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TOP 5 cryptocurrencies to invest in 2021

The blockchain industry has suffered a great deal during these past 10 years. There were both joyful ups and painful drops. And now it has kicked in that the money of the future is cryptocurrencies. Even the COVID-19 pandemic has not affected the rise of the digital money market. Instead, the value of coins is growing steadily. That’s why many experts believe that now is the time to invest in the crypto. It directly leads to how to choose the most promising cryptocurrency that will bring profit. Let’s look together at the most promising coins in 2021.

How to choose a currency for investment

Firstly, you should know what exactly to buy. There is no correct response to the question about which digital currency is better to invest in. You need to carefully analyze the market and look at the potential of each project. You need to pay attention to these things:

  1. Popularity of the project in the crypto community. If you can find the specific coin on large exchanges, you will deal with a promising cryptocurrency. Moreover, news published by credible websites can tell you a lot.
  2. Convenient storage. Promising crypto startups create several types of crypto wallets. Further, their digital coins are supported by other multicurrency wallet developers.
  3. Protection from hackers. There is another important detail when it comes to crypto. The best PoW-based cryptocurrencies have enough capacity to prevent a 51% attack. If the project uses a different algorithm, it needs to have a reliable protection scheme, saving the system against dishonest validators.

Some investors believe that all profitable coins have all these qualities, and the technical features of tokens are more critical. So, which crypto is the best to buy?

How Cryptocurrency Prices Work

When you analyze the prospects of Blockchain-based projects, you shouldn’t throw everyone in the same barrel. Key cost influencers can be distinguishable. However, there are several primary factors:

  • political and economic insecurity;
  • public statements made by credible politicians, financial analysts, or members of the crypto community;
  • the success of TOP 10 projects by market cap;
  • the number of transactions on exchanges for specific coins.

When you try to predict the price movement, you need to understand that digital money is now perceived as an investment tool. However, there are three basic pricing principles:

  • the mining or emission cost;
  • market value;
  • assessed value.

It’s tough to predict the crypto price because the cheapest coins can become the most promising cryptocurrencies after rebranding.

Important! Look at coins that have been on the market for many years. It certainly speaks to their competitive edge.

5 best cryptocurrencies to invest in 2021

Ethereum (ETH)

Ethereum is the dark horse of the Blockchain industry. This cryptocurrency has the 2nd market cap rate and has no limits on issuance. The total circulating supply is almost 113 million ETH.

Vitalik Buterin leads the project. Thanks to his enthusiasm, the project team added thousands of developers, analysts, marketers, and other specialists.

Ethereum is considered as one of the best cryptocurrencies to invest in 2021. It’s about the usefulness and relevance of the platform. Ethereum allows you to create decentralized solutions for many areas. Ethereum’s rise began the ICO boom, and many countries started to use Ethereum smart contracts for electronic government systems.

The ETH token has grown steadily since its launch in 2015. And nothing indicates that this altcoin will drop in price.

TRON (TRX)

Tron token (TRX) appeared in 2017. It is used as an internal token of the Tron system, a global Blockchain-based entertainment platform. The platform also allows gamers to create smart contracts and dApps.

The current market cap rate of TRX is close to the $ 2,000,000,000 mark. Some experts believe that the value of the cryptocurrency will grow tenfold. Moreover, the price will skyrocket in 2021. That’s why the TRX token is also included in the list of best cheap cryptocurrencies with huge potential.

The Tron platform has rallied hundreds of dApps developers. Some gaming industry leaders are also very interested in that system, including BitGuild, Game.com, and Xu Le. The company also took over BitTorrent, Inc. to implement new decentralized solutions. Further, Tron partnered with Oracle and Swisscom.

Ripple (XRP)

XRP is the TOP 5 cryptocurrency by market cap. It is the native token of the Ripple platform, which is known for its outstanding processing speed. Therefore, the project grew the attention of large banks. That’s why the blockchain network is considered as “King of banking infrastructure.”

The Ripple project has rallied skilled developers with many years of experience in finance and IT. The company proposed an innovative transfer system that could replace the SWIFT system very soon.

The Ripple Labs team continues to seek support from major financial institutions and liquidity providers. This enthusiasm will reflect positively on the altcoin price. Some experts believe that the XRP price will rise by several times.

So far, the Ripple token has grown over 30,000% overall and remains a promising cryptocurrency to invest in 2021. It’s a low-risk asset due to the vast issuance of XRP.

Neo (NEO)

The Chinese platform NEO is similar to Ethereum. However, the issuance of tokens is limited here. Now blockchain continues to evolve and offer new features. The startup has partnered with other Ethereum-based systems like Bancor, Coindash, and Agrello.

NEO has announced a significant platform upgrade, which will have an impact on the asset’s value. Thus, the company plans to:

  • move to a new blockchain with more excellent stability and high-speed processing of transactions;
  • getting listed on crypto exchanges Coinbase and Coinbase.Pro.

Now an American exchange Binance.US supports trading with NEO tokens. Moreover, an international version of this platform added the ability to trade NEO futures.

That’s why NEO has enormous potential in 2021. Because the developers don’t want to boost the price, focus on developing the entire ecosystem.

Litecoin

Litecoin (LTC) was released in 2011 by Charlie Lee. The token was created as a fork of Bitcoin. Litecoin is also called “digital silver.”

This altcoin is a very promising long-term investment for three reasons:

  • the coin is widely used for payments. The number of places where you can pay with LTC is growing every day;
  • low transactions fees (several times less than for a traditional bank transfer);
  • Litecoin price depends on Bitcoin. So, if BTC goes up, then LTC will do the same.

Crypto enthusiasts called Litecoin a “boring” asset. It’s all because Charlie Lee promotes a cautious approach to innovation. However, there are some global changes. The new Mimble Wimble algorithm was launched in September 2020. It aims to make the network more secure and scalable. This news may have an impact on the LTC price.

Should you invest in Bitcoin in 2021?

Bitcoin takes leadership as the best cryptocurrency to invest in. However, it is not surprising because BTC became the first thing that created the whole blockchain industry 10 years ago.

If earlier Satoshi Nakamoto’s coin costs nothing, you can get a lot of money for it now. Some lucky investors bought the BTC for $3500 in December 2019 and sold it for $11000 in summer 2020. That doesn’t even include the words of crypto evangelist Hal Finney. He said that 1 BTC should be worth $10,000,000.

Bitcoin can truly become digital gold with high security and limited issuance. The newest promising cryptocurrencies cost under $5 and can make a profit when the token skyrockets. However, if you buy Bitcoin, you won’t risk anything.

The Pros & Cons Of Cryptocurrency

Decisions are split on the prospects of digital currencies and blockchain as a whole. Some believe that these technologies can revolutionize finance and IT. Others point to the number of details that relate to the use of crypto in everyday life. Let’s take a look at the main pros and cons of digital money:

ProsCons
– Decentralization– High volatility
– Low transaction fees– The risk of a cyber attack
– Fast payments– Irreversibility of transactions
– Reliable protection of data and assets– The need to convert crypto to fiat
– Market stability
– Simplicity and availability.

Risks of investing in crypto

As new promising cryptocurrencies become more popular, weak points started to kick in.

Firstly, we’re talking about scalability. The more tokens are circulating, the higher is the number of users and transactions. However, the capacity of any blockchain is limited, and overload can cause delays. Therefore, crypto projects are trying to create solutions for making fast transfers with the PoW algorithm.

Moreover, digital money is highly volatile. Some investors bought the crypto at the highest price in December 2017 and still can’t make a profit.

Important! Investing in coins under the TOP 100 by market cap is very risky. If the currency doesn’t grow in price, the project may be a typical scam.

Conclusion

So we’re done with which cryptocurrencies are the most promising in 2021. However, there is no single recipe for success. Some experts advise investing in Bitcoin, while others say about stocks and precious metals. There are some other conclusions:

  • most analysts consider BTC as one of the most promising assets in 2021;
  • experts also advise to pay attention to Ethereum;

When you choose digital money to invest, you need to analyze the project roadmap carefully.

Also, it is necessary to choose the investment term and a reliable platform.

blockchain cryptocurrency investing