Cryptocurrencies are without a doubt the best-performing asset class of the past 12 months – with some digital assets seeing returns in excess of 10,000%. So that begs the question – what will be the next cryptocurrency to explode in 2021? This guide will review 10 of the best cryptocurrencies to keep an eye on this year and ultimately – attempt to evaluate which digital coin has the potential and trending to make sizable gains in the coming months. Top 10 Next Cryptocurrencies to Explode in 2021 Here’s a breakdown of the 10 crypto coins that are poised to explode in 2021. We review each digital currency further down in this guide! UniSwap (UNI) – Market Leader in the Decentralized Finance Arena – Invest Now Yearn.Finance (YFI) – Buy a Fraction of This Limited Cryptocurrency – Invest Now Bitcoin (BTC) – Invest in the De-Facto Cryptocurrency of Choice – Invest Now Decentraland (MANA) – Innovative Virtual Reality Platform Based on Blockchain Tech Binance Coin (BNB) – Digital Token Backed by the World’s Largest Crypto Exchange Chainlink (LINK) – Gains of over 30,000% Since Inception Kusama (KSM) – Innovative Protocol Allows Developers to Build a Blockchain BitTorrent (BTT) – Super-Speculative Crypto Token With Huge Upside Potential Aave (AAVE) – Decentralized Platform That Facilitates Personal Finance Transactions Defi Coin (DEFC) – Taxation Policy Actively Promotes Long-Term Holding A Closer Look at the Crypto Coins That are Poised to Explode Make no mistake about it – attempting to find the next cryptocurrency to explode in 2021 is no easy feat. After all, there are now more than 10,000 digital currencies in existence – with this number appearing to grow week-on-week and with a big hype behind them. Nevertheless, after countless hours of in-depth research and analysis – here’s a list of the top cryptocurrencies that are poised to explode in the proceeding months and years. 1. UniSwap (UNI) – Market Leader in the Decentralized Finance Arena Many market commentators believe that UniSwap could be the next cryptocurrency to explode in 2021. For those unaware, UniSwap is a decentralized finance (DeFi) platform that allows users to swap digital currencies without a centralized third party. Instead, all buy and sell orders are facilitated in an autonomous manner via smart contract technology. The platform is home to its own native cryptocurrency – suitably named the Uniswap token. Although the project was formed in 2018, its Uniswap token wasn’t launched into the public exchange arena until September 2020. Back then, you would have paid less than $0.50 per token. Just 8 months later in May 2021 – the Uniswap token hit pricing levels of just over $44. This means translates into a price of 8,700%. In-line with the wider cryptocurrency markets, the price of Uniswap has since cooled off. At the time of writing in early June 2021, the digital token is trading at $24. Buy UniSwap Now 67% of retail investor accounts lose money when trading CFDs with this provider. 2. Yearn.Finance (YFI) – Buy a Fraction of This Limited Cryptocurrency Like many of the digital currencies that are poised to explode this year – Yearn.Finance is a DeFi coin. Unlike other tokens in this industry, Yearn.Finance has a very small circulating supply. In fact, this stands at just under 37,000 tokens. This is minute into comparison to other popular cryptocurrencies – with the likes of Ethereum (ETH) standing at 18 million. As a result of this, a single Yearn.Finance token is trading at almost $40,000 as of June 2021. In terms of what the project does, Yearn.Finance is home to a number of decentralized financial services. This includes insurance, lending, and yield-generating products that can be accessed without a middleman. When Yearn.Finance and its YFI token hit public exchanges in July 2020 – it was trading at just over $1,000. In May 2021, the digital currency breached a price of $88,000. This represents a price increase of over 8,700% in just 8 months of trading. The good news is that you can invest from just $25 into Yearn.Finance when using a crypto trading platform like eToro. Buy Yearn.Finance Now 67% of retail investor accounts lose money when trading CFDs with this provider. 3. Bitcoin (BTC) – Invest in the De-Facto Cryptocurrency of Choice There is nothing original about including Bitcoin in our list of cryptocurrencies to explode in 2021 – as the digital currency is by far the market leader in this industry. On the one hand, the upside potential on Bitcoin is going to be significantly lower in comparison to other digital currencies. After all – Bitcoin has since surpassed a market capitalization of $1 trillion. In this respect, there is only so much further that the coin can go. On the other hand, by adding Bitcoin to your cryptocurrency portfolio, you are likely investing in a digital asset that will stand the test of time. Not only does the cryptocurrency have the required framework to act as a medium of exchange, but perhaps more importantly – a store of value. There will only ever be 21 million BTC coins in circulation – so the digital currency is a finite asset. Plus, the institutional investment space is finally coming around to Bitcoin – so this can only be a good thing for its long-term value. Buy Bitcoin Now 67% of retail investor accounts lose money when trading CFDs with this provider 4. Decentraland (MANA) – Innovative Virtual Reality Platform Based on Blockchain Technology Decentraland is home to a virtual reality platform that is built on top of the Ethereum blockchain. The in-game platform allows you to interact with other users, play games, and buy digital items. The latter is perhaps the most notable part of the platform, as we have already seen virtual real estate purchases for thousands of dollars. Any items bought and sold within the game are facilitated via the Decentraland token – MANA. Therefore, as more and more people use the platform, this has the potential to drive the price predictions of the cryptocurrency higher. Interestingly, the Decentraland coin was first launched in 2017. Back then, you would have paid just over $0.02 per token. The price of the digital currency remained stagnant for several years before attracting global interest in early 2021. In fact, in April 2021, Decentraland breached a price of $1.50. This translates into end-to-end gains of over 7,400%. Buy Decentraland Now 67% of retail investor accounts lose money when trading CFDs with this provider 5. Binance Coin (BNB) – Digital Token Backed by the World’s Largest Crypto Exchange Binance Coin is a digital currency backed by the exchange of the same name. The cryptocurrency exchange itself is now the largest in terms of trading volume – with more than $1.5 trillion worth of orders going through the months in May 2021 alone. The BNB coin was originally created to provide discounted commissions to Binance traders. However, the digital currency has since been extended to facilitate a number of other use cases. This includes paying for transaction fees on the Binance Smart Chain and commissions on the Binance DEX. It can also be used to provide exchange liquidity and even earn interest via the Binance savings account. Crucially, all of these functions contribute to the long-term value of the Binance Coin. This can be achieved irrespective of whether the wider cryptocurrency markets are bullish or bearish – as Binance will continue to collect trading commissions either way. The Binance Coin was launched in 2017 at around $0.15. Based on current prices of $358 – that’s an increase of over 238,000%. Buy Binance Coin Now 67% of retail investor accounts lose money when trading CFDs with this provider 6. Chainlink (LINK) – Gains of over 30,000% Since Inception Chainlink is one of the best performing cryptocurrencies of recent years. The digital currency was launched in September 2017 at a price of just under $0.17 per token. Fast forward to mid-2021 and the project hit all-time highs of more than $52. This translates into end-to-end gains of over 30,000% for early investors. Based on early June 2021 prices, Chainlink has since dropped down to $23 per token – giving the cryptocurrency a market capitalization of over $10 billion. However, in the grand scheme of things, this is still relatively small. As such, the upside potential of this digital token is still huge. In terms of the fundamentals, Chainlink is a decentralized network that specializes in oracle data. In its most basic form, this means that Chainlink can attract data from the real-world and supply it to other blockchain protocols. This is achieved in a decentralized nature via smart contract technology. Buy Chainlink Now 67% of retail investor accounts lose money when trading CFDs with this provider 7. Kusama (KSM) – Innovative Protocol Allows Developers to Build a Blockchain Kusama is an interesting cryptocurrency project that aims to pave the way for blockchain innovation. In a nutshell, the platform allows developers to create their own blockchain protocol that has the potential to scale to unprecedented levels. The Kusama token was launched in December 2019 – initially trading at $1.74. The digital token hit all-time highs of $592 in May 2021. This represents gains of over 33,000 %. In simple terms, this means that a $2,000 investment less than two years ago would have since been worth $660,000. Unlike the other tokens on our list – you won’t be able to buy Kusama with fiat money from eToro. Instead, you will need to obtain it at Binance in exchange for BTC or USDT. Buy Kusama Now Your capital is at risk when trading digital currencies at this provider 8. BitTorrent (BTT) – Super-Speculative Crypto Token With Huge Upside Potential If you’re looking to invest in a super-speculative cryptocurrency that is yet to really take off, it might be worth considering the BitTorrent token. The token is connected to the popular peer-to-peer file sharing platform of the same name – which has been operational since 2001. The BitTorrent platform was subsequently purchased by TRON in 2018 – which is one of the largest cryptocurrency projects globally. The BitTorrent token is used to fuel its peer-to-peer platform and now facilitates purchases of premium services – such as ad-free viewing and VPN connectivity. In terms of how the digital token has performed, it was trading at just $0.0004 when it was launched in 2019. In April 2021, the token breached a price of $0.01. This amounts to huge gains of over 2,400%. However, at June 2021 prices of $0.003, this means that the token has a market capitalization of $2.4 billion. As such, there is still plenty of upside. Buy BitTorrent Now Your capital is at risk when trading digital currencies at this provider 9. Aave (AAVE) – Decentralized Platform That Facilitates Personal Finance Transactions Aave is an online platform that allows people to borrow funds directly from investors. Unlike a conventional P2P lending site, all loans are facilitated in a decentralized manner. For example, investors have the opportunity to deposit their crypto assets into a decentralized pool. This will then be used to finance loans from borrowers that use the Aave platform. In turn, the borrower will pay interest on the loan which is then passed onto the investor. The platform is backed by its own native cryptocurrency – the Aave token. This was launched as recently as October 2020 at around $54 per token. Aave has since hit $636 – representing gains of over 1,770%. Buy Aave Now Your capital is at risk when trading digital currencies at this provider 10. Defi Coin (DEFC) – Taxation Policy Actively Promotes Long-Term Holding Defi Coin could also be the next cryptocurrency to explode in 2021. The project is home to an innovative taxation policy that actively promotes long-term investing. Put simply, anyone that attempts to sell their Defi Coin holdings will encounter a tax rate of 10%. For example, if you try to sell 5,000 Defi Coin tokens, 500 of this figure will be taxed. 50% of the tax collected will be distributed to all current Defi Coin token holders. As such, this operates like a dividend payment. The other 50% will be used for liquidity. Crucially, this taxation policy has the potential to make Defi Coin a long-term investment as opposed to a short-term gamble. With that being said, the Defi Coin whitepaper has only just been launched, so it hasn’t officially entered the exchange marketplace yet. This is expected to happen in Q3 2021. On the other hand, if you’re keen to get a look in – Defi Coin is currently offering a pre-launch sale – where you can purchase the token via the Binance Chain DEX. Buy Defi Coin Now Other Altcoins to Look Out With over 10,000 different digital tokens in circulation, keeping our list of which crypto will explode in 2021 to just 10 was no easy feat. As such, when considering the next altcoin to explode – it’s also worth checking out the following projects. Ethereum: Although the upside potential on this altcoin is somewhat limited, Ethereum is still the de-facto smart contract blockchain. Ripple: Much like Ether, Ripple and its XRP token has been a multi-billion dollar asset class for several years now. However, its proprietary technology has the potential to revolutionize the interbank transaction industry – which in itself is worth trillions of dollars annually. SushiToken: Offers a smooth and simple way to swap digital currencies in a decentralized manner. Holders of SushiToken are incentivized through a dividend-style distribution policy. XYO: The XYO protocol aims to become the market leader in bridging the gap between blockchains and real-time data. With a market capitalization of just $75 million, there is plenty of upside with this one. FunToken: This digital currency fuels the Funfair platform – a blockchain-based protocol that aims to revolutionize the online gambling industry. FunToken is one of the largest casino-related crypto assets with a market capitalization of over $230 million. As always, all cryptocurrencies (e.g. Bitcoin, Ethereum, Bitcoin Cash, Polkadot, Litecoin, Stellar, etc), are highly speculative asset classes and are subject to high volatility. As such, in your search for the next crypto to explode in 2021, make sure you perform lots of research and never invest more than you can afford to lose. Where to Invest in Rising Cryptocurrencies Irrespective of which cryptocurrency you decide to invest in – you will need to find a trusted exchange or broker to complete the purchase. Therefore, when thinking about what crypto will explode in 2021, you might want to consider one of the following platforms. 1. eToro – Overall Best Cryptocurrency Trading Platform 2021 eToro is one of the most popular cryptocurrency brokers in the market – with the platform now boasting a client base of over 20 million investors. The broker is home to a great selection of cryptocurrencies – including most of the projects discussed on this page. There are many benefits in choosing eToro as your go-to platform to buy cryptocurrencies with high upside potential. First and foremost, the broker operates a ‘spread only’ pricing model, meaning that you only need to cover the difference between the buy and sell price of the digital currency. This starts at just 0.75% when trading Bitcoin and more on other crypto assets. eToro is also a great option as the minimum stake per cryptocurrency trade is just $25. This is really important when investing in speculative asset classes like cryptocurrency – as you don’t need to risk too much capital. The process of investing in rising cryptocurrencies is super easy at the platform, too. Once you have registered an account, you can instantly deposit funds with a debit/credit card or e-wallet (including Paypal). The minimum deposit for US citizens is $50 and for most other locations – it’s a reasonable $200. Then, you just need to choose the digital token you want to buy, enter your stake, and confirm the order. Then, the cryptocurrency will be added to your eToro wallet for safekeeping. eToro also offers a highly-rated mobile wallet for iOS and Android users – should you want slightly more control over your funds. Perhaps the most sought-after feature at eToro is the Copy Trading tool. As the name suggests, this allows you to ‘copy’ an eToro cryptocurrency trader-like-for-like. All you need to do is choose a trader that alligns with your financial goals and invest at least $500. Thereon, all future positions will be mirrored in your own account. Most importantly, eToro is regulated by the FCA, ASIC, and CySEC. The broker is also approved by the SEC and FINRA. Pros: Heavily regulated trading platform used by over 20 million people 0% commission on stocks and ETFs Spread-only pricing structure on crypto, indices, forex, and commodities Very easy to use – ideal for beginners Minimum stake starts at $25 per trade Supports debit/credit cards, bank transfers, and e-wallets Copy Trading features promote passive investing Cons: Charting analysis tools are a bit basic Visit eToro Now 67% of retail investors lose money trading CFDs at this site 2. Capital.com – Best Crypto Trading Platform for Leveraged CFDs Next up we have Capital.com – which offers an interesting alternative to cryptocurrency speculation. This is because the platform specializes in contracts-for-differences (CFDs). For those unaware of this financial instrument, CFDs track the real-world value of an asset. As such, there is no requirement to actually own the underlying digital tokens. This allows you to speculate on the future value of an up-and-coming cryptocurrency without needing to worry about storage. Even more importantly, cryptocurrency CFDs allow you to trade in a super low-cost manner. In fact, at Capital.com, you can buy and sell digital coins at a commission rate of 0%. Spreads on more crypto markets are tight, too. By trading cryptocurrency CFDs, Capital.com gives you the option of going long or short. This means that you can attempt to make a profit irrespective of whether the wider markets are bullish or bearing. Additionally, Capital.com allows you to trade with leverage. Your limits will depend on where you live and whether you are a retail or professional client. In terms of supported markets, Capital.com offers dozens of cryptocurrencies – most of which are traded against USD. In particular, if you’re looking to trade tokens like Aave, Chainlink, or UniSwap – the platform offers over 30+ Defi Coin instruments. In addition to crypto, Capital.com also offers CFD trading markets on stocks, indices, ETFs, commodities, and forex. Getting started at Capital.com is fast and easy – with the broker requiring a minimum deposit of just $20. Regulated by the FCA and CySEC – you can deposit funds with a debit/credit card, e-wallet, or bank transfer. Pros: 0% commission and tight spreads Thousands of markets on offer CFD asset classes include crypto, stocks, forex, and commodities Minimum deposit of just $20 Supports debit/credit cards and e-wallets Great for beginners MT4 supported Leverage available – limits depend on your location Cons: You can’t invest in the underlying asset – CFD instruments only Visit Capital.com Now 67.7% of retail investor accounts lose money when trading CFDs with this provider 3. Binance – Best Crypto Exchange for Day Trading Digital Currencies If neither eToro nor Capital.com supports your chosen up-and-coming cryptocurrency – then the next best option is Binance. This is because the platform is home to hundreds of digital currencies – many of which are small-cap tokens. Plus, as Binance is the largest exchange in terms of trading volume – it benefits from high levels of liquidity. There are both pros and cons of choosing Binance to invest in digital tokens. Regarding the positives, the platform charges a trading commission of just 0.10% per slide. You can reduce this even further if you have Binance Coin tokens in your wallet. Additionally, Binance allows you to deposit funds via bank transfer for free in most countries. However, if you want to deposit funds instantly with a debit or credit card, you will need to pay up to 4%. The fee will depend on where you live. For example, UK traders will pay a lower fee of 1.8%. Additionally, many of the small-cap tokens offered on Binance are not paired with fiat currency. This means that you will first need to buy a cryptocurrency like Bitcoin or Tether and then exchange it for your chosen token. Pros Maximum commission of 0.10% per slide Supports hundreds of crypto markets Fiat currency facilities available Accounts take minutes to set up Crypto derivatives markets include Bitcoin futures and options Sinigfcant levels of liquidity and trading volume Cons High fees on debit/credit deposits Visit Binance Now Cryptoassets are highly volatile unregulated investment products. How to Identify Exploding Cryptos Once again, with 10,000+ digital currencies in the market, identifying that next big thing is not an easy task. With this in mind, below we offer a quickfire bullet-point list of what to look for in your attempt to find which crypto will explode in 2021. Market Cap A good starting point is to look at the project’s current market capitalization. The reason for this is that cryptocurrencies with a smaller valuation have a much better chance of generating above-average gains. For example, with Bitcoin recently surpassed a market capitalization of $1 trillion – there is only so much bigger that the project can get. At the other end of the scale, the token XYO holds a valuation of just $75 million at the time of writing. This means that if it is to surpass the $1 billion mark like many other projects, it would require an upside of over 1,200%. Recent Performance It goes without saying that whenever you consider a new investment project – you should always spend some time exploring the asset’s past performance. As such, when attempting to evaluate which cryptocurrency will explode in 2021, you’ll need to perform a little bit of analysis. The most important thing is to try and assess where market sentiment is on the project. For example, if the cryptocurrency has been on a steady upward swing in relation to the wider market, this could be a good sign of even better things to come. Reddit Another good way of identifying the next big cryptocurrency coin is to spend some time on the Reddit forum. In doing so, you will be side-by-side with millions of cryptocurrency investors, traders, speculators, and all-round proponents. Ultimately, if the general consensus on an up-and-coming digital token is positive, then you’ll likely hear about it on Reddit. ICOs and IEO Perhaps one of the most effective ways of investing in a cryptocurrency is to do when it is first launched. In order to do this, you might consider investing in an ICO (Initial Coin Offering) or an IEO (Initial Exchange Offering). Both of the aforementioned terms operate much like a conventional stock market IPO (Initial Public Offering). That is to say, both ICOs and IEOs allow you to purchase a cryptocurrency right at the very start of its blockchain journey. In many cases, this will allow you to invest in the token at a much more favorable price. As a prime example, we mentioned earlier that Binance initiated its ICO in 2017 at a price of $0.15 per token. At the time of writing, the coin is worth a staggering 238,000% more at $358. How to Buy Exploding Cryptos on eToro If you have selected a cryptocurrency that you think has the potential to generate above-average returns, we are now going to show you how to complete the investment with regulated broker eToro. Step 1: Open a Crypto Investment Account To get the ball rolling, you will need to open an account with eToro – which should only take you a few minutes. This will require you to enter your personal information and contact details. You will also need to quickly bypass an automated KYC (Know Your Customer) process – which again, should only take a few minutes to complete. This simply requires you to upload a clear copy of your passport or driver’s license, alongside a proof of address (utility bill, bank statement, etc.). Step 2: Deposit Funds eToro supports deposits in the form of a debit/credit card, bank transfer, and e-wallets like Paypal. The minimum is $200 in most countries and just $50 for those based in the US. Step 3: Search for Crypto Assuming you already know which cryptocurrency you want to buy – enter it into the search box. As you can see from our example image below, we are searching for UniSwap. If you need a bit of inspiration, you can click on ‘Trade Markets’ from the left side of the page. This will allow you to view the list of digital currencies supported by eToro. Step 4: Buy Crypto Once you click on the ‘Trade’ button, an order box will appear. All you need to do here is enter the amount you wish to invest. This is the amount in US dollars and not the specific number of cryptocurrency tokens. Finally, click on ‘Open Trade’ to compile your investment. The digital tokens will then be added to your eToro web wallet! Next cryptocurrency to Explode in 2021 – The Verdict With a number of digital coins returning gains in the tens of thousands of percentage points over the past 12 months – interest in this investment sector has never been stronger. To help you along the way, this guide has discussed some of the potential crypto coins that are poised to explode in 2021. The most important thing is that you perform lots of research before risking any money. Once you know which coin you wish to buy, you’ll need a top-rated crypto broker on your side. We found that eToro is the best platform in the space for this purpose. The provider is heavily regulated, offers lots of cryptocurrency markets, and charges super low fees. eToro – Buy the Best Rising Cryptos Visit eToro Now 67% of retail investors lose money trading CFDs at this site FAQs What cryptos will explode in 2021? Even if you’re new to the world of cryptocurrencies, you will likely know that this investment scene is super volatile and speculative. As such, there is no sure-fire way to know which crypto will explode in 2021. This guide has discussed the potential of projects like UniSwap (UNI), Defi Coin (DEFC), Aave (AAVE), and Yearn.Finance (YFI) – albeit, you are advised to perform your own research. What cheap crypto will explode in 2021? If you’re searching for an up-and-coming digital currency that is priced cheaply, you might want to consider looking into the BitTorrent token. At the time of writing, you will pay just $0.003 for a single token. This means that an investment of just $25 would get you over 33,000 BitTorrent tokens – which is huge! What is the best cryptocurrency to buy right now? Although the upside potential is nowhere near what it used to be, Bitcoin is still the de-facto market leader in the cryptocurrency scene. Acting as both a store of value and medium exchange, Bitcoin is perceived by most market commentators as the number one digital currency of choice. Is Dogecoin (DOGE) going to explode? In May 2021, Dogecoin was looking at year-to-date gains of over 1,600%. This was super-impressive for just five months of trading. However, Dogecoin has since dropped down to the $0.33 level – meaning that it has more than halved in value in a matter of weeks. Ultimately, like many cryptocurrencies, Dogecoin investments are largely driven by FOMO (Fear of Missing Out) and wider market speculation. In fact, much of its recent price action has been driven by Tesla CEO Elon Musk. How much do you need to invest in cryptocurrencies? This depends on which platform you decide to invest through. Crucially, this is why we like eToro, as the minimum investment amount per crypto trade is just $25. As such, you can speculate on your chosen digital currency in a sensible manner by not risking too much money. Kane Pepi Kane Pepi Kane is a British researcher and highly skilled writer with a special interest in finance, financial crime, and blockchain technology. Kane writes for a large number of top financial websites. In particular, Kane is an expert at defining complex financial subjects in a user-friendly way. Additionally, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and is currently completing a Doctorate Degree researching the money laundering threats of the blockchain economy. You will also find Kane’s work at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers. 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