The global economy has been through many changes recently, and while some of them had a negative effect, others allowed this sector to survive and thrive. Cryptocurrencies have exploded in the last couple of years, and the technology behind them is only getting more advanced.
In the beginning, tech buffs interested in crypto had one option, and that was Bitcoin. While this cryptocurrency still holds the throne, blockchain technology provided us with many more possibilities.
However, before investing, you should learn all about cryptocurrencies, follow the latest news, and be up to date with any fluctuations. But, more on that later. Let’s see what the best cryptocurrencies to invest in 2021 are.
We’ve seen plenty of new cryptocurrencies, but Bitcoin never seems to go out of fashion. There may have been some worrying fluctuations throughout this year, but Bitcoin managed to pull through and reach its all-time high of $19.857, which made many investors happy.
Based on experts’ predictions, the year 2021 will be the Bitcoin year due to many reasons — growing demand, multiple integrations with the most popular digital payment systems, and increasing inflation. Some believe the BTC price will even reach $100,000!
We can’t help but mention Ethereum as one of the best candidates among crypto coins. The second-largest cryptocurrency, right after Bitcoin, has an overall capitalisation of $68,127 billion and reached a whopping 380% surge in trading price in the last 12 months.
DeFi is a crypto trend that will keep growing next year, mainly because it allows users to free their savings and loans from banks and other institutions that have control over the finances.
Given that many people find cryptocurrencies mind-boggling and difficult to understand, blockchain technology created a coin that would make the entire learning process more manageable. That’s why many beginners turn to Litecoin — a “lite” version of Bitcoin.
It’s more affordable than the rest of crypto coins, with a starting price of $87, and an overall market capitalisation of around $5,792 billion. Based on that, you might think it’s not the most successful cryptocurrency, and you’d probably be right. Still, experts place it among the top-ranked cryptos to invest in 2021.
Tron was initially designed on the ETC platform. However, it rose above it and made its way into the entertainment industry thanks to the blockchain-based platform that allows users to share their content.
Given that people are trying to salvage their privacy, the Tron platform provides them with complete safety. Content creators that use Tron don’t have to worry about their data being sold to third parties. Moreover, they can directly monetise their content via Tronix, Tron’s native cryptocurrency.
In November, Tron reached a new record with more than 150,000 daily active wallets, launching it among the top cryptocurrencies to look out for in 2021.
Things to Consider Before Investing in Crypto
Cryptocurrencies have quickly caught the attention of many investors and tech buffs. If you’re one of them, but you’re not sure where to begin, we’ve got some pointers you might find useful.
First off, you need to understand how crypto works. So, do proper research and cover the basics — without the right foundation, you’ll quickly be overwhelmed with the flow of information. Go slowly, explore cryptocurrencies one by one, and once you get the hang of them, decide which one attracts you most.
Afterwards, look for the cryptocurrency white paper — an informational document issued by the crypto itself. It should contain all the information you should know about the project, including its goals and intentions. This document will allow you to build your plan on how and when to invest.
Finally, keep up with all the crypto-related news — be informed about any changes and fluctuations that might change the cryptocurrency’s price and affect your investment. Overall, if you want to invest in crypto, dedicate a lot of time and effort to learning all about it — that’s the only way to make a profit.