10 crypto coins that gave the highest returns in 2021

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Investors invest in the hope of making good returns. But among the various asset classes available today, cryptocurrencies, which have a market capitalization of around $ 2.2 trillion, have become one of the fastest and most volatile in 2021. According to one estimate ( investopedia.com), there are over 8,000 of them. Existing cryptocurrencies as of December 2021. The asset class also has a high number of investors – over 300 million crypto users worldwide, according to Singapore-based crypto news provider platform triple-a.io.

“The year 2021 has been a wild race for the cryptocurrency specter. We have seen many tokens make unfathomable gains and a huge number of tokens go bankrupt, ”said Edul Patel, CEO and co-founder of Mudrex, a global algorithm-based crypto investment platform.

Highest returns

There are different ways to look at returns, and especially for a volatile asset like cryptocurrencies, where prices fluctuate wildly, calculating returns can be complicated. “If you consider the point-to-point benefits of investing in crypto assets, you will notice astronomical returns on occasion,” says Ajeet Khurana, advisor and investor in the crypto project.

Astronomical returns are a fact. In 2021, the Ethereum-based cryptocurrency’s Gala (GALA) gave the highest returns, over 32,000 percent, among the top 100 cryptocurrencies on coinmarketcap.com. Axie Infinity (AXS) came in second with 18,000 percent, while The Sandbox (SAND) gained 16,000 percent. Terra (LUNA), Polygon (MATIC), Solana (SOL), Fantom (FTM), Kadena (KDA), Harmony (ONE) and Decentraland (MANA) gave yields between 4,000 and 15,000 percent (source de data: Giottus cryptocurrency exchange).

What does this mean for investors? Let’s say an investor bought Tether (USDT) for $ 1,000 on January 1, 2021. Tether is a stablecoin backed by an equivalent amount in US dollars. In a month, on February 1, with Gala, the value would have been $ 2,131, while on March 1, it would be much higher at $ 20,180. But on April 1, the value would be reduced to $ 17,996. The slide would have continued until May, June and July. In August, things should improve again and the rise is said to have continued at a breakneck pace. On December 29, the investor would have seen his $ 1,000 in Gala crypto become $ 326,699.

Check out both tables for an overview of the monthly returns of the top 10 cryptos by yield and also how $ 1,000 in USDT would have been invested in those 10 coins on January 1, 2021 (data source: Giottus Cryptocurrency Exchange).

The returns are phenomenal, but that’s not the whole story. Coin prices fluctuate wildly and the timing of the exit will determine the actual returns.

“I have noticed that many traders try to synchronize the market by making frequent buying and selling. In doing so, they often lose a lot of money, even in a growing market, ”says Khurana.

Is there a future?

Just because a coin has given astronomical returns in 2021 does not mean that it will do the same for 2022. None of them may be in contention next year.

“Investors should keep in mind that the industry is new and we don’t know which technology or company will take the lead. Today Ethereum may be the leader, but Solana and others are on the rise. . It could also be that none of them does. Exist or lead (in the future). Another actor could emerge. All or someone could become the next Google or Microsoft of the Web revolution 3 and those who are the first investors at this point will be the next generation of billionaires, ”says Kumar Gaurav, founder and CEO of Cashaa, a crypto-banking platform.

Stay mainstream

According to various reports, around 15 million Indian retail investors have placed bets on digital tokens, with an investment of around $ 6.6 billion. About 90 percent of domestic retail investors were added in 2021 alone, according to media reports.

Much of the buzz is around the very parts. “The meme token frenzy will likely prevail throughout the coming year,” Patel said. However, experts caution against investing in even coins despite the high returns, as they are extremely unpredictable. “Unless an investor has the ability to engage with the grassroots communities of various projects and get a sense of where the technology is going, it is best to stay in the mainstream and in the a few more important tokens such as Bitcoin and Ethereum, “advises Khurana. .

However, even mainstream cryptos are very volatile. One of the ways to absorb this is to invest for the long term. “This is the only way to resist volatility,” says Khurana.

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