Jakub Dziadkowiec presents his list of the ten most promising cryptocurrencies for investment for 2021.
These ten projects, out of 8,000 existing cryptocurrencies, present interesting prospects for return on investment.
Macroeconomic data indicates that 2021 will be a unique year for the cryptocurrency market.
We are already in 2021, the first year of this new crypto cycle, almost entirely bullish in nature. I took a closer look at the industry to come up with a list of the top ten most promising pieces for the year.
Which projects are most likely to succeed? Can the parabolic hikes of 2020 continue? Where is the best place to invest smartly and reduce the risk of failure while increasing your profit potential? Which crypto projects will peak in 2021? This is what we will see below.
The methodology of this ranking of the 10 promising cryptocurrencies
When selecting projects for the top ten cryptocurrencies competing for 2021, I used three criteria. While these rankings are arbitrary, I give the reader the opportunity to rate the list for himself by revealing my methodology.
These three criteria are as follows:
Position in the ranking of CoinMarketCap
The set of coins I present includes projects established in the Top 30 Cryptocurrency list, according to CoinMarketCap, with a good reputation and transparent trading history.
The goal of the analysis was not to search through thousands of cryptocurrencies to identify risky gems that could reach 100x, 1000x, or even 10,000x next year.
They could also drop to zero. I prefer to identify some of the more reliable projects with the best risk / reward ratio.
Annual return on investment graph
The chart contains historical data on some cryptocurrencies and compares the return on investment (ROI) that investors could have achieved in 2020.
Benjamin Cowen is a commentator who frequently refers to this graphic. In the video below, he indicates the cryptocurrencies that had the best return on investment from March to December 2020. LINK, VET and ADA are the top three, followed by XLM and ETH.
Opinion of crypto market experts
This is the most arbitrary criterion. There are all kinds of influencers, commentators, and analysts in the cryptocurrency arena, but there is certainly no consensus on who unmistakably an authority is.
Thus, we are only referring to a few people, like Cowen, Kevin Svenson, and Lark Davis.
The description of each coin includes a brief overview of its specification and rationale, the latest news that suggests a strong entry into 2021, and a paragraph on long-term price action.
The top ten cryptocurrencies competing for 2021 start with the king himself of the market : Bitcoin (BTC).
Created in early 2009 by Satoshi Nakamoto , the first cryptocurrency is, in fact, a decentralized and distributed ledger in which users send funds directly to each other, peer-to-peer, without an intermediary.
There is no need to convince anyone who has been around the cryptosphere for some time that investing in BTC pays off. All the more recently, when on December 16, Bitcoin exceeded $ 20,000, and its all-time high dating from 2017 (ATH).
Bitcoin is one of the most profitable assets in history so far, outperforming big names like Amazon, VISA , Microsoft and JP Morgan in many ways in terms of return on investment.