2021 has definitely been the best year for cryptocurrencies. The bull run, which started in December 2020, has been super strong and is continuing to keep up the pace thanks to a lot of good news like institutional investments (Tesla, PayPal, GrayScale etc), mainstream interest (lots of VIPs are buying bitcoin) and so on.
However, times have changed now compared to the 2017 bull run so the tokens that are now making waves are completely different from the tokens of that era. This bull run can be described as being better since so many projects have been active for a long time now and are making significant profits. 2017 was doomed as all it took was a nice website and a whitepaper to raise $20-30 million in ICO stage. Now the products are ready and well established, so I doubt we will see dumps like the one seen in January 2018.
The types of tokens to hold in 2021
DEX tokens: Governance tokens from the various decentralized exchanges are soaring, thanks to the very strong interest in DEXs. These include the UNI token from Uniswap, the 1Inch token from 1inch.exchange, the BAL token from Balancer, the DODO token from Dodo exchange, the MCB token from MCDEX and so on. DEXs are currently making very important volumes and will surely increase dramatically in the coming months, also increasing the value of their tokens. Simply go to CoinGecko to find the whole list of DEXs and their tokens. Very important for a successful portfolio in 2021!
DeFi tokens: DEX tokens fall into the DeFi category but there are many other interesting DeFi tokens, i.e. protocol tokens that allow for lending, borrowing, yield farming, staking and so on. In this category, there is AAVE from Aave, SNX from Synthetix, MKR from MakerDao, COMP from Compound, YFI from yearn finance, PNT from pNetwork, REN from Ren Protocol and so on. The list is a long one, with newcomers performing spectacularly. It is enough to consider IDLE, which has gone from $0.70 to $24 or ALPHA, which has gone up about 100 times.
Polkadot tokens: Thanks to the very strong growth of the Polkadot ecosystem and the price of their DOT governance token, many projects based on this chain are seeing their value increase day by day. These include REEF from Reef.Finance, PAID from Paid Network, BMI from Bridge Mutual, ROOM from Option Room and so on. Most of these tokens come from Polkastarter (POLS tokens) so we recommend visiting the site to keep an eye on all the new IDOs.
CEX tokens: Like the DEX tokens, the various CEX tokens are also performing very well. Simply look at BNB, the token from Binance. Its rise has been meteoric and others are sure to follow due to increasing volumes.
NFTs: Non Fungible Tokens are becoming increasingly popular on a daily basis, so they are a must in any self-respecting portfolio. Among the most awaited are the SUPER tokens of SuperFarm (by EllioTrades), the token of OpenSea (which we hope will arrive this year) and many others. Among those already active are Rari from Rarible, NFTX etc.
Tokens of fast and low fee blockchains: Ethereum is heavily used as a blockchain so fees are crazy lately. This is why we are seeing very good performance in alternative blockchains like NANO, AVAX, TRX etc. With a quick search on CoinMarketCap or CoinGecko it is possible to find many tokens of this kind. They are actually called COINs.