The diverse portfolio of cryptos can somewhat prove challenging for an investor to pick from. Whether Bitcoin, Binance Coin, Ethereum, and Tether, there are great risks and rewards.
If you are looking forward to making cryptos an investment, there can never be a better time. This guide will focus on the most promising cryptos to deliver value for your investment. Whether you are a novice or a pro trader, you will find this a good read!
Bitcoin has been a heated topic of discussion for some years now. This consequently has made it a de-facto cryptocurrency standard. Even if you invest in secure areas, there will always be a risk of loss. Managing these risks and taking correct measures will help you achieve your financial goals.
Bitcoin has a price, volume, and market capitalization (40%) over all other investment options. The coin started 2021 trading at about $30,000 and spiked to an all-time high of $60,000. Since 2018, Bitcoin has experienced a percentage increase of 351.10% from $13,390 in January 2018.
More investors are turning to BTC now more than before, with international influencers like Jack Dorsey, Tesla CEO Elon Musk, and Richard Branson promoting and investing in the currency. Digital currency is gradually but surely gaining traction.
Since 2018, Bitcoin has experienced a percentage increase of 351.10% from $13,390. The rate at which it is gaining adoption globally shows that BTC is a booming industry. As the year progresses, it is projected that BTC will most likely hit $100,000 before the end of 2021.
ETH, an open-source, trustless, and decentralized network of computers, is often grouped in the same basket as Bitcoin. The main difference between the two is that it is a crypto asset and a network that allows developers to create their cryptocurrencies.
It is currently the largest Bitcoin competitor globally, with a market cap of $240 billion. Whenever crypto markets experience a dip, Ethereum stabilizes fast because investors have blind confidence in the coin.
Moreover, Ethereum has also experienced a commendable growth curve over the years since its inception in 2016. It has grown from $11 to about $2,500, a percentage increase of roughly 22,000%.
Some major improvements are expected in the network this year which will most likely push its price higher. Its continued growth is credited to the increasing number of developers building DeFi apps on the network.
Tether is a controversial stablecoin that enables the transfer of fiat currencies without any regulations. However, it is ranked as the 3rd most valuable cryptocurrency to invest in according to market capitalization.
Tether is one of the best coins to invest in, in 2021 because it is immune to the high volatility experienced in the crypto market. Its stability is attributed to being pegged on the US dollar. It also has a zero-fee policy for all deposits and withdrawals, unlike other cryptocurrencies.
However, it is unclear whether Tether is a subject of a FUD campaign. It is also unknown if the mother company reserves some information regarding its ability to have enough reserves to cover the full amount of Tether coins available at a 1:1 equivalence with the US dollar.
Cardano’s current performance portrays a roadmap towards success. ADA is always ranked among the top five fastest-growing cryptocurrencies. The currency has also positioned itself as a major key player in the crypto space.
Cardano is set to be a viable investment both in the short term and medium term. It has a reliable team of top-notch scientists and mathematicians looking into developing and maintaining an open-sourced patent-free platform. Moreover, it has a current major overhaul and upgrades.
Thanks to these two factors, Cardano’s price and market capitalization keep on surging in an upward trend.
Here is another coin that has had a strong run, although it experienced a recent fallback. Dogecoin has always been on Elon Musk’s radar, the CEO of Tesla, which recently promoted a secondary rise in Bitcoin due to whale investments.
Currently, most of Dogecoin’s rise is accredited to be largely based on humour and speculation. Investors frustrated by the high initial investment cost of Bitcoin at $36,000 would be glad to know Dogecoin trades at a bargain price. As of May 2019, Doge was trading at $0.53, but it recently dropped to $0.19 as of July 2021.
The coin is projected to increase in value despite its low trading margins. Some sources claim that it may reach the $1 target by the end of the year. An announcement by Dogecoin’s developers promised major upgrades on the meme coin. The new version is set to enhance sync speeds while decreasing the expiry’s mempool time.
If you want to get direct exposure to the demand for digital currencies, try any other above-recommended coins to invest in, 2021. The speed at which digital assets are being adopted shows that cryptocurrencies could be the future of financial markets.
Whichever crypto you decide to invest in, the best you can do is explore your options, hold your investment for the long term to reduce volatility risks, and build your portfolio properly. It also helps to bear at the back of your mind that crypto markets are like active land mines. One wrong move and you will lose a sizable investment. Be wise!