The majority of participants in the crypto community focus on the behavior of Bitcoin (BTC), the most capitalized cryptocurrency. This is because, due to the scale of its network, the prices of other digital assets often mirror the movement of Bitcoin’s exchange rate. At the same time, some alternative cryptocurrencies (altcoins) manage to outperform Bitcoin in terms of profitability.
We suggest you read the stories of crypto traders to identify the leader amongst popular altcoins in 2021.
Selecting altcoins for analysis
Though the ICO boom is long behind us, new altcoins continue to appear on the market every day. Due to heavy competition, most do not survive. Therefore, in order to get a correct idea of the earning potential altcoins present, we’ve selected seven coins to analyze that were among the leaders in terms of capitalization throughout 2021.
Here is a brief explanation of why the digital assets to be discussed were selected:
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Cryptocurrency
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Why it was chosen
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Ethereum (ETH)
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Ethereum has long been second in terms of capitalization, yielding only to Bitcoin. In 2021, the cryptocurrency came into the spotlight as developers prepared to transfer ETH to the more environmentally friendly PoS mining algorithm. The growth of the DeFi industry, which is closely related to the project, has also contributed to the popularization of Ethereum.
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Dogecoin (Doge)
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Growth in this cryptocurrency’s popularity has been facilitated by car manufacturer Elon Musk, who’s repeatedly mentioned it in his microblog. To understand the extent of the Tesla founder’s passion for the project, it is enough to mention that, in early May 2021, his other company, SpaceX, agreed to accept Doge as payment for putting a lunar satellite into orbit.
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Binance Coin (BNB)
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BNB is the token of one of the most popular digital asset exchanges, Binance, whose team is successfully developing a number of related projects in parallel. Cryptocurrency owners receive discounts on trading operations within the platform. Buying BNB can be considered a way to invest in a crypto exchange.
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Cardano (ADA)
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The project’s developers are actively working on improving Cardano’s technical component, whose capabilities have already received praise from many market participants. In fact, in March 2021, analysts at crypto broker Voyager concluded that retail investors have more faith in ADA than Bitcoin.
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XRP (XRP)
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At the end of 2020, XRP’s issuer, Ripple, faced pressure from the US Securities and Exchange Commission (SEC). The regulator accused the start-up of illegally selling securities in the form of tokens. With the first round of battles between Ripple and the SEC, XRP’s price significantly dropped. Many crypto community members and market participants believe that the Commission’s accusations against the project are unfounded. At the same time, the Ripple team can present serious arguments that may bring victory over the SEC closer. XRP’s growth in 2021 largely reflects investors’ belief that the project will be exonerated.
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Uniswap (UNI)
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UNI is the token of a popular decentralized exchange named Uniswap. With the crypto boom of 2021, the trading platform has experienced a surge in popularity. Uniswap’s simple interface makes it stand out among its competitors, and anyone on the exchange can create trading pairs or lock assets for the needs of DeFi projects in order to receive passive income.
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Polkadot (DOT)
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The launch of Polkadot’s main network and the global deployment of a number of its technological solutions, including the launch of parachains in the experimental Kusama network, have attracted the attention of crypto industry participants. At the moment, the project’s developers are busy testing the stability of its systems. Many investors have decided to purchase DOT tokens since Polkadot’s technological solutions were rolled out.
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Which of these altcoins have been the most profitable in 2021?
Here’s how the prices of the cryptocurrencies mentioned have changed since the beginning of the year:
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Altcoin
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Price: January 1, 2021
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Price: June 12, 2021
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Percent Growth
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Ethereum (ETH)
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$730.37
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$2279
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212
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Dogecoin(Doge)
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$0.005685
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$0.3033
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5235
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Binance Coin(BNB)
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$37.91
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$326.62
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761
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Cardano (ADA)
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$0.1753
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$1.36
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675
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XRP (XRP)
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$0.2374
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$0.8111
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241
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Uniswap (UNI)
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$5.0315
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$20.56
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308
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Polkadot (DOT)
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$8.8813
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$19.64
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121
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How traders work in 2021: Market participants’ stories
Many traders have managed to take advantage of positive price movements in the digital assets market to make a profit. At the same time, market participants say they don’t like how altcoins mirror the movements of BTC. Some say decoupling altcoins from Bitcoin in trading pairs can partially solve this problem.
Some market participants noted that they have suffered due to regulatory pressure on the crypto industry. In particular, the SEC’s claims against Ripple have resulted in a number of investors experiencing losses. However, many people believe you can earn on any market movement, whether rising or falling.
With the growth of the digital asset market since 2020, many new participants have joined the crypto community. Naturally, not everyone understands all the nuances of crypto trading at the very beginning. At the same time, a thorough study of the basics of cryptocurrency trading can bear fruit in the long run.
The difficulties faced by new crypto traders have given birth to a number of memes.
“Being a cryptotrader is not stressing at all,” John, 26 years old
Sounds about right. pic.twitter.com/iKVfDzeAFx
— Altcoin Dad (@bitcoin_dad) October 18, 2018
You can reduce the stress involved in crypto trading and extract maximum profit from digital asset transactions with the help of modern platforms. For example, you can quickly buy or sell cryptocurrencies at a favorable price, with no pitfalls, on the Alfacash platform.
The platform supports various ways of purchasing digital assets, so you can choose the one that’s best for you. Alfacash’s other advantages include low fees, responsive customer support, and the ability to trade anonymously.
To Sum Up:
There are clear growth leaders among altcoins. Crypto community participants acknowledge that crypto trading can be very stressful. However, this anxiety can be reduced with the help of modern platforms for trading digital assets like Alfacash, where you can find advantageous offerings and tools for conducting crypto operations.
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