Diversification Is Key

There isnt only one best cryptocurrency to buy.

Lots of cryptocurrencies have various use cases and promise to disrupt various industries.

Investing in cryptocurrency is risky, but investing in only one is way riskier.

So make sure to diversify your crypto portfolio.

Diversification is a great way to hedge your risk and increase your chances of being involved in the next hot cryptocurrency.

Since I love diversification, my list of the best cryptocurrencies to invest in includes coins that:

As all cryptocurrencies presented are so different, make sure to think about which ones make the most sense for your portfolio and your investment strategy.

Going forward, I will describe each coin, its purpose, team, liquidity, price volatility, and other metrics.

In the end, you will have a solid understanding, so that you can decide for yourself which is the best cryptocurrency to buy in 2021.

I will start with popular, well-known cryptocurrencies. Ideal for beginners.

Then, I will move on to some more advanced coins.

These coins may generate more profits, but they require you to know a bit more about them.

Plus, they are likely more volatile than the first coins on my list.

If youve already invested in top cryptocurrencies offered on platforms like Coinbase and want to expand your portfolio, then the coins at the bottom of my list might be best for you.

Bitcoin is the most widely used cryptocurrency to date. It is often referred to as the king of cryptocurrencies, and its primary goal is to act as global, peer to peer, digital cash.

Best Exchanges To Buy Bitcoin

Simply put, Bitcoin is still the best cryptocurrency to buy today, if not the best. I would not recommend anyone invest in cryptocurrency without investing in Bitcoin.

If youre still not convinced, check out why Bitcoin is a good investment.

Litecoin is one of the first cryptocurrencies to come after Bitcoin, and one of the hottest cryptocurrencies of the last decade.

Using Bitcoins source-code, Litecoin is a fork of Bitcoin with some technical changes to the code, making it much faster than Bitcoin. Its mission is also to be a global, peer to peer currency.

Despite its competition, Litecoin is still one of the most trusted and used cryptocurrencies these days.

Ethereum was the first major project to introduce smart contracts.

Smart contracts allow developers to launch mobile and desktop decentralized applications (dApps) on top of the blockchain.

Thousands of tokens run on the Ethereum network, and these tokens were what spurred the initial coin offering (ICO) movement.

Is Ethereum a good investment? Check out the full guide on why Ethereum is worth buying.

Unlike Bitcoin and Litecoin, which aim to be used as currencies, the Binance coin is a utility token.

This means its value comes from how useful it is (and how much demand there is for its utility) within the Binance ecosystem.

Binance is one of the worlds fastest-growing exchanges. Because Binance Coin is used to pay for transactions on the exchange and many other purposes, BNB is one of the fastest-growing cryptocurrencies in 2021 in terms of trade volume.

If youre looking to diversify your cryptocurrency portfolio by adding a utility token issued by a company with a solid business history and an experienced team, think Binance coin.

Basic Attention Token is another utility token most commonly utilized in the Brave Browser.

The BAT token is used to tip content creators, or virtually anyone that you find helpful on the internet. You can tip content creators monthly, or choose to send one time payments to specific people.

Additionally, users who watch ads can get rewarded in BAT. Using smart contracts, advertisers can lock up BAT, and as their ad is viewed, their funds are released to both the Brave Browser and the end viewer.

Monero is a privacy-focused project. The coin utilizes fancy cryptography and privacy logic to hide the participants' identities.

It is widely used on the dark web for this reason and is the most popular privacy coin today.

NEO is often known as the China-based Ethereum. Founded in China, NEO is another smart contract platform enabling developers to launch dApps on the blockchain.

They are slightly more centralized than Ethereum: instead of relying on hundreds of nodes like on Ethereum, there are only a few (less than 10) that make up NEOs decision making.

Beam is another privacy-focused cryptocurrency making waves in the industry.

Unlike Monero, which is a more traditional blockchain project, Beam uses a new blockchain protocol called Mimblewimble.

Without getting into detail, Mimblewimble is known to help significantly with scaling the blockchain and transaction speed, all while maintaining a high level of privacy and anonymity.

Nexo has been gaining some attention recently. Nexo as a software is a wallet that allows users to borrow money using their coins as collateral.

On the other hand, users can also easily and instantly lend crypto and gain interest from lending.

Nexo also offers a free credit card for users and has a unique business model.

The NEXO token is one of the first security tokens to be offered (STO) in the industry.

Cardano, which is competing with Ethereum and NEO, is touted to be more scalable and easier for developers to use.

It aims to be more scalable by introducing two layers of technology: one responsible for tracking balances of the ledger, and the other for transferring value.

Cardano uses two programming languages called Haskell and Plutus.

Haskell has been around since the 1980s, and is Cardanos attempt at making it easier for developers to create decentralized applications. Plutus is the functional language built in-house by Cardanos development team.

Enjin is a fascinating use case for blockchain technology. The company's entire goal is to bring gaming (esports, VR, social, etc.) to blockchain.

This means that gamers can own assets from their games.

Imagine playing games and, when the game is over, you can sell those assets to other players.

You can also buy and collect in-game items from your favorite players and top Twitch champions. Wait for them to increase in value or sell them right away. The choice is yours.

Another amazing feature of Enjin is their Multiverse. The concept is incredible: players will be able to play one game and then transfer their character, assets, winnings, and other items to an entirely different game made by a whole different game developer!

You made it to the end of my list! I hope you enjoyed my top 11 cryptocurrencies to buy for 2021, and that you found the information I provided useful.

If youre looking for more great cryptocurrencies to invest in, or to find out which coin is going to be the next big cryptocurrency, here is what you can do:

An excellent community to explore new cryptocurrencies is the BitcoinTalk forum, specifically the altcoin threads.

You can interact with people deeply involved in this niche, explore opinions, and search for the announcement threads (ANN).

This forum is also helpful to discover projects early on, before they become the next big cryptocurrency.

More great communities can be found on Facebook -- and one of them is our own Facebook group. Feel free to join and ask other members about their favorite cryptocurrencies.

The best crypto exchanges perform a significant number of checks before listing new coins for trading.

You can use these verifications as some kind of quality label to find some of the best cryptocurrencies to invest in which arent listed on this page.

eToro andBinanceare some of the biggest crypto exchanges and offerdozensof the best cryptocurrencies for trading -- I definitely recommend you check themout.

Buying the best cryptocurrencies is not enough to be a successful crypto investor.

Countless promising investors saw their crypto journey end brutally because they did not pay attention to security.

If youre serious about investing in cryptocurrencies, put some effort into reinforcing your security.

I hope you enjoyed this article.

Let me know in the comments which coins you invest in, and which top cryptocurrencies you think are missing from my top 11!

More Useful Resources:

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The 11 Most Promising Cryptocurrencies to Buy [2021]