Cryptocurrency investment has gained immense popularity over the past few years. Investors are increasingly looking for opportunities to enter this volatile market at a lower cost. While Bitcoin and Ethereum dominate headlines, numerous other affordable cryptocurrencies promise great potential. This blog post explores the best cheap cryptocurrencies to consider investing in during 2021. We’ll outline their pros and cons, helping you make informed choices.
Understanding Cheap Cryptocurrencies
Before diving into specific cryptocurrencies, let’s clarify what we mean by “cheap.” Cheap cryptocurrencies are often those priced under a certain threshold, typically below $1 or even $0.01. The appeal of these digital assets lies in their potential for substantial growth. Many investors prefer lower-priced coins, hoping they can capitalize on significant returns if the market turns favorable.
Why Invest in Cheap Cryptocurrencies?
- High Growth Potential: Lower-priced cryptocurrencies can skyrocket in value if they gain traction.
- Diversification: Investing in multiple coins allows spreading risk across a broader portfolio.
- Access to Smaller Projects: Many inexpensive coins belong to up-and-coming projects with innovative technology.
Let’s explore some of the best cheap cryptocurrencies to invest in for 2021.
1. Cardano (ADA)
Overview
Cardano is a blockchain platform that aims to provide a more secure and scalable infrastructure for the development of decentralized applications (dApps). Priced under $2 in 2021, it has garnered attention for its research-driven approach.
Pros
- Strong Technology: Cardano employs a peer-reviewed academic background.
- Sustainability: It aims for energy efficiency in its operations, a critical factor in today’s eco-conscious market.
Cons
- Slow Development: While careful, the project has faced delays in executing its roadmap.
Conclusion
If you’re looking for a solid investment with potential, Cardano is worth considering. Download the Daedalus wallet here.
2. VeChain (VET)
Overview
VeChain focuses on supply chain management and business processes, providing a blockchain solution to enhance product tracking. Its price remained below $1 in 2021, making it an attractive option for investors.
Pros
- Real-World Use Case: VeChain’s partnerships with large companies indicate practical applications.
- Growing Ecosystem: The network continues to expand, attracting more users and developers.
Cons
- High Competition: Several blockchains compete in the supply chain space, which might dilute market share.
Conclusion
With its real-world use cases and partnerships, VeChain presents a valuable investment opportunity. Download the VeChainThor wallet here.
3. Ripple (XRP)
Overview
Ripple aims to revolutionize cross-border payments with its XRP ledger. While it faced regulatory challenges, XRP remained an affordable cryptocurrency with excellent potential for the future.
Pros
- Fast Transactions: Ripple offers quick transaction times, making it a suitable alternative for remittances.
- Established Partnerships: With numerous banks and financial institutions utilizing its technology, Ripple has credibility.
Cons
- Legal Issues: The ongoing SEC lawsuit poses risks for potential investors.
Conclusion
If you’re willing to accept some risk for a potentially high reward, XRP might be worth adding to your portfolio. Download the Ripple wallet here.
4. Stellar (XLM)
Overview
Similar to Ripple, Stellar focuses on cross-border payments but aims to serve the unbanked population globally. Trading at around $0.50 in 2021, it’s a low-cost investment option.
Pros
- Mission-Driven: Stellar aims to boost financial inclusion, making it a socially responsible investment.
- Robust Technology: Stellar has a strong technical foundation that supports rapid transactions.
Cons
- Dependence on Partnerships: Its success relies heavily on banking and financial partnerships.
Conclusion
For socially conscious investors, Stellar’s mission provides added appeal alongside the potential for growth. Download the Stellar wallet here.
5. Dogecoin (DOGE)
Overview
Initially started as a meme, Dogecoin has evolved into a popular cryptocurrency community. At under $1, it is accessible to many new investors.
Pros
- Strong Community: Dogecoin boasts one of the most active and supportive communities.
- Easy to Obtain: It’s widely available on most exchanges and often traded at low fees.
Cons
- Volatile Nature: The coin is subject to extreme fluctuations, often driven by social media trends.
Conclusion
While Dogecoin might not offer the robust technological foundation of others, its community-driven nature makes it interesting for speculative investors. Download the Dogecoin wallet here.
6. Basic Attention Token (BAT)
Overview
Basic Attention Token is integrated into the Brave web browser, rewarding users for their attention while browsing. Priced under $1, BAT has strong growth potential.
Pros
- Innovative Model: BAT aims to reform online advertising, making it more efficient and user-friendly.
- User Growth: Brave has steadily gained users, indicating an expanding ecosystem.
Cons
- Risks in Adoption: The success of BAT hinges on user adoption of the Brave browser.
Conclusion
Consider BAT if you’re interested in the intersection of cryptocurrency and digital advertising. Download the Brave browser here.
7. Polygon (MATIC)
Overview
Polygon aims to improve Ethereum’s scalability and usability by providing Layer 2 solutions. In 2021, MATIC was trading well under $1, making it a compelling buy.
Pros
- Strong Market Demand: There’s increasing demand for Layer 2 solutions for Ethereum.
- Active Development: Polygon has a robust developer community driving continuous improvement.
Cons
- Ethereum Dependence: Polygon’s success is closely tied to Ethereum’s performance and network health.
Conclusion
As Ethereum evolves, Polygon might play a critical role. Investing in MATIC could provide significant returns. Download the Matic wallet here.
8. Holo (HOT)
Overview
Holo aims to provide a decentralized hosting platform for distributed applications. With its low price point, HOT is often overlooked but holds potential.
Pros
- Innovative Approach: Holo’s focus on decentralized hosting is gaining traction.
- Growing Adoption: The platform is attracting developers keen to create decentralized applications.
Cons
- Early Stage: As a newer project, Holo faces the risks typical of startups.
Conclusion
If you’re interested in supporting decentralized hosting, Holo is a unique opportunity. Download the Holo wallet here.
9. Siacoin (SC)
Overview
Siacoin offers a decentralized cloud storage solution, enabling users to rent out unused hard drive space. It is priced affordably, usually below $0.01.
Pros
- Unique Value Proposition: The demand for cheaper and decentralized storage solutions is growing.
- Active Community: Siacoin has a passionate community driving its development.
Cons
- Market Competition: Competes with established cloud storage providers, which could hinder growth.
Conclusion
Siacoin presents an interesting option for investors interested in alternative storage solutions. Download the Siacoin wallet here.
10. Chainlink (LINK)
Overview
Chainlink is a decentralized oracle network that connects smart contracts with real-world data. Priced around $30 in 2021, it’s technically not “cheap,” but it offers excellent long-term potential.
Pros
- Strong Use Case: Oracle solutions are crucial for the DeFi ecosystem.
- Established Partnerships: Collaborations with major firms signify trust in its technology.
Cons
- High Price Point: While considered affordable in the long run, its entry price may deter some investors.
Conclusion
For those willing to invest a little more, Chainlink could be a valuable addition to a diversified portfolio. Download the Chainlink wallet here.
Conclusion
While larger cryptocurrencies like Bitcoin and Ethereum often steal the spotlight, there are plenty of affordable alternatives worth considering in 2021. Each of the cryptocurrencies outlined above offers unique advantages and challenges, presenting various opportunities for potential investors.
Before making any investment, ensure you do your own research and understand the risks involved. The cryptocurrency market is highly volatile, and only invest funds you can afford to lose.
Happy investing!