The world of finance has been forever changed by the rise of cryptocurrency. When Bitcoin first launched in 2009, people were excited about its potential to revolutionize transactions and blockchain technology was seen as a game-changer for how they are processed. Over the past several years, digital currencies have become more popular as assets for trading. In fact, they’ve grown exponentially since their inception in 2009 with Bitcoin being just one example of a cryptocurrency that has made waves across the markets. There are many other cryptocurrencies on the market today and going into 2021 there will likely be even more to come – each promising to further develop blockchain technology.
If you’ve been considering investing in crypto, but don’t know what’s best to buy or when is the right time to enter the market. This guide will give a few suggestions for top cryptocurrencies and tips on maximizing your chances of success.
5. Cardano (ADA)
The altcoin Cardano is relatively new to the crypto scene, having been developed in 2017. However, this coin brings something entirely new to the world of blockchain and has even been called a third-generation cryptocurrency by some experts. It is the first peer-reviewed blockchain, having been scrutinized by leading academic minds from institutions around the world during its development. It also has a unique two-layer architecture which will improve scalability and facilitate potential hard forks when compared to second generation cryptocurrencies such as Ethereum or Bitcoin Cash.
Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was $0.02. As of August 2021, its price was at $2.11. This is an increase of over 10,000%.
4. Bitcoin Cash (BCH)
Bitcoin Cash, a cryptocurrency created in August 2017 as the result of hard fork from Bitcoin blockchain was developed to address issues with scalability and gained support quickly. As it is short existence, its market cap has already been ranked among top 10 cryptocurrencies at approximately $9 billion currently. The factors driving the value of Bitcoin Cash are similar to those that drive most altcoins: awareness from financial institutions, demand and its correlation with Bitcoin. However, one thing sets it apart – transaction processing speeds at a fraction of original costs.
While the value of Bitcoin Cash has dropped since 2020, it could be a good time to consider investing in this cryptocurrency. After all, $500 is much less than what its peak price was during that year at around $9 billion and only 18 months later.
3. Ripple (XRP)
Ripple, another major cryptocurrency is different from Bitcoin and Ethereum because it focuses on decentralization. Ripple is a company behind the technology that holds its own proprietary currency known as XRP. Despite its decentralised nature, Ripple has several investors in the cryptocurrency. The reason? They see it as a way to become more successful than their competitors and at time of writing XRP was the fourth-largest cryptocurrency with $13 billion market capitalization.
At the beginning of 2017, the price of XRP was $0.006. As of August 2021, its price reached $1.14, equal to a rise almost 19,000%.
2. Ethereum (ETH)
Ethereum is considered the second generation of cryptocurrency and has a market capitalization close to $128 billion, with each Ether valued at over 1k. The emergence in 2015 re-energized blockchain technology’s potential and was a huge leap forward for cryptocurrencies compared to the first generation which are currently experiencing stagnation or shrinkage in their respective markets.
As a result, Ethereum shouldn’t be seen as an investment alternative to Bitcoin but rather one for diversifying your portfolio and may even make more gains due to its volatility. However with the launch of ETH 2.0 expected in 2021, Ether looks like it could have some good years ahead of itself so should certainly be considered when looking into cryptocurrency investments which can give you long-term benefits beyond just short term trading or day trading (which is not recommended).
1. Bitcoin (BTC)
By far, Bitcoin is the most recognized cryptocurrency in existence. It has a market capitalization of over $70 billion with trading volume at around $5 million per day and value nearing an all-time high this year. Bursting onto the scene in 2009, it introduced blockchain technology to many people for the first time which makes its history very impressive – but how does it rank amongst cryptocurrencies?
A controversial topic, Bitcoin is often referred to as ‘digital gold’ and is believed by many investors to overtake the current market capitalization of its physical counterpart within a decade. Since inception in 2009, it has seen meteoric growth but more recently most profits have been made from volatility rather than consistent investment returns. However, despite recent losses the currency recovered quickly and was worth $44k at time of writing according to experts predict further increases for future investments.
Summary
Cryptocurrencies are becoming increasingly popular and in 2021, they will be even more prominent. If you invest now, there’s no reason why the top cryptocurrency picks can’t yield fantastic returns next year. The potential is promising for all of them to a different extent so it’s up to an open mind on your end whether or not this investment opportunity is worth considering.
