Best cryptocurrency to invest in 2021
Price is what you pay, Value is what you get – Warren Buffet
Despite the global pandemic chaos on all the world’s significant economies, the cryptocurrency industry has continued to boom and show monstrous growth.
The crypto market is expected to grow at a CAGR of 7.1 percent from USD 1.6 billion in 2021 to USD 2.2 billion by 2026. The main factors driving the growth of the cryptocurrency market are transparency or distributed ledger technology and an increase in venture capital investments.
What is a cryptocurrency?
Cryptocurrency is a decentralized digital money based on blockchain technology that can be exchanged online for goods and services.
Why is there a sudden rise in cryptocurrency investment?
One can see a massive rise in investments in cryptocurrency like Bitcoin in the year 2020-2021. Here are the reasons for the same:
1) Growing inflation in US Dollar
The inflation in the US economy is on an average of 2% every year. To protect themselves from the rising inflation, many people have abandoned the dollar in favour of assets like precious metals & less volatile stocks.
2) Adoption as an alternative mode of payment
More & more companies are adopting cryptocurrency as a payment method. Bitcoin is being used for payment by global companies like Microsoft, PayPal, Wikipedia, AT&T and more.
3) Rising Production costs
Another explanation for Bitcoin’s growth is that as the mining network expands in size, so does the difficulty in mining, raising the marginal cost of producing bitcoin. Bitcoin mining consumes a lot of electricity, which has an actual price that miners must pay in their local currency.
4) Institutional Investment
Publicly traded companies like MicroStrategy, Square, Galaxy Digital Holdings have converted cash in their treasuries over to Bitcoin as a sounder store-of-value.
If you are attempting to jump on the cryptocurrency trend, you are not alone. It’s hard to ignore returns like this as many investors try to purchase cryptocurrencies in bulk to grow money overnight.
Here are the best cryptocurrencies to invest in 2021 from a diverse range of global cryptocurrencies.
1) Bitcoin
Fig: Bitcoin Price in last 1 year (Source: CoinMarketCap)
There are reasons why Bitcoin is called the “king of cryptos” even after 12 years of launch in the world market.
Bitcoin is the world’s biggest crypto asset, with more than USD 1 Trillion in market capitalization accounting for 46% of the cryptocurrency market cap. It has become the most valuable and widely owned of the thousands of cryptocurrencies that have been created. Its value and popularity have risen steadily, though with ups and downs.
Many businesses have accepted Bitcoin as a payment alternative for different products and services like Microsoft, Wikipedia, Namecheap, BMW, and many others.
Click here to get an exhaustive list of companies accepting Bitcoins.
Is investment in Bitcoin risky?
Bitcoin value is not stable and fluctuates a lot due to several reasons like regulatory concerns in the global markets, investors diverting their investments to precious metals, China’s big crypto crackdown, announcements & sudden U-Turn from celebrity investors like Elon Musk, costly mining of Bitcoin and a lot more things. Musk cited the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions” as the reason for Tesla’s decision to drop Bitcoin from its payment lineup.
Another reason to reconsider investing in Bitcoin is its ultra-premium price. At the time of writing this article, Bitcoin was trending at USD 38,153
You can check the live price of Bitcoin here.
2) Ethereum
Fig: Ethereum Price in last 1 year (Source: CoinMarketCap)
Lolli’s CEO, Alex Adelman, described Ethereum as saying: “Talking about Bitcoin and Ethereum is a bit like comparing gold with electricity. Both are useful but have very different applications. Ethereum is a blockchain in the early days but has great potential to revolutionize finance and technology.”
In April 2021, the Ethereum market cap grew to a whopping USD 250 Billion, the highest since its creation in 2015.
Ethereum is a community-built technology that powers the cryptocurrency ether (ETH) and thousands of applications available today. This technology allows you to send cryptocurrency to everyone for a small fee, allowing you to power an application that anyone can use, and no one can take down.
In simple terms, it’s the world’s programmable blockchain which means the scope of Ethereum is far more than payments. It’s a marketplace of games, app, and financial services that can’t steal your data or censor you.
Why do investors love Ethereum?
The platform is evolving to adapt to the current needs. If you invest in Ether, then you are making investments in the future of its blockchain platform.
Check out the live price of Ethereum here.
3) Binance
Fig: Binance Price in last 1 year (Source: CoinMarketCap)
Binance is the third most valuable cryptocurrency globally, with a market capitalization of USD 100 Billion.
Binance coin is traded with the BNB symbol and was initially based on the Ethereum network, but now it is native to the Binance exchange and the Binance Smart Chain, the ecosystem developed by the company.
Binance Coin serves two primary functions: 1) as a “discount token” for Binance Exchange payments, and 2) as fuel for the Binance Smart Chain.
Why is Binance rising?
BNB started going up in Feb 2021 due to Binance Smart Chain (BSC) because it was cheaper to work on Binance than on the Ethereum network. So, it became a viable alternative, and many projects rolled over using the Binance platform.
In short, the more projects are on the BSC, the more BNB is in use, increasing demand and shooting its price.
Different types of exchange fees can be paid with BNB, including transaction fees, voting fees for new tokens, commissions, and fees for launching new instruments.
Another appealing aspect of investing in BNB is getting a 25% discount on the Binance Exchange. A Binance coin is like a discount coupon which is a clever way to keep traders coming back to the platform.
You can check the live price of Binance here.
4) Cardano
Fig: Cardano Price in last 1 year (Source: CoinMarketCap)
Cardano (ADA) is a blockchain platform that aims to help people work together, trust each other, and build global solutions to global problems.
Cardano’s goal is to solve scalability, interoperability, and sustainability issues on cryptocurrency platforms like bitcoin.
The first issue is network slowdown and increased fees as transaction volumes increase. Cardano’s algorithm Ouroboros has been proposed as a possible solution to its scaling issues.
Why is Cardano (ADA) going up?
The rise in the Value of the ADA coin is thought to be due to its sustainability, consuming only 6 GWh of power. Crypto experts predict that ADA will reach USD 10 by the end of 2021
Cardano can be used for executing smart contracts. Cardano’s management has stated that the blockchain will process millions of transactions per second in the future, which is an unprecedented level of scalability.
Cardano’s platform will be used on a private and public level. It is likely to see a lot of use by private companies because its use of digital signatures and ease of building Smart Contracts will endear it to private investors.
You can check the live price of Cardano here.
5) Dogecoin
Fig: Dogecoin Price in last 1 year (Source: CoinMarketCap)
Dogecoin mania has hit the world, and the price has soared to a record high in 2021. The face of Dogecoin was the dog Shiba Inu, who became famous as the DOGE meme. It became a ‘meme cryptocurrency.’
In the cryptocurrency world, Dogecoin has an almost cult-like status. Celebrities, such as Elon Musk, have also supported and joked about Dogecoin leading to huge fluctuation in its price.
Above all, DOGE aided in raising awareness among millions of people worldwide about the Value and significance of blockchain technology and cryptocurrency. That’s the reason, Dogecoin is now one of the most popular cryptocurrencies.
How can I buy Dogecoin?
Dogecoin is available for buying and selling on the eToro marketplace.
You can check the live price of Dogecoin here.
Conclusion
If you are looking for investment in the best cryptocurrency in 2021, you can trade in these suggested cryptocurrencies. But before that, you should know how crypto trading works and what factors are responsible for its price sensitiveness, along with the trading regulations in your country.
Reach out for a free consultation if you want to connect with trusted, world-class companies to build Crypto Exchange or Crypto Wallet apps for your ambitious projects.
