Crypto is the most volatile asset that you can own these days where the market goes from 0 to 100 in a matter of minutes. And quite frankly, it comes down even faster.
But does that stop people from investing in it? No way. The crypto market cap just crossed $2 trillion and is increasing day by day. That amount is much more than the GDP of many countries in the world. Moreover, the possibility of huge gains attracts a majority of people as they see coins going from $1 to $10 in no time.
If the positive results are also attracting you and you want to be a part of this insanely growing market, you will need to identify the right horse to bet. Moreover, you will need a good internet connection such as a fiber connection from CenturyLink internet so that you can keep a track of values in real-time.
As of today, there are 4749 cryptocurrencies currently registered on CoinMarketCap in the form of coins and tokens. If you want to make huge profits, you need to find the ones that have the potential to grow. That takes a lot of research and effort.
But if you don’t want to spend your time going over charts and trends, here are some of the best cryptocurrencies to invest in 2021.
Whether you have known about crypto for some time or you are completely new to this market, Bitcoin is a name you must have heard several times. It is the first and the most famous cryptocurrency that has a market cap of over $1 Trillion alone.
It was first introduced as a peer-to-peer digital cash system back in 2008. But at that time, most of the people (even me) thought of it as a Ponzi scheme. But over time, the value of one coin has gone up literally from cents to $60K.
From an investment point of view, the experts have contradicting opinions about Bitcoin. Some say that there are better returns in other coins while others claim that the current value is nothing and it is going to do far better than this. But since the Bitcoin circulation supply has reached 89%, there are better chances that the growth trend will be bullish (positive).
Binance Coin (BNB)
Binance Coin which is popular by its code name BNB is a cryptocurrency created and backed by the famous Binance crypto exchange. This token was initially launched on ERC-20 which is Ethereum’s blockchain. Later on, it was moved from that to its own Binance blockchain.
One of the biggest reasons why people consider BNB a good investment is because it is backed by Binance. Binance is the world’s leading crypto exchange that has an average daily trading volume of billions. Moreover, those who use BNB to make the payments on Binance are offered a 25% discount.
As of April 2021, BNB has a market cap of $77.5 billion, making it the 3rd largest cryptocurrency in the world. Furthermore, the price has touched the maximum of $638.5. So if you ask me, BNB is worth it in both the short-term and long-term.
Ethereum is the second-largest cryptocurrency in the world that has a market cap of about $250 billion. It is the first crypto to bring the concept of smart contracts in the decentralized blockchain, making the transactions more secure and free of fraud.
In this year, Ethereum plans to change its algorithm to proof of stake to make transactions much faster and consume less energy. Those who will stake Ether will receive rewards similar to having an interest account.
Due to its real-world applications and goal to create decentralized financial products, Ethereum is thought to be a great investment. However, some experts believe that Cardano (a rival currency) has much more potential and will kill Ethereum in the long run.
With Ouroboros proof of stake protocols, the Cardano blockchain was created after extensive research and experiments. Although the model used for creating Cardano was derived from Ethereum, it is thought to have much more potential and practical implications.
At the moment, Cardano is in its early stages where it is working to introduce smart contracts by the end of this year. The goal for Cardano is to establish decentralized financial products and make it the financial operating system of the world.
As of April 2021, one ADA is worth $1.2 while it touched the ATH (all-time-high) of $1.558 this week before the bearish trend (downwards trend) in the overall market. Moreover, this price is expected to cross $2 as the smart contracts are on its way and the market is shifting its focus towards Cardano.
If this is your first time in the crypto market, remember the very basic rule “Only invest the amount that you can afford to lose”.
Moreover, don’t take every suggestion to heart as this is not a piece of financial advice. Crypto is a high-risk market where huge swings are common. So, invest with caution and do your research as per current market trends before spending even a single penny.