The Best Cryptocurrency to Buy in 2021

The list won't be exhaustive, as the size of the cryptocurrency market has grown considerably. But we will highlight the most promising investments. The list will contain exclusively crypto coins and focuses on blockchain networks. So, without further ado, here are the contenders for the best cryptocurrency to buy in 2021.

1. Cardano (ADA)

One of the most thoroughly researched blockchains in the market, Cardano decided to take the long path. From the beginning, it forced itself to peer review any piece of technology or claim made by the developer team.

As a result, Cardano has published over 20 research papers on blockchain technology. It counts with neutral third parties with academic backgrounds, for reviewing.\
Many have accused the project of being slow, and it has certainly seen his fair share number of delays.

But this also means that any piece of technology Cardano introduces is reliable and tested. In 2020 their main net went online, and now it is possible to stake Ada (Cardano's cryptocurrency) and receive rewards for doing so. This was an incredible milestone for the project.

But the future is even more promising as Cardano prepares to launch the Goguen era.

Here the protocol will establish its computer language to develop smart contracts called Plutus. The blockchain will become fully capable of running smart contracts to create tokens, decentralized cryptocurrency exchanges, and other services.

These factors can contribute to Ada exploding in 2021, as Cardano emerges as the most secure, fast, scalable, and cheapest blockchain to use and develop for. There is a lot of room for Ada to grow, as it is a long way from the all-time height.

Pros:

• A lot of development activity
• Important updates are close
• Live the main network
• Professional developing team

Cons:

• Prone to delays
• Project is slow to adapt

2. Binance Coin (BNB)

The largest cryptocurrency exchange on the planet has two blockchain networks that run in parallel---First Binance Chain for pure transactions. Second, and launched during 2020, Binance Smart Chain, a network capable of hosting smart contracts and decentralized exchanges.

It also uses its consensus algorithm called Proof of Staked Authority (PSA). As the name suggests, it allows for the staking of BNB to ensure network security. This makes the BNB so exciting as the launch and growth of the Binance Smart Chain will fuel demand for its cryptocurrency.

And there is a lot of proof that Binance's smart contracts platform is attracting many developers looking to build new products. As the company actively funds teams deploying innovative products on their network. This has fueled sustainable growth in the price of BNB.

The one drawback is that the Binance blockchain is not bringing anything new. It is very similar to existing blockchains and has many of the limitations of current-gen networks. Still, it is a major contender for the best cryptocurrency to buy in 2021.

Pros:

• High name recognition
• Active development
• High support by the parent company
• Cons:Lack of innovation

3. Polkadot (DOT)

Polkadot is not only a blockchain. It is a network of blockchains. This is because, from the start, the network has been designed with sharding in mind. This is the process of having separate individual blockchains, each with dedicated use.

For example, one chain could be for logistics, the other for DeFi, another for insurance, etc. Of course, the chains would not be isolated from one another and can communicate to achieve interoperability.

This is what makes Polkadot so powerful, as different DApps don't have to compete with each other for network resources. Instead, similar applications are directed to the proper channel, and this way, the whole network is faster and cheaper to use.

This innovative design is what makes the DOT cryptocurrency a potential hit for 2021. Many new projects are switching development from Etherum to Polkadot, creating a lot of excitement for the project, making it a strong competitor for the best cryptocurrency to buy in 2021.

Pros:

• Innovative technology
• Development excitement

Cons:

• Unproven design
• Low name recognition

4. Cosmos (ATOM)

Another blockchain that comes pre-sharded, Cosmos, is perhaps the first project which seriously began implementing side chains in its design. Each chain, called a para-chain, can conduct 1000 transactions per second.

For comparison, Ethereum 2.0 is said to do 1000 TPS in total, while the Cosmos' network can do the same amount in each chain. The native cryptocurrency of Cosmos is called Atom. It fuels the network's consensus algorithm called Tendermint.

Once it is fully operative, each computation of the network will need Atom to be performed, organically creating demand for the cryptocurrency. Of course, as a new project, Cosmos needs to attract developers.

This effort has not been too successful, and it has the lowest development activity by 3rd parties from all the entries of this list. Without DApps being created, Cosmos' impressive capacity won't be used.

Pros:

• Sharded design
• High TPS

Cons:

• Unproven Technology
• Low development

5. Tezos (XTZ)

Tezos is another Proof of Stake (PoS) blockchain. The native cryptocurrency of the network is called XTZ, and it is used by validators to generate new blocks and add them to the network.

Tezos has a main operational net, and its computer language for smart contracts is called Michelson, a functional programming language, and not object-oriented like Solidity. This would make smart contracts deployed on Tezos easier to audit and verify, cutting developing costs overall.

The project has been in development for three years and has seen its share of delays and problems. Many have lost interest in developing for the network, and right now, the top projects in it are pushed by the Tezos Foundation. There is a lack of high profile development by independent parties.

Pros:

• Proof of Stake consensus
• Functional programming language
• Strong internal development

Cons:

• History of delays
• Lack of 3rd party support

Conclusion

2021 is almost here, and a new crypto market is set to rise with the year. Many projects will become fully operational in 2021 and compete with Ethereum 2.0. The projects listed here have the most excellent chance to become the next big network for smart contracts, and their coins could become the best cryptocurrency of 2021.

But some more coins and tokens need attention in the market. Each should be researched thoroughly in preparation for the 2021 alt season, which seems to begin in the green with all the momentum gained during the last months of 2020.