Cryptocurrencies have been around for several years now and have proven themselves an extremely lucrative investment opportunity, consistently outperforming traditional stocks and commodities.
So if you are considering having a flutter on the markets in 2021, you might want to consider investing in coin. And with over 500 different cryptos out there, your choice is not limited. In fact, a beginner might find it a bit overwhelming.
Bitcoin is, of course, the best known of the cryptos. And with its recent spectacular gains predicted to continue, it does present a very tempting choice. But it is certainly not the only one you should be looking at. There are other, cheaper coins, such as Litecoin, BAT, and Ethereum, that are worth looking at as well. Here are our tips for crypto investing in 2021.
XPR is the cryptocurrency used by RippleNet, a network of institutional payment providers established to ensure frictionless global payments. The major benefits of the coin are its very low exchange rate, and the speed of transactions. These are almost instantaneous thanks to the networks validation process that bypasses central banks. Also the fact that Ripple cooperates with banks and other financial institutions gives it added reliability and supports growth.
Although XRP price is rising rapidly these days, it is still relatively low compared to other cryptos. This means that now would be a very good time indeed to buy XRP.
The second most popular crypto after Bitcoin, Ethereum has a strong market cap. In the first week of 2021, price has nearly doubled, and it is now worth almost 10 times what it was at this time last year. The success of the ETH 2.0 upgrade, which enhances the speed and efficiency of the network is largely responsible for this rise.
As well as being the second most liquid cryptocurrency, ETH orts smart contracts and decentralized mobile applications, dApps, making it the most functional.
Litecoin is often referred to as digital silver (Bitcoin being digital gold). Although it has many similarities with Bitcoin, including blockchain technology and a cap on the number that can be mined, it offers distinct advantages in the form of faster transaction speeds and lower costs.
After a fairly stable 2020, Litecoin is taking off in ’21 and, at $140, is already worth double its high of last year.
Currently receiving a lot of hype in the cryptocurrency space, TRON is a project that is attempting to construct a worldwide entertainment network. The idea is to allow its users to distribute and share their content in an easy, affordable manner. It aims to do to content curators like Netflix what Bitcoin does to central banks, cut them out of the loop.
This means direct access to markets for producers, and cheaper content for consumers. And the idea is increasing in popularity and acceptance, not to mention take up. More and more organisations are utilizing TRON on their platforms and price is rising as a result. The value of TRX has not shown much movement over the last year, remaining at a low $0.03. But the fact the TRON blockchain is now host to more dApps than Ethereum indicates that all that could change in 2021.
And finally we come to Bitcoin, the first, some might say the best, but definitely the most expensive cryptocurrency of all.
As we said before, Bitcoin is known as the “gold” of cryptos. Admittedly it lost a bit of its shine in March last year when it crashed to $4,000 due to the COVID 19 pandemic. But it bounced back and then some. At the beginning of October last year there was great speculation as to whether BTC could break the $11,000 barrier. And if it did, would it be sustainable? We now know that not only could it break the barrier, but it would keep on climbing and climbing.
Currently the Granddaddy of cryptos is trading at over $35,000. This might make you think you have missed the boat, but don’t worry, some analysts are predicting it will top $100,000 before the end of the year so there is still reason to buy in.
So if you want to take a gamble on, excuse me, invest in cryptocurrency in 2021 these ore our 5 recommendations. Just remember, despite what stockbrokers would like you to believe, investing is a form of gambling, so don’t bet more than you can afford to lose. Good Luck!