Top Stocks 2021: If You Only Buy One Crypto, It Better Be Dogecoin

12 May 2021

in XRP

Reading Time: 4 mins read

Editor’s Note: This article is a part of our “If You Only Buy One Stock” series where we look at 2021’s most popular investing trends and have our top financial journalists make their very best pick. Click here to see more names for your must-buy list.

There’s no question that cryptocurrency is a hot topic among today’s investors. You’ll even hear about cryptos on television news programs and in water-cooler conversations at work.

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This was unimaginable just a few years ago, but the world is really starting to take a shine to digital assets. Perhaps it’s because cryptocurrencies offer investors the possibility of 2x, 3x or even 5x returns or more.

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I certainly wouldn’t recommend pouring all of your capital into one particular cryptocurrency. However, a small position in one particular crypto token can add firepower to your portfolio.

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Which one deserves the top spot in your cryptocurrency holdings? One unexpectedly popular coin in 2021 deserves your attention – and perhaps even a moderately sized investment, if you’re ready to make a move.

3 Big Players in Cryptocurrency

There are many cryptocurrencies circulating in the markets today. However, a handful of them have grabbed the lion’s share of the market’s attention.

I like to call Bitcoin (CCC:BTC-USD) the “mother ship” of cryptocurrencies because its was the first one and it’s the most famous today. Legend has it that this token was invented by the mysterious Satoshi Nakamoto back in 2008.

Bitcoin is easily the number-one cryptocurrency in terms of market capitalization. In fact, the market cap of BTC is over $1 trillion now. Some folks like the fact that only 21 million Bitcoins will ever be produced, so it’s sometimes considered to be a good hedge against the inflation of the U.S. dollar.

The second most famous cryptocurrency, Ethereum (CCC:ETH-USD), has less than a third of Bitcoin’s market cap. Still, there’s an advantage to this token, as many other digital tokens are designed and built on the Ethereum network.

An investment in ETH is a bet on the infrastructure that the Ethereum blockchain provides. From smart contracts to decentralized applications, a number of tech innovations are being advanced on the Ethereum network – but of course, you don’t have to be a tech guru to profit from a long position in the token.

It’s considered the favorite of bankers, but Ripple (CCC:XRP-USD) offers benefits that individual users can enjoy as well. Most notably, Ripple is known for facilitating convenient and cost-effective international transactions across multiple currencies.

Reportedly, the average transaction time for Ripple is just four seconds. That’s quicker than what you’ll probably experience with Bitcoin and Ethreum transactions. So, as a wager on a token representing a highly efficient global payment ecosystem, XRP is worth considering.

Dogecoin Is the Underdog

Last but certainly not least is the “little engine that could” in the world of cryptocurrencies: Dogecoin (CCC:DOGE-USD). This started out as a joke or meme coin, but DOGE is being taken very seriously in 2021 as it recently became the seventh biggest cryptocurrency by market cap.

Folks on social media platforms like Reddit seem to like Dogecoin, as they tend to view it as the underdog of crypto coins.

The Shiba Inu dog on the DOGE token seems to represent a culture of humor. Yet, there’s nothing funny about the price action of this up-and-coming asset.

At the beginning of this year, Dogecoin wasn’t even valued at a full penny. Recently, it almost breached 50 cents.

Could a full dollar be in DOGE’s future? It certainly could, especially with fans like Elon Musk. Famously, Musk tweeted that “SpaceX is going to put a literal Dogecoin on the literal moon.”

Dogecoin might not have the market cap of Bitcoin (yet) or the fancy tech aspects of Ethereum. Yet, there’s a laggard-becomes-a-leader story here that’s hard to resist for bold, open-minded investors.

The Bottom Line

It’s perfectly okay to have many dogs in the race (pun fully intended). However, I would pick Dogecoin as the number-one cryptocurrency pick to keep in your portfolio today.

Sure, you’ll have Musk on your side, but there’s more to the story than that. Most importantly, DOGE has momentum in 2021 that’s powered by the people – and that’s how it ought to be in the world of crypto.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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