We are nearing the end of the current year, and it is high time to analyze and plan for next year. Here we discuss the top 5 cryptocurrencies 2021, and we review their performance in 2021.
May 2021, AtoZMarkets – What is the next Bitcoin, Ethereum, or Tether? This question most often asked by those who are not familiar with cryptocurrencies. And yet seeking to achieve the returns from the cryptocurrency. In truth, there is no Bitcoin, Ethereum, or Tether.
What people really wonder is, what cryptocurrencies will surpass those cryptos? Which investments in crypto will provide similar returns to Bitcoin, Ethereum, or Tether on platforms like the BitcoinTrader app?
Another unfortunate truth is that the answer is probably nothing. And, if there is such an investment, the probability that you find it. Buy it at low prices. And keep it until these returns are materializing is comparable to winning the lottery. However, there are many cryptocurrencies that could outperform Bitcoin, Ethereum, and Tether over the next 12 months. And that, in itself, would likely provide an exceptional return on investment.
Top 5 Cryptocurrencies 2021
In this post, we will provide the top 5 cryptocurrencies that we expect to outperform Bitcoin, Ethereum, and Tether by 2021. We will base our judgment on the performance of the coins over the course of the year. And they're the future plans of the teams behind the projects. Here is our list of the top 5 cryptocurrencies 2021. Dig in!
#1. Monero (XMR)
Monero is a project focused on the protection of privacy. The coin uses sophisticated cryptography and confidentiality logic to hide the identity of the participants. It is widely used on the dark web for this reason and is the most popular coin today.
Team:Monero had a somewhat anonymous startup by a user on the Bitcointalk forum. Riccardo "fluffy pony" Spagni led the team, an experienced developer and expert in cryptocurrency.
Liquidity: Monero is a very liquid coin, always sitting at the top of Coinmarketcap. No matter what amount you want to buy or sell, the market should be large enough to meet your needs.
Price Volatility: Because of Monero's user base and market cap, it's a little more stable and less risky than small-cap stocks. And that's been true in the bear market of 2018/2019.
Crypto Economics: Maximum 18.4 million XMR coins will be in circulation until May 2022. After that, 0.3 XMR will be released every minute forever. It's a pretty small limit, which makes the coins very valuable in times of demand. The dark web users use Monero for its privacy functions, which continually increases demand.
Despite the popularity and liquidity of Monero, the XMR is more difficult to store safely than large parts. Those parts are like BTC and ETH or ERC-20 chips like BNB and BAT.
NEO is often known as China-based Ethereum. Founded in China, NEO is another intelligent contract platform that allows developers to launch decentralized applications on the blockchain. They are slightly more centralized than Ethereum. Investors should not rely on hundreds of nodes like Ethereum. There are just a few (less than 10) that make up the decision-making process of NEOs.
Team:The founders are Erik Zhang and Da Hongfei, who also runs a company called Onchain. They have experience, and it ought to trust them.
Liquidity:NEO is usually in the top 20 of Coinmarketcap, making it a very liquid asset.
Price Volatility: It has a high liquidity/price ratio. So, you can bet that your investment will be safer and more stable than most other cryptocurrencies on the market.
Crypto Economics:200 million NEOs will exist. One hundred million NEOs were created in Genesis Block, 50 million were sold to initial investors, and 15 million were released for development financing. This means that the NEO offer is already to users, and the demand must continue to grow.
Smart contract platforms target a large market. Although Ethereum is currently the world leader, China is a huge market, and NEO is likely to become the world leader. So, NEO is one of the best cryptocurrencies to invest in. If you believe in smart contract platforms and want to protect yourself from Ethereum.
Beam is another privacy-focused cryptocurrency that is making waves in the industry. Unlike Monero, it is a more traditional blockchain project. It uses a new blockchain protocol called Mimblewimble. Without going into details, Mimblewimble significantly helps in scaling the blockchain and transaction speed. It is maintaining a high level of confidentiality and anonymity.
Team: The CEO of Beam is Alexander Zaidelson and has extensive experience in P2P technology. He is co-founded Nareos (a P2P file-sharing company) and was an advisor to several other startups.
Liquidity: Beam has a lot of liquidity for its relatively small market capitalization size, but that's a good thing. This means that investors are active and that speculation is strong.
Price Volatility:Overall, the Beam was constant at about $ 1 of its average. But, as it is relatively new, the price can go up or down at any time.
Crypto Economics: Beam is a PoW cryptocurrency, just like Bitcoin or Litecoin. This means that people invest in physical mining equipment, which creates a base price for each coin to be created. Or in other words, an approximate wholesale price for producing coins. There is a maximum reserve of 262,800,000 BEAM that can exist, and you can always check the power supply in circulation here. Inflation depends on the rewards in blocks.
In the first year, the block reward is 80 coins per block. Then, the years 2 to 5, it is reduced to 40 coins. And finally, the year six will reduce the reward to 25 coins per block. Subsequently, there will be a halving every four years until the 129th year.
Beam with Mimblewimble should be more scalable than other coins focused on privacy. And with a well-thought crypto-economy, Beam could be the next hot cryptocurrency to buy.
Nexo has recently received some attention. However, Nexo software is a wallet. That lets users to borrow money using their coins as insurance. On the other hand, users can also quickly and instantly lend cryptography and gain interest in lending. Nexo also gives a free credit card for users and has an individual business pattern. The NEXO token is one of the first safety tokens offered (STO) in the industry.
Team: Kosta Kantchev is one of Nexo's leading figures. He is the co-founder of Credissimo, a leading European group in the high-tech sector specializing in retail credit. That powers Nexo. He is a veteran of the Fintech and one of the first users of Bitcoin.
Liquidity:Nexo has enough cash for the average trader to enter or exit, but large investors may have trouble loading their bags.
Price volatility:So far, very stable. It also has organized growth, which means that the price does not increase or decrease drastically.
Crypto Economics:Currently, there are fewer than 600,000,000,000 NEXOs. That is in circulation with a maximum supply of 1,000,000,000,000. NEXO is a security token. So, it also meets the SEC requirements and pays dividends to bearers. It's a big deal for many.
Nexo is a new cryptocurrency in which to invest for investors eager to diversify their crypto assets. Unlike other cryptocurrencies, it is a fully regulated token that offers dividends to its holders. They already have a functional product. That is not the case for most crypto projects. And the founders are very experts in the credit industry.
#5. Cardano (ADA)
Cardano competes with Ethereum and NEO. It is being more scalable and easier for developers to use. It intends to be more scalable by introducing two levels of technology: one responsible for tracking ledger balances and the other for value transfer. Besides, Cardano manages two programming languages called Haskell and Plutus. Haskell is around since the 1980s, and this is Cardano's attempt to facilitate the creation of decentralized applications for developers.
Team:Charles Hoskinson is Cardano's co-founder and was also co-founder of Ethereum. He also directs IOHK, a leading research and development center for blockchain technology. Charles is properly equipped to make Cardano a successful company.
Liquidity: Cardano usually has high trading volumes, so you should not have to worry about this market.
Price volatility: Cardano's price has had its ups and downs. I would say it is moderately volatile.
Crypto Economics: It has 45,000,000,000,000 maximum supply. And it has a current supply of ~ 31,000,000,000,000. It uses a Proof-of-Stake (PoS) consensus algorithm.
Overall, Cardano is also one of the best cryptocurrencies to buy if you are looking to against Ethereum.
What are the Usages of Cryptocurrency?
Cryptocurrencies have several use cases, including:
Peer-to-peer transactions: Cryptocurrencies can be used to make direct transactions between individuals without the need for intermediaries like banks or payment processors.
Investment: Many people invest in cryptocurrencies like Bitcoin and Ethereum as a means of diversifying their investments.
Online shopping: Some online merchants accept cryptocurrencies as a payment method, providing a more secure and private option for consumers.
Remittances: Cryptocurrencies can be used to send money across borders quickly and at lower fees compared to traditional remittance services.
Gambling: Cryptocurrencies are increasingly being used in online gambling due to their ability to provide secure and anonymous transactions.
Fundraising: Cryptocurrencies can be used to raise funds for various projects through initial coin offerings (ICOs) or other fundraising methods.
Decentralized applications: Cryptocurrencies can power decentralized applications (dApps), which are built on blockchain technology and allow for trustless interactions between users.
Overall, cryptocurrencies offer a wide range of potential use cases, from facilitating transactions to revolutionizing industries, and are still being explored for further innovation and development.
The cryptocurrency asset class is still in its infancy. Uncertainty is present on the market on an almost daily basis, which generates wild volatility and stimulates even higher levels of liquidity. These attributes are attractive to active traders. However, an additional degree of risk associated with rapid movements.
Unlike traditional currency, commodity, and equity markets, cryptocurrencies are not subject to traditional financial influences. Economic growth, official monetary policy, or even weather conditions have no impact on their premium. Values are determined by the free market price discovery process, which in itself is highly speculative. The current round of news or the changing regulatory environment often surprises market participants and shock prices.
Despite the periodic turbulence in virtual currency markets, they represent a formidable presence in global finance. As of 22 November, 2019, the total market capitalization of all cryptocurrencies was $ 200,549,115,731. This value will certainly fluctuate over time. And its magnitude illustrates the degree of interest of traders and investors.