Best cryptocurrencies to invest in spring 2021: from Bitcoin to Polkadot
19:35, 11 March 2021
What will happen in the crypto market in spring 2021? According to some indisputable views from Reddit, “it will definitely go up, down or sideways” and you should “just consult your crystal ball”. All joking aside, 2021 has already proved to be another big year for the crypto market with numerous drivers contributing to further adoption of digital currencies after the economic turmoil of 2020.
So, what are the top 3 cryptocurrencies to invest in? While the world is still fighting the coronavirus and its economic consequences, traditional financial assets lose their credibility and digital coins gain popularity among big institutional investors.
With Bitcoin crashing its all-time highs, it’s hard to disagree with Meltem Demirors from CoinShares saying that “the best time to invest in Bitcoin was yesterday”. Still, bullish investors believe that the recent high of $58,400 is far from the potential maximum, giving hope to everyone ready to join the Bitcoin rally.
However, if you are getting sick of Bitcoin dominance, you can clap your eyes on much younger and cheaper coins with a huge potential to be good crypto investments for spring 2021, such as Dogecoin and Polkadot.
Best cryptocurrencies to invest in spring 2021
The list of most valuable cryptocurrencies can’t start with anything but Bitcoin. In the course of two months since the beginning of the year the Bitcoin rallied from $28,900 in January 2021 to the record high of $58,400 on February 21, 2021.
According to the latest Bitcoin price analysis, the BTC is poised for new all-time highs, as most technical indicators show that bulls have the upper hand. The flagship cryptocurrency is fluctuating on the verge of climbing to $60,000.
After it’s major recovery from the latest dip of $43,000 from February 28, 2021, BTC managed to pull back and break through a resistance trendline formed at $51,700. The bellwether cryptocurrency should secure higher support above $54,000 to add credibility to the expected bullish rally to $60,000.
An unprecedented Bitcoin performance, pushing the cryptocurrency past $1trn in market value, could be attributed to the increased adoption of the cryptocurrency by strong institutional investors, including Elon Musk’s Tesla, MicroStrategy, Square and PayPal. Investing in billions worth of Bitcoin, these companies ignited a chain reaction, making other market players view Bitcoin as a viable reserve asset and one of the best cryptos to invest in.
Bitcoin has already surged above never-seen-before highs lately. However, how high can it surge by the end of 2021? According to Anthony Pompliano from the digital asset hedge fund Morgan Creek Digital: "I've held a price target of $100,000 per Bitcoin by the end of 2021 since I publicly wrote about it in 2019. I'm sticking with that.”
Anthony Scaramucci, founder of SkyBridge Capital, shared this view and predicted that BTC would hit $100,000 by the year end, explaining his price target as “just a supply and demand situation”, referring to the growing demand from institutional investors and limited supply of the asset.
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Dogecoin: from a meme legend to the best performing crypto around
Lately, Dogecoin has been one of the best coins to invest in, showing unbelievable performance. Having attracted the attention of famous individuals, including Elon Musk, Gene Simmons and Snoop Dogg, Dogecoin is expected to climb up to $1 towards the end of 2021.
The meme cryptocurrency started the year at $0.050 and skyrocketed to its recent high of $0.0838 on February 7, 2021, showing a significant surge of 67 per cent.
The most recent Doge-related engagement came from Mark Cuban, the owner of the famous basketball club Dallas Mavericks. The billionaire and his NBA team announced that they accept Dogecoin payments for game tickets.
A couple of days later Mark Cuban shared that they got over 20,000 DOGE in transactions, which makes them “the largest Dogecoin merchant in the world”.
What is so special about Dogecoin anyway? Invented in 2013 by IBM engineer Billy Markus and Adobe engineer Jackson Palmer, Dogecoin was a joke cryptocurrency featuring the famed Shiba Inu meme.
It can be called an indirect fork of Bitcoin, as it was derived from now-obsolete Luckycoin, which, in turn, was the fork of Litecoin, which was the fork of Bitcoin. In 2019, Palmer explained that they wanted to make Dogecoin as “undesirable” as possible, with random block rewards and infinite supply. The cryptocurrency started trading in 2013 at around $0.0003.
However, by February 2014, DOGE tripled in value to $0.0015, outperforming Bitcoin. Since then it has seen numerous momentary surges, which never lasted long.
So, why is the latest unprecedented surge believed to continue, driving the price of Dogecoin to $1? First, the Dogecoin community is strong. Second, it offers a number of benefits when it comes to scaling. Dogecoin expands on blockchain technology, adding one block in a minute, which helps it to process transactions faster and limit its vulnerability to fraud and hacks. DOGE users also pay a flat-rate fee transferring the coins, which can be convenient for those transferring large amounts of crypto.
Although it is not one of the most popular cryptocurrencies, currently ranking 49th in the list of most popular cryptos, it can be a part of your diversified investment portfolio. As the saying goes, “if DOGE is a joke coin, many people are laughing all the way to the bank with it”.
Polkadot: what is so great about the ‘Ethereum killer’?
Polkadot is a very trendy digital coin that comes up every time you google “what cryptos to invest in”. A new Swiss-born altcoin everyone loved, Polkadot (DOT), also referred to as “blockchain of blockchains” got the reputation of an Ethereum killer.
Yet little known Polkadot, has gained a lot of attention recently, having jumped from $9.14 on January 1, 2021 to $40.77 on February 20, 2021. At the moment of writing DOT was trading at $38.75, which is still a 323.9 per cent increase since the beginning of the year.
Developed in 2016, Polkadot is designed to build a forum that allows different blockchains to engage with each other. The main idea behind Polkadot is to create a completely decentralised Internet 3.0.
With the ambition to become the major platform for smart contracts, the project is noteworthy due to its interoperability, meaning it can be used with other tokens and cryptocurrencies, and it can be upgraded without forks.
What makes Polkadot so popular and positions it as a major rival to Ethereum? If we imagine that Ethereum is a highway, then programmes created on it have to pay a GAS price as a traffic charge. Continuing the analogy, Polkadot represents multiple highways, where each can serve a particular purpose for particular application.
According to Derek Yoo, CEO of PureStake: “Most of the people using Polkadot are developers. They are building new blockchains or new decentralised applications and finding ways to link existing chains to Polkadot’s new way of doing things”. If developers are enthusiastic about it, so are traders.
Bottom line: pick the right dog in the race
The list of top cryptocurrencies to invest in spring 2021 can be indefinite if to mention all the new promising names in the crypto market.
If you decide to diversify your investment portfolio or choose to speculate on the cryptocurrencies’ volatility with CFDs, you can also take a closer look at several other cryptos aside from BTC:
Binance coin (BNB)
BNB value has surged by over 500 per cent since January 1, 2021, driven by a significant number of decentralised applications and DeFi projects that have switched from the Ethereum blockchain.Uniswap (UNI)
Uni can be included in the list of best coins to invest in 2021 as the cryptocurrency continues chasing from one record high to the next one. Analysts from Walletinvestor expect UNI to double in price to more than $40 by the end of 2021.
2021 seems to be the year of big trading opportunities for crypto investors. Blockchain companies will create new projects that will be supported by huge institutional investors from the Fortune 500 list, helping to drive momentum for the entire multi-billion crypto economy.
Read more: Bitcoin price predictions for spring 2021: up to ,000 and beyond?
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