Top 10 Cryptocurrencies to invest in October 2021
“Wake me up when September ends”, bellowed Green Day in their 2005 hit song. It’s also a quote that cryptocurrency investors understand all too well also. September 2021 was somewhat of a bloodbath.
But now it’s October.
There is no doubt that the cryptocurrency space has seen some big ups and downs over the years, but it's always managed to bounce back.
This time around, amidst global socioeconomic instability - with trade wars, COVID-19 and currency devaluations all carrying out in 2021 - you can bet your bottom dollar that this industry will continue to go from strength to strength.
But how do you know which cryptocurrencies are going to be the next big thing? The good news is that there are a number of factors you can look at when trying to make sense of what could happen next in the cryptocurrency economy.
The cryptocurrency market has experienced significant volatility since the beginning of 2020 but continues to rise in price throughout 2021 despite adverse economic conditions such as higher inflation due to COVID-19 monetary reactions from central banks and stagnating wages in major western markets like the US and European Union countries.
Here we look at what we think will be the best dozen cryptocurrency investments in Q4 of 2021.
Bitcoin is the oldest and most well-known cryptocurrency. It has a massive following, which makes it relatively stable compared to other digital currencies - it's now being considered a form of digital gold as the narrative is picked up by large institutions such as Goldman Sachs, JP Morgan and Fidelity in the face of ever expanding central bank balance sheets.
Why invest in Bitcoin?
As institutions begin to take Bitcoin seriously, adding to an ever increasing demand, we are at a zenith of supply constraint - there is less Bitcoin being produced and available on exchanges than at any point in its history.
So, as demand increases, Economics 101 tells us that the price will increase also.
The second largest cryptocurrency by market capitalisation, Ethereum is a cryptocurrency set to explode in Q4 and beyond.
Ethereum has the support of large corporations such as JPMorgan and Microsoft, who are all investing heavily into this cryptocurrency. It is also becoming more widely accepted every day by retailers such as Overstocked and Steam as a payment method.
Why Invest in ETH?
With an ever growing list of institutional and retail investors looking to invest in Ethereum, it's unlikely we will see any kind of drop anytime soon. The current price of $3000 USD per Ether can easily double or triple within the next 6 months. Many analysts see ETH appreciating far beyond $10,000 this cryptocurrency super cycle.
Founded by Ethereum co-creator Charles Hoskinson, Cardano is currently ranked as the 3rd largest cryptocurrency by market capitalisation. While cryptocurrency traders often focus on the next hot cryptocurrency, few have their eye on the cryptocurrency market's biggest long-term players.
If you want to be part of cryptocurrency's next explosive move higher, Cardano is one cryptocurrency worth looking at in 2021.
Why invest in Cardano in October 2021?
Cardano has an ambitious roadmap that seeks to tackle some of blockchain technology's most difficult issues, including scaling and security .
A recent implementation of this roadmap has seen the introduction of smart contracts to the Cardano blockchain.
This is a super-bullish introduction, meaning that Cardano can now implement DeFi protocols and NFTs on it blockchain, which is lower in cost and quicker in transaction speed than the largest layer-1 solution of Ethereum.
Binance Coin (BNB)
Binance Coin, or BNB as it is also known, is the crypto token of cryptocurrency exchange Binance, the largest exchange in the world.
The cryptocurrency was created in 2017 after raising $15 million through an initial coin offering (ICO) and launched with a market cap of approximately $2 billion making it one of the 20 biggest cryptocurrencies by market cap at the time.
Now it is the 4th largest cryptocurrency by market capitalisation (excluding Tether).
Though not as well known as bitcoin, Ethereum or cardano, Binance Coin has still managed to generate a huge return on investment for those who invested early.
And it still holds the potential to appreciate very well in Q4 2021 and onwards.
Why invest in Binance Coin in October 2021?
Binance coin isn't like any other coin on this list - the sheer amount of use cases sets it apart:
It can be used to lower transaction costs on Binance exchange. This is a common feature of cryptocurrencies associated with exchanges.
It can be used to pay fees on Binance Smart Chain. In the same way that Cardano and Ethereum are used to pay transaction fees on their own blockchains, Binance has a layer-1 solution called Binance Smart Chain (BSC). Although its credentials as a decentralised solution are questionable, BSC has extremely low transaction costs, making it a great option for those looking to speculate in DeFi, NFTs or newly lanched altcoins.
BNB can create a yield. As a way of decreasing overall market supply, Binance offers BNB holders the chance to earn a yield on their coins by lending them in secondary markets.
As market activity begins to increase from October 2021, we can see BNB appreciating considerably due to demand from traders, BSC users, those looking for a healthy yield and general price speculators.
After launching in 2017 to much fanfare, the founders of Tezos set about creating a strong, scalable and fast Layer-1 blockchain solution. Tezos is a cryptocurrency that can be upgraded without having to change the underlying protocol.
Tezos' cryptocurrency, XTZ, is ranked 31st in terms of overall market cap across all tokens at time of writing.
Why invest in Tezos in October 2021?
Adoption of Tezos as a layer-1 solution is growing all the time and its reputation for ability to handle a huge amount of transactions per second whilst preserving the validity of the blockchain is beginning to get noticed by developers, against a backdrop of new layer-1 solutions struggling under the same pressure.
Its suitability as the base layer for central bank digital currencies has been noted by investment banks such as Societe Generale, which means the upside for XTZ could be limitless.
Tezos has the potential to truly challenge Ethereum as the primary Layer-1 solution over the next 5-10 years so investing now could see you catch a bargain.
This cryptocurrency was launched by Da Hongfei in 2014 as Ant Shares but since 2017 has been rebranded as NEO.
NEO runs on a unique blockchain algorithm called Delegated Byzantine Fault Tolerance (dBFT), a consensus development that allows for faster transactions with lower energy consumption.
One of the reasons why more cryptocurrency enthusiasts have invested so heavily in NEO already is due to its efficiency providing solutions to problems such as scaling and transaction speed through its dBFT algorithm.
Why invest in NEO in October 2021?
NEO recently launched its 'N3' upgrade, allowing the network to make upto 10,000 transactions per second. But the biggest advantage from N3 was that it makes smart contracts on the blockchain to be written in any coding language.
When compared to Ethereum and Cardano (which exclusively use Solidity and Plutus languages respectively), it makes NEO open to all developers without having to learn a completely new language.
We consider this a bullish indicator for the blockchain project and for its adoption as a layer-1 solution by potentially millions of developers in the future.
Algorand is a cryptocurrency that has a lot to show for in the cryptocurrency space. It is one of the most secure cryptocurrency, and it offers almost free transactions.
With a stellar team developing the project and founded by cryptography pioneer, professor at MIT and Turing award winner Silvio Micali, Algorand has had an ever growing community since its launch back in 2019.
Now beginning to reap the rewards of diligent implementation, the future for Algorand as a Layer-1 solution (and by proxy, as a potentially great investment), we think the future looks rosy for this particular blockchain solution.
Why invest in Algorand in October 2021?
Backed by a great team and always moving forward on its impressive and ambitious roadmap, Algorand is starting to receive the attention it deserves as a solution for the modern world of business and finance.
Recently, El Salvador chose Algorand as the blockchain on which it will develop its financial infrastructure. With other nations eyeing a move over to the 'Bitcoin standard' twinned with Algorand's market leading position, we see it receiving mass adoption as the blockchain on which nations might be built in future.
Polkadot was founded by Gavin Wood, an Ethereum co-founder alongside Peter Czaban and Robert Habermeier in 2016.
Gavin’s background is notable as he invented Solidity - the language used to write decentralized applications on Ethereum (essentially the language for EVM based smart contracts).
Polkadot is a project that aims to bring blockchain technology and interoperability into the mainstream.
The system was designed with two types of blockchains: A main network called "relay chain" where transactions are permanent, while user-created networks called parachains can be customized for any number uses which feed into this main chain, so they share security benefits as well.
Why invest in Polkadot in October 2021?
Polkadot is the premier solution to one of the biggest challenges in the cryptocurrency economy - interoperability of blockchains.
Given the need for blockchains to be able to share data as a catalyst for growth of the sector as a whole, we see Polkadot as holding a unique and important catalyst to a fully interoperable blockchain economy.
Chainlink was created in 2017 by co-founders, Steve Ellis and Sergey Nazarov.
Chainlink is building a reliable, real-world data network for smart contracts running on blockchains. Every oracle within the Chainlink network is incentivized to provide accurate data.
When oracles follow rules and provide useful information with high-quality sources they'll receive more LINK (Chainlink’s cryptocurrency) as payment for quality work done.
Why invest in Chainlink in October 2021?
Chainlink is the premier solution in the crypto-economy for providing real-time information to blockchains based on Ethereum Virtual Machine.
As more and more smart contracts are created, they need validation with real world data – the very service that Chainlink provides.
As such, with the market about to boom, we see Chainlink's oracle solution as a foundation that the DeFi economy is built upon.
Does Utopia Digital Asset Management's DeFi Infrastructure Fund invest in these projects?
Yes - we see the above projects as long term winners in the blockchain economy and so they make up 90% of the constituents in our fund.
We expect to see outsized returns over the next 6 months and far into the future with these cryptocurrencies and tokens.
And anyone can invest with us from as little as €10 via the ICONOMI platform.