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Introduction
Wall Street analysts are increasingly confused about cryptocurrencies. Ask them for cryptocurrency predictions for 2021 and you will get everything and its opposite. While Bitcoin, Ethereum, Cardano, Chainlink, Elrond, XRP and others have risen in value, never before has Wall Street seemed so hesitant about "digital gold," a name used to invoke security.
But as any savvy cryptocurrency investor knows, that's not how cryptocurrencies work. Instead, it's a digital popularity contest where the winners keep winning and the losers bite the dust.
So which cryptocurrencies can make you rich in 2021?
To answer this question, we need to explore the world of altcoins, tokens that can (still?) Be bought cheaply. Because it pays to get in early. For example, $ 1.000 invested in the initial Ethereum (ETH) token offering would be worth $ 3,3 million today. Meanwhile, $ 1.000 invested in Bitcoin today could be “only” 4-5 times its investment if you believe JP Morgan with its $ 146.000 target price.
But there are also significant risks because cryptocurrencies don't have intrinsic value. Instead, their value comes from their users. The more users a crypto has, the more useful it becomes, and the higher its price. But when a cryptocurrency falls, there's nothing stopping it from going to zero. This means that investing in cryptocurrencies requires strong conviction.
Today, people invest in cryptocurrencies for one reason only: to make money. So far, cryptocurrencies have kept this promise. Mom and Dad's investors have made a lot of money from Bitcoin, and other high-profile cryptocurrencies have also risen in value.
But the risks in 2021 are increasing, at their core cryptocurrencies are only used to transfer wealth from one side to the other. And some new competitors have emerged recently.
"China has already developed a central bank-backed cryptocurrency, and in the US it has been discussed as part of the Covid-19 stimulus," writes Laura Gonzalez, associate professor of finance at California State University, Long Beach. "There is also ample evidence of speculation, and the value of current cryptocurrencies will be affected by upcoming central bank-backed digital currencies."
In other words, unregulated cryptocurrencies will one day compete with state sponsored cryptocurrencies.
Here is the result: if you have an extremely conservative portfolio and need to add "risky" assets, choosing a basket of the highest rated cryptocurrencies could certainly benefit you in the long run. It is an inexpensive way to gain massive exposure to macro risk. But don't be fooled into thinking of cryptocurrencies as "digital gold". If 2021 sees a surprise economic downturn, no amount of hope will keep cryptocurrencies afloat.
If you're willing to take these risks, then you could start your search with the 28 best cryptocurrencies you need to know for 2021:
- Ethereum (Ethereum)
- Bitcoin
- XRP (XRP)
- Stellar (CCC:XLM-USD)
- Cardan (CCC:ADA-USD)
- Dogecoin (CCC:DUKE-USD)
- Polkadot (CCC:DOT1-USD)
- Neo (CCC:NEO USD)
- Celsius (CCC:CEL-USD)
- Dwarf (CCC:NANO-USD)
- Chainlinks (CCC:LINK-USD)
- Lisk (CCC:LSK-USD)
- Monero (CCC:XMR-USD)
- Réseau OMG (CCC:OMG-USD)
- QTUM (CCC:QTUM-USD)
- Tether (CCC:USDT-USD)
- Litecoin (CCC:LTC-USD)
- Binance Coin (CCC:BNB-USD)
- NEM (CCC:XEM-USD)
- TRON (CCC:TRX-USD (TRX-USD))
- Dash (CCC:DASH-USD)
- Zcash (CCC:ZEC-USD)
- Bitcoin Or (CCC:BTG-USD)
- Bitcoin Cash (CCC:BCH-USD)
- Bitcoin SV (CCC:BSV USD)
- EOS (CCC:Canon EOS-USD)
- VeChain
- Dai / MakerDao (CCC:DAI-USD)
While each has enormous potential, some are safer bets than others. As such, I have therefore organized cryptocurrencies according to their overall risk / reward potential, from the most promising to the least promising. With that in mind, let's take a closer look at the wild world of cryptocurrencies.
5-star tokens
Ethereum (ETH)
Ethereum is a relative newcomer that has risen through the ranks thanks to its superior technology and ability to create "smart contracts".
Approximate market cap: $ 200 billion
Year established: 2015
Cost per exchange: $ 10 ($ 10)
2020 Return: 470
Score: ★★★★★
Ether, the cryptocurrency of the Ethereum blockchain, is a technologically advanced version of Bitcoin that is expected to grow even faster. Rather than holding itself as "digital gold", Ethereum operates on a series of contracts. This makes it more like Google Wallet or Apple Pay - a system that can approve or delay transactions based on real events. Online buyers and sellers, for example, might set up contracts that follow only when the postal service independently verifies the delivery of goods.
Ethereum is also extremely fast compared to Bitcoin - transactions take only 15 seconds to execute, instead of 15 minutes. While trading costs are still high, its speed makes Ethereum useful for real-time use, rather than just as a store of values. Finally, Ethereum has also been widely adopted, with over 600.000 wallet addresses in use. As developers add services and protocols to make cryptocurrencies more useful, Ethereum looks set to continue to grow.
These qualities have propelled Ethereum to the top spot in terms of risk-reward potential. While it has a later rise than many other currencies, it has a winning combination of widespread use, technological superiority and relative security (compared to smaller tokens).
Bitcoin (BTC)
Bitcoin is the most widely adopted cryptocurrency. Even if he is not the most technologically advanced, he continues to lead the group.
The first successful cryptocurrency continues to lead the pack. With its first mover advantage, Bitcoin hasn't just earned initial name recognition. It has also become the de facto cryptocurrency for mainstream investors. Small investors can use the services of Square (NYSE: Sq) and PayPal (NASDAQ: PYPL (en)) to buy it for as little as $ 1. Meanwhile, institutional investors can use the Chicago Mercantile Exchange (CME) to trade millions of dollars in futures contracts.
Foundation year: 2009
Cost per exchange: $ 15 ($ 15)
2020 Return: 309
Score: ★★★★★
This makes Bitcoin an essential allocation. The number 1 coin in the world accounts for nearly two-thirds of the entire cryptocurrency market, providing liquidity among the smaller altcoins. Its size also makes it resistant to 51% attacks, where large cryptocurrency miners attempt to use heavy computing to try to manipulate the blockchain.
However, as popular as it is, Bitcoin has some drawbacks. Being one of the first blockchains, the Bitcoin ledger is large and heavy. Transactions can cost $ 12 and take more than 15 minutes to complete. This is fine for its purpose as "digital gold", but it prevents BTC from being used as a daily currency. (People who pay in Bitcoin often use third party services to transfer small amounts.)
Bitcoin is also extremely sensitive to macroeconomic movements - the currency lost half its value in the most recent downturn in the US stock market. And if 2021 reveals a weak economic recovery or a mutated strain of the novel coronavirus, Bitcoin could easily lose 50-80% of its value. But for those looking to invest in cryptocurrencies, Bitcoin remains the most liquid option. It's an essential coin to hold, and one that gets top marks in 2021.
XRP (XRP)
XRP is a centralized cryptocurrency that is geared towards dealing with the high costs of interbank transfers.
If you could only bet on one cryptocurrency this year, XRP would likely be that. XRP is the largest currency with 10x potential in 2021. Approximate Marke Cap: $ 24 billion
Foundation year: 2012
Cost per transaction: Nominal
2020 Return: 16
Score: ★★★★★
XRP is the weird duckling of the cryptocurrency world. Founded by Ripple Labs, XRP is managed and administered by Ripple Labs (instead of a large community). On the one hand, this gives the currency the benefits of Visa (NYSE: C) and other centralized payment processors. These include the ability to trade with large banks, execute transactions quickly, and check policies.
On the other hand, critics are right to ask: "Why use a cryptocurrency in the first place then?".
XRP has also had its share of accounting problems. Notably, in December 2020, the US Securities and Exchange Commission (SEC) sued Ripple and two executives for selling XRP tokens as unregistered securities. Ripple also controls more than half of the XRP offering.
Yet XRP has enormous potential. The coin is used by financial institutions as an alternative to the SWIFT network, giving it a real application. And its low price per token makes it a tempting target for punters - it's easier to see XRP climb 1000% to $ 3,5 than BTC doing the same at $ 454.000.
Stellar (XLM)
A well-placed competitor to the XRP crown, Stellar offers low-cost cross-border trading.
2021 promises to be the year of Stellar. After lagging behind Bitcoin in 2020, Stellar surprised analysts and investors to climb to + 200% in the first week of January. The coin has continued to exceed expectations ever since. approximate market cap: 11 billion dollars
Foundation year: 2014
Cost per exchange: Nominal
2020 Return: 189%
Score: ★★★★★
Much of its success comes from the woes of XRP. Like XRP, Stellar was designed to facilitate cross-border transactions. As regulatory problems mount for its XRP rival, Stellar has moved quickly to fill the void. In January, the Office of the Comptroller of the Currency (OCC) allowed banks to start using independent node verification networks. In the same week, the Ukrainian government announced a partnership with Stellar Development to create a national digital currency.
All of this provides perfect investment conditions for Stellar, a leading cryptocurrency for 2021.
Cardano (ADA)
Cardano is the largest third generation cryptocurrency, and has much greater upside potential in 2021.
ADA, which runs on the Cardano network is one of the most technologically exciting cryptocurrencies to date. Its system allows you to operate more efficiently than the standard proof-of-work system. And its use of smart contracts means it can track transactions like bitcoin while processing payments like Ethereum. In short, it is a third-generation coin that improves upon its predecessors. Approximate market capitalization: $ 27 billion
Year established: 2017
Cost per transaction: 7 cents
2020 Return: 441
Score: ★★★★★
ADA / Cardano still has a lot of work to do in the coming year. After all, having a superior technology product means nothing if people don't adopt it. But there are three key areas that make it a top-tier cryptocurrency for 2021.
First, ADA has momentum. It took the coin just three years to reach a market capitalization of $ 10 billion, a third of the time it took Bitcoin to do the same. Second, it is priced at just $ 1,10 per token, making it an attractive target for punters. Finally, it has the ability to manage smart transactions and contracts. This makes it a natural upgrade for other cryptocurrencies such as Bitcoin.
Dogecoin (DOGE)
In 2013, Billy Markus, software engineer at IBM (NYSE: IBM), founded Dogecoin as a joke. And like most jokes, Dogecoin had its 15 minutes of fame. In 2017, DOGE briefly rose 85.000% as the internet found its newfound fun; it subsequently lost 98% of its value. Approximate market cap: $ 7 billion
Foundation year: 2013
Cost per exchange: 3 cents
2020 Return: 118%
Score: ★★★★★
But in the world of cryptocurrencies, second acts exist. In December 2020, Tesla (NASDAQ: TSLA (it)) and its CEO Elon Musk traced Dogecoin to 200% in a week by simply tweeting about it. This newfound popularity could send the Doge token to speculative heights. Dogecoin has its merits - its faster block time makes it better at payment processing than Bitcoin. But in an asset class where popularity and ease of use prevail, this could allow Dogecoin to return to 1000% any day.
Make sure you take your profits.
4-star tokens
Polka dots (DOT)
Along with Cardano / ADA, Polkadot is another promising third generation cryptocurrency to consider.
In December, Binance announced a $ 10 million fund to support projects on Polkadot, a new cryptocurrency. Dot was up 41% in one week. And more gains may be on the way. Approximate market capital: $ 27 billion
Year established: 2017
Cost per transaction: Nominal
2020 Return: 205%
Score: ★★★★
Founded by Gavin Wood, CTO of the Ethereum project, its protocol improves on old blockchains. From a technological point of view, Polkadot's main difference is its use of parachains - multiple blockchains that can run in parallel. This solves a huge problem for Bitcoin, which has a single growing blockchain for all miners to use. The developers have also added scalability, smart contracts, and security.
However, investors should remember that in the cryptocurrency world, the best technologies aren't always the winners - it will take strong marketing (and some luck) to see Polkadot compete with its big competitors.
Anchor (NEO)
NEO - “the Ethereum of China” - looks set to shine if the Chinese Communist Party allows it.
Don't be fooled by NEO's sleepy returns in 2020. NEO (formerly known as Antshares) is one of the oldest and largest cryptocurrency companies in China. The coin fell in 2018 when the Chinese government cracked down on cryptocurrency exchanges. But in 2021, the coin staged a remarkable resurgence Chinese regulators turned on Ant Group, a payment processor. Approximate market cap: $ 3 billion
Year established: 2016
Cost per transaction: Nominal
2020 Return: 63
Score: ★★★★
With the Chinese Communist Party rethinking its stance on cryptocurrencies, NEO has a chance to shine once again.
Celsius (CELL)
Celsius is a cryptocurrency with the potential to become a bank.
In 2018, Celsius Network funded $ 20 million to create a cryptocurrency lending platform. Since then, the network has recorded $ 6,2 billion in loans and generated $ 11 million in interest income, making it more of a bank than a currency. And by registering as an issuer with the US Securities and Exchange Commission (SEC), Celsius rose even as other regulatory-related currencies like XRP struggled. In fact, its 2020 performance was one of the highest of any other cryptocurrency. Approximate market cap: $ 1 billion
Year established: 2018
Cost per exchange: Nominal
2020 Return: 3,717%
Score: ★★★★
Yet Celsius has many risks for potential investors. As firms from Bear Stearns to Lehman Brothers have discovered, bad loans can quickly threaten the stability of an entire loan operation. And the Celsius network has had some red flags in the past, especially with its unclear collateral requirements. In other words, Celsius could also blow up like a bank if it doesn't have the right controls in place.
However, Celsius may continue to rise. It is one of the largest P2P lenders in the crypto space, which makes it a cryptocurrency to watch in 2021.
Nano (NANO)
Approximate market cap: <$ 1 billion Do you want your own blockchain? Nano gives each user their own ledger.
Year established: 2015
Cost per transaction: N / A
2020 Return: 54
Score: ★★★★
Nano is an excellent example of a cryptocurrency lottery. After collapsing in 2020, Nano suddenly jumped 400% in the first week of 2021. Why did this happen? Some may point to a December hack on an Italian cryptocurrency exchange. Others may point to Nano's reasonably superior technology. But in the world of altcoins, timing has a lot more to do with luck.
However, now that the demand is increasing, beware. A short-term spike is often how new cryptocurrencies gain popularity. With its ability to assign entire blockchains to individual accounts, Nano looks like an attractive Bitcoin alternative.
3-star tokens
Chainlink (LINK)
Chainlink is a cryptocurrency that allows the execution of smart contracts. But can LINK succeed on its own?
Rather than running its own blockchain, Chainlink executes smart contracts on other blockchains. This makes LINK an anomaly in the cryptocurrency world - a relatively agnostic coin to any blockchain it is working on. That's a formula that sounds good in theory. Approximate market capitalization: $ 13 billion
Year established: 2017
Cost per transaction: Nominal
2020 Return: 428%
Score: ★★★
From an investor perspective, however, the complexity of Chainlink worked against it. Using the protocol still requires hardcore programming knowledge, which reduces its potential audience. Chainlink needs a major sponsor - a company like Ripple Labs, for example - to market and implement its smart contracts when needed.
If the coin can find that sponsor, LINK will skyrocket. If not, investors can expect the currency to stagnate in 2021 as new smart contract coins take over.
Lisk (LSK)
Lisk is one of the first Proof Of Stake (POS) cryptocurrencies that has been overtaken by its competitors. Can he recover his strength?
Lisk was launched in 2016 with a lot of optimism. The proof-of-stake token, initially priced at $ 8, was seen as an alternative to Bitcoin and Ethereum issues. Built on top of JavaScript, one of the most common programming languages, Lisk has vowed to open app development to a much wider range of developers. Approximate market capitalization: <$ 1bn
Foundation year: 2016
Cost per transaction: Nominal
2020 Return: 104%
Score: ★★★
The optimism, however, did not last. As Lisk's programming problems began to emerge, the price of the coin began to fall - some quirks in his programming language made him relatively inefficient and prone to nondeterministic behavior. In 2017, LSK had lost almost all of its value to settle at just 10 cents. And despite a massive second wave in the 2018 cryptocurrency bubble, the coin then cooled, falling out of the cryptocurrency top-100 by market cap.
Interest in the token, however, refused to completely disappear. Earlier this year, Robinhood added Lisk to its list of monitored cryptocurrencies, driving prices up by more than 250%. This means that while Lisk may have significant tech issues, a resurgence of interest in crypto could prompt developers to return to the drawing board to improve the token. If this happens (and this is a big "if"), Lisk could quickly regain its strength and challenge the larger cryptocurrencies once again.
Monero (XMR)
Monero is the No. 1 focused on privacy.
Monero has long been a favorite cryptocurrency for its privacy applications. Unlike Bitcoin, Monero's public ledger is hidden - outsiders can't use its blockchain to track the source, destination, or amount of a transaction. And its community has continued to improve its privacy - as its improved transactions attempt to obscure the identity of recipients. Approximate market capitalization: $ 4 billion
Foundation year: 2014
Cost per transaction: 4 cents
2020 Return: 244%
Score: ★★★
But Monero ran into the first problems. Because transactions are so private, he has quickly become a favorite with darknet users looking to hide their tracks. After suffering a series of scandals, the price of XMR plummeted in 2017. Yet the cryptocurrency has had a recovery in recent months. Since February, the currency has risen by nearly 300%.
As we move into 2021, XMR looks like a cryptocurrency with second-wind potential. Investors should take note.
OMG Network (OMG)
OMG is a cryptocurrency built on the Ethereum network.
Founded in 2017, OMG Network was built to help Ethereum grow. Rather than running all transactions on the Ethereum blockchain, the OMG network would use side chains to aggregate multiple transactions before sending them to the main blockchain. These transactions are backed by OMG Network's cryptocurrency, OMG Approximate market capitalization: $ 1 billion
Year established: 2017
Cost per transaction: Nominal
2020 Return: 280%
Score: ★★★
Despite its relative promise, however, investor interest in the OMG network has been stifled. Like Dai / MakerDAO and other cryptocurrencies that rely on other blockchains, OMG has struggled to generate enough interest to create their own life. However, it is one of the few cryptocurrencies robinhood has tracked, making it a potential cryptocurrency for 2021.
Don't expect fireworks. But with enough interest from Robinhood investors, don't even expect OMG to go away entirely.
QTUM (QTUM)
QTUM brings an advanced version of smart contracts to the market.
In many ways, QTUM is very similar to Lisk - a proof-of-stake cryptocurrency that combines the best of Bitcoin and Ethereum. And like Lisk, QTUM was pushed back into the spotlight this year after trading app Robinhood added cryptocurrency to its tracked list of currencies. By the second week of February, QTUM was up 270%.
Year established: 2017
Cost per exchange: Nominal
2020 Return: 44
Score: ★★★
But this is where the similarities begin. Unlike Lisk, which is written in JavaScript, QTUM is written in C, much faster. This has allowed its community to develop robust protocols that have followed many Bitcoin-specific changes.
QTUM remains a niche cryptocurrency, at the beginning of 2021 the cryptocurrency remains out of the top-50 by market cap. But when investors start looking further for attractive technologies, QTUM could shine.
2-star tokens
Tether (USDT)
With its 1: 1 bonded value to the US dollar, Tether is useful for short-term deposits. But it's not a long-term investment.
Tether is the largest stablecoin in the world. Its value is tied 100% to the US dollar. This means that no matter how high or low the other cryptocurrencies go, Tether will theoretically remain at $ 1. This makes Tether worthwhile as a rough market cap: $ 24 billion
Foundation year: 2014
Cost per transaction: Nominal
2020 Return: 1%.
Score: ★★
1) a currency
2) a short-term savings tool
3) a method of arbitrage between different exchanges.
As a long-term investment, however, it is not particularly attractive. Tether's value never strays from $ 1. Past accounting scandals have also threatened the stability of the cryptocurrency. In 2017, the cryptocurrency dropped to 92 cents.
However, Tether is still useful for transferring cryptocurrencies between wallets without major price risk. And with many exchanges now offering up to 12% interest on stablecoins, it's a currency that shouldn't be overlooked yet in 2021.
Litecoin
As the largest bitcoin clone, Litecoin has yet to manage its own life.
Litecoin is the largest of the "Bitcoin clones", which makes it much more understandable to most investors. Its founder, a former Google engineer, designed Litecoin using the original Bitcoin base code and modifying it to create blocks four times faster. This made Bitcoin transactions faster to verify. Litecoin's size also makes it less vulnerable to a “51%” attack. Approximate market cap: $ 8 billion
Foundation year: 2011
Cost per transaction: 7 cents
2020 Return: 200
Score: ★★
My two-star rating comes down to momentum. Though it was once a popular alternative to Bitcoin, Litecoin has since struggled to differentiate itself from its big brother. While it might be a good investment for 2021, it will ride Bitcoin's success rather than shine on its own.
Binance Tokens (BNB)
Binance's cryptocurrency has a use on its platform, but not much else.
Binance, one of the largest cryptocurrency exchanges in the world, has launched its own coin to reduce transaction costs. The coin became known as the Binance Coin, or BNB. And thanks to generous discounts for using BNB, Binance's cryptocurrency has become a major player. Approximate market capitalization: $ 5 billion
Year established: 2017
Cost per transaction: N / A
2020 Return: 160%
Score: ★★
However, investors should see BNB as a cryptocurrency for transferring money between different currencies within Binance. This is because BNB's value is based on Binance's ability to attract more users. In October, Forbes Personnel released documents claiming that Binance and its founder created an elaborate corporate structure designed to fool US regulators.
With friends like that, who needs enemies?
NEM (XEM)
NEM is a speculative cryptocurrency still clinging to life after a massive theft in 2017.
NEM, or New Economy Movement, was designed as an alternative to Bitcoin. The cryptocurrency rewards users who hold XEM for the long term. However, the cryptocurrency stumbled badly in 2017 when Coincheck, a Japanese exchange, revealed that hackers had stolen over $ 500 million of customer funds. Since then, NEM has seen its value trade below 30 cents. This makes the 2021 NEM purchase a speculative game. Approximate market capitalization: $ 2 billion
Year established: 2015
Cost per exchange: 13 cents
2020 Return: 512%
Score: ★★
While it can easily double your money (thanks to its low base), there are no apparent catalysts on the horizon.
TRON (TRX)
TRX is a speculator's dream come true. But that makes it risky in the long run.
Since its launch in 2017, TRON has been on the run. The currency peaked in January 2018 at 8,01 cents before falling to 2,3 cents two months later. He has only slightly recovered since then. So why is this Ethereum competitor on the list of the best cryptocurrencies? Approximate market cap: $ 2 billion
Year established: 2017
Cost per transaction: N / A
2020 Return: 103
Score: ★★
In 2020, its founder, Chinese millionaire Justin Sun, bought BitTorrent, a central peer-to-peer file sharing system. This put TRON back on track. Controversy followed Mr. Sun everywhere, as employees piled hundred-dollar bills on his desk, while others pointed out the plagiarism similarities between TRON and Ethereum.
Investors in TRON will have to accept the scam needed to push this altcoin. Everyone else might consider staying away.
DASH
Dash is still struggling to find traction.
Dash, created in 2014 It was an early winner among cryptocurrencies, peaking at $ 1051 in December 2017 and nearly landing in the top-10 of cryptocurrencies by size. Since then, the success has been short-lived. PCrypto was unable to differentiate itself from the fastest growing cryptocurrencies. Approximate market cap: $ 1 billion
Foundation year: 2014
Cost per transaction: Nominal
2020 Return: 109%
Score: ★★
Dash is likely to stay in the wake of Litecoin. But will he reach the top-10 again? This is much less likely. However, as an early cryptocurrency winner, it's worth keeping it on your radar.
Zcash
Approximate Market Cap: $ 1 Billion Zcash is a privacy-focused cryptocurrency with programming flaws.
Year established: 2016
Cost per transaction: Nominal
2020 Return: 99
Score: ★★
Like Monero, Zcash has privacy at the heart of its development. Zcash users can choose to obfuscate their transactions on the Zcash ledger, making it ideal for privacy-oriented individuals. However, its success in privacy has been plagued with users wanting to find ways to identify other users, even with address shielding.
However, as privacy concerns associated with cryptocurrencies grow in developing countries, Zcash may find greater adoption in emerging countries.
Bitcoin Gold (BTG)
Bitcoin Gold could win again. But his chances are slim.
Approximate market cap: <$ 1 billion
Year established: 2017
Cost per transaction: Nominal
2020 Return: 32%
Score: ★★
Like Bitcoin SV and many others, BTG has never found its place. Since 2018, the coin has lost almost 97% of its value. In size, it went from a # 5 to a # 80 coin.
But for those willing to take the risk, Bitcoin Gold still has some leverage. Being an early entry into the cryptocurrency space, Bitcoin Gold has broad support across various exchanges. And his level of confidence remains relatively high, despite some high-profile news in 2017-2018. While there aren't too many catalysts for BTG, its original bond with Bitcoin still gives it the potential for a second act.
Bettors should take note.
1-star tokens
Bitcoin Cash (BCH)
Bitcoin Cash has not found its location. It probably won't work.
At first it was a successful cryptocurrency. But today it is a shadow of its past. Approximate market capitalization: $ 8 billion
Year established: 2017
Cost per transaction: Nominal
2020 Return: 77%
Score: ★
In 2017, as concerns about Bitcoin's scalability intensified, Amaury Sechet and a group of programmers released Bitcoin Cash in competition. With a block time of 10 minutes and larger block sizes, BCH can theoretically process more transactions per second than its old rival.
From an investment perspective, however, this crypto was a big disappointment. Its improvements proved too small to wow investors, pushing the price of BCH from a high of $ 4.355 in 2017 to just about $ 700 today. Although BCH will remain on the heels of bitcoin in the short term. My recommendation? Sell BCH and find greener pastures.
Bitcoin SV (BSV)
Bitcoin SV is a failed crypto-bitcoin that continues to hang on to expensive life.
Bitcoin Satoshi Vision (SV) was created in 2018. The "civil war" between Bitcoin Cash and Bitcoin SV arose from competing views on block size and transaction fees. And the resulting civil war damaged both sides. Today, Bitcoin SV has lost nearly 90% of its value. Its 2020 returns reflect this truth: Approximate market capitalization: $ 3 billion
Year established: 2018
Cost per transaction: Nominal
2020 Return: 65%
Score: ★
As investors look to 2021, Bitcoin SV remains a cryptocurrency to be avoided. The cryptocurrency, unfortunately, has too little name recognition and too little differentiation from Bitcoin.
EOS (EOS)
EOS is a newcomer to cryptocurrency, but with little technological differentiation making it a low-potential crypto.
EOS, the EOS protocol currency. IO, has mostly stagnated throughout its history. As a currency, it is very similar to the Ethereum network, with several improvements in how transactions are approved. But as an investment, it remained a bit of a disappointment. Approximate market capitalization: $ 2 billion
Year established: 2017
Cost per exchange: Nominal
2020 Return: 1%.
Score: ★
While EOS remains listed due to its relatively large size, investors looking to this lesser-known cryptocurrency should watch for any significant news before investing.
VeChain
VeChain is a Chinese cryptocurrency that helps track food security.
VeChain is a China-based cryptocurrency that works with food groups to track food and safety. In July 2019, it signed a deal with Walmart China for its blockchain food safety program. And in September 2020, it partnered with a Chinese food safety group that includes McDonald China. Approximate market cap: $ 1 billion
Year established: 2017
Cost per transaction: N / A
2020 Return: 260
Score: ★
While its trajectory still looks uncertain, these wins have contributed to its placement on this list, making VeChain a cryptocurrency to watch.
Dai (DAI)
Dai is a stablecoin that lubricates the wheels of the Ethereum network.
Like Tether, Dai is a stablecoin that is pegged 1: 1 to the US dollar. Her technology, however, is a little more complicated. Built on the Ethereum network, Dai allows investors to borrow money using Ether as collateral. In the past, it has also allowed savers to earn up to 8,75% interest. Since then the rate has dropped to zero. Approximate market capitalization: $ 1 billion
Foundation year: 2014
Cost per exchange: Nominal
2020 Return: 0%.
Score: ★
For this reason, investors looking for simple altcoins to buy and hold should consider Tether instead. While Dai can help Ethereum, its ability to generate interest remains weak.
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