Cryptocurrency has been a profit-making investing trend in the recent past. Many have also claimed to be Crypto billionaires. But as rewarding investing in crypto is, it is that much risky too. So, it is essential to know and understand which companies suit the best for your needs. But it is pertinent to mention in this context that you need to have enough risk appetite for cryptocurrency investment. Since the market is very volatile due to the lack of government regulations, someone who gets nervous with fluctuations in prices of a few hundred thousand dollars then crypto may not be the best bet for them. So, others who are still reading keep finding the best cryptocurrency to buy in 2021.
Bitcoin has become so well known that it is now simultaneously used with cryptocurrency. It was started anonymously as a way to exchange currency that had a public transaction ledger. The motive behind it was creating a currency that the government did not regulate. Behind all the glamour Bitcoin holds today, there was a revolution against government regulations and capitalism. It has a market cap of more than $800 B. It also got accepted as an authorized form of currency in El Salvador recently. For anyone who is starting investments in cryptocurrency, Bitcoin can be the safest bet.
Ethereum is the second most popular cryptocurrency in the market at present. It also has a similar feature to Bitcoin when it comes to providing a decentralized platform for recording and verifying transactions. But it is faster than Bitcoin and also has other features. It gained popularity due to its ability to be incorporated into apps that use blockchain technology, support smart contracts, and use it in many Decentralized Finance Apps (Defi). It is also a safe bet for investing (as safe as crypto can get!) for new investors.
- Cardano (ADA)
Unlike the previous two big players in cryptocurrency, many other cryptocurrencies are traded and have a promising future. Cardano is one among them. It was founded by the co-founder of Ethereum, Charles Hoskinson. It is also a public blockchain platform that works on proof of stake. It has shown steady growth in one year from $0.104 to $2.24. But its trading numbers should not fool you since it has a trading volume of more than 2 billion in a day. Its market cap is also $70 B plus, not much less than Bitcoin. It is one of the cryptocurrencies where one can utilize a small amount of money and see some good returns over the long term.
- Solana (SOL)
It is an upcoming cryptocurrency that has the same underlying concept as Ethereum. The latter has gained significance since it was introduced earlier in the market. But Solana is faster and can process a much higher number of transactions per second, almost 50,000 per second. Its market cap is also beyond $48 B. It has also gone from trading at $2.49 to more than $160 in a year and has the potential for much further growth.
Litecoin has created a fork with Bitcoin. So, though the basis of it is similar, it works on two different things. Litecoin can be used to purchase various things and make payments directly to one's account. The aim is to create a decentralized payment system. It deletes the need for cash, credit and credit cards. It currently has a market cap of $11 million-plus do and has shown promising future growth. You also do not necessarily need to buy cryptocurrencies only. If you know how to mine litecoin 2021, you can mine it pretty much like other cryptocurrencies. Many tutorials teach how to mine litecoin 2020, which are great for following to mine such invaluable cryptocurrencies.
These are some of the best picks of 2021 for cryptocurrency investment. But this is undoubtedly not exhaustive. When you think of investing, study the currency in-depth, understand its workings, analyze a year’s market growth, and invest in it. Happy investing!