The best altcoins to invest in for 2021
With more than 9,000 altcoins available, it can be hard to know what to focus on. Let’s take a look some of them.
When it comes to crypto coins, it feels like there’s Bitcoin and then there’s everything else. We’re looking at altcoins – the ‘everything else’. While this isn’t necessarily a list of the best altcoins to invest in in 2021, it is a list of some of the top altcoins that are doing interesting things. You should do your own research. The value of an investment can go down as well as up. Cryptocurrencies are often volatile. And never invest more money than you can afford to lose.
Leading our list of top altcoins is Ethereum. ETH had a box office 2020, delivering healthier gains than the likes of Bitcoin, and it has had quite the year so far.
Let’s put things into context.
First, keep in mind the crypto’s previous all-time high stood at $1,394, which it reached in January 2018.
On 3 February 2021, the same month it exceeded a billion transactions, it smashed through $1,644, and hovered around that figure until April. That’s when things really started to kick off. It started the month at $1,968 and spent April shooting up, reaching a high of a little below $4,077 on 13 May. Like pretty much every cryptocurrency out there, ETH was hit by the crypto crash of late May 2021, but things are still looking relatively optimistic. As of 5 October, the ETH price is $3,454.69.
There’s been a lot of excitement surrounding ETH, primarily because of the launch of Ethereum 2.0. Last year, 24 November marked a significant milestone for the debut of its transition to Proof-of-Stake (PoS), when enough ETH was deposited to pave the way for the launch of the beacon chain on 1 December. It’s going to be a painstaking journey, but the event could kickstart some bullish activity over the medium term.
Should ‘altseason’ happen during the rest of 2021 and into 2022, analysts will be looking at the best altcoins to see whether they can surpass their previous all-time highs. We may not see it return to the heights of the middle of May 2021 just yet, but anything is possible.
Trade Ethereum to US Dollar – ETH/USD chart
Litecoin looks like one of the best altcoins in 2021. When BTC got near its all-time highs, many crypto investors began to look for established digital currencies that still had a long way to go before returning to the records set in late 2017 and early 2018.
The boom of early 2021 saw many altcoins hit new highs. Litecoin was no exception, reaching an all-time high of $412.96 on 10 May. However, the price has fallen since then, standing at $171.96 as of 5 October 2021. Some analysts are optimistic on recovery, with Wallet Investor forecasting an average of $226.60 by the end of the year. Given that it’s also one of the cryptocurrencies supported by PayPal, Litecoin could be one of the top altcoins to invest in.
Trade Litecoin to US Dollar – LTC/USD chart
3. Stellar Lumen
Stellar Lumen (XLM) is one of the year’s talking points. The native cryptocurrency on the Stellar blockchain, Stellar Lumen’s value has gained more than 167% this year. It was part of the May crash, but it is holding quite firm. Because Stellar uses a federated byzantine agreement (FBA) algorithm rather than a traditional mining network to validate transactions, it can carry out transactions more quickly.
Whether Stellar Lumen is going to be one of the best altcoins to invest in remains to be seen, but it does provide a useful alternative to more established coins. With a devoted fanbase, it could be one to watch.
XRP had a reputation for delivering lacklustre performance. But during one week in November 2020, XRP surged by an astounding 126%. It is incredibly rare for an established cryptocurrency to enjoy triple-digit gains over a seven-day period, but that is what XRP did.
The other thing keeping XRP in the news is an ongoing lawsuit with America’s Securities and Exchange Commission (SEC). The SEC argues that XRP is an unregistered security, a claim the company denies. A lot of XRP price analysis hinges on the company winning the case. If it loses, then things could go horribly awry. If it wins, the price could soar.
XRP’s record high of $3.84 will take a lot of work to match, with the price at $1.06 at the time of writing on 5 October. It could still add some value, depending on the outcome of the court case. If it does, then XRP might be one of the best altcoins to invest in. Not that we know what is going to happen with the court case. You need to decide for yourself if you think XRP is one of the best altcoins.
Trade Ripple to US Dollar – XRP/USD chart
It would feel a bit odd to talk about the most promising altcoins and not mention the joker in the pack, the crypto that started off as a joke and became one of the most popular altcoins, Dogecoin. This is the original memecoin, starting life as a parody of the crypto boom and somehow becoming something people pay attention to.
DOGE seems to act without any rhyme or reason. It surges and crashes in its own rhythm, which makes it interesting, if not a little bit dangerous. However, it is still worth looking at. DOGE surged by more than 8,000% over the first four months of 2021, making it one of the best performing altcoins and, although it was hit by the crash of late May, it still has potential. At the time of writing on 5 October, the price stands at $1.07.
Whenever Tesla CEO and DOGE enthusiast Elon Musk tweets about the altcoin, something happens. You don’t want to rely on a coin that gets its market traction from celebrity endorsements, but when it comes to the best altcoins, we don’t blame you if you have got DOGE on your list. Besides, its growth and popularity means people are looking at practical applications for DOGE, making it potentially one of the most promising altcoins out there. The push to the moon never gets boring, that’s for sure.
Trade DogeCoin to US Dollar – DOGE/USD chart
There are roughly 9,000 altcoins, which represents somewhere in the region of 40% of cryptocurrencies.
The best answer is to do your own research. Have a look at the markets, see what’s growing, read what people are predicting, and find the best altcoins for you. You need to use your own judgement and remain cautious. You should never invest more money than you can afford to lose.
As always, we can never be sure. There are the five we have mentioned but there are others, such as Bitcoin Cash, Chainlink, ICP, Ethereum Classic and many more that could make up a list of best altcoins. Make sure to research them properly before you consider buying into them.