The total market cap of the digital assets sector stood at just $195bn (£143bn, €159bn) at the beginning of January 2020. Since then, it’s surged beyond $700bn. More than half of these gains have also occurred over the past three months.

A lot of this momentum has been linked to institutions, with publicly listed companies and pension funds among those looking for cryptocurrencies to invest in. Bitcoin has been top of their shopping list. 

Are there some reliable altcoins? Or should we invest mostly in Bitcoin in 2021? Let’s consider our list of candidates together.

Bitcoin

The world’s largest digital asset peaked at $ 24,000 in the last weekend of December 2020. Some experts believed it would coincide with lower trading volumes during the holiday period.

Amazingly, BTC managed to break this level on December 26 and reached a new high of $ 28,288.84 on December 27. But later that day, prices fell more than eight percent and briefly dipped below $ 26,000. Anyway, this zone served as a support level.

Therefore, BTC is considered to be the best cryptocurrency to invest in 2021. BTC was adopted by MicroStrategy and Grayscale, and Grayscale is going to launch a fund for casual investors. They will have access to bitcoins without having direct ownership of the asset. 

There is a high probability that most companies could start holding BTC in reserve. It can lead to a shortage of bitcoins when there simply aren’t enough to meet demand. As a rule, this leads to an even greater increase in cost.

Bitcoins’ potential makes it the best crypto to invest in according to some analytical research. It possibly can reach $120,000 next year.

Ethereum

Ether is like Bitcoin, one of the best cryptocurrencies for investment. Although Ethereum blockchain became the bedrock of DeFi protocols in 2020, it is about 50 percent off its all-time high record of $1,432 in 2018. But anyway there is a healthy demand for this cryptocurrency and in 2021 ETH is still a leader to invest in. Also, Mike McGlone from Bloomberg Intelligence forecasted that ETH would trade within the $500 to $700 range in 2021.

Litecoin

During December 2020 Litecoin’s percentage terms were higher than Bitcoin’s. And this can still develop in 2021.

Maybe it is a provocative statement but investors can pay attention to some other altcoins like it was during 2017 — 2018. That’s why Litecoin has all chances to become in higher demand than ever in this new year.

Polkadot

Polkadot shouldn’t be ignored in this new year. Undoubtedly it has a huge benefit — it allows people to create blockchains and paves the way for interoperable networks. So that the value can be transferred between platforms. For some experts, it seems that one of the biggest problems blockchain technology will face in the nearest years is that multiple networks will need to be able to communicate with each other to prevent isolation.

XRP

This altcoin has lost more than 51 percent of its value in just over a week in November 2020 and the biggest trading platforms had an attempt to delist this coin from the base.

However, we shouldn’t forget about one of the most common strategies — when we look for a chance to gain exposure when prices are low and exit a position when they rise. This altcoin has fallen by about 75 percent from the highs seen in late November 2020. At first sight, it seems that XRP is one of the persuasive proposals for investment.

Final Thoughts

Since the widespread adoption of cryptocurrencies and crypto payments is a matter of time, 2021 will be a great year for the entire cryptocurrency market. While the lists of the best cryptocurrencies may differ, they can all provide good trading opportunities, especially when we are talking about CFD trading.

With CFDs, you can benefit from both up and down price movements. Follow the latest market news, track the price of your favorite cryptocurrency in real-time, analyze its performance and, accordingly, make a long or short trade.