Exploring best crypto for investment in 2021: crypto revolution beyond Bitcoin.
For the first time after their introduction, digital currencies surged high in 2020. Since then they are paving their way in the roots of traditional financial systems. Hence, the world is on the verge of a great financial revolution with virtual currencies leading the way. As Covid-19 hit the world, retail and institutional investors jump into the cryptospace to secure their funds. Therefore, just two months past the beginning of the year 2021, market capitalization of the virtual coin’s market doubled, as quoted by price tracking website CoinGecko.
WHY PEOPLE SHOULD INVEST IN CRYPTOCURRENCY?
The investment and acceptance of giant business tycoons and firms in digital currency have lured many small scale investors to step in too. Companies like Apple, Google, Tesla, Samsung, Facebook, PayPal, Deutsche Bank and the lists go on, have invested and started accepting payments in virtual coins. This can’t be a one day decision. It must have been the result of well thought financial strategies, a keen eye on the history of digital trades and market studies. This speak volume of the fact that cryptocurrencies have finally proven themselves to be both successful and popular. Furthermore it’s unique function such as, a store of value and a hedge against fluctuating fiat currency, can be the major force of attraction of mainstream mass adoption. To list down, here are some reasons why people should consider investing in cryptocurrency:
- They promise a direct method of payment without any third party involvement.
- As a virtual currency it’s easier to store, transfer and trade. Cutting the cost of infrastructure that would otherwise be necessary to store other physical assets.
- With a low minimum investment barrier, they are available for absolutely anyone to trade.
- The 24/7 working of the crypto exchanges lets you buy and sell at any time of the day.
- Majority of cryptocurrencies utilize block-chain technology for reliable, transparent and quick transactions. Hence the chances of information breach are minimum to zero.
- With no intermediaries involved, cryptocurrencies offer significantly lower transaction fees as compared to government controlled bank systems.
With these entire benefits one might go head over heels to invest in digital coins but let’s just pause here. It might sound exhilarating, but investing in digital currency might actually turn out to be a test of patience. Before gambling your money, a thorough understanding of the process, market timings and bit by bit investment can come in handy for you.
CRYPTOCURRENCY SET NEW RECORDS
Is it safe to claim that crypto has taken over the world? Well, going through the statistics one can easily infer that. The value of the cryptocurrency market soared to $2 trillion for the first time in 2021. The 50% credit for this rise goes to the bellwether, Bitcoin. It rallied over 100% in 2021 alone, driving the cryptocurrency market value higher. In March 2021 the virtual currency was trading at $ 61,000 with a market cap hitting $1.1 trillion. Bitcoin was followed closely by its rival Ethereum (ETH), the second-largest cryptocurrency in terms of market cap. Ethereum increased by 3.53% and on April 2nd 2021, it reached a record high of $2,144.99 with a market cap of $244 billion. Interestingly, Ethereum is gaining its due share in the market as it is in demand from investors. This massive stride was partly led by corporate tycoons such as Tesla Inc., PayPal and Bank of NY Mellon since they entered the cryptospace. With institutional investors flooding the rally, it has induced a great deal of public interest and trust in Bitcoin. Having said that, Binance CEO Changpeng Zhao predicts that the mass adaptation of digital currency will lead to more technological advancements leading to advanced algorithms, gamification in Centralized Finance, cross-chain/multi-chain projects, institutional DeFi, and synthetic tokens. PayPal took the leap and introduced a new feature in its digital wallet to facilitate the adoption of cryptocurrency on its platform. Now the customers can “check out” with cryptocurrency. This feature increases PayPal’s utility for fans of cryptocurrency. Earlier, customers had to sell their holdings in order to make a purchase. The resulting cash balance in their account after selling Bitcoin would then be utilized to pay for the goods and services. This new feature makes things quicker and simpler. Users will now only sell as much as it is required to purchase the desired good.
BEST CRYPTO TO INVEST IN 2021
Since its introduction in 2009, the realm of cryptocurrency is ever-expanding. Many different virtual coins have debuted since their parent coin Bitcoin came into being. Although bitcoin always manages to steal the limelight, other cryptocurrencies collectively known as altcoins are struggling to secure a better place on the list according to their market capitalization. With covid-19 pushing the world further towards digitalization, people are more interested to know which of these altcoins can serve as a better investment option. Listed below are some of the well-known altcoins people can look forward to performing better in 2021 depending on their market capitalization value.
ETHEREUM
While Bitcoin might be the most in-demand crypto, Ethereum still beats it for being the most influential crypto to date. It stands second in line to Bitcoin on the trading exchanges. A decentralized software platform, Ethereum allows users to design Smart Contracts and decentralized applications (DApps). These applications run without third party interventions, theft or control. Ethereum’s native currency is Ether. Its Blockchain is used for the production and exchange of non-fungible tokens (NFTs), decentralized finance and initial coin offering. Ethereum is currently rocking the trading exchanges with a market capitalization of $244 billion. Ethereum continued to shot high alongside Bitcoin, with its current value at $2,144.99. If this pace continues, a bullish ETH will soon follow. With this great value, Ethereum is a good investment option for people just getting started with cryptocurrency.
LITECOIN
After Bitcoin, Litecoin was introduced which is considered a better version of Bitcoin. Like bitcoin, Litecoin also has a limited supply of 84 million, and around 65 million has already been mined. This network has very low fees, is four times faster and easier to work with as compared to Bitcoin. This makes sending and receiving payments equivalent to sending a message through cell phones. In November 2020, Litecoin reached $64 from $46. According to the current stats, the price of Litecoin is $223.94 as of April 2021 and a market capitalization of $13.3B, Litecoin recent leap has made it an attractive option to invest in.
The cryptospace is an expanding entity. With more altcoins soaring in, there are approximately 4,000 functional altcoins. One cannot accurately comment on which altcoin will win the race. As of now, amongst all cryptocurrencies Bitcoin, Ethereum and Litecoin are the centers of attention.
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