5 Best Altcoins to Invest In (2021)

What Are Altcoins?

The term “Altcoin” makes it pretty obvious that it was found as an alternative to the mainstream cryptocurrency forms.

Altcoins were developed as an alternative to Bitcoin, which is the first and most popular cryptocurrency.

The best altcoins are generally said to be 4 times quicker in terms of transmission.

The systematic procedure used in their formation mainly points out the gaps and drawbacks of Bitcoin.

All in all, it can be deduced that altcoins are designed to be more efficient than bitcoin.

Pricing or valuation of any type of currency plays a vital role in its acceptance.

An altcoin's purpose is to ensure that the prices charged for operating with Bitcoin are considerably lower and affordable in terms of an altcoin.

Some of the commonly known altcoins are Litecoin, XRP, Ethereum, Tether, Monero, etc.

Altcoin Influence in the Crypto Market

Many alternative coins have been created around the world to establish an efficient and seamless exchange system.

As of today, over 5000 Altcoins have been created.

Altcoins held the weightage of 34% of all cryptocurrencies in the market in early 2020.

Ripple, Tether, Bitcoin SV, Etherum, Litecoin, and Bitcoin cash are some best altcoins in terms of market cap.

Although this currency's primary function is to exchange it for something of value, there are, however, other purposes such as ‘Utility Tokens’ or ‘Security Tokens.’

What Can Altcoins Be Used For?

Like other cryptocurrencies, altcoins are used for financial activities such as paying tuition, investments, donations to charities, making payments for various items and services, etc.

These cover over 50% of all transactions made using cryptocurrencies.

Altcoins can conjure some added benefits other than creating an alternative way of exchange to make transfers easy and accessible.

Now that we know what altcoins are let’s take a look at the features.

• Cheap Money Transfers

The low fees imposed on digital transactions such as Litecoin and bitcoin cash make them excellent payment methods for international money transfers.

A recent Litecoin transaction of $99 million was processed in about 2 minutes. And surprisingly, the transaction fees were only $0.4

• Making Private Transactions

Users can make anonymous financial transactions through the use of Altcoin.

It enables the users to make transfers of a large amount without giving explanations to the banks regarding the transfer's whereabouts.

This makes the process less bureaucratic and complex.

• Investing in Early-stage Startups

During the introduction of digital currencies and Altcoins, anyone with an internet connection can become an investor in an early-stage startup.

The entire process of investment and making monetary transactions have become more compatible and accessible.

• Traveling

Altcoins can be traded anywhere in the world for specific currencies based on the user’s current needs.

It makes the idea of traveling much more assured, as no one wants to carry a big amount with them in cash.

Digital currencies (Altcoins) help to reduce dilemmas regarding currency exchanges.

• Payment for Posting Content

Publishers can receive rewards in the form of altcoins if they post content and upvoting quality content.

Steemit, for example, rewards the users for contributing to the platform. One of the main reasons for its current popularity in emerging markets.

• Non-cash Remittances

Altcoins can be used to make non-cash remittance transactions.

For example, Non-cash remittances can be sent to selected African nations from any part of the world through SureRemit.

In the near future, it is also said to be linked with the popular online payment service, PayPal.

Investing in Altcoins

The importance of Altcoins is very significant, especially in the sector of investment.

As any savvy investor knows that diversification is a key method to abate the risk involved in any investment decisions.

Diversifying investments across a portfolio of stocks, bonds, and cryptocurrency is important to sustain any systematic or unsystematic risk involved in the ventures.

In cryptocurrency investing, the same rule applies.

The industry is very volatile, which can lead to big wins and unpredictable results.

On the contrary, this unpredictability can also lead to a quick downturn and result in massive losses.

This is where altcoins play a big part. 

Sometimes it can be hard to choose the best altcoins simply because of the volatile nature of the cryptocurrency market.

An investor with a strategy will invest in multiple coins to ensure a strong portfolio that can cover losses given the value of a certain cryptocurrency drops.

For example, A savvy investor will not only invest in ‘Ethereum.’ Instead, he will make a portfolio of multiple Altcoins such as Ripple, Tether, Bitcoin SV, Ethereum. 

So, If the currency value of Ethereum were to drop, the loss can be covered through the other 3 investments. 

Now that you understand Altcoins' background let's look at the 5 best Altcoins in 2021.

5 Best Altcoins to Invest in 2021

• Ethereum

Ethereum is currently the second-largest cryptocurrency in terms of trade volumes and is already proving to be one of the best altcoins of 2021. 

What’s more, the cryptocurrency will change its consensus strategy from POW to POS to give it more room for scalability.

That will see the crypto price drop before coming back up more robust and better.

It’s now the perfect time to invest a chunk of your crypto investment funds in the Ethereum ecosystem.

That’s if all factors hold, and there are no surprises that might come in the future.

On top of that, the smart contracts in Ethereum and the DApp make this crypto a worthwhile investment opportunity.

View Ethereum's current price here

• Ripple (XRP)

The next big thing is Ripple (XRP). Ripple has been just a few steps behind Ethereum and Bitcoin for years now.

And there are no signs of this altcoin backing down from the challenge to the top.

Well, it’s impossible to predict the exact price of Ripple in 2021, and anyone who tells you otherwise has probably had too much scotch.

The only thing we can share with you is that this crypto is good with collaborations.

If the company enters into a significant collaboration with an influencing company, it could potentially affect the price of XRP.

This crypto is here to stay and will be one of the best altcoins in 2021 without a doubt.

View XRP's current price here

• Bitcoin Cash

Bitcoin Cash is a fork from the Bitcoin ecosystem that was created in 2017.

But like any other asset, Bitcoin Cash has benefits and risks.

However, with the proper analysis of the market and advanced tools, you could benefit from this altcoin's price swings.

The currency is behind Bitcoin, Ethereum, and XRP.

Most analysts predict that this crypto might skyrocket in price.

But who knows!

All I can say is that this crypto has shown incredible resistance over the years and will likely prove to be one of the best altcoins in 2021 by performance.

• EOS

EOS was among the best altcoins in 2020 and will likely be a fierce competitor in 2021.

Like all the other altcoins, EOS was created to solve the speed, scalability, and flexibility issues in the blockchain ecosystem.

And sure enough, the blockchain has done wonders over the years.

By far, the highest price that EOS has reached is $22.89 in 2018 but later dropped.

• Tether

I know you are probably wondering what Tether is doing on this list but hear me out first.

It's safe for anyone who’s never entered the crypto-world to keep your coins in Tether since the US currency backs up this altcoin.

It might not make a significant difference in value than other altcoins, but it’s by far the safest bet if you’d like to enter the crypto-world.

Final Thoughts

These are some of the best altcoins that are expected to do well in the year 2021. 

Although the very nature of an Altcoin is usually very volatile, all the coins listed above are considered to be "stable coins," which means they have a great track record of proven price stability and, therefore, a much safer investment.

We hope this Altcoin guide will help you when deciding which are the best altcoins for you to invest in.

Which altcoin are you bullish on in 2021? Let us know in the comments below!