There are now several thousand cryptocurrencies. The jungle of digital currencies has become opaque and attracts many “black sheep”. Which cryptocurrencies are particularly suitable for trading and offer the best opportunities?

In this article, we examine the best cryptocurrencies to watch in 2021.

1. Bitcoin: the world’s most famous cryptocurrency

Bitcoin (short: BTC) is a digital currency based on a blockchain, which is secured and defined by cryptography. The Bitcoin network is the infrastructure for a completely new economic and financial system, which is completely decentralized and works completely without middlemen. In the system, there are no national borders and no central institutions, but this economic system works completely peer-to-peer, i.e. from person to person. Bitcoin is also the world’s first and, at the same time, largest cryptocurrency with the largest trading volume, which is particularly interesting for traders. The all-time high is already at over $ 42,000.

2. Ethereum: the number two cryptocurrency

Ethereum (currency: Ether (ETH) is mainly understood as an environment for intelligent contracts, so-called “smart contracts”) and is considered a second-generation blockchain. Invented in 2013 by Vitalik Buterin, Ethereum is more than just a means of payment Coins are only stored on the blockchain, it is possible to run programs using a so-called Ethereum Virtual Machine (EVM). Ether is the second-largest cryptocurrency after Bitcoin, measured by market capitalization, and also has a strangely high trading volume compared to Competing currencies. Above all, the range of practical applications is almost infinite. Ether is also likely to find increasing use in everyday life. However, it is unlikely that the Ethereum rate will overtake Bitcoin one day, as the crypto reserve currency has the first-mover effect.

3. Ripple: The number three of the most important cryptocurrencies

Ripple (XRP) is an ‘open source’ protocol for a payment network, i.e. it is based on a shared public database. In the final version, Ripple is to function both as a decentralized ‘peer-to-peer payment method, i.e. also as a foreign exchange market. Trading and the exchange of goods are possible without a central clearinghouse. The agreement between the network participants concerned takes place via a so-called consensus procedure. Against this background, the cyber motto XRP serves as a store of value as well as a trading instrument.

Ripple is said to have a high potential for use cases and has therefore been able to work its way up quickly even in the early days of the crypto hype. However, due to the latest lawsuit by the US SEC, investors should act cautiously.

Ripple hit its all-time high in January 2018 at over $ 3.30.

4. Bitcoin Cash: waste product or secret winner?

Bitcoin Cash (BCH) is the result of a Bitcoin fork on August 1, 2017. The update called “SegWit” was the main trigger for the fork that the Bitcoin-Core team took over. As a world currency, Bitcoin Cash is intended to serve as a means of payment around the globe and not just be viewed as a digital replacement gold. The all-time high Bitcoin Cashs is trading at around $ 4,300 and dates back to December 2017.


What is a fork?

A fork is a disagreement in the consensus that only decides what is done or not done. The result is often a change in the source code so that soft or hard forks can occur so that changes can take effect.

The currency Bitcoin Cash is interesting because it is repeatedly traded as a competing currency to Bitcoin and in this context should have a high trading volume, which makes this interesting for investors. At the same time, Bitcoin Cash is recognized and accepted on exchanges in many places.

5. Litecoin: the secret tip for cryptocurrencies?

Litecoin (LTC) is a so-called digital ‘peer to peer currency that is integrated into ‘open-source software. From a technical perspective, the Litecoin project is very similar to the Bitcoin system. The production and transfer of Litecoins are based on an ‘open source’ encryption protocol. There is no central control. With this in mind, all transactions, balance sheets, and expenses are managed by a ‘peer-to-peer network. Litecoin is created based on a cryptological hash function, which in turn generates blocks: so-called mining. Litecoins can be exchanged for bitcoins as well as fiat money. The relevant processing usually takes place via online exchanges (so-called digital currency exchangers).

Litecoin has met with increasing interest in the past few months. Last but not least, the fact that the payment service provider PayPal wants to include the currency in its portfolio has made investors prick up their ears.

Litecoin reached its high point in the wake of the hype in December 2017, which is quoted at 420 dollars.

6. Stellar Lumens: The seemingly unknown number

Stellar is an ‘open source’ protocol and global network for money exchange and the exchange of values. The cryptosystem sees itself as an alternative and further development of Bitcoin. The interaction of the network participants takes place according to a consensus procedure via the software implementation of the protocol on different servers. The ultimate goal is to simplify international payment transactions and economic exchange and to reduce transaction costs. The coins or payment units developed against this background are also called lumens and can also be traded on online exchanges (so-called digital currency exchangers). The record is around $ 1.05 and dates back to January 2018.

7. Iota: the “internet of things”

Iota (currency: Miota) sees itself as one of the third generation crypto assets and is also referred to as the “internet of things”. Iota is not based on a blockchain, but a tangled network and works without a miner. The digital payment system aims to ensure that transactions are processed quickly without incurring high computing effort or any costs for the user. Also, better scalability should be achieved than with conventional blockchain-based cryptocurrencies. Iota has a professional ecosystem and could play one of the key roles given the possible coming IoT. Also, some industrial partners are already linked with IOTA. The all-time high at Miota was just under six dollars, which was reached at the end of 2017.

8. EOS: “The Ethereum of Asians”

EOS is a blockchain-based cryptocurrency that also functions as a platform for other blockchain-based applications, systems, and currency tokens. The platform pursues the goal of offering intelligent contracts (smart contracts) and decentralized storage solutions (dApps) for companies. In this context, the scalability problems of previous blockchains are to be overcome and a complete fee exemption for the users concerned is achieved. Mining is not required: consensus through delegated proof of stake. Eos sees itself as a further development of Ethereum. At its peak, EOS is quoted at over $ 23.

9. Cardano: The silent winner?

Cardano is a blockchain-based project for the transmission of complex contracts and values. It is a scalable, decentralized platform (Smart Contract & dApps) that, among other things, serves as the basis for trading with the crypto-currency ADA. The latter then also represents the internal means of payment for corresponding transactions. Like Ethereum, Eos or the platform/blockchain wants to enable the implementation of smart contracts and dApps in addition to its currency function and set new standards in security against this background. In January 2018, ADA hit a high of $ 1.40.

10. Dash: The new means of payment?

Dash (digital cash) aims to be the most user-friendly and at the same time most scalable crypto asset. While Dash is based on Bitcoin, the payment method offers not only an increased transaction speed but also all-important anonymity. Also, the cryptocurrency should optimize/reduce energy consumption during mining and guarantee higher network security against possible hacker attacks. Against this background, Dash sees itself as a further development of the classic Bitcoin blockchain.

The core of the Dash ecosystem is the peer-to-peer network, in which miners are paid for securing the blockchain, with master nodes trying to validate this and make it accessible to users. The all-time high for Dash is around $ 1,600.

Conclusion: The top 10 cryptocurrencies to trade

The future could lie in the cryptocurrency market and you have the opportunity to enter cryptocurrency trading directly. With the help of a CFD, you have the option to participate in the price development of numerous cryptocurrencies – without a wallet, in both rising and falling markets.

Make sure you have sufficient liquidity to trade and protect your capital with guaranteed stops. You can also hedge your physical positions and secure your capital efficiently.