Some people think that investing in cryptocurrency is something of a fantasy. Others use it as a profitable source of income. While some are thinking about which cryptocurrency to buy, someone is actively investing and hitching their jackpot. In this article, we’ll highlight the most effective ways to invest in digital assets. Besides, you will learn how risky such investments are, what results can be expected from them, and the best cryptocurrency to invest in now. How to choose cryptocurrency to invest in 2021? If you once decide to invest in cryptocurrency, then, first of all, you should choose what you will buy. Of course, you need to know the basics of blockchain technology, create crypto wallets, and correctly execute transactions. But still, the main thing is to determine that this is the best coin and it will eventually be possible to sell it at a higher price. To the question: “What cryptocurrency to invest in?” there is no single answer. Before investing money, analyze the market and the prospects of some projects. Pay attention to the following indicators: The popularity of the project in the blockchain community. If the trading ticker of this crypto coin can be found on most major exchanges and news related to its peer-to-peer network is published by reputable blockchain publications, then this means that it is one of the most promising cryptocurrencies. The tokens of this network are easy to sell, and you will not bear the losses in any case.The convenience of movement. Reputable blockchain startups release several types of wallets; besides, their coins are supported by many third-party multicurrency storage companies. Having a reliable cryptocurrency wallet (ideally a hardware wallet) is very important for an investor.Safety. With this in mind, it becomes clear that a promising network must be well protected from hackers. The best cryptocurrency needs to have a fairly strong network to minimize a 51% attack chance. Suppose you chose the project with an alternative consensus algorithm. In that case, it should have a well-thought-out protection scheme against unscrupulous validators. Some might argue that almost all digital currencies have such qualities. At least this is what their developers say, and it is difficult to understand all technical nuances without special knowledge. So which cryptocurrencies to invest in? Attention! First of all, look at successful projects that have existed for a long time and have proven their competitiveness. And here is a digital gold – Bitcoin (BTC), which has no equal. It is the most valuable cryptocurrency for investors. It has been around for 10 years and has already become a defined standard for alternative money transfers, overtaking all other crypto assets. How can you invest in cryptocurrencies? There are 2 ways to invest in digital currencies in 2021. Let’s take a more in-depth look at them. Mining You can mine cryptocurrency on your equipment at home. Moreover, you can exchange it for any other coin after transferring it to the exchange. The minimum amount required to purchase equipment is several thousand dollars. Therefore, mining on your own equipment has lost its relevance in 2021 since the costs are not recouped. There is also cloud mining, which is the best option for crypto investment for 2021. Several services are ready to lease computing power; they can be used to extract cryptocurrency. However, you need to be careful because many scammers have appeared, so you need to use only reliable and trusted services. The best cryptocurrency exchange Binaryx The second way is to buy bitcoin for real money (for example, on a cryptocurrency exchange) and then leave BTC for a long time or invest it in one of the selected coins. One of these exchanges is Binaryx. This platform offers a comfortable environment for buying cryptocurrencies profitably. The intuitive interface allows you to acquire coins quickly. The best cryptocurrencies to invest in 2021 Although the crypto market experienced a serious collapse in 2018, the industry is still promising for investors. That’s why many experts believe that it is currently the “golden time” for cryptocurrency investment. Let’s take a look at five more coins that have the greatest growth potential in 2021. ETH The second-largest digital currency by market cap does not have strict emission restrictions. In 2020, ETH staking will be launched, causing a new round of demand for this digital asset. Ether staking income can be calculated using a special calculator. The creative force behind the project is Russian-Canadian programmer Vitalik Buterin. His enthusiasm and dedication to his work brought thousands of developers to the team. The Ethereum Foundation is the largest association of programmers and cryptographers. This year, the team launched a test version of the Ethereum 2.0 network upgrade. The system is gradually switching from the POW algorithm to staking, which will reduce the emission by up to 2.5% and stimulate the long-term storage of ETH tokens. Additionally, Ethereum serves as the digital fuel for the DApp ecosystem. Millions of developers and companies need ETH coins to enter into smart contracts, release decentralized applications, and pay commission fees. There’s a reason why Ethereum is one of the most promising cryptocurrencies to invest in 2021. NEO Crypto platform NEO is the Chinese version of Ethereum, which was completely updated during the rebranding process. There were the name changes and the new settings of the blockchain nodes and technical documentation. Further, the NEO 2.0 smart contract support system was launched. The NEO is one of the top crypto currencies. Unlike Ethereum, the maximum NEO coin issue is limited. The ecosystem is actively developing. For example, there is cooperation with popular blockchain startups, Bancor, Coindash, and Agrello. Chinese crypto project Red Pulse has announced that it will create a platform for financial research using NEO 2.0 smart contracts. The NEO team is involved in the creation of Elastos OS. It is designed to explore the technological value of blockchain applications in new Internet operating systems and further develop the cyber economy. Stellar This digital currency was created to facilitate international transfers. Ordinary citizens and large enterprises can make transactions wherever there is an Internet connection with the decentralized XLM platform. The coin appeared due to the Ripple hard fork and switched to its own open-source protocol a year later. The Stellar team signed a partnership agreement with financial companies Tempo and ZED, ICO Smartlands and Mobius, and large banks. Stellar is essentially an improved version of Ripple. The XLM blockchain has a high throughput, and there is no additional emission. Moreover, only 5% of all coins created are controlled by the Stellar Foundation. That’s why Stellar is among the top crypto coins for investments. TRON The Tron (TRX) token appeared in September 2017. The market capitalization reached $2,000,000,000 in 2020. Many experts released crypto reviews that the TRX price will skyrocket in 2021. According to the most daring forecasts, 1 TRX will be equal to 1 USD. However, there are more realistic thoughts that this token will rise to 0.1 USD (current rate of 1 TRX = 0.02 USD). The Tron blockchain should become a global digital content exchange system, which is needed more than ever. The ecosystem allows gaming projects to conclude smart contracts and create decentralized applications. The platform is already used by hundreds of developers, including gaming industry leaders BitGuild, Game.com, and Xu Le. Besides, Tron has acquired BitTorrent and signed a network agreement with service providers Oracle and Swisscom. RIPPLE Ripple (XRP) is one of the best coins to invest in. The network is very promising, and many experts believe that Ripple is ready to fly to the moon. Ripple’s unique feature is the space speed of transaction processing, for which its blockchain is called “the king of banking infrastructure.” Large banks and financial organizations cooperate with this project. Optimists expect a twenty-fold rise in the rate by the start of 2021, but in reality, we should expect a price of $0.7-0.8 per 1 XRP (the current price is $0.2). However, this optimism has to be tempered by the uncontrolled sale of their share of coins by the project developers. Nevertheless, XRP has good prospects, especially considering that it is preparing to integrate with Apple Pay. The mobile payments system developers have said that Apple Pay may use Ripple-based Interledger technology in the future. Apple is one of the world’s tech giants so far with a wide range of products such as the iPhone, iPad, Apple Watch, and MacBook. Long-term Cryptocurrency Investment A long-term investment is one where you expect a cryptocurrency to perform better over a longer period. Simple! Normally, the minimum time for long-term investment is 6 months to 1 year. Although, some people plan to hold onto their investments for 5-10+ years. It’s up to you how you choose the best crypto to invest in 2021; you can either make your full investment in one go or invest at different times. Long-term Investment Strategy Once again, before investing any amount, you must have a clear idea of what your investment goals are: Will you sell the cryptocurrency after a certain amount of time, or will you sell it when it reaches a certain price? Will you sell off your investment at once, or will you sell parts of it at different times? On what occasion would you sell the long-term investment in the short term? For example, if new laws come into place that could affect the long-term price of your investment, you might want to consider selling it sooner. Next, you should do some research to decide which cryptocurrencies are best as long-term investments. I recommend that you check for the following: Is their technology better than their competitors?Do they have a strong team of founders and developers?How good is their roadmap/plan?Are they solving any real-world problems? If you believe in the best cryptocurrencies, you should learn to hold on to your investment even when the prices drop. If you ‘panic sells’, then you could lose money and regret selling. Reasons For Making Long-Term Investments Long-term investing makes your life easier as you don’t need to watch the market all the time;You believe that some top cryptos will give a better return in the long-term;You truly believe in the future of cryptocurrency. Those are some crypto tips to consider! Short-Term Cryptocurrency Investment Short-term investments are made over shorter periods in the hope of making quick profits. So, just how short is a short-term investment? Short-term investments can take seconds, minutes, days, or even a few months. How Do Short-Term Investments Work? Just like long-term investing, you need to have clear goals for your investment. You need to ask yourself: What profit are you expecting to make from this investment? It’ll give you an idea of the price at which you should buy/sell the cryptocurrency.How much of a loss will you accept? It’ll help you control your losses if the price of cryptocurrency suddenly drops.Do you have time to study and follow the crypto market and the news?Can you make technical analyses of the crypto market? If not, then you should learn before investing.Will your short-term strategy give you higher returns than a long-term strategy? You need to find out which is the best crypto to buy now for the short-term. Cryptocurrencies that have the following are good options for short-term investments: Low market cap;High trading volume — lots of people are buying and selling it every minute;Are currently trending on the news and social media;Have an ICO or have just finished their ICO — try to get them at a low price. While cryptocurrencies like Bitcoin and Ethereum can also be traded in the short-term, you should think about investing in the newer cryptocurrencies. Investors have made huge profits in the past with short-term investments – including some of the major but newest cryptocurrency investments like NEO, Stellar, IOTA, and NEM. The main advantage of short-term investments is that you can make a lot of money in a short amount of time — they have made a lot of people rich quickly. However, they still have their disadvantages. They take up a lot of time and effort as you need to watch the market prices constantly;It is a riskier investment and can result in greater losses because of how much the price changes in a short time;It can be very stressful and emotional. It’s difficult to say which is the better option of the two investment strategies. It all depends on your goals and experience in the crypto market. If you believe in an upcoming cryptocurrency project, I recommend investing in the long term. However, if a project is new and generates a lot of attention, then short-term trading could be the better option. Conclusion If you want to choose the best cryptocurrency to invest in 2021, invest only what you can afford to lose. And if you are ready to ride this roller coaster, then do it consciously. When reviewing your investment strategies, remember that the main thing is not to lose money. Market analysis will help you understand the most promising cryptocurrency. However, there is a challenge to protect against the influence of emotions.