It’s been another crazy year for cryptocurrency as digital assets have been riding high. All of the eyeballs on the market have led to some wild gains and some new fan favourite tokens.
Here’s a breakdown of this year’s most popular cryptocurrencies along with the coins that have seen the biggest gains so far in 2021.
What are the most popular cryptocurrency tokens in 2021?
According to the experts over at BrokerChooser, these are the coins that have seen the biggest spikes in popularity this year based on Google search volume:
|Position||Token||September 2020 searches||September 2021 searches||Increase|
|1||SHIBA INU (SHIB)||70||1,500,000||2142757%|
Which cryptocurrency assets have seen the biggest gains?
With any investment, it’s always vital to remember that past performance doesn’t dictate future results. However, the meteoric rise of some cryptocurrencies is a sight to behold and downright ludicrous in some instances!
But it’s still interesting to see what’s been booming. So here are the digital tokens that have been ‘mooning’ in 2021:
|Position||Token||September 2020||September 2021||Year-on-year difference %|
|1||SHIBA INU (SHIB)||$0.0000000003||$0.0000072||2399900%|
|7||Binance Coin (BNB)||$24.69||$488.60||1879%|
Do these choices tell us anything about the digital asset market?
To be perfectly honest, I thought it would be impossible for meme coin hype to strike twice and for another token to usurp Dogecoin (DOGE) as king of the ridiculous.
But it seems that’s exactly what happened with the rise of SHIBA INU (SHIB), another dog-related crypto token. I suppose it makes sense that the biggest gainer of the year is also the greatest riser in terms of popularity.
However, much of the investment thesis behind the whole cryptocurrency movement gets thrown out of the window when it comes to meme coins. I don’t even think you could call it speculative investing. But perhaps I’m just bitter because I didn’t jump on the bandwagon and steered well clear of these projects!
Why should investors be wary when dealing with cryptocurrency?
Some people will occasionally make money with questionable and risky investments. But shooting for thousand-per cent gains will result in disappointment most of the time.
Any asset that has the ability to rocket in value can also drop just as quickly. The crypto industry is still in its infancy and has no proper regulation right now. There are also a lot of scammers in the space, giving digital assets a bad name.
So investors have to tread extremely carefully to navigate the many risks and potential pitfalls.
Are there any safer ways to invest outside of crypto?
If you can handle the absurd volatility of cryptocurrency, the stock market is a breeze in comparison. A 40% drop in stocks is a once in a generation event. In cryptocurrency, we see declines like this a handful of times each year!
The good news is that you have the opportunity to invest in the space without betting on individual tokens. By investing in companies like exchanges, mining facilities and graphic card makers, you can be the person owning the shovels during the gold rush instead of taking on all the risk and digging for gold.
Using a share dealing account, you can invest in stocks and companies that create value and make money. What’s even better is that you can protect your gains from tax by using a stocks and shares ISA. You can’t do this with cryptocurrencies.
All investing carries risk, but it’s wise to take extra care around cryptocurrency. With this volatile asset, you might not just get less out than you put in, you might lose everything.
Investing in Cryptocurrency is extremely high risk and complex. The Motley Fool has provided this article for the sole purpose of education and not to help you decide whether or not to invest in Cryptocurrency. Should you decide to invest in Cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.
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