I usually start all my articles by defining what Cryptocurrency is; however, this time I will take a different approach. Do you know what Cryptocurrency is? Have you interacted with Cryptocurrencies before? Do you think that Cryptocurrencies are here to stay? Before we get into the best cryptocurrency investments for 2021, we will take a general look at crypto.
When most people hear of cryptocurrencies, Bitcoin is the first thing that comes to mind. Even with all the articles and videos that have been produced explaining the difference; I still meet people who think that Bitcoin and Crypto are the same thing. More interestingly, I still meet people who think that Cryptocurrencies are a Ponzi scheme.
I, therefore, decided that instead of bombarding you with definitions that are readily available on the internet, I should find out what you know. So feel free to share all your Cryptocurrency myths and misconceptions with me so that we may debunk them together and look at the best cryptocurrency investments in 2021.
Crypto Investment in 2021
Following the Cryptocurrency market today is both mentally and emotionally exhausting and I’ll tell you why. New things keep coming up daily, the older projects are getting upgraded to stay relevant while other brand new ones are being launched at the same time. Countless ICOs and NFTs are coming up on a daily. Don’t even get me started on the shitcoins, that would require an entire article.
The thing about these coins and projects is that they are often very similar. Not only do they solve the same problems, but often they even have similar names. More Cryptocurrency options are available now as digital currencies continue to gain traction in the financial world. We currently have more than 5,000 cryptocurrencies available on the market.
Out of the thousands of cryptocurrencies available, only a few are viable investment options. Some Cryptocurrency tokens and projects will bring you crazy profits while others will bring nothing but losses. Cryptocurrency prices are extremely volatile and impossible to predict. It is, therefore, crucial to conduct sufficient research and fully understand what you are getting into.
In the following article, you will find some of the top Cryptocurrencies to invest in in 2021 each accompanied with exciting insights.
Here are a few things that you should consider
- Longevity – the coin should be durable; it is established based on its applications, development team, and community.
- Track record – looks can be deceiving so never go for a coin based on what it promises but rather its past performance. You are most likely to have a similar experience to the previous investors.
- Technology – The network should be able to conduct all transactions seamlessly. The speed, usability, and security should all be high and reliable. It should be impossible to hack these networks.
- Adoption rate – High adoption means better liquidity which then makes trading, selling, and spending easily in the future. An engaged community can do wonders for coins just look at Dogecoin and Shiba Inu.
- Uses – can you use the coin for regular purchases and bank transfers?
- Transaction fees should be low
- High transaction speeds
Best Cryptocurrency Investments in 2021
Based on my trading and investing experience, I have come to conclude that the best way to survive the market is to go for reliable coins. Stick to the top 30 coins by market cap, with reliable creators, a dedicated community, and with sustainable applications.
I will only be providing the top 5 coins, don’t limit yourself to these. It is impossible to exhaust the entire list of good coins. Feel free to research other coins outside of this list. As I keep saying, the Crypto market has so much to offer and you should benefit from all of it.
Highest Recommended Coins
- Bitcoin (BTC)
Even people who don’t understand Crypto know at least something about Bitcoin; it has become a household name. It holds great potential and somehow represents over 43% percent of the market despite there being thousands of other coins. Its price, market cap, and trading volume are always much higher than all the other coins.
It has proven its reliability by standing the test of time and currently multiple retailers, banks, real estate developers and corporates are accepting it as a means of payment. Even governments seem to be giving up the fight and boarding the Bitcoin wagon.
- Ethereum (ETH)
Ethereum is a very impressive crypto project, no wonder its token ranks second after Bitcoin. This coin is a network that is far ahead of most competing coins. It allows developers to explore their creative side and create all sorts of amazing applications and tokens. Some exciting Ethereum projects include NFTs and smart contracts.
Ethereum has contributed majorly in exposing Cryptocurrency’s full potential to the world. It continues to experience exponential growth thus making it a great investment option. You can now easily buy real estate with Ethereum as well.
- Binance Coin (BNB)
Thus one doesn’t come as a surprise considering that it is the native coin for the biggest and most successful Crypto exchange in the world. In my opinion, this coin will always perform well despite market conditions because of its intricate position in the crypto sphere. Millions of people use it daily; this is exactly what I meant when I was talking about a sustainable use case.
Its growth over the years has been slow but sure with a consistent upward trend thus proving its reliability. It poses very few investment risks. Its community remains very dedicated to its success.
Its uses are also expanding beyond the trading platform into the real world.
- Cardano (ADA)
For the fourth largest Cryptocurrency by market cap, Cardano’s price is reasonable. This coin is more adaptable than its predecessors and its network is also smaller. This means that it is yet to get saturated and thus making it appealing to investors.
It is notable for its early embrace of proof-stake-stake validation which is more environmentally friendly than proof-of-work. It is also quite similar to Ethereum in terms of smart contracts and decentralized applications which are powered by ADA, its native coin.
Since it takes less energy to complete a transaction with Cardano than with a larger network like Bitcoin, its transactions are faster and cheaper.
Cardano’s developers constantly upgrade the network to stay ahead of hackers as well as competing coins.
- Tether (USDT)
This is the highest-ranking stablecoin; meaning that it is tethered to a fiat currency (USD). Stable coins were created to make the Crypto sphere feel safe for cautious investors. Their price is relatively stable hence they protect the investor from extreme price swings that are typical for Cryptocurrency.
This coin addressed price volatility in the Cryptocurrency sphere. That is the equivalence of a coin that addresses inflation in the fiat financial world; people would jump right in. Considering its relevance and important position in the market, not to mention its affordable price I suggest that this is a great investment option if you are not ready to deal with extreme price swings.
However, since the price is relatively stable, do not expect to make huge returns from it.
Conclusion
From our perspective, these coins listed are the best cryptocurrency investments in 2021. There is no question that Cryptocurrencies are here to stay, the question then becomes where is the best place to invest? I cannot stress this enough, Cryptocurrency is not a get-rich-quick scheme. The returns are more rewarding when you invest long–term.
