins that are creating a stir in the market is essential in the ever-changing world of cryptocurrencies. As a result of their innovative design and explosive growth potential, digital currencies are a fascinating prospect for traders and investors. This post will examine the best altcoins to keep an eye on in 2021 and discuss what sets them apart from the rest.
- 1. Introduction
- 2. Top altcoins to watch
- 3. New altcoins to watch
Many people around the world now consider cryptocurrency investments a viable option. Despite Bitcoin’s continued dominance, various alternative cryptocurrencies (altcoins) have emerged in recent years. It’s important to keep an eye on the best alternative cryptocurrencies heading towards 2021. Any investor willing to take a chance on these coins stands to gain a lot of money.
1.1. What are altcoins?
Alternative coins, or “altcoins,” are digital currencies that are not Bitcoin. ‘Altcoin’ is an abbreviation for ‘alternative coin,’ which was coined to distinguish Bitcoin from its many imitators. Bitcoin’s underlying blockchain technology can be used to develop other cryptocurrencies, which may or may not share Bitcoin’s characteristics and goals. Some alternative cryptocurrencies seek to address Bitcoin’s shortcomings in areas like transaction speed and privacy, while others are designed for more niche applications like decentralized file storage or identity verification. Thousands of alternative cryptocurrencies have already been developed, and more are being made all the time.
1.2. Why are altcoins important?
Alternative cryptocurrencies, or altcoins, are rising in prominence in the market for digital payments. When compared to Bitcoin, the most popular cryptocurrency, altcoins have their own set of advantages that make them appealing to investors and traders. Some alternative cryptocurrencies, or altcoins, have advantages over Bitcoin, such as faster transaction speeds, reduced costs, or higher anonymity. In addition, holding a variety of altcoins in a cryptocurrency portfolio can reduce overall portfolio volatility and increase the possibility for profit. Keeping an eye on altcoins and their potential could be a smart move for investors and traders as the cryptocurrency market continues to develop.
1.3. Market trends in altcoins
The demand for alternative cryptocurrencies has increased over the past few years as investors seek to broaden their holdings beyond Bitcoin and Ethereum. Keeping an eye on cryptocurrency market trends in 2021 will help you find the best investing possibilities. This essay will examine some of the most exciting alternative cryptocurrencies of 2021 and discuss the forces behind their meteoric rise in value.
2. Top altcoins to watch
One of the most promising digital currencies of 2021 is Ethereum (ETH), now the second largest digital currency by market capitalization. Smart contracts and other types of decentralized applications have been growing in popularity, and the Ethereum network is where they run. The impending Ethereum 2.0 upgrade will make the network faster and more efficient, which could increase demand for ETH and thus its price.
Second, a coin called Polkadot (DOT) has been getting a lot of buzz in the crypto world despite being a relatively new addition to the market. The Polkadot network was created to facilitate inter-blockchain communication, which has the potential to address the industry’s scaling problems. The worth of Polkadot tokens (DOT) is expected to rise as more projects are developed on the platform.
Thirdly, Cardano (ADA) is another cryptocurrency that has been garnering a lot of traction recently. Security, longevity, and scalability are three areas where the Cardano blockchain excels. The value of ADA may increase dramatically after the Goguen era is released and smart contracts are implemented on the Cardano network.
Chainlink (LINK) is a decentralized oracle network that links programmable contracts to external data sources. The applications for this technology are vast, ranging from DeFi (decentralized financial infrastructure) to gaming. Demand for LINK is expected to rise as the number of Chainlink network projects grows.
The Binance Coin (BNB) is the in-house token of the world’s fifth-largest cryptocurrency trading platform, the Binance exchange. BNB has appreciated in value as Binance has swiftly expanded, offering new features to its platform. Demand for BNB may rise further in 2021 as a result of Binance’s launch of Binance Smart Chain, a faster and cheaper alternative to Ethereum.
2.1. Bitcoin (BTC)
Since its inception in 2009, Bitcoin (BTC) has dominated the cryptocurrency market. It has been widely accepted as both a medium of trade and a store of value, with a market capitalization of over $1 trillion. Bitcoin’s high degree of volatility has made it a standard against which other cryptocurrencies are measured. Despite its popularity, Bitcoin (BTC) has to deal with issues including scalability and transaction fees. Its dominance of the bitcoin market, though, seems unlikely to ever shift.
2.2. Ethereum (ETH)
Ethereum (ETH) has been one of the top altcoins to keep an eye on for a number of years, and it is currently the second largest cryptocurrency by market capitalization. It’s an open-source blockchain technology that eliminates the need for a central authority and ensures the smooth operation of decentralized apps and smart contracts. Ethereum’s active development community has spawned a plethora of decentralized applications (DApps), from DeFi protocols to gaming hubs. Ether (ETH) is the native cryptocurrency of the Ethereum network and the preferred investment vehicle for both individual and institutional crypto traders.
2.3. Ripple (XRP)
In recent years, Ripple (XRP) has emerged as a prominent cryptocurrency. It has been used by a wide range of financial institutions because of its capacity to process transactions quickly and efficiently. Ripple’s goal is to facilitate transactions between the established financial sector and the cryptocurrency market. Many investors find it appealing because of the unique technology it employs, which facilitates fast and secure transactions. Ripple is one of the altcoins to keep an eye on in 2021 as the cryptocurrency market expands.
2.4. Litecoin (LTC)
In 2011, Charlie Lee, a former Google developer, released Litecoin (LTC), a popular alternative cryptocurrency. Due to its similarities to Bitcoin, it is often referred to as the “silver to Bitcoin’s gold.” Litecoin’s speedier transaction times and lower transaction fees are made possible via a different mining algorithm than Bitcoin’s. Its maximum supply is 84,000,000 coins, which is four times that of Bitcoin. Litecoin’s community of backers is committed to the cryptocurrency because they see its potential as a payment system and store of value.
2.5. Cardano (ADA)
There has been a lot of interest in Cardano (ADA), a cryptocurrency, in recent months. It’s a distributed ledger system (blockchain) with the intention of improving transaction safety and scalability. Experts in cryptography and computer science constitute the core of Cardano’s development team, who are always looking for ways to enhance the platform’s features. Cardano, with a market size of nearly $48 billion, ranks as the fifth largest cryptocurrency by market cap and is an altcoin to keep an eye on in 2021.
3. New altcoins to watch
New altcoins are being developed often as the cryptocurrency market develops and diversifies. In 2021, some of the best alternatives to Bitcoin include:
3.1. Polkadot (DOT)
There has been a lot of buzz around Polkadot (DOT), a new altcoin, recently. Designed by Ethereum’s original creator Gavin Wood, it attempts to make blockchain technology more flexible and adaptable. Polkadot’s innovative sharding approach enables numerous parallel chains to operate concurrently, which boosts transaction throughput. Developers interested in creating decentralized applications have Polkadot as an interesting choice because of its simple connectivity with other blockchains. As of May 2021, Polkadot’s market cap was over $30 billion, placing it in the top 10 by that metric among all cryptocurrencies. In my opinion, it will be an altcoin to watch in 2021.
3.3. Uniswap (UNI)
Uniswap (UNI) is an Ethereum-based decentralized exchange (DEX). It eliminates the requirement for a trusted third party by facilitating the exchange of ERC-20 tokens. In 2020, UNI’s popularity skyrocketed thanks to the proliferation of DeFi and the uniqueness of its automated market maker (AMM) technology. Those that have UNIs can also participate in protocol governance by casting ballots on proposed changes and amendments. UNI has the potential to emerge as a leader in the DeFi market as it continues to expand.
3.4. Cosmos (ATOM)
Interoperability between several blockchain networks is made possible via the decentralized platform Cosmos (ATOM). Its primary objective is the development of a blockchain internet in which data may be freely shared and transferred between other networks. The Cosmos network’s native cryptocurrency, ATOM, is used for everything from transaction fees to validator rewards. Several other blockchain projects, such as Binance Chain and Ethereum, have already connected with Cosmos, and its popularity among developers and investors continues to rise. Cosmos has the potential to be a well watched altcoin in 2021 as the demand for interoperability solutions rises.
3.5. Aave (AAVE)
Aave (AAVE) is a cryptocurrency that can be borrowed and lent between users on the DeFi platform Aave. It runs on the Ethereum network and has exploded in popularity thanks to its ground-breaking take on DeFi. The ‘flash loans’ offered by Aave are the service’s defining characteristic; they enable borrowers to obtain funds quickly and without the need to pledge any assets as collateral. Aave is one of the best altcoins to keep an eye on in 2021 after a stellar 2020 performance.
Overall, the best altcoins to keep an eye on in 2021 will be those with solid foundations, cutting-edge technology, and a committed user base. Although Bitcoin is still the most popular cryptocurrency, other cryptocurrencies, or “altcoins,” may provide interesting alternatives and investment opportunities. Keep an eye on these popular cryptocurrencies to stay ahead of the competition, but always perform your own research and due diligence before investing in any cryptocurrency.