Cryptocurrencies: which are the best to invest in 2021?
Do you know what a cryptocurrency is? Why is everyone talking about them as a form of investment? Well, a cryptocurrency is an emerging form of money that is not backed by the central bank of some government, but by a decentralized technology like Blockchain.
Even in the face of the coronavirus pandemic, the cryptocurrency market showed robust growth in 2020. Not surprisingly, Bitcoin was considered the most profitable asset of the past year.
For this year, the market is also expecting a considerable rise in digital currencies, but knowing which cryptocurrency to invest in is one of the most frequent doubts.
First of all, you need to remember that investing in cryptocurrencies requires some experience. This is because there is no regulation or inspection of digital currencies. Also, cryptocurrencies are volatile and have no correlation with other assets.
While many people use cryptocurrencies to make purchases, like any form of money, others use them to store their money there for the long term. Do not forget that you must diversify to reduce possible losses.
Among the best 5 to invest in this 2021 are:
Bitcoin: This is the oldest and the leader, since its price and market capitalization is higher than in other cryptocurrencies. Bitcoin represents 40% of this market, and they are even being included as payment options in major companies.
Ethereum: This cryptocurrency also allows developers to create their own cryptocurrency through the Ethereum network. It is far in value from Bitcoin, but also from other cryptocurrencies.
Binance: One of the few cryptocurrencies that reached highs in 2017, the year since it has registered slow but steady rises. It is one of the most stable options.
Tether: It is the most stable cryptocurrency, as it is linked to the dollar. For every piece of Tether, there is a dollar in the US Federal Reserve.
Cardano: This cryptocurrency offers a reduced carbon footprint, which is why it attracts investors by requiring less energy to complete transactions than other larger networks, such as Bitcoin. This means that the transactions are fast and cheap.