Most Traded Cryptocurrencies of 2021
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A decade after Satoshi Nakamoto created Bitcoin, there are hundreds of cryptocurrencies but only a handful of them constitute approximately 99% of the market’s volume. While investors are usually hesitant about new currencies in general, and cryptocurrencies in particular, many are now eager to get in on the crypto market action. Indeed, the rough start of cryptocurrencies did not anticipate the time when one Bitcoin’s value reaches $60,000. So, if this example encouraged you to invest in crypto, you may wonder what are the popular digital currencies of the moment. In this article, we go over the most traded cryptocurrencies of 2021 for worthwhile investments and the expectations for the future.
Finding itself atop most cryptocurrencies lists, Bitcoin is often considered the original crypto that started a movement. Along with the blockchain technology it relies on, Bitcoin was created with the intention to replace paper currencies as well as the need for financial institutions. While we can definitely say that the value of Bitcoin is subject to extreme volatility, it is also known for having the most liquidity among digital currencies. It remains one of the most popular cryptos.
The next in line is certainly Ethereum. However, the concept behind is slightly different than its predecessor. Ethereum is the advanced blockchain technology behind the crypto Ether. Thus, the main idea behind it is to decentralize the internet by replacing servers with a system of nodes. At the time of writing, ETH has a market cap of approximately $250billion. And this figure is up from $19billion only one year ago. In addition to that, Ethereum has a loyal community behind it which contributes to its long-term stability. While other smart contract platforms followed claiming to offer better features, Ethereum retains its favorable position.
Another popular crypto on the market is Ripple. Indeed, XRP is often referred to as the ‘establishment cryptocurrency’ due to the support it gathered from banks and institutions. With a similar approach to Ethereum, Ripple has its own blockchain platform designed to make cross-border transfers easier and more efficient.
Leading the rivalry with Bitcoin, Litecoin combines the best features of its predecessor with faster transaction times and less complex system requirements. In addition to high liquidity and a large market cap, Litecoin can be mined using a personal computer. The creators of this digital currency hoped it would be used to pay for goods and services. Finally, its limited supply increases interest and demand in the long run. Therefore it is seen as an appealing investment and a contender to keep an eye on.
Released in 2014, Neo’s aim was to improve the blockchain technology, and it quickly got dubbed the China-based Ethereum. Essentially, Neo is a smart contract platform that gained a lot of credibility and value along the way. In fact, Neo tokens are used to prove ownership of assets rather than as assets themselves. Consequently, investors see it as an ideal cryptocurrency for clear transfers of shares and equities. Thus, it deserves to be on your crypto watchlist.
Affordable Cryptocurrencies to Watch
Nowadays there are obviously a lot of investment options in the crypto world, but the five digital assets we listed are currently the top traded ones. Now we’d like to list alternatives to the popular kids on the block, and these are more affordable coins that have potential.
The topmost affordable cryptocurrency must be ADA. While the coin has experienced a huge price increase in recent months, it remains on the cheaper side of the scale. Actually, it jumped from $0.182 in January to $1.45 by the end of February 2021 before being corrected back to $1. This happened as Cardano included the ability to create smart contracts on its fast and scalable network. With all that in mind, it’s no wonder Cardano has the cheapest cryptocurrency with the most potential.
The second low-cost cryptocurrency on our list is Dogecoin. It was recently put in the spotlight by none other than Elon Musk. While the DOGE has a complicated history, nobody expected it to rise to the status of serious crypto with promise. Yet it did. And it is now considered one of the best penny cryptos to invest in.
UNI is a native coin of the world’s largest decentralized exchange, Uniswap. Despite it being one of the latest cryptos to see the light, it quickly became the first and only native DeFi cryptocurrency to enter the top 10 list. With a median price of approximately $33 it is still a low price.
Another one of the best cheap cryptocurrencies to invest in 2021. THETA has the 15th largest coin market cap. In fact, it is the only end-to-end infrastructure for decentralized video streaming and delivery that offers technical and economic solutions simultaneously.
LUNA by Terra is an affordable cryptocurrency that saw its price rise to approximately $18. The project has been building new protocols and partnering with plenty of existing ones that leverage the UST stable coin. As a result, LUNA is growing fast but still has a very reasonable price.
What is in The Future of The Crypto Sector?
The cryptocurrency industry is just as volatile and uncertain as ever. Nevertheless, the future does seem bright. The fact that more institutional investors are getting involved with digital currencies such as Bitcoin and Ethereum, carries a lot of positivity. This recent change in the sector will drive demand and encourage further widespread adoption of cryptos. In turn, the boosted demand will lead to a surge in prices. In addition, we must not discount the critical role that the ongoing pandemic played in generating crypto acceptance. The crisis highlighted the benefits of digital currencies. While this does not exclude bearish or ambiguous periods, the digital assets continue to mature as one of the hottest investment opportunities. Regardless of the tempting profit gains, we always recommend practicing risk management techniques and plan well before investing or trading in any asset.