Which Cryptocurrency Is Set To Explode?
So now that you’re ready to start buying cryptocurrency, the question is: Which crypto will bring the biggest potential return? Although Bitcoin might be the obvious choice, it’s not necessarily the best one in 2021. Your chances of having a big payoff might be better with a smaller coin that hasn’t already been pumped up by institutional investors, the way Bitcoin has.
Here are six cryptos that still have a high ceiling.
1. Ethereum (ETH)
Ethereum, commonly known as Ether, is the world’s second-largest cryptocurrency behind Bitcoin. Over the summer it instituted a major upgrade that included reducing the supply of Ether. The upgrade also will allow the Ethereum network to handle more transactions per second, improve the platform’s scalability and lower transaction fees. Because the upgrade will occur before the end of 2021, Ether holds considerable upside.
2. Binance Coin (BNB)
Binance is one of the most successful crypto exchanges in terms of trading volumes. Like Bitcoin, Binance Coin keeps a hard limit on the number of tokens in circulation — in its case, 200 million BNB tokens. This has helped the token price increase exponentially in 2021. In addition, Binance puts about one-fifth of its profits each quarter into getting rid of or “burning” BNB tokens, which raises the value of the remaining tokens.
4. Tether (USDT)
Tether is a type of “stablecoin” designed to provide a less volatile alternative to Bitcoin because it is linked to another asset. In Tether’s case, that asset is the U.S. dollar. In valuation terms, Tether has a 1-to-1 ratio with the dollar, meaning it is less speculative than cryptos such as Bitcoin and Ethereum. The big advantage of Tether is that it lets you make transactions in traditional currencies rather than having to dive into complex digital currencies.
5. Monero (XMR)
One reason Monero might be a good bet is that it’s designed to keep users anonymous through ring signatures and stealth addresses. This helps hide the identities of both the sender and the receiver. The feature isn’t for everyone, but it is popular with many crypto investors who prefer to remain anonymous and has helped push Monero’s price higher in 2021
6. Algorand (ALGO)
ALGO, founded by noted computer scientist Silvio Micali, has positioned itself as a competitor to Ethereum. It got a huge lift this year when El Salvador said it would establish its blockchain infrastructure using Algorand. One of ALGO’s biggest advantages is its “proof-of-stake” algorithm, which requires less electricity than Bitcoin and other platforms. This feature will only grow in importance as cryptocurrencies face more criticism — and possible regulation — for their massive energy consumption.