New cryptocurrencies - New coins with potential 2021
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Not only institutional investors are grabbing the digital currencies, but also small investors want to profit and start trading the new type of currency on the internet.
But how do you actually buy cryptocurrencies, which new coins have potential and how safe is trading in new cryptocurrencies? We have taken a closer look at this and summarised it in this article.
New cryptocurrencies comparison
Cryptocurrency | Description |
|---|---|
Cardano (ADA) | An open source project that aims to use third generation blockchain technology to contribute to a safer, more transparent and more equitable society. Products built on Cardano enable, for example, traders and producers to take action against counterfeit goods. The founder of Cardano is Charles Hoskinson, who already co-founded the Ethereum network. |
Xanalia (ALIA) | The decentralised NFT marketplace with AR-VR integration. Xanalia is based on Binance Smart Chain (BSC) and promises its users many features such as yield farming or NFT_creation with copyright protection. The platform's own token is ALIA |
Ideaology (IDEA) | IDEAOLOGY is an open source blockchain project based on the Ethereum blockchain. Ideaology promises to create unique collaboration solutions and networks between startups, freelancers and developers through a blockchain-based launchpad. The goal is to create an ecosystem where everyone can benefit from each other and build on existing experiences. |
Crypto Intelligence Trading System (CITS) | The "Joseph" project is an AI for the management of crypto assets on various crypto exchanges. Joseph is intended to fully automate the management of existing coins and make human involvement unnecessary. |
Nominex (NMX) | The main goal of the developers is to create a new generation exchange that is: compatible with any type of system, resilient and completely secure, and also offers a high level of usability. |
EANTO (EAN) | The project aims to eliminate money transfer in favour of virtual currency. Profits from the tokens are used to increase the liquidity of the project. EANTO was created to protect the environment and hits the mark in times of pandemic and climate change. |
Quotes Excenbit (QEXB) | Quotes Excenbit is a decentralised social networking platform that puts user privacy and satisfaction first. It is also the first get paid to content creation and sharing ecosystem to use OCR token payments for its reward system. |
DECA (DECA) | The project creates a green economy that digitally signs CO2 credits in a blockchain in the future. Through fundraising during the ICO, DECA aims to transform the DECA token into a currency platform to create a more sustainable economy based on carbon credits for individuals and businesses. |
U COIN (UCOIN) | U Coin is an ERC20 utility token designed to work within an ecosystem of business applications (e.g. money transfers or sales processes). The goal is to achieve global circulation and meet everyday user requirements. |
THORChain (RUNE) | THORChain was developed as a liquidity protocol to connect all blockchain assets in a marketplace through bridges and liquidity pools. The design as a cross-chain solution enables the exchange of decentralised assets via THORChain. |
Why buy new cryptocurrencies?
How are new cryptocurrencies created?
Anyone who is thinking about buying new cryptocurrencies should definitely find out how a new digital currency can come into being in the first place and what it is: cryptocurrencies are not a currency that we can touch in the form of banknotes or coins. Crypto-coins consist of a long letter or number key.
These exist as limited entries in a database that cannot be easily changed by anyone. A cryptocurrency can accordingly be defined as a chain of data that, unlike conventional currencies, is not under state supervision and is difficult or impossible to manipulate. Monitoring through peer-to-peer protocols provides additional security for cryptocurrencies.
Cryptocurrencies are created through so-called mining. This means that transaction records are calculated and found, and these must be added to the ledger of the corresponding cryptocurrency. However, before a cryptocurrency can enter the market, certain requirements must be met. Among other things, a white paper must be published and an ICO must be carried out.
Whitepaper
A whitepaper is a document that gives an entire overview of a project. In the case of cryptocurrencies, the problem and the solution are presented in a whitepaper.
It contains a detailed description of the project, the technology and the interaction with the respective users.
ICO
Business models based on blockchain technology are financed through so-called ICOs. ICO means Initial Coin Offering and is similar to a company's IPO. In an ICO, young companies, developers or start-ups sell their tokens against conventional currencies. A sale against already successful cryptocurrencies can also be carried out.
What do investors expect from new cryptocurrencies?
The main reason why investors invest in new cryptocurrencies is certainly the low price. Many investors hope to buy new coins cheaply and sell them again quickly, for example, as soon as an active community ensures a rapid price increase. There are also already special networks that focus on buying new cryptocurrencies. They buy new coins in large numbers and thus drive the price up quickly.
They "pump up" the new cryptocurrency. Once a certain target is reached, the units are quickly sold off again. In these cases, the value drops quickly and the risk of loss for investors outside the network is high. In most cases, there are new ideas and novel technologies behind cryptocurrencies. Those who believe in them also believe in the project and invest for the long term.
Investment in general, but especially investment in new cryptocurrencies, should be well considered. Coins and tokens are not regulated, they are not subject to the supervision of a financial authority that can intervene if losses are imminent or it turns out that the currency is a fraud.
Top 10 cryptocurrencies
Even if new cryptocurrencies and projects come onto the market almost daily, investors are well advised to also bet on established and already successful coins. We have summarised the current top 10 here (by market capitalisation):
Bitcoin (BCN) | The mother of all cryptocurrencies is still considered one of the most successful coins to trade on the market. During the last all-time high, Bitcoin was able to record a growth of an incredible 177 %. |
Ethereum (ETH) | The number two in the blockchain world was also able to boast high price gains in 2020. Many subsequent cryptocurrencies use the Ethereum protocol for their applications. Many experts therefore see high growth potential in Ethereum |
Binance Coin (BNB) | The utility token of the crypto exchange Binance was initially designed as an ERC-20 token. With the launch of the Binance Chain network in April 2019, the ERC20 BNB coins were exchanged for BEP2 - BNB in a 1:1 ratio |
Dogecoin (DOGE). | What started out as a fun activity has evolved into a serious digital currency. Personalities such as Elon Musk keep causing new price rises with social media statements. Most recently, the price rose again by 24% after the Tesla boss published another DOGE Tweed on 29.04.2021. |
Ripple (XRP) | Ripple is also called the cryptocurrency of banks because of its payment system, which facilitates cross-border payments. The system has been adopted by over 100 financial institutions so far and the blockchain will be expanded in 2020. Experts see great chances of high price gains in 2020 |
Tether | As a digital currency, the security of cryptocurrencies reflects the current value of the US dollar. Since each USDT token is tied to a USD, investments in the form of Tether are better protected than others. Experts agree on the success of Tether, as Bitcoin trades are often executed in Tether. |
Cardano (ADA) | A new cryptocurrency on the market with high potential. Experts estimate that Cardano should reach USD 1.50 per unit by the end of the year. Growth will be highly dependent on the achievement of the project's development goals |
Polkadot | Ethereum's still relatively young competitor has made the permanent leap into the top 10 cryptos. The multichain network Polkadot can process many transactions in different chains at the same time without causing communication difficulties between the networks. |
Uniswap | Ethereum developer Hayden Adams created Uniswap as a decentralised trading protocol known for facilitating automated trading of decentralised tokens. Uniswap's purpose is to create liquidity in defi environments |
Litecoin | An almost identical copy of Bitcoin, Litecoin can operate at four times the speed due to an improved mining mechanism. Transactions, balances and spending are managed through a peer-to-peer network. |
New cryptocurrency buying guide
Of course, the point where cryptocurrency can be bought is also important. You can choose between crypto exchanges or brokers. We recommend buying via online brokers, as these guide beginners through trading better than the relevant crypto exchanges. We have had the best experience with our test winner eToro. Registering with eToro is done within a few minutes.
Step 1: Register with eToro
In order to trade at eToro, you first have to register and open an account. A valid email address and a secure password are required for registration. Registration is even faster with your Facebook account or your Google account. A click is required to confirm your registration:
Terms of use
Risk statements
Privacy policy
After registration, eToro will send you an e-mail to verify the e-mail address you have entered. With a simple click on the button "Verify my email address" the registration with eToro is confirmed. In order to be able to trade, the profile must first be completed. Personal data such as name, gender, age and date of birth are required. Afterwards, a few questions about previous trading experience must be answered.
Step 2: Deposit money and fund your account
In order to be able to buy cryptocurrencies at eToro, the trading account must first be topped up. The payment options vary depending on the provider. eToro offers a wide range of deposit options:
Credit card | Rapid Transfer | Rapid Transfer |
Depending on the selected deposit method, the money is available for trading either immediately or in 2-3 working days. To deposit money, simply click on the "Deposit money" button at the bottom left of the screen.
Step 3: Buy cryptocurrency
To buy a cryptocurrency, we can enter the desired currency, such as Chainlink, in the search box on eToro. Clicking on the currency will open the trading window.
Here you only need to enter the amount and open the trade to complete a cryptocurrency purchase. The purchased currency appears in the "Portfolio" window and can be sold or transferred again.
Buy new cryptocurrencies: Advantages and disadvantages
Finally, let's summarise the most important advantages and disadvantages of new cryptocurrencies.
New cryptocurrencies test: the conclusion
There is no doubt that cryptocurrencies and the blockchain technology behind them will bring us many changes in the coming years. The crypto market is booming like never before and more and more small investors are becoming aware of digital currencies.
Especially when investing in new coins and tokens, however, every investor should always keep a certain risk in mind. In the worst case, there is a risk of total loss of invested sums. The best thing is a broadly diversified portfolio, both with established currencies and with new coins and tokens.
FAQ
Experts assume that Bitcoin and Ethereum will remain at the top of the market. But the forecasts are also positive for new projects like Cardano.
According to Coinmarketcap, there are currently 9,576 cryptos tradable on the market (as of 05.05.2021).
Whether or not an investment is worthwhile cannot generally be answered with a yes or no. Investments in cryptocurrencies are always subject to risk. To minimise this risk, the project behind the currency should already be mature.
Coins can be traded on relevant exchanges such as Binance or with online brokers such as eToro.
So far, it has not been possible to crack the mathematically created letter or number keys. Losses and successful hack attacks from the past are due to human error. The technology itself can be described as secure.
