If you are interested in investing in cryptocurrencies and you are looking for the best cryptocurrencies to invest in 2021, then you are in the right place. In this guide, I will be listing some amazing cryptocurrencies you should have in your cryptocurrencies portfolio.
Before we continue, a disclaimer this article should not be construed as a piece of financial advice, I recommend you do your detailed research and talk to your financial advisor. All information contained in this article is for research purposes.
Cryptocurrencies are gaining more ground by the day and disrupting the traditional financial system day by day, no surprise more people are joining the financial revolution each day by day.
According to coinmarket, the cryptocurrency market cap is over 2 trillion with a 4.40% increase over the last day. One of the major factors that determine how much profit you make from cryptocurrency investment is timing. Cryptocurrencies are very volatile hence the prices fluctuate.
All cryptocurrencies are affected by volatility and drop down in value during a bear market. Therefore, invest an amount you can bear the loss for. It is also pertinent you do some technical analysis before investing in any cryptocurrency.
However, they are several cryptocurrencies that are the best you should invest in 2021 take a look below.
- BITCOIN (BTC)
Among over 11,000 cryptocurrencies listed on coinmarket and counting, bitcoin is standing tall with a market dominance of 43.8% and a 3.74% increase over the previous day, bitcoin is one of the best cryptocurrencies to invest in 2021. Bitcoin is the oldest known cryptocurrency and a favorite among both old and new investors. Bitcoin’s cutting edge advantage is the mass adoption it has rallied for itself over the years both cooperate institutions and most countries like the republic of Salvador are keenly embracing bitcoin.
Why Invest In Bitcoin in 2021?
A. Steady Value
Bitcoin has come under serious attack and criticism from the likes of Elon Musk and a clampdown of bitcoin miners in China, these actions led to a decrease in value which led to the 2021 bear Market. But the story has changed as bitcoin has been relatively steady in price and is currently gathering support to break the $50,000 price range.
B. Unprecedented Returns
Bitcoin could hit a $100,000 market price before the end of 2021 if it continues this current upward movement, making its returns in profit unrivaled. I think bitcoin should be a long-term investment.
C. Long term potential
Bitcoin is now accepted as a legal tender and is accepted as a means of payment in most countries. This means bitcoin is going to remain relevant in the years to come.
D. Excellent Store of value
With a limited supply of 21 million coins available, bitcoin’s supply is limited and after the 21 million bitcoin has been mined, demand will set automatically causing the price to surge like gold.
Ensure to add bitcoin to the list of cryptocurrencies you should invest in 2021
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Ethereum (ETH)
Ethereum is another game-changer in the cryptocurrencies industry being the second cryptocurrency in market cap with a market cap of
$382 billion and 17% market dominance after bitcoin. Ethereum is a second-generation cryptocurrency and is the heartbeat of the crypto industry. Some of the world’s biggest blockchain innovations are built on the Ethereum blockchain, innovations like the Decentralized Finance or DEFIs Dapps and now NFTs.
If you want to get started on NFT, we have written the best guides on how to start your journey click here.
The use case of Ethereum seem endless they are constantly evolving to meet some of the biggest need in the cryptocurrency market. Ethereum is another cryptocurrency you should invest in in 2021.
Why Invest in Ethereum in 2021
A. Constant improvement and updates
Ethereum blockchain is always updating to solve challenges, with the London upgrade that led to the introduction of ERC 721 token the standard token for NFT, and the Ethereum 2.0 set to roll out later this year or early next year, and it claims to use 99.95% less energy than the current technology.
B. Use case
For any cryptocurrency to endure, it needs to have some kind of true utility. At the present moment, Bitcoin is the most famous and most generally acknowledged cryptocurrency. Notwithstanding, the Ethereum blockchain is utilized for an assortment of purposes, which gives it a benefit.
Ethereum isn’t just hosting to the Ether token, but on the other hand, it’s the establishment for different applications like non-fungible tokens (NFTs) and decentralized money. NFTs could change the way computerized things are purchased and sold, and the decentralized money development expects to reform the financial business.
Likewise, Ethereum 2.0 designs to make the blockchain quicker and more versatile so it tends to be utilized for considerably more applications. That could give Ethereum significantly more prominent utility and a greater amount of benefit.
Ethereum’s far and wide utility could profit Ether too. In case Ether is needed for applications on the Ethereum blockchain, Ethereum’s prosperity could give Ether an upper hand over Bitcoin and other cryptographic forms of money.
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CARDANO (ADA)
Cardano (ADA) is a third-generation public blockchain and Dapp development platform. The platform earned international media attention as the first blockchain to incorporate a peer-reviewed research strategy into its core principles.
Like Ethereum, Cardano is a decentralized blockchain with a native token ADA, to empower securely shared exchanges. It was established in 2015 by Ethereum co-founder Charles Hoskinson, who left to establish the decentralized platform Cardano, which is intended to utilize a small amount of the energy over Bitcoin and Ethereum. One way Cardano does this is by utilizing a “proof-of-stake” protocol that doesn’t boost high energy use and is an inexorably well-known way for blockchain to approve exchanges for security reasons. Cardano, which at $43 billion is the fifth-most significant cryptocurrency, is changing toward empowering smart contracts that ought to be completely functional by fall 2021.
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WHY INVEST IN CARDANO IN 2021
A. Staking
Cardano blockchain runs of the biggest staking in the cryptocurrency with a 4.5% APY (annual percentage yield). Cardano staking has become a big way to make passive income from holding ADA tokens. Today, approximately 608,391 ADA wallets are staking Cardano, according to Finbold.
B. Strong Development Team
Cardano has one of the best development teams that understand blockchain and cryptocurrency, they believe in getting it right the first time and are committed to seeing it work. The development has some hefty development goals.
C. Cheap
Cardano is currently $2.84 which makes it better to hold more. The reason why Cardano is so cheap is that there’s enough demand for it yet and it’s not scarce but development is coming to the blockchain that will see it soar in price.
D. NFT
Cardano recently launched an NFT marketplace Cnft.io that sold $1million of digital art in less than a week. That’s a good sign of adoption.
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BINANCE COIN (BNB)
One of Binance Coin’s main benefits is that, like Bitcoin, it has a total supply on the number of tokens available for use. The cutoff is 200 million, and it’s a central explanation BNB has taken off to become the fourth-most important digital money on the planet. The native token of the mainstream Binance trade, the coin is up over 700% in 2021 alone. It has an unexpected model in comparison to a large number of the other cryptographic forms of money on the lookout, annihilating, or “consuming,” quite a bit of its cash on a quarterly premise, utilizing one-fifth of its benefits to doing as such. With a market capitalization of more than $50 billion, Binance Coin is at this point, not the instrument of an unadulterated theory that it used to be, and as long as the uncontrollably mainstream Binance stage keeps on developing, the BNB crypto has a bullish standpoint.
WHY INVEST IN BINANCE COIN IN 2021
A. Security
BNB uses five cryptographic algorithms to prevent malicious centralization of mining and power fluctuation of hash.
B. Transaction Speed
BNB block is made every 3 seconds, which is 185 times faster when compared with Bitcoin and 4X faster than Ethereum.
C. Acceptance
BNB offers a seamless and error-free experience on the Binance ecosystem and offers various discounts to users, currently, almost all Binance users worldwide are holding BNB.
Kindly drop your favorite coins and why you think its the best coin to invest in 2021
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Binance coins are the cryptocurrencies that use in forex trading. Forex traders trade globally. They need to be online their local time so that they can trade well. Great.