Cryptocurrency is digital money that does not fall under any central institution like the government. It’s based on blockchain technology, where Bitcoin is the most prominent one. With the traction gain of digital money, more than five thousand cryptocurrencies are available in the market. Picking up the best cryptocurrency to invest in 2021 is a difficult task because of the large volume of coins available in market.
Selecting the best cryptocurrency depends upon your priorities. Cryptocurrencies are known for long-term investments, but you can also purchase through them.
How to Invest in Cryptocurrency?
No doubt cryptocurrencies are high rewarding investments, but you need to bear risks. They are volatile, and stocks have experienced $100 price swings. If you can bear up and downs, crypto is the best place to invest. On the other hand, investing in cryptocurrency is full of risks if you don’t know how to invest in cryptocurrency.
At the start of your journey, you should invest a smaller part of your income ranging from 5% to 10% in cryptocurrencies. Try to invest in a reliable and stable cryptocurrency that minimizes risks. This article will help you to know about the best cryptocurrencies to invest in 2021. Last but not least, must explore stable, reliable platforms to buy and sell crypto coins.
Best Cryptocurrencies in 2021
Bitcoin is the first application of blockchain technology and has become the most popular and valuable cryptocurrency. It is easier to determine its dominance with a market price of about $57,566.38, a market cap of $1.075 trillion, and a Volume of $46,774,065,150, much higher than its competitors. Even thousands of cryptocurrencies are in the market; bitcoin still possess 40% of market volume. Many businesses are accepting bitcoin payments that make the best currency to invest in 2021. The main reasons to invest in bitcoin are transparency, stability, and wider support that it provides.
Ethereum is known as a currency of the computer world. It is not only a cryptocurrency, but a network that authorizes developers to build their cryptocurrency using the Ethereum network. Ethereum is far behind bitcoin, having a price of $1,811.82 and a market cap of $209.464 billion, but it has achieved its place in the market. Ethereum was introduced in the market in 2015, but it has won the competition because of its unique technology. Ether is included in the list of best cryptocurrencies to invest in 2021 because of its versatile nature and community.
Binance Coin evolved in the market in 2017. Initially, it was developed upon Ethereum before it becomes a stable currency. It continued slow but consistent growth since 2017, and its performance Binance Coin is one of the stable investment options. It possesses a value of $273.38 while a market cap of $42.304 billion.
Tether is backed by the US dollar that makes it the most stable cryptocurrency. It makes the best crypto investment option for investors who want to transact in cryptocurrency. Moreover, it is the best currency for payment. On the other side, its price is 1$ while it has a market cap of up to $40.632 billion.
Ripple is a company that owns XRP token that offers international transaction. The offer to transact globally is enticing people toward it. Banking transfer can take several days, but ripple makes the transaction in few seconds. XRP’s current value is around 1.36$ while the market cap is $24.598 billion. Ripple has contracted with international banks to make it an accessible cryptocurrency.
Litecoin made an entry into the market in 2011 just after Bitcoin. It does not make such an impact as bitcoin. It is known for high transaction speeds as it completes transactions four times faster than Bitcoin. In 2017, Litecoin became the first cryptocurrency to complete a lightning transaction network. Its present value is about $192.88, and its market cap around $13.038 billion. The speedy transaction and being a reliable currency for years make Litecoin the best cryptocurrency to invest in 2021.
The appealing price of Chainlink makes it prominent among currencies. With affordable prices and a lot of room for growth, it has been the center of investors’ attention for the past few years. Its current value is $28.06, while it occupies a market cap of $11.689 billion. Another interesting fact that attracts more investors is its presence on Coinbase, one of the largest cryptocurrency platforms.
OptimusFox, as a superior in the blockchain industry, advises you to determine transaction speed and fees. Never forget to explore either you can use your cryptocurrency for bank transfers and purchasing or not. Cryptocurrency does not make you rich overnight; take it as a long-term investment.