So far, the year 2020 has been a rollercoaster for the financial market, and the crypto market is no exception. While Bitcoin may take the spotlight for almost hitting its all-time high, the altcoins projections remain alluring too. Of course, many retail and institutional traders and investors naturally flock to the crypto sector. But as Bitcoin, Ether, and other altcoins are chasing new all-time highs, many newcomers would want to know which the best altcoins are and what lies ahead.
According to experts and crypto analysts, the best altcoins are Chainlink, Ethereum, Cosmos, and yEarn Finance. But, there are also other alternative coins worth looking into. In the end, altcoins are propitious for their returns and to diversify a trader’s portfolio.
So, here’s what you need to get started. We’ll be highlighting the prospects of altcoins and how you can successfully buy, store, and trade altcoins.
What Are Altcoins?
Altcoins refers to alternative coins are built based on the basic framework from Bitcoin. Generally, all cryptocurrencies including stablecoins, utility tokens, and security tokens other than Bitcoin are altcoins. And the rise of altcoins is to perceive the limitations Bitcoin is facing and, in the end, to provide a eradicate the Bitcoin monopolization.
While Bitcoin remains popular, dominating around 62% of the market capitalization, altcoins are growing too. Among those, 12% are thriving in Ethereum, and 5.20% are in Ripple.
On the contrary, there are thousands of altcoins, some of which are better known than others and many that hold great potential. One of the main drivers of value behind these altcoins is the project, platform, or blockchain it is connected to. That’s because it gives validity and utility to the real-world.
Many altcoins or tokens are built on protocols that are different from the Bitcoin blockchain. Below we’ll be discussing some of the most successful and productive altcoins.
The Retrospective: Altcoins Growth and Projections
The rally of altcoins started in 2017 along with the popularization of the Initial Coin Offering (ICO) model that saw many startups issue their ERC-20 tokens of coins based on different standards blockchains.
There are over 5,000 altcoins, which account for around 30% of the crypto market cap. Since the exponential growth of the crypto sector in recent years, some have produced an optimal result with over 20,000% investment return.
Recently, there is also an enormous boost to altcoins in June 2020 from a broad pool of investors. Currently, many traditional banking and investment institutions started acquiring extensive holdings in the billions in altcoins. Most recently, Grayscale Investments, one of the world’s largest digital currency management firms, has crypto holdings worth nearly $10 billion, of which almost $2 billion are in altcoins.
Analysis of past performance, current growth trajectory, and future projections reveal that the altcoin market cap is in full-blown breakout mode.
The Largest Altcoins by Market Cap
The total market capitalization of altcoins, excluding Bitcoin, is at a two-year high, according to CoinMarketCap. The previous peak was recorded at $142 billion on June 26, 2019, and the latest peak happened a month ago at $169 billion. For many analysts, this is a strong indicator that the alt season is about to see a breakout.
By taking a closer look at the altcoins’ projections in general, some altcoins perform better than others. And are thus ranked according to their market cap (how much the coins in circulation are worth in non-virtual money, e.g., dollars).
The top 11 largest altcoins by market cap are:
- Cardano (ADA)
- Chainlink (LINK)
- Cosmos (ATOM)
- Ethereum (ETH)
- Litecoin (LTC)
- Ripple (XRP)
- Tether (USDT)
- Tron (TRX)
- yEarn.Finance (YFI)
These leading altcoins are all considered close competitors to Bitcoin as they have solid technological backing of separate blockchains or platforms. Besides, it can potentially turn into highly lucrative investments.
The Best Altcoins to Trade Now
While Bitcoin has managed to maintain its leadership position in the crypto space, several altcoins demonstrate phenomenal growth and produce considerable returns.
1. Cardano (ADA)
What Is Revolving around Cardano?
Cardano is another DApps-building platform with its native currency— ADA. It focuses on solving three of the most pressing issues faced by 1st and 2nd generation blockchain projects— scalability, interoperability, and sustainability.
Cardano Price Analysis
Cardano is a relatively new altcoin that quickly managed to grow its market capitalization to $5.2 billion. It is popular among investors and developers because of its highly robust blockchain that offers advantages over Ethereum.
Cardano grew from about $0.020 at its launch in October 2017 to $1.20 in January 2018. That’s a return of about 500% in 3 months. Currently, ADA is trading stably around $0.14.
Cardano Future Projects
Cardano is one of the most prominent blockchains to use a Proof of Stake consensus mechanism successfully. In 2020, Cardano held a Shelley upgrade that aimed to make its blockchain 50 to 100 times more decentralized than other large blockchains. At the time, Hoskinson predicted that this would pave the way for hundreds of assets to run on its network. There aren’t any upcoming big projects for Cardano yet, but only it might be just a matter of time until its next roll-out.
Cardano Price Predictions
Cardano’s price started a substantial increase after breaking the key $0.1250 resistance against the U.S. Dollar. The ADA/USD pair gained more than 25%, and it broke many hurdles near the $0.1500 resistance.
2. Chainlink (LINK)
What Is Revolving Around Chainlink?
Chainlink crypto is a decentralized oracle network for smart contracts closely tied to Ethereum smart contracts ( a concept that’s growing in popularity.)
LINK mostly derives its value from the fact that it is unique as compared to other blockchain projects. The business model is solely focused on creating smart contracts for the outside world. Thus, bridging the gap between blockchains and the applications that exist in the real world.
Chainlink Price Analysis
One of the best performing altcoins of 2020 is Chainlink. The crypto LINK’s price explodes from a low of $1.76 to a peak of $20 in less than nine months. Despite the rise of Bitcoin that contributes to its price surge, the escalated demand for decentralized finance (DeFi) in smart contracts may also be the reason for its growth. Within a year, Chainlink’s price surged around 498.5% and approximately 27% within the lasts month. On average, LINK’s are trading around $13, and its market cap is revolving around $3.2 billion. Although it shows fluctuations, the LINK is positive in the daily timeframe.
Chainlink Future Projects
Chainlink partners with all types of projects but a lot of the fresh excitement revolves around Oracle’s network. As a result, the crypto Chainlink’s project has aptly positioned itself to serve the ongoing DeFi demand surges.
Most recently, Chainlink also became the oracle provider for major rising blue-chip DeFi plays like Synthetix and Aave.
Chainlink Price Prediction
The growing trend of new addresses joining the network is even more apparent here, with an average four times higher in October but up to 10 times high at its peak in August.
The Chainlink price prediction is highly dependent on the overall crypto market. Overall, is one of the best altcoins to invest in or trade. The Chainlink crypto will remain bullish if the market sentiments persist. The LINK token is predicted to match on to $30 by the end of 2021. However, this is a conservative prediction, as many market predictions point to higher numbers.
3. Cosmos (ATOM)
What Is Revolving Around Cosmos?
The Cosmos was launched in 2017 by Tendermint Inc, and the project was developed in 2014. The project’s primary goal is to create the “‘Internet of Blockchains,” a network of blockchains that can communicate with each other in a decentralized way.
ATOM Price Analysis
Cosmos’s ATOM, 4.93%, has been on a rally this past week as it managed to increase by a total of 36% to reach the $5.54 level. The ATOM’s surged by an additional 10% today may pave the way for a fresh 2020 new high above $7.00 before it fell.
Cosmos Future Projects
In 2019, the project started supporting creating and voting on governance proposals that modify on-chain parameters without halting or FORK the network. The Cosmos team will continue developing their project. The team is working on the Tendermint Core 0.34 update, the release of Cosmos SDK 0.40, and IBC 1.0.
ATOM Price Predictions
In September 2020, Cosmos crypto price may reach a maximum of $4.41421 (+5.60%), while it’s average price will be around $3.53857 (-15.41%) per coin. According to TradingBeasts forecasts, by the end of 2020, the average ATOM price will be $3.52784 (-15.60%).
What Is Revolving Around EOS?
EOS is a top altcoin whose own Initial Coin Offering (ICO) was held in June 2017. EOS was created by the founder of cryptocurrency exchange BitShares and blockchain-based blogging site Steemit. Just like Ethereum, EOS has its platform for developers to build decentralized applications.
EOS Price Analysis
EOS raised $700 million through its ICO, becoming one of the most successful ICOs of all time. Its platform is still under development, but it’s already gaining momentum, making it the 5th most valuable cryptocurrency in the world.
Its value grew from $9.80 in 2011 to reach a high of $20.69 in Nov 2020. Currently, EOS is ranked the 11th top crypto asset with a $2.9 billion market cap.
EOS Future Projects
Recently, the biggest EOS block explorer Blocks.io got acquired by the blockchain-based payment platform Metal Pay. Alongside BLocks.io, there are many EOS block explorers such as EOSx.io, Eosflare.io, EOSpark.com, and others.
EOS Price Predictions
Unlike Bitcoin, EOS is both a digital currency and a blockchain platform for DApps and smart contracts. It is more scalable than Ethereum and uses compatible programming languages, including C++. The EOS price is likely to continue a strong rally. However, the EOS price may plunge if Bitcoin’s price plummets drastically.
5. Ethereum (ETH)
What Is Revolving Around Ether?
Ether is the most well-known altcoin, second only to Bitcoin in terms of applications, recognition, and value growth. As the second most valuable cryptocurrency after Bitcoin, its current market capitalization is close to $64.35 billion.
While Chainlink is slowly gaining momentum, Ethereum was the first cryptocurrency to introduce smart contracts. With Ethereum 2.0 on the move for its roll-out, only the future can tell how quickly the Ether price will soar. On top of it, the widely-recognized Ethereum standard for its utility tokens ERC-20 also became the most used by startups looking to launch Initial Coin Offerings (ICOs).
Ether Price Analysis
The price of Ethereum grew from just $9 in January 2017 to an all-time high of $1,389 in January 2018. When analyzing its growth in terms of percentage, it yields a return of over 17,000%. Its value almost doubled in price in the month of November 2020. The Ethereum 2.0 upgrade from the Proof of Work mechanism to Proof-of-Stake will only strengthen the position of Ethereum in the long-term. Etheruem is currently trading at around $580.
Ether Future Projects
The Ethereum blockchain is currently anticipating the long-planned move from a Proof-of-Work mechanism to the more scalable Proof of Stake with the ETH 2.0 upgrade. With ETH 2.0 phase 0 rolling out on December 1, the ETH price can dip but climbing up again in the upcoming months. Still, Ethereum possesses a positive impression in the crypto market and even provide the basis for further growth.
ETH Price Predictions
The Ethereum blockchain and altcoin’s flexibility, robustness, and utility make Ether attractive to both developers and investors. Ahead of the anticipated Proof-of-Stake upgrade, Ethereum price is gaining momentum since the beginning of 2020. Many investors and analysts agree that ETH looks more bullish than BTC right now and believes it can overtake Bitcoin’s #1 market cap position is well above 50%.
6. Litecoin (LTC)
What Is Revolving Around Litecoin?
Litecoin is one of the oldest altcoins but yet one of the top altcoins. It was created in 2011 by an ex-Google employee, Charlie Lee. Like Bitcoin, Litecoin is just another peer-to-peer digital asset. Despite the similarities, especially the core code, Litecoin distinguishes itself from the little to near-zero payments worldwide and its fully-decentralized network features. Ultimately, Litecoin aims to overcome Bitcoin’s shortcomings, primarily its slow transaction speed.
Litecoin Price Analysis
Litecoin has been in the market for over seven years. In that time, it earned the status of one of the best altcoins with a market capitalization of $8.2 billion—positioning itself just slightly behind Ethereum.
During the crypto boom in 2017, Litecoin is among the cryptocurrency that received tremendous support among traders. In that year, Litecoin’s price grew from $4 in January 2017 to $350 in December 2017. That’s a whopping return of 8,000% within a year.
Currently, Litecoin has contracted slightly from its value of $121 in 2018 and is trading at around $80.
Litecoin Future Projects
After several development updates to Litecoin, namely the Segregated Witness (SegWit) protocol upgrade and the Lightning Network, Litecoin has attracted plenty of attention from crypto enthusiasts. However, in 2018, its creator Charlie Lee reportedly told Franklyn Richards, director of Litecoin Foundation, that “no one is interested in working on Litecoin protocol development work.”
LTC Price Predictions
Litecoin has made considerable improvements in Bitcoin’s technology in increasing the speed of transactions. Due to Bitcoin’s scalability challenges, Litecoin attracted more users in 2017, driving its price up to new highs. On the other hand, Litecoin’s price will continue to grow as the cryptocurrency gets added to the new popular Bitcoin wallet and exchange providers such as Coinbase.
What Is Revolving Around NEO?
Originally called AntShares, NEO was created in 2014 by Da Hongfei in China. Like Ethereum, it is a platform designed for running Decentralized Applications (DApps), smart contracts, and ICOs. Because this closely resembles Ethereum. On the other hand, NEO is also often called the “Chinese Ethereum.”
NEO Price Analysis
NEO is one of the best-performing altcoins in 2017, soaring to its peak of $180. Looking at NEO’s growth, its value grew from $0.14 in January 2017 to hovering with the price of $162 on average between the first two months in January 2018. That’s about a 111,400% return on investment.
However, the momentum recedes and then been hovering around $10 to $12. It is currently trading at $18 with the Chinese government’s support and its robust technology driving its growth.
NEO Future Projects
Last year, NEO revealed a roadmap of network upgrades leading into 2020 to alleviate long-standing network issues and improve network efficiency. As NEO continues a transition period towards NEO 3.0, on-chain metrics have increased recently after declining over the past two years. The NEO project has plans to implement decentralized consensus nodes eventually and will likely continue to sustain itself due to the well-funded NEO Foundation easily.
NEO Price Predictions
After a bullish run, the bears seem to have regained control in the short-term. It is possible that NEO breaks below the $19.86 support level and aim for the $19.30 level as well. However, if planned upgrades manage to create more hype in the market, we can expect the bulls to come roaring back and regain control. The break of $20 is certainly possible in the upcoming months.
8. Ripple (XRP)
What Is Revolving Around Ripple?
Ripple is one of the most popular altcoins among investors due to its competitive low transfer fees and edging money transfer technology. It was created to resolve Bitcoin’s lack of anonymity and, as a result, enjoys much popularity in the crypto community. As the 3rd largest cryptocurrency with a $3.35 billion market capitalization, it even managed to outperform both Bitcoin and Ethereum on the market last month.
Ripple Price Analysis
Climbing from XRP’s lowest of $0.29 during its infancy stage in 2014, it currently trades around $0.63 on average. When comparing Ripple’s current value, it is still more than 100 times higher than its all-time low of $0.00268, which happened during its initial roll-out.
Although there is some price movement during the market volatility, XRP remains bullish. With the recent break out from its resistance level, XRP is generally showing an optimistic prospect.
Ripple Price Future Projects
It is a known fact that the latest developments in Ripple play a crucial role in determining its native coin’s valuation. That is especially when Ripple’s primary goal has always been creating a payment system used by banks to facilitate the transfer of funds in domestic and international markets.
In August 2020, India’s largest bank, HDFC Bank Limited (HDB), had joined RippleNet. As in November, after years of speculation and rumors, Ripple confirmed its cooperation with the Bank of America (BAC) as the U.S. second-largest bank had also become one of RippleNet’s clients.
Ripple Price Predictions
Ripple’s value is strongly correlated to Bitcoin. That means, if Bitcoin’s bullish momentum continues towards the end of the year, we can see Ripple increasing its value to over $1.00, hopefully. And that’s a 63% increase from XRP current value.
9. Tether (USDT)
What Is Revolving Around Tether?
Tether is a cryptocurrency designed to ensure that each token is represented by its underlying asset in the form of a U.S. dollar. It was released on the Omni, Ethereum, Tron, EOS, Liquid, and Algorand blockchains.
Tether Price Analysis
Since the beginning of May 2020, the capitalization of the most popular stablecoin Tether (USDT) has grown by 45%. Throughout the last 180 days, the coin’s peak worth was $1.012, and the minimum was $0.9972. While the all-time high price for USDT was $1.21 on May 27, 2017.
Tether Future Projects
On March 14, 2019, the company claimed that tokens are backed not only by U.S. dollars but also by loans issued to related companies of Tether Limited. On July 17, 2019, Tether announced the release of its stablecoin USDT on the Algorand 2.0 blockchain. The changes were implemented on February 10, 2020. The Algorand protocol can increase transaction processing speed and lower fees.
It is not yet known of all cryptocurrency plans in the future, but Tether plans to add more fiat currencies
Is It Worth Trading USDT?
According to Wallet Investor, USDT will remain around $1.0, but in 5 years it might be around $1.01.
Generally, Tether (USDT) is considered a profitable investment, and it’s meant to diversify your investment portfolio. That means, in three to five years, USDT will remain steady and sustainable in the long-run. Hence, making it one of the best altcoins to invest without the crypto volatility.
10. TRON (TRX)
What Is Revolving Around TRON?
TRON is a blockchain-based operating system that aims to ensure this technology is suitable for daily use. When comparing Bitcoin with TRON, it can handle up to six transactions per second, and Ethereum up to 25. TRON claims that its network has a capacity for 2,000 TPS — 24/7. While the DApps are also capable of media sharing.
TRX Price Analysis
TRX reached a high of $0.21 on January 18, and it dropped to $0.030 over the next 18 days. Following that, the price is trending in a narrow channel between $0.027 and $0.025 from September 2019 to the end of 2020. TRX is also facing multiple rejections at the 50-day SMA.
TRON Future Projects
Overall, TRON has divided its goals into six phases. These include delivering simple distributed file sharing, driving content creation through financial rewards, allowing content creators to launch their own personal tokens, and decentralizing the gaming industry.
TRON Price Predictions
The TRX price is clearly preparing for the next move with major support near $0.0250. Overall, the price is likely to start increasing as long as it is above $0.0250 and $0.0245.
11. yEarn.Finance (YFI)
What Is Revolving Around YFI?
This relatively young project was successful beyond the investor’s wildest dreams, significantly surpassing Bitcoin’s value even at its all-time height. Yearn finance is a yield aggregator that rebalances to produce optimized yields during a transaction.
As an Ethereum-based altcoin, yEarn Finance is an open-source DeFi lending protocol. YFI maximizes a user’s yield by automatically moving the user funds among different DeFi lending protocols. Today, it is one of the most popular and most decentralized DeFi projects in the crypto industry.
YFI Price Analysis
In July 2020, the price of YFI started at approximately $790. Within one-and-a-half months, it was already trading at roughly $35K in the first week of September, then crossing a value of $43,000 within 12 days. That’s almost a 6000% increase in two months.
The YFI token has even crossed the value of $40,000 within a few months of its inception. The upshot? YFI is now the most expensive token so far in the blockchain ecosystem.
YFI Future Projects
Most recently, Yearn Finance voters approved governance token buybacks. The approved proposal completes Yearn Finance’s governance and reward evolution. The current move gives the project the right to make YFI grants beyond the liquidity contributor profile and potentially broaden contributor interaction.
YFI Price Predictions
The platform also aims to work efficiently with other DeFi lending platforms to provide a high yield to users. We can expect a high rise in the platform’s user base from those who want to benefit from the project’s unique features. Generally, the YFI will remain in a bull momentum.
How to Choose An Altcoin to Trade in 2021?
While few altcoins can match Bitcoin’s growth in value and stability due to the high interest towards the father of all cryptocurrency, they can certainly be your introduction to the crypto industry in the same way that buying shares in up-and-coming companies are an easy introduction to the securities market.
Altcoins are generally influenced positively by a rally in the price of the leading cryptocurrencies – BTC and Ether. But they are also driven by the success of the developments of their own blockchains, services, and products.
How to Trade Altcoins?
Trading altcoins takes place on specialized crypto exchanges. Not all exchanges support all altcoins and most crypto exchanges only support a limited list of altcoins with the largest market cap. For some more specialized altcoins, you will need to find an exchange that specifically supports them.
Another crucial component of trading altcoins is opening or registering a digital wallet. This wallet allows you to store and trade your cryptocurrencies. Depending on your preferences, you may choose to get a Mobile, Hardware, or Software wallets.
Where to Store Altcoins?
The storage of your altcoins is a question of security. Many traders prefer to store their altcoins on the exchanges where they trade them to react quickly to price movements. However, it’s challenging to keep altcoin on crypto exchanges, to begin with, due to the acceptance of altcoins. Besides, some crypto exchanges and web-based wallets are also vulnerable to malicious attacks, and traders may risk having your altcoins stolen.
Alternatively, you can take your altcoins offline and store them in ‘cold’ wallets or hardware wallets. These are USB devices with a cryptographic key that lets you securely access, store, and transfer your cryptocurrencies.
What Are Other Altcoins Worth Taking A Look?
Many additional altcoins are showing healthy jumps in value. Some that offer good opportunities for investors include Tezos, Stellar, Nano, Basic Attention Token (BAT), and to name a few. Generally, the altcoins are essential to diversify a trader’s portfolio, and it acts as a backup to balance off the profits and losses.
In 2020, we saw many altcoins retain their bullish momentum, while 2021 may be the year that many altcoins hit prime time. As investors begin to understand altcoins through their real-world use cases, you can be sure that their implementation will rise with their currencies and tokens’ price.
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