Top 5 Best and Cheap Cryptocurrencies to Invest In 2021

1. Bitcoin (BTC)

Bitcoin, often referred to as the "gold of cryptocurrencies," has been the leading digital currency since its inception in 2009. It offers a decentralized, peer-to-peer network that allows users to make secure transactions without intermediaries. Despite its volatile nature, Bitcoin has remained the go-to currency for investors looking to enter the crypto market.

In 2021, Bitcoin experienced a remarkable surge, reaching an all-time high of nearly $65,000. However, its price has also plummeted to as low as $30,000 in the same year. As the most popular cryptocurrency, Bitcoin has a large market cap, making it a safe bet for long-term investors. It is also widely accepted by many online merchants and service providers.

2. Ethereum (ETH)

Ethereum, launched in 2015, is the second-largest cryptocurrency by market cap. It stands out for its smart contract capabilities, allowing developers to create decentralized applications (dApps) and decentralized finance (DeFi) platforms. Ethereum has become a popular choice for investors due to its versatility and potential for innovation.

In 2021, Ethereum's price soared from around $600 to over $4,000, making it one of the best-performing cryptocurrencies. With the upcoming Ethereum 2.0 upgrade, which aims to improve scalability and reduce transaction fees, Ethereum is poised to become even more attractive to investors.

3. Cardano (ADA)

Cardano is a blockchain platform that focuses on sustainability and scalability. It utilizes a unique proof-of-stake algorithm called Ouroboros, which consumes less energy than traditional proof-of-work algorithms. Cardano's main aim is to offer a more secure, transparent, and sustainable alternative to existing blockchain platforms.

In 2021, Cardano's price has been relatively stable, making it an excellent option for long-term investors. Its innovative approach and potential for widespread adoption have led many to believe that it is one of the best cheap cryptocurrencies to buy in 2021.

4. Chainlink (LINK)

Chainlink is a decentralized oracle network that enables smart contracts to interact with real-world data. It has gained popularity among developers due to its ability to provide reliable and secure data for smart contracts. Chainlink is an essential component for the growth of the DeFi ecosystem.

In 2021, Chainlink's price has experienced significant growth, reaching an all-time high of over $50. As the DeFi market continues to expand, Chainlink's role in providing real-world data for smart contracts will become increasingly important, making it a valuable investment for those looking for a cheap cryptocurrency with long-term potential.

5. Polkadot (DOT)

Polkadot is a unique blockchain platform designed to connect multiple blockchains and enable seamless interoperability. Its aim is to create a decentralized web where different blockchains can work together to enhance scalability, security, and efficiency. Polkadot has gained significant attention due to its innovative approach and potential for widespread adoption.

In 2021, Polkadot's price has surged, reaching an all-time high of nearly $50. With the growing demand for interoperable blockchain solutions, Polkadot is likely to become an essential component in the future of the crypto market, making it a great cheap cryptocurrency to invest in.

FAQs:

1. What is the best cheap cryptocurrency to buy in 2021?

The best cheap cryptocurrency to buy in 2021 depends on your investment goals and risk tolerance. However, Bitcoin, Ethereum, Cardano, Chainlink, and Polkadot are among the top choices due to their strong market positions and potential for growth.

2. Which cryptocurrency has the highest potential for growth in 2021?

While it is difficult to predict the exact performance of any cryptocurrency, Bitcoin and Ethereum have historically shown significant potential for growth. However, newer cryptocurrencies like Cardano, Chainlink, and Polkadot may offer more attractive long-term investment opportunities.

3. How can I invest in cheap cryptocurrencies?

To invest in cheap cryptocurrencies, you need to research the market, identify promising projects, and purchase them through a cryptocurrency exchange or wallet. Make sure to understand the risks involved and only invest what you can afford to lose.

4. Should I buy cheap cryptocurrencies or established ones?

It is essential to consider both cheap and established cryptocurrencies when making investment decisions. Established cryptocurrencies like Bitcoin and Ethereum have a proven track record and wide adoption, while cheaper cryptocurrencies may offer more significant growth potential.

5. How can I stay updated on the crypto market?

To stay updated on the crypto market, follow reputable news sources, join crypto communities, and utilize crypto market tracking tools. Educating yourself on the latest trends and developments will help you make informed investment decisions.