New cryptocurrencies 2021- new coins new opportunities?

The year 2020 saw an upswing in cryptocurrencies, not least because of the Corona crisis. Bitcoin & Co. have gained more importance in recent months than ever before. The popularity of digital coins has risen by far. Accordingly, it is not surprising that more and more investors are interested in new cryptocurrencies.

Not only our social behaviour but also our buying behaviour has changed drastically in the last year. More and more people are investing in cryptocurrencies or using the coins as a payment method on the internet. This trend will continue - because the year 2021 holds some promising new cryptocurrencies.

In this article, we will look at the following questions: What new cryptocurrencies are coming in 2021? How are new cryptocurrencies created? Where is the best place to buy digital coins? And which cryptos will be worthwhile?

New cryptocurrencies

New cryptocurrencies 2021

Cryptocurrency    

Description    

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Oyster (PRL)    

Oyster was presented as "the future of website monetisation and storage". Oyster is a blockchain that offers something truly innovative. The premise of Oyster is based on the fact that online advertising has died or stopped working. The solution the company offers is a code chain.    

Polkadot (DOT)    

Polkadot is a next-generation blockchain protocol. Polkadot allows different blockchains to be connected. The idea behind Polkadot is to create a better and safer internet for people to have more control over.

Polkadot acts as a relay chain, which makes it easier, faster and more resource-efficient to start your own blockchain system.

Power Ledger (POWR)    

Power Ledger is a platform that enables the exchange of cryptocurrencies and energy based on an Australian blockchain, which in turn allows for decentralised marketing of renewable energy. In other words, businesses and households that want to use Power Ledger can sell the surplus solar energy on the local network and buy more energy from traditional electricity companies, which is traded at lower prices.

Cardano (ADA)

Cardano was built on peer-reviewed academic research as the first blockchain project and public, open-source decentralised cryptocurrency.

Chainlink (LINK)

ChainLink is a cryptocurrency platform that aims to promote the use of smart contracts. Smart contracts in the blockchain refer to a technology that helps users exchange money or other valuable assets without intermediaries. The purpose of ChainLink is to facilitate the connection of smart contracts with external resources across different networks.

Cosmos (ATOM)    

Cosmos is a decentralised network of independent parallel blockchains.
Cosmos provides technology that enables direct payments between different blockchain networks without the involvement of cryptocurrency exchanges. This makes Cosmos itself a decentralised exchange platform.

Ontology (ONT)    

Ontology is an innovative project based on public blockchain and high performance. It is a reliable and collaborative platform distributed among users, created in 2017 by the company China Onchain. Ontology seeks to remove the barriers between the corporate sector and blockchain, enabling the development of projects of all sizes and shapes.

ARK (ARK)    

ARK is based on a system called SmartBridge, which allows blockchains from different projects to communicate with each other. The main goal of ARK is to provide each cryptocurrency with a common connection point so that users who are part of a particular cryptocurrency network can keep their currencies there while running smart contracts on another platform.

Stratis (STRAT)    

Stratis is a blockchain platform developed with the aim of providing C# developers with the necessary tools to create their own custom blockchains. The main goal is to provide simple and accessible solutions for companies in finance, technology and medicine that need to create and test dApps for their business.

How are new cryptocurrencies created?

Crypto emergenceCryptocurrencies are purely digital units of value whose physical ownership is replaced by a long letter or number key. The simplest way to explain this is that cryptocurrencies are limited entries in a database that cannot be easily changed. A cryptocurrency can also be defined as a string of data that has been coded to denote a unit of currency. There are many different cryptocurrencies, of which Bitcoins are probably the most popular and well-known. Unlike traditional currencies, cryptocurrencies are free from government oversight and manipulation. They are supervised by means of peer-to-peer internet protocols.

Cryptocurrencies are created through so-called mining, which is the process of adding transaction records to the public ledger of the cryptocurrency in question. Transactions happen instantly and are known to the entire network. Transactions must be confirmed in order to be completed.

However, before a new cryptocurrency can enter the market, certain requirements must be met. These include the white paper and ICO.

Crypto Whitepaper

Crypto Whitepaper

Before it comes to the launch of a cryptocurrency, the digital currency must have a whitepaper to make it a successful advertising campaign. A whitepaper is nothing more than a document that describes the overview of a problem that the project wants to solve. It also contains a detailed description of the product, the architecture and the interaction with the users.

The most important aspects of a whitepaper are:

  •     Introduction
  •     Table of contents
  •     Disclaimer
  •     Description of the market and the problem
  •     Description of the product and how it solves the problem
  •     Everything about the tokens
  •     How much capital is used

    Further information

For example, Bitcoin was created by Satoshi Nakamoto, who sent out an email on 1 November 2008 entitled Bitcoin: A Peer-to-Peer Electronic Cash System. In the 8-page white paper, he described the basis for Bitcoin as well as blockchain technology.

Ethereum, the second largest cryptocurrency after Bitcoin, was also described by Vitalik Buterin in the whitepaper Ethereum: A Next Generation Smart Contract & Decentralised Application Platform and thus also launched. The concept was then introduced at the beginning of January 2014.

ICO

The ICO is more or less the financing form of business models based on blockchain technology. In the ICO (Initial Coin Offering), young companies or start-ups sell tokens against fiat money (or also established cryptocurrencies) to gain capital. By name, the ICO is held to the IPO (Initial Public Offering), where a company goes public.

ICOs 2021 are used to bring new cryptocurrencies to the market. For example, so-called utility tokens are first offered for sale at a low price, which later become the digital currency that is also traded.

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How to buy new cryptocurrencies? Our guide in 4 steps

Step 1: Find the right broker

First of all, you choose a suitable provider. This decision should be based on your own preferences and trading ideas. If you are not interested in setting up a wallet and possibly do not intend to make any real use of the tokens, you can get everything you need from providers like eToro.

However, if you are an experienced crypto investor who is only too happy to equip your portfolio with the coins, you will hardly be able to avoid a real crypto exchange.

A comparison of the different providers can help you find the best offer. In fact, the choice of the right platform is very important and should not be underestimated.

User-friendliness and usability may therefore have a direct impact on personal trading results. So if you pay the necessary attention here, you will be able to capitalise on it in the end. We recommend our test winner eToro, as it offers the best conditions.

As soon as new cryptocurrencies become available and tradable on the market, they will be added to eToro as quickly as possible.

Step 2: Registration

Registration with eToro is usually completed quickly.  At eToro you have several registration options. In addition to the option of creating a user account yourself, there is also the option of registering via a Facebook or Google account, which simplifies the process even more. On the homepage, you will find a link to the form where you enter your name and e-mail address.

The exact information requested at this point depends on the crypto exchange in question. However, you will also have to choose a password and then confirm your email address.

With reputable brokers, not only a correct email address must be entered, but also a mobile phone number to verify the account.

    E-mail address
    Address
    Date of birth
    Telephone number

Step 3: Deposit money into the customer account

It depends on the respective Bitcoin broker which payment methods are accepted. As a rule, however, you should be supported by your provider when making a deposit. There is usually a corresponding menu item or button that leads you to the transaction.

The cryptocurrency market is highly risky. Therefore, you should really only invest money that you have "left over". A total loss of the deposit can occur at any time.

    How much money is available for the investment?
    Do Bitcoin fees have to be paid to the provider?
    Is there a minimum deposit amount?
    Possible deposit methods, e.g. Paypal, Skrill, Neteller, credit card, Klarna, Sofortüberweisung, Giropay, bank transfer, etc.

Our test winner eToro offers the following deposit options:

Payment option    

possible?

Buy cryptocurrencies with credit card

ok

Buy cryptocurrencies with PayPal

ok

Buy cryptocurrencies with SOFORT Bank Transfer

ok

Buy cryptocurrencies with Skrill

ok

Buy cryptocurrencies with Bank Transfer

ok

Buy cryptocurrencies with Neteller

ok

Buy cryptocurrencies with UnionPay

ok

Step 4: Trade cryptocurrencies

Now the account at the crypto exchange is finally set up and equipped with credit. Now it's time to choose the assets. How should you invest in cryptocurrencies? Which crypto coins are worthwhile? Currently you can trade in over 16 cryptocurrencies on eToro. The offer is constantly being expanded, so if new cryptocurrencies are added, you will certainly find what you are looking for here.

A big advantage of eToro is the demo version of the platform. It is certainly worthwhile to become active here first in order to get to know the offer. But then you will have to decide between different currency pairs.

You can also search for specific coins using the search fields. In the end, you will then place your buy or sell order.

    Real cryptocurrencies
    Cryptos as assets for CFDs with long and short positions
    Novel crypto products
    Bitcoin shares

Our recommendation: Buy cryptos with eToro

    Incl. wallet
    Buy and sell cryptocurrencies directly in the wallet
    Paypal, credit card and instant bank transfer
    Regulated provider
    Real cryptos or CFD trades

Is it worth investing in new cryptocurrencies?

Pros

  •    Chances of success like Bitcoin or Ethereum
  •     Digital currencies are currently on the rise
  •     In the long term, cryptocurrencies are gaining in popularity
  •     Cryptocurrencies are now offered in many different areas

Cons

  • There are already very many cryptocurrencies
  • Risk of irrelevance

Of course, one asks oneself whether one should invest in new cryptocurrencies or not. The advantages are clear: if there is a good business model, the cryptocurrency has a chance to prevail against the tried and tested coins. It is quite possible that new cryptocurrencies will experience a similar rise as Bitcoin or Ethereum.

In addition, cryptocurrencies are becoming increasingly popular. Especially during the Corona crisis, trading in cryptocurrencies boomed. This will not change in the near future - accordingly, new cryptocurrencies could turn out to be rewarding.

One disadvantage, of course, is that there are already a lot of cryptocurrencies to trade. The competition is therefore correspondingly large. It has also happened in the past that new cryptocurrencies appeared but were forgotten after a short time.

Promising cryptocurrencies for 2021

While many companies suffered from the Corona crisis, there was a real upswing in digital currencies in 2020. Bitcoin & Co. gained a lot of ground and seem to be unstoppable at the moment. Cryptocurrencies are currently not only interesting for speculators and traders, they are also becoming increasingly popular as a means of payment. It is therefore all the less surprising that the well-known cryptocurrencies will also shine in 2021.


Cryptocurrency

Description

Bitcoin Logo

Bitcoin (BTC)    

Even when new cryptocurrencies come onto the market, Bitcoin never goes out of fashion. Last year, Bitcoin boomed and reached an all-time high. As of the end of November 2020, Bitcoin has seen a 177% increase. Analysts unanimously share strong views on Bitcoin's future and some set incredible price targets of up to USD 318,000 for BTC.

Ethereum Logo

Ethereum (ETH)    

Ethereum also put in a stellar performance in 2020 and will continue to rise strongly, according to experts. The second largest cryptocurrency started 2020 with a value of around 125 USD for ETH and rose to around 600 USD for ETH by the end of the year. 2021 could also look very good for Ethereum, as it is the preferred network for decentralised applications.

Ripple Logo

Ripple (XRP)

Ripple was created as an alternative payment system with the aim of transforming and facilitating cross-border payments. As such, Ripple has been adopted by more than 100 financial institutions. In 2020, the Ripple blockchain expanded to more than 300 providers in 40 countries.

Litecoin Logo

Litecoin (LTC)

Currently, the price of Litecoin fluctuates, which makes the digital currency affordable. However, the cryptocurrency boasts one of the lowest mining times and high rewards of 25 LTC. According to analysts, 2021 will tend to increase the price of Litecoin.

Bitcoin Cash Logo

Bitcoin Cash (BCH)

Bitcoin Cash was launched in 2017 as a faster and more secure blockchain technology. More transactions can be made with Bitcoin Cash than with Bitcoin. In theory, Bitcoin Cash could soon replace Bitcoin as a means of payment.

Cardano Logo

Cardano (ADA)

Cardano has the potential to reach USD 1.50 by the end of 2021. The growth depends on the release of Hydra - a solution to help Cardano perform over 1 million transactions per second.

Conclusion

The year 2020 was one of the biggest challenges for the economy and also for the financial system. With the pandemic and the lockdowns, many investors turned their attention to cryptocurrencies as an alternative to traditional financial investments. It is therefore all the less surprising that new cryptocurrencies will now emerge in 2021.

Investors are eager to see which new cryptocurrencies will prevail this year. Accordingly, there is a lot of anticipation for ICOs in 2021. Due to the Corona crisis and the ongoing measures, 2021 seems to be the perfect year for cryptocurrencies. In general, popularity is currently skyrocketing.

So if you want to invest in new cryptocurrencies, you should definitely wait for the ICOs. As soon as a business model has made it, we are sure that the new cryptocurrency will be available at our test winner of crypto brokers eToro.

Cryptoscene

Our recommendation: Buy cryptos with eToro

    Incl. wallet
    Buy and sell cryptocurrencies directly in the wallet
    Paypal, credit card and instant bank transfer
    Regulated provider
    Real cryptos or CFD trades

FAQ

How many cryptocurrencies are there at the moment?

As of October 2020, there were over 7300 cryptocurrencies.

Is it worth investing in new cryptocurrencies?

New cryptocurrencies will not have an easy time of it due to the large competition. However, if the business model behind them is mature, an investment could well be worthwhile.

Which cryptocurrency has a future?

Currently, experts assume that Bitcoin will remain the number 1 - also in the future. Closely followed by Ethereum and Ripple.

Hi, my name is Benzion. I have twelve years of experience in the Forex industry, and I have launched two successful crypto trading services. I have in-depth experience on several blockchain networks like Bitcoin, Etheruem, EOS, Cardano, Hyperledger, ICON, Komado, etc. I also have in-depth knowledge of blockchain techniques, including various consensus mechanisms, DLT, smart contracts, security, and privacy measures. Benzion Friedman