Since the launch of the first-ever cryptocurrency 12 years ago, several other cryptos have sprouted and now there are thousands of crypto assets in existence. Over the years, crypto assets have proven to be profitable investments. However, with lots of cryptos out there, most of them aren’t worth taking a risk on. There is no doubt that crypto is here to take over the financial industry but it remains a question of which of these digital assets have the best chance of success in the new year 2021.
While most people will be looking to buy bitcoin which has proven to be a good bet over the years, there are several other cryptocurrencies that also have the potential of breaking ground in 2021.
So let’s check out the top 5 cryptocurrencies for this year! In the meantime, you can check out some lessons learned from Bitcoin Investing in 2020.
This is an obvious choice on this list, but that’s because it merits it. To some people, when you say buy crypto, they think you mean buy BTC, this is how popular the asset is. You can buy Bitcoin on almost all cryptocurrency exchanges available as it is the pioneer digital currency and has been performing at the highest level for over a decade. It has the highest market capitalization with over $600 billion and many businesses around the world accept BTC as a means of payment. As far as BTC continues to lead the crypto market, investors will always profit from high liquidity levels.
Bitcoin is a decentralized digital currency that can be sent between users without a third-party intermediary. It is not an application. It is, quite literally, money in digital form. Unlike fiat currencies such as the pound or dollar, Bitcoin is not issued by a central bank. Instead, they are created and released as a reward for a process called mining. Miners are the people who process the transactions on the blockchain, creating a permanent and 100% secure record of every Bitcoin transaction. Bitcoin recently surpassed its all-time high at the beginning of 2021 and its no doubt that the asset is set for a successful 2021. So if you choose to buy bitcoin this year, you are making a good choice and it is definitely not too late.
Ethereum is the second leading crypto in terms of market capitalization. It was launched 7 years ago and since then, ETH has grown to become the center of the Defi revolution. Unlike other crypto assets that were created to function as a P2P digital asset, Ethereum is the pioneer project to create smart contracts, which allows developers to create decentralized apps (dApps) on the blockchain.
Ether is the cryptocurrency of Ethereum and with a market cap of over $140B, it is sitting only behind the number one cryptocurrency, Bitcoin. Ethereum recently launched an upgrade (ETH 2.0) and the crypto community expects the upgrade to make Ethereum more efficient. Just at the start of the year, Etheruem has witnessed a price boom, so if you are looking to buy a digital currency this year, ETH stands to be a good choice.
Bitcoin Cash (BCH)
Bitcoin cash is a fork of Bitcoin. BCH was launched to improve the transaction speed of bitcoin. The increase in popularity of bitcoin has led to more transactions leading to a faster rate at which the data blocks are filled up. The blocks can take up to 1MB of data but as adoption grows, the block continues to fill up reducing the speed of transactions and causing a high transaction fee.
In order to address this issue, developers created a hard fork of BTC to increase the block size from one megabyte to eight. This hard fork is called Bitcoin Cash. BCH can save up to eight megabytes of data leading to quicker transactions and lower fees. So as long as BTC continues to flourish, BCH will also continue to boom. BCH has a market cap of over $8 billion.
Litecoin is a coin with some similarities to bitcoin. With a transaction time of 3 minutes, Litecoin proves to be faster than bitcoin. Additionally, Litecoin has low fees compared to bitcoin. Some people even refer to the asset as Bitcoin lite. As the adoption of this asset grows gradually, it would be advisable to keep your eyes on this asset as it has the potential for great success. With a market cap of over $8 billion, Litecoin sits above bitcoin cash in seventh place.
Tron is a content sharing platform that uses P2P technology. This platform allows for easy content sharing. Tron doesn’t require an intermediary as it allows anybody to put their content on its blockchain platform. While TRON gives a kind of protection to its users, it also allows content providers to monetize their content using Tronix (TRX). TRX is the currency that people use on the platform to pay for these services. It requires low fees for users that want to access the content on the platform.
More firms continue to adopt TRON and with a continuous adoption, comes a gradual rise in the price of TRX. Interestingly, the platform currently holds a significant number of Dapps. This fact alone is making many investors keep tabs on TRX in 2021. TRX has a market cap of over $2 billion and the current price stands at about $0.02851.
There are several other cryptos with great potential, however, before you buy any crypto-asset, it is important to make some research about the crypto. Even if you are looking to buy bitcoin or any other crypto in the article, you still have to conduct adequate research to make sure you are buying at the appropriate time and at the right price.