Top 5 Crypto Coins to Watch in 2021

Greetings, crypto enthusiasts! Are you ready to discover the top 5 crypto coins to watch in 2021? I know I am! It's that time of year again when crypto investors and traders make predictions about which cryptocurrencies will perform the best over the next 12 months. And boy, do we have some exciting possibilities in store.

From Bitcoin to DeFi tokens, you can bet there are plenty of options available to choose from. But to help you narrow your focus, we've compiled a list of the top 5 coins to watch in 2021. Sit tight, grab a cup of coffee (or tea), and let's dive into the world of crypto!

1. Bitcoin

Okay, let's face it, you knew Bitcoin was going to be on this list. But hear me out. Despite the fact that Bitcoin is the oldest and most well-known cryptocurrency out there, its relevance is still high, and its value continues to skyrocket. In fact, as of the writing of this article, its value is hovering just below the $50k mark. Crazy, right?

The reasons why Bitcoin is still a crypto-force-to-be-reckoned-with are numerous. Firstly, its market dominance is around 60%, which means that most of the money invested in crypto is invested in Bitcoin. Secondly, institutional investors are piling into Bitcoin, which adds even more legitimacy to the asset. Finally, the halving cycle of Bitcoin ensures that the number of new coins introduced into the market is dwindling over time, increasing scarcity and of course, demand.

2. Ethereum

Ethereum is as prevalent as Bitcoin when it comes to the importance of smart contract functionality, DApps (Decentralized Applications), and DeFi (Decentralized Finance). In fact, Ethereum is the backbone of the DeFi industry, which has exploded in the past year or so. The popularity of DeFi and the importance of decentralized apps keep Ethereum relevant, and it has benefited from the recent rise of NFTs too.

In addition, Ethereum is currently in the process of undergoing a major update called Ethereum 2.0. This update will improve network security and scalability, making it even more attractive to developers.

3. Uniswap

Uniswap is a decentralized exchange protocol that has really taken off in popularity recently. Uniswap works a bit differently than centralized exchanges like Coinbase, as it allows users to trade peer-to-peer (P2P) without needing a middleman. And that's just the start! Uniswap enables automated market-making trading, reducing the need for order books and offering more efficient price discovery. Its attractiveness lies in its emphasis on decentralization but without the low liquidity on many decentralized exchanges.

Uniswap is also the go-to place to trade new tokens that don't yet have a centralized exchange listing. It's definitely a coin to watch in 2021.

4. Cardano

Cardano is a relatively new cryptocurrency, and it offers a unique approach to blockchain technology. It is considered a third-generation blockchain that offers significant improvements over its predecessors. For starters, Cardano is designed to be more energy-efficient than other coins, allowing for more accessibility and enabling transactions to be completed with minimal power consumption requirements. It is even considered a competitor to Ethereum itself in regards to smart contracts and applications.

Furthermore, Cardano is poised to roll out smart-contract capabilities later this year, which is likely to increase user adoption and make it even more competitive with Ethereum.

5. Chainlink

Chainlink is a decentralized oracle network that connects smart contracts to off-chain data sources in real-time. What this means is that smart contracts can operate with real-world data because of Chainlink's ability to verify and store external data that can be used in those smart contracts. For example, a smart contract that pays out an insurance claim can use Chainlink to verify that the insurance event did indeed occur.

This makes Chainlink an important player in the world of DeFi and smart contracts, and its relevance will only grow in the coming years.

The Wrap Up

So, there you have it, folks! Our top 5 crypto coins to watch in 2021. It's worth noting that this list is not an exhaustive one, and there are many other coins that offer great potential for growth in the coming year, like Polkadot, Binance Coin, and more.

But the coins we've highlighted today are ones that are well-positioned to excel in 2021: Bitcoin, Ethereum, Uniswap, Cardano, and Chainlink. Remember, always conduct your research, stay up-to-date with the latest trends and innovations, and most importantly, enjoy the ride.

The world of crypto is dynamic, constantly evolving, and never boring. Let's see what 2021 has in store for us.

Additional Resources