5 Best Cryptocurrency To Invest in 2021 – Revealed For Long Term and Short Term
Which Cryptocurrency Should I invest in in 2021?
Cryptocurrency is decentralized digital money built on blockchain technology. And it is not regulated by the government. Currently, there are more than 5,000 cryptocurrencies on the market. That is why I want to reveal the 5 best cryptocurrencies to invest in 2021. While some people focus on long-term investment, most traders go for long-term investment. Investing in cryptocurrency can be risky. However, a good rule of thumb for a newbie trying to buy crypto is never to spend more than you can afford to lose. Crypto is highly volatile with high price swings. Hence one must trade or invest in crypto with caution.
Factors To Consider Before Investing or Buying Crypto
Below are crucial factors to take note of before investing or buying crypto.
- Historica Data: It is important to know how long the coin or token has been around.
- What Type of Technology Is It Built Upon: Most cryptos are built on blockchain. Blockchain offers a transparent system that allows you to track all transactions.
- Rate of Adoption: The more people buy a coin, the more liquidity, which is safe.
- Speed: You must look out for cryptos with high-speed transfers plus fast transaction time. This is very important!
Watch out for the top 5 best cryptocurrencies to consider investing in 2021.
1. Bitcoin (BTC)
Bitcoin is the most well-known and the first kind of crypto in the world. When it comes to retail adoption, Bitcoin reigns supreme, outperforming all other cryptocurrencies in terms of payment acceptance. Investing in bitcoin comes With risks.
Bitcoin’s value is notoriously volatile. During any given month, the price could fluctuate by thousands of dollars. If you’re worried about crazy swings like these, you may want to stay away from Bitcoin. Otherwise, these fluctuations should not be too worrying as long as you remember that cryptocurrency is a sound long-term investment.
2. Ethereum (ETH)
Since its inception in 2015, Ethereum has seen huge gains. Ethereum is one of the world’s most talked-about cryptocurrency projects. It also a network that allows developers to build their cryptocurrency using the Ethereum network/chain. Microsoft, Intel, Chase, and J.P. Morgan, are among the group of companies working on business-ready versions of the Ethereum software.
3. Binance Coin (BNB)
Binance Coin has demonstrated to remain one of the major stable investment alternatives, posing fewer risks. Binance is also a crypto-to-crypto exchange that launched in Hong Kong in 2017. After a few years, Binance became one of the most well-known and widely used cryptocurrency exchanges on the planet.
4. Ripple (XRP)
Ripple was released in 2012. It was co-founded by Chris Larsen and Jed McCaleb. Why I like ripple is it uses less energy than bitcoin during transactions. And the confirmation process is swift. Ripple is a peer-to-peer decentralized open-source network that allows for the seamless transfer of money in any form, like USD, Yen, Euros, and cryptocurrencies such as litecoin and bitcoin.
Ripple defines itself as a multinational payments network on its website, with major banks and financial services among its clients. Unlike several cryptocurrencies, ripple is being used in the real world today, with signs of potential acceptance in the financial sector community. In 2017, the value of ripple increased by over 36,000 percent, but comparable increments are unlikely in the future.
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5. Litecoin (LTC)
Litecoin was first introduced to the market in 2011 at the same time as Bitcoin. It did not, however, take off in the same way. Litecoin claims to be four times swifter than Bitcoin at completing transactions. It was the first cryptocurrency to successfully complete a Lightning Network transaction in 2017. The transition took less than a second to complete. Litecoin’s value could skyrocket if the business extends its use of the Lightning Network for faster transactions. Since Litecoin and other cryptocurrencies are closely linked to Bitcoin, their value would fluctuate in lockstep with Bitcoin’s. Thus, the value can fluctuate in the same way that Bitcoin does, but at a slower pace. If you find Bitcoin’s instability to be a drawback, Litecoin may not be the best option for you.
Cryptocurrencies are here to stay, no doubt about that. The question then becomes, where is the best place in the market to invest your money?
Here are some other items to consider when you determine the cryptocurrency is the right investment for you:
- the pace at which transactions are completed,
- transaction fees, and
- the ability to use your cryptocurrency for everyday purchases and bank transfers.