Top 3 Best Performing Cryptocurrencies of 2021: A Comprehensive Guide

Cryptocurrencies have been a hot topic since its inception, and this year hasn’t been any different. With various cryptocurrencies, new and old, making headlines for their performance and impact on the market, it’s essential to stay informed about the best performing cryptocurrencies.

In this comprehensive guide, we’ll take a closer look at the top 3 best-performing cryptocurrencies of 2021.

1. Bitcoin (BTC)

Bitcoin, the world’s largest and most popular cryptocurrency, had a remarkable performance in 2021. Starting the year at around $29,000, it reached an all-time high of $64,000 in April – an increase of over 120%. Furthermore, Bitcoin has established itself as a reputable asset amongst institutional investors, with companies like Tesla and MicroStrategy investing in it.

One of the factors contributing to Bitcoin’s success is its scarcity. Only 21 million Bitcoins will ever be mined, and the demand for it keeps increasing, driving the price up.

2. Ethereum (ETH)

Ethereum, the second-largest cryptocurrency by market capitalization, has had an outstanding performance this year. Starting the year at around $725, it surged to an all-time high of $4,400 in May – a remarkable increase of around 500%.

Ethereum’s success can be attributed to its smart contract capabilities. It’s not just a cryptocurrency, but a platform that allows developers to build decentralized applications, or dApps, on top of it. This versatility has given Ethereum a significant advantage, making it a favorable choice for investors.

3. Binance Coin (BNB)

Binance Coin is the native cryptocurrency of the Binance exchange, which is one of the largest cryptocurrency exchanges in the world. With a market capitalization of over $50 billion, Binance Coin has had an impressive year, starting at around $38 and reaching an all-time high of $690 – an astronomical increase of over 1,700%.

The main contributing factor to Binance Coin’s success is its utility. Binance Coin can be used to pay for transaction fees on the Binance exchange, and users can also stake their Binance Coins to earn a yield. Additionally, Binance has expanded its offerings, introducing new opportunities for Binance Coin holders.

Conclusion

In conclusion, the top 3 best-performing cryptocurrencies of 2021 so far are Bitcoin, Ethereum, and Binance Coin. While each cryptocurrency has different reasons for its success, they all share common traits like utility, scarcity, and institutional adoption.

It’s important to note that investing in cryptocurrencies carries risk, and investors should conduct proper research and due diligence before investing. However, for those willing to take the risk, cryptocurrencies can be a lucrative investment opportunity.

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By knbbs-sharer

Hi, I'm Happy Sharer and I love sharing interesting and useful knowledge with others. I have a passion for learning and enjoy explaining complex concepts in a simple way.