The Next Bitcoin: What Cryptocurrencies Will Explode in 2021?

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by Enoch Omololu

Updated

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What is the next cryptocurrency to explode in 2021?

What coins can you buy right now to make it big in the near future? Which crypto is the next best thing to Bitcoin?

These and more are the types of questions being asked by the many crypto bounty hunters who want to cash in on the historic run we have seen over the last few months.

The price of Bitcoin went up from $5,300 USD to over $60,000 in less than 14 months (between March 2020 and April 2021).

With that said, we have also seen the markings of what is truly a risky investment – price drops of 30% and higher within a matter of hours.

In your bid for the next big cryptocurrency, you should keep in mind that the long-term investment value of crypto-assets is no sure thing. You could make a lot of money or lose everything.

Related: Best Cryptocurrency Trading Apps

What are Cryptocurrencies?

A cryptocurrency is a digital currency or asset designed to facilitate the purchase of goods and services similar to fiat money.

Unlike traditional currencies that are controlled by a sovereign government’s Central Bank, cryptocurrencies are decentralized and are protected using cryptography.

Transactions involving crypto occur on a public ledger (Blockchain) which records them for verification and addition to the blockchain.

Today, there are thousands of cryptocurrencies with various missions, features, utility, and downsides.

What is Bitcoin?

Bitcoin is the most popular cryptocurrency in the world and the one with the highest market capitalization – over $898 billion as of October 1, 2021.

The idea of Bitcoin was first introduced by Satoshi Nakamoto in 2008 (the real identity of the founder is unknown).

Several other crypto coins have since been designed to mimic Bitcoin. These Bitcoin alternatives are referred to as “altcoins”.

What Cryptocurrency Will Explode Like Bitcoin in 2021?

The next crypto winner is anyone’s guess. Given that there are over 12,000 coins out there on the interwebs, there is no easy way to analyze them all.

One option for streamlining your choice is to take a look at its public appeal as measured by the coin’s market capitalization.

The top-10 digital assets like Bitcoin we are watching based on this metric as of October 2021 are:

1. Ethereum (ETH)

Ethereum is a decentralized blockchain that uses Ether as its native currency.

The Ethereum blockchain is used to facilitate smart contracts and it serves as a platform for creating and running other crypto coins.

Ethereum was first introduced by Vitalik Buterin in 2013. It had a market cap of over $387 billion as of October 1, 2021.

Learn more about Ethereum here.

2. Cardano (ADA)

Cardano uses the Ouroboros peer-reviewed blockchain protocol to facilitate secure payments and protect privacy. Its currency is known as ADA.

Cardano uses a “proof-of-stake” consensus mechanism to verify transactions on the blockchain which is more efficient compared to the “proof-of-work” system used by Bitcoin and Ethereum.

Cardano was founded by Charles Hoskinson in 2015. As of October 1, 2021, ADA had a market cap of $71 billion.

Here’s how to buy Cardano in Canada.

3. Binance Coin (BNB)

Binance coin was launched in 2017 and is the token issued by Binance, one of the world’s largest cryptocurrency exchanges.

It is a stable coin and was initially built on the Ethereum blockchain. It now works on the Binance Chain.

Binance Coin had a market cap of $70 billion on October 1, 2021.

4. Ripple (XRP)

The RippleNet platform is a digital payment network and protocol that is used by many banks for processing global transactions.

The company also created a native token known as XRP and it is based on an open-source blockchain known as the XRP Ledger.

XRP transactions are completed very fast (3-5 seconds) compared to Bitcoin which takes several minutes. It also uses very little energy.

XRP was first launched in 2012. As of October 1, 2021, it had a market cap of $48 billion.

Learn more about XRP and learn about how to buy XRP in Canada.

5. Solana (SOL)

Solana is one of the fastest blockchains in the world. It can support more than 50,000 transactions per second and is perhaps Ethereum’s main competitor today.

Like Ethereum, its ecosystem is used to kickstart various digital projects and decentralized apps in the DeFi, NFT, and Web3 world. Unlike Ethereum, transaction fees on Solana are very low.

The Solana platform was founded in 2017 by Anatoly Yakovenko.

As of October 1, 2021, SOL had a market cap of $47 billion. Learn more about it here.

6. Polkadot (DOT)

Polkadot was founded by Gavin Wood, Peter Czaban, and Robert Habermeier. Its token is referred to as DOT.

The Polkadot platform and architecture are used to facilitate the operation of other blockchains and cryptocurrencies.

DOT had a market cap of $31 billion as of October 1, 2021.

7. Dogecoin

Dogecoin was created by Billy Markus as a meme coin in 2013 and has since grown rapidly in popularity due to interest from Elon Musk.

There is no limit to the number of Dogecoin that can be mined and its market cap as of October 1, 2021, is $28 billion.

The highest price of 1 DOGE was reached on May 8, 2021, when it hit $0.7376 per coin.

Here are the platforms that offer Dogecoin.

8. Litecoin (LTC)

Litecoin was founded by Charlie Lee in 2011, a former Google employee. It is a peer-to-peer internet currency similar to Bitcoin, although its Blockchain can handle faster transactions.

The maximum Litecoin that can be produced on the network is 84 million. Litecoin’s market cap as of October 1, 2021, was $11 billion.

9. Bitcoin Cash (BCH)

Bitcoin Cash was created via a hard fork of Bitcoin in 2017. It is a separate cryptocurrency and is limited to a supply of 21 million coins.

Bitcoin Cash had a market cap of $10 billion as of October 1, 2021.

Here are the various ways to buy Bitcoin Cash in Canada.

10. Stellar (XLM)

This decentralized payment protocol facilitates global payment transactions between currencies – both fiat and digital at a low cost. It was founded in 2014 by Jed McCaleb (Ripple co-founder) and Joyce Kim.

The Stellar network has been used in various real-world applications including micro-financing, non-cash remittances, and other digital infrastructures.

Its market cap as of October 1, 2021, was $7 billion.

Fifteen other coins that have been trending a lot in recent times are:

  • Avalanche (AVAX)
  • Chainlink (LINK)
  • Uniswap (UNI)
  • Terra (LUNA)
  • VeChain (VET)
  • Ethereum Classic (ETC)
  • Polygon (MATIC)
  • EOS (EOS)
  • TRON (TRX)
  • Wrapped Bitcoin (WBTC)
  • Filecoin (FIL)
  • Monero (XMR)
  • Neo (NEO)
  • Aave (AAVE)
  • Shiba Inu (SHIB)

How To Buy Cryptocurrency in Canada

There are many crypto exchanges and platforms offering popular coins for trading. Examples include:

1. Coinsmart

This exchange offers access to 11 coins. It also allows credit card funding in addition to Interac e-Transfer, EFT, and bank wire.

Coinsmart works well for beginners and experienced crypto investors alike, and you can open an account and start trading almost instantly.

This company is based in Canada and uses Bitgo for cold storage of digital assets.

2. Wealthsimple Crypto

This platform is owned by Wealthsimple and offers trades in 24 coins.

It makes it easy for newbie crypto traders to buy Bitcoin and Ethereum with just one click and you can use its desktop interface or mobile app on iOS and Android devices.

Coins on Wealthsimple Crypto are held by Gemini Trust Company LLC, a custodian with $200 million in cold storage insurance coverage.

Note that you can’t transfer your crypto holdings from Wealthsimple Crypto to an offline personal digital wallet.

  • Coins offered: BTC, ETH, AAVE, DOGE, LTC, BCH, BAT, BAL, LINK, COMP, CRV, KNC, MKR, SNX, UNI, YFI, and 12 others
  • Promotion: New clients get a $50 cash bonus when they open an account and trade at least $150
  • Review: Wealthsimple Crypto review.

3. NDAX

This cryptocurrency exchange allows users to buy and sell 16 different coins. It has one of the lowest trading fees and new users can buy and sell coins within minutes of opening an account via instant ID verification.

NDAX is available on all devices including iOS and Android phones. The company is based in Canada.

  • Coins offered: BTC, ETH, LTC, XRP, USDT, BCH, XLM, LINK, ADA, DOT, EOS, DOGE, and 4 others
  • Promotion: Get a $10 cash bonus when you open an account and fund it with at least $100
  • Review: NDAX review

4. Bitbuy

This crypto exchange was founded in 2016 can be used to buy and sell 9 different coins. It is also based in Canada.

  • Coins offered: BTC, BCH, XRP, XLM, ETH, LTC, AAVE, UNI and EOS
  • Promotion: Get a $20 bonus when you sign up and make an initial deposit of $250 or more
  • Review: Bitbuy review

5. Coinberry

This Canadian crypto trading platform was established in 2017 and is based in Toronto. It supports 18 coins and allows withdrawals of four of them to your personal cold wallet.

  • Coins offered: BTC, ETH, XRP, BCH, LTC, XLM, ADA, DOGE, CRV, AAVE, UNI, BAT, LINK, COMP, BAL, SNX, YFI, and DOT
  • Promotion: Get a $20 bonus when you sign up and trade at least $50 worth of crypto You can also use this referral code (3b28a1568bc
  • Review: Coinberry review.

6. Newton

Newton is a cryptocurrency brokerage platform founded in 2018. The company is based in Toronto and is available via its website or iOS and Android apps.

  • Coins offered: BTC, ADA, ETH, SOL, XRP, QCAD, COMP, USDT, and 30 others
  • Promotion: Get a $25 bonus after trading at least $100 worth of cryptocurrency (can also use or code S1W78J)
  • Review: Newton Crypto review

7. Coinbase

This is the only cryptocurrency exchange that is publicly traded on a stock exchange. It is based in the U.S. and supports users from over 100 countries.

Should You Invest in Cryptocurrency?

While we have listed the top cryptocurrencies based on their market capitalization as of this writing, these top contenders are always in flux due to the fast-paced nature of the cryptocurrency market.

Given its speculative nature, investing in cryptocurrencies is not advisable for many people, especially if you are using funds you cannot afford to lose.

Related reading:

What coins are you betting on? Let us know in the comments.

The Next Bitcoin: What Cryptocurrencies Will Explode in 2021?
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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, Credit Canada, MSN Money, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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