The last few years have all been about Bitcoin (BTC) and Ethereum (ETH) and probably a few others. While they continue to command most of the global cryptocurrency market, do you have other options?
Enter the new players
There are thousands of different cryptocurrencies that are being traded in the world today. Digital exchanges might not allow you to trade every single one of them as they look at profitability and viability. But if you really need to choose, which cryptocurrency should be the ones you look out for? Below are the top 4 cryptos that you could consider this year.
How they are selected?
Besides BTC and ETH, there are surely many other cryptos in the market which have shared the limelight like Litecoin and Ripple. However, this list does not include those as we are finding new ones with the potential for growth for this year. This is based on reports and news of their developments which give you options to consider if you want to venture more into the others.
- Chainlink – Using the LINK coin, this is a smart contract, Ethereum-platformed crypto. Chainlink uses a decentralized oracle network similar to ETH. This overcomes the problem where blockchains are unable to connect securely with outside applications. This smart contract platform has provided the basis for many applications and it is not just about finance. Developed by Sergey Nazarov and Steve Ellis, the LINK price was at US$21 in January 2021 with a market capitalization of more than US$8 billion.
- Polkadot – This uses the DOT crypto and is designed for better interoperability between blockchains. Its relay chain is the main core component. It provides developers to create their respective blockchains using Polkadot’s security platform. This is different from Ethereum where developers need to create their own security measures. Developed by Gavin Wood who is among those who started Ethereum, this shared security platform has been making waves trading at US$12 per DOT and a market capitalization of more than US$11 billion.
- VeChain – What makes VeChain such an attractive name to be bounced up is that it was the only cryptocurrency where its market capitalization went up. All the top 20 cryptos reportedly had lower market capitalization for the year. In fact, since January 1, 2021, the price of VEN has grown to over 28%. This is most likely because of the partnership announcement with some big-names like PwC Asia, BMW and several top universities.
- Uniswap – This is more of an exchange and it different from the rest of the pack. Running a fully decentralized exchange, it is not owned or operated by anyone. P2P and decentralization is very common in the crypto market and Uniswap allows a whole new method when it comes to trading. They call it an automated liquidity protocol. It started out in 2018 using the Ethereum blockchain and is completely open-source.
- Enjin – This uses the ENJ token and is the first crypto to be whitelisted by the JVCEA or Japan Virtual Currency Exchange Association. It is also expected to be listed in Coincheck of Japan where you can buy ENJ using the Japanese currency (Yen). This has been the go-to crypto for games. In Japan, Coincheck is the largest licensed crypto marketplace.