The Complete Guide to the Promising Crypto Currency of 2021: Cryptocurrencies performed questionably in 2018, but continue to attract new investors in 2021.
However, most newbies have a hard time finding the next promising cryptocurrency to invest in in 2021. We’ve all been there, so don’t worry! I understand how confusing it is to start looking for new cryptocurrency investments. And that’s why I’m here to help.
So, are you also looking for the next cryptocurrencies to invest in 2021? You may be wondering “Should I invest in Bitcoin?” Or “Should I invest in Ethereum?”
Well, don’t ask me anymore! I am here to answer all of your questions. By the end of this guide, you will know how to find cryptocurrencies to invest in 2021.
But first, let’s take a look at the recent growth in cryptocurrencies.
The cryptocurrency market so far
The first cryptocurrency, Bitcoin, was invented in 2009. This is just the beginning and nobody really knew about Bitcoin until 2013. However, since 2013 the cryptocurrency market has experienced tremendous growth, difficult growth. to ignore. There are now over 1,500 different cryptocurrencies, all created in less than 5 years.
It’s clear that 2017 is the year crypto really exploded. The market capitalization of cryptocurrencies has increased by 4000%! The market capitalization of all cryptocurrencies was around $ 21 billion in March 2017, while it is now above $ 454 billion. It’s enormous!
Market Cap: The total price of all coins put together.
The cryptocurrency market is no longer just about Bitcoin. Other cryptocurrencies have entered the space, such as Ethereum, Litecoin, and Ripple. It has all performed incredibly well over the past year.
The graph below from CoinMarketCap shows the growth of cryptocurrencies over the years.
There are a lot of things being said about the future of cryptocurrencies. Some people believe that the cryptocurrency phase won’t last long, while others think they’re going to be around forever.
It is difficult to predict the future of cryptocurrencies, but what I do know is that the popularity of cryptocurrencies is only increasing. One of the reasons why cryptocurrencies are becoming more popular is because of blockchain technology, which is the main technology behind all cryptocurrencies.
The next step is Blockchain technology – a secure and trustless technology that was first used by Bitcoin. You cannot learn how to invest in blockchain, however. Instead, you can learn how to invest in cryptocurrencies that use blockchain (which all are!)
Are you ready to discover the next promising cryptocurrency to invest in in 2021? Well, let’s get started.
So what are the best cryptocurrencies to invest in in 2021
Best Promising Cryptocurrency to Invest in in 2021: Bitcoin (BTC)
If somehow you’ve only heard of one cryptocurrency, it’s probably Bitcoin. It is the largest cryptocurrency – it currently holds 40% of the total cryptocurrency market cap! It is the oldest cryptocurrency and it still dominates the market. So if Bitcoin continues to rise like in 2017, investing in Bitcoin might be a good idea for 2021.
The price of bitcoin changes a lot every day and has seen many ups and downs over the past few years. Look at the following table and you will see how much the price changes.
The price of a bitcoin fell from around $ 76 (09.07.13) to $ 20,000 in December 2017. But after Bitcoin hit its highest point in December, the price of bitcoin fell to around $ 6,000. in February 2018. have fallen even further since. It’s crazy!
With the price changing so much in such a short period of time, how do you decide when is the best time to invest in Bitcoin?
Well, we can try to find the answers by looking at some important past events, namely when the price has gone up or down.
- A major event was the split of Bitcoin into two cryptocurrencies – Bitcoin and Bitcoin Cash. This is what happened on August 1st. Investors aware of this situation invested their money before the split and made huge profits, almost doubling their investment!
- The price of Bitcoin fell to around $ 10,000 in January 2018, almost half of the value of $ 20,000 in December 2017. Many investors got worried at this point and started selling their Bitcoin. This caused the price to drop to around $ 6,000 in February 2018.
Invest in Bitcoin
If you want to invest in Bitcoin, you need to keep up to date with the latest Bitcoin news and trends. When news about a new technical improvement comes out, you may want to buy Bitcoin. If there is a significant drop in the price of Bitcoin, then that too might be a good time to buy Bitcoin, as you can buy it at a low price.
If you have already decided to invest in cryptocurrencies, it might be a good idea to start by investing in Bitcoin. Even if you missed the first major investment opportunity, investing in Bitcoin might still be a good idea.
It all depends on whether you believe in the future of Bitcoin. If you believe in it, you should think about investing in it. If you don’t then I recommend you stay away This is the same with any investment!
Best promising cryptocurrency to invest in in 2021: Ethereum (ETH)
Towards the end of last year, Ethereum’s price was just above $ 720, with a total market cap of around $ 70 billion. In early 2018, Ethereum surged and hit its highest price, at $ 1,423 on January 4. On that date, Ethereum’s total market cap was $ 138 billion!
Ethereum grew by around 3,000% in 2017 and became the second largest cryptocurrency, ranking second behind Bitcoin.
Are you asking yourself “Should I invest in Ethereum?” Or “Is the price of Ethereum already at its maximum?”. Well the truth is nobody knows! However, the following information should help you decide if investing in Ethereum is a good option for you.
The chart below shows the growth of Ethereum over the past few years.
Below are the key events that have influenced the price of Ethereum the most in the past:
- Ethereum received an investment of around $ 150 million in May 2016. As a result, its price dropped from $ 1 in January 2016 to around $ 14.80 in May 2016.
- However, on June 18, 2016, members of the Ethereum community discovered that Ethereum had been hacked. About $ 60 million worth of Ether (the currency of Ethereum) was stolen due to a loophole in a wallet. This caused the price of Ethereum to drop from $ 21.52 on June 17, 2016 to $ 9.96 on June 18, 2016.
Unlike Bitcoin, Ethereum is not just a digital currency. It is a more advanced blockchain project. Indeed, Ethereum offers something special: by using the Ethereum platform, developers can create their own cryptocurrencies.
Imagine you want to build a blockchain-based solution to manage your business’s supply chain. Well, thanks to Ethereum, you don’t have to start from scratch. Instead, you can simply create an app on the Ethereum blockchain. Ethereum makes it much easier to launch new blockchain projects.
Is Ethereum your next promising cryptocurrency to invest in in 2021?
I recommend that you think about adding Ethereum to your list, because I think it could be one of the best and most promising cryptocurrency to invest in in 2021.
Blockchain expert Julian Hosp said Ethereum’s market cap could reach $ 200 billion by the end of 2021. If Hosp’s prediction is correct, Ethereum’s price could reach $ 2,000 . The reason behind Hosp’s prediction is based mainly on the ICOs (Initial Coin Offerings) which decided to use the Ethereum blockchain in 2018 and 2021.
Ethereum also plans to improve its technology a lot this year, with new protocols almost out of the box. So watch out for Ethereum!
To learn more about Ethereum, read our Ethereum vs Bitcoin Guide.
Best promising cryptocurrency to invest in in 2021: Ripple (XRP)
Ripple, also known as XRP, was one of the top performing cryptocurrencies in 2017 with growth of around 36,000%! Yes, you read that right. It went from almost $ 0 at the start of 2017 to $ 2.4 in December 2017, as you can see in the following chart.
Like all other cryptocurrencies, Ripple’s price declined in 2018 as well – it’s currently pegged at $ 0.36.
I know what you are thinking: You didn’t take advantage of a good opportunity by not investing in Ripple in early 2017. Even if this is true, Ripple could still be a good option to consider as your next crypto. currency to invest in in 2021.
Even though the price of XRP is significantly lower than that of Bitcoin, XRP remains the third largest cryptocurrency by market cap. As of May 2018, its total market capitalization was approximately $ 35 billion.
So why is Ripple so popular with investors?
The main reason for the popularity of Ripple is that it is not only a digital currency, but also a payment system. Ripple uses blockchain technology to make international payments more secure and faster.
If you were attempting to make an international bank payment today, it will take approximately 2-10 days to process the transaction. The same payment, when you’re done with Ripple, takes a few seconds. That is great!
But there is also good news: Many large financial institutions such as American Express, JP Morgan and Santander are already using Ripple’s technology. Ripple has also worked with the Saudi Central Bank, China’s LianLian International, and other banks around the world.
So if you are wondering how to invest in blockchain then Ripple might be the best answer.
According to what I just explained, the future of Ripple in the financial sector could be good. You should pay attention to Ripple and learn more about their partnerships. Also look for new partnerships – if Ripple signs a contract with another big bank, then the price of XRP could go up.
Investors, who understood the services offered by Ripple, made a lot of money. After a fantastic 2017, Ripple might just be the best cryptocurrency to invest in in 2021.
Note: Now may be a good time to invest in Ripple, as its price has fallen 70% from the record price of $ 3.4 reached in January 2017.
Best promising cryptocurrency to invest in in 2021: Litecoin (LTC)
Our list of the best promising cryptocurrency to invest in in 2021 cannot be complete without Litecoin. Like Ripple, Litecoin posted an excellent performance in 2017, growing almost 8,000%.
The price of Litecoin rose from around $ 4 at the start of 2017 to $ 358 in December 2017. However, like most crypto currencies, Litecoin also followed the price trend and fell to $ 110 in February 2018.
Look at the Litecoin price chart below – you can see the rapid rise in the price of Litecoin at the start of 2018. Litecoin and Bitcoin prices have followed a similar trend over the past year.
Litecoin is the 5th largest cryptocurrency with a market capitalization of around $ 11 billion. Litecoin continues to be of interest to investors due to its close ties to Bitcoin. That’s a good reason Litecoin is on our list for the next promising cryptocurrency to invest in in 2021.
Litecoin was created in 2011 to improve the technology of Bitcoin. Litecoin makes a transaction 4 times faster than Bitcoin. However, unlike Bitcoin, the maximum number of Litecoin is capped at 84 million, which is 4 times more than Bitcoin’s supply of currencies (21 million).
Litecoin was the first cryptocurrency to complete a Lightning Network transaction in May 2017. 0.00000001 Litecoin was transferred from Zurich to San Francisco in less than a second! Once Litecoin starts using the Lightning Network, it could increase the price!
Lightning Network: A new technology that increases the speed of transactions on the blockchain network.
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Investment strategies: let’s clear it up
How do investors decide to invest in real estate or stocks? Do they start making investments as soon as they think about it? I guess the answer to this question is – no!
Before investing in anything, you need to have a clear understanding of what your investment goals are and how to achieve them. You want to know how long you are willing to keep your investment open and how much profit you are happy to make.
You should have the same mindset with cryptocurrency investing. Before deciding on the next promising cryptocurrency to invest in in 2021, let’s take a look at the two main types of investment strategies for cryptocurrencies.
Long-term investment in cryptocurrencies
A long-term investment is an investment in which a cryptocurrency will perform better over a long period of time. Simple! Normally, the minimum duration of a long-term investment is between 6 months and 1 year. Although some people plan to hold their investments for 5-10 years and more. How you choose to invest is up to you; you can either make your investment all at once or you can invest at different times.
Long term investment strategy
Again, before you invest any amount, you should have a clear idea of your investment goals:
- Do you want to sell the cryptocurrency after a certain time or if you reach a certain price?
- Do you want to sell your investment at once or sell parts of it at different times?
- When would you sell the long term investment for the short term? For example, if new laws come into effect that could affect the long-term price of your investment, you might consider selling it sooner.
Then you should do some research to determine the best crypto currencies as long term investments. I recommend that you check the following:
- Is their technology better than that of their competitors?
- Do they have a strong team of founders and developers?
- What is the quality of their roadmap / plan?
- Are they solving real world problems?
If you truly believe in the cryptocurrency you invest in, you should learn to hold onto your investment even when prices are falling. If you “panic sell” you may lose money and regret the sale.
Reasons for making long-term investments
- Long-term investments make your life easier because you don’t have to watch the market all the time
- You think some cryptocurrencies will perform better in the long run
- Do you really believe in the future of cryptocurrency?
Short-term investment in cryptocurrencies
Short-term investments are made for shorter periods in the hope of making quick profits. So how bad is a short term investment?
Short-term investments can take seconds, minutes, days, or even a few months.
How do short-term investments work?
Just like with a long-term investment, you should set clear goals for your investment. You must ask yourself:
- What benefit do you hope to get from this investment? This will give you an idea of the price at which you should buy / sell the cryptocurrency.
- How much loss will you accept? This will help you control your losses if the price of the cryptocurrency suddenly drops.
- Do you have time to study and follow the crypto market and the news?
- Can you do technical analysis of the crypto market? If not, then you should learn before you invest.
- Will your short-term strategy give you higher returns than a long-term strategy?
You need to know which is the best promising cryptocurrency to invest in in 2021 in the short term. Cryptocurrencies with the following options are good options for short-term investments:
- Low market capitalization
- High transaction volume – many people buy and sell it every minute
- Are currently trending on news and social media
- Do you have an ICO or have just completed an ICO – try to buy them cheaply
While cryptocurrencies like Bitcoin and Ethereum can also be traded on a short-term basis, you should consider investing in the newer cryptocurrencies. In the past, investors have made huge profits with short-term investments, including large investments in cryptocurrencies, such as NEO, Stellar, IOTA, and NEM.
The main advantage of short-term investments is that you can make a lot of money in a short period of time – they made a lot of people rich quickly. However, they still have their drawbacks.
So what are they?
- They take a lot of time and effort because you have to monitor the market prices constantly
- It is a riskier investment which can lead to larger losses due to the price movement in a short period of time
- It can be very stressful and emotional
It is difficult to say which is the better option among the two investment strategies. It all depends on your goals and your experience in the cryptocurrency market.
If you really believe in a project, I recommend that you invest for the long term. However, if a project is new and has a lot of attention, short-term trading might be the best option.
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Final words
Even though cryptocurrencies can bring you huge profits, there is one more thing you need to be prepared for: to lose money. Remember that your predictions will not always be correct! No one really knows what will happen to the price of a cryptocurrency or any other investment.
Do you know what most expert cryptocurrency investors say? You should only invest money that you are not afraid of losing. This is good advice, so always remember it!
So this is the end of our guide Best Promising Cryptocurrency To Invest In In 2021. Hopefully, now you know which investment strategy will work best for you and that you have a good understanding of what makes a good investment.
Which of the cryptocurrencies I mentioned is your favorite? Do you have a choice of the best promising cryptocurrency to invest in in 2021?
* Note: this article is a personal opinion. Before making an investment decision, you should consult a professional.
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