You either like cryptocurrencies, or you don’t. There’s no middle ground. Regardless, there’s no denying the fact that the cryptocurrency market size is (literally) increasing by the minute. Today, it is worth $1.6 billion and is set to grow to $2.2 billion by 2026, which represents a 7.1% rise.
As a result, amateurs, as well as established investors, are joining the cryptocurrency bandwagon, pumping huge sums of money every day. If you’re planning to do the same, check out the 5 best cryptocurrencies worth investing in 2021.
Bitcoin is the first name that comes to mind when you think about cryptocurrencies. The digital currency was created in 2008 by an anonymous individual named Satoshi Nakamoto. It has since surged in value dramatically and has a market capitalization of $1.01 trillion today. It can be sent from one user to another on the peer-to-peer bitcoin network without the use of intermediaries. No central bank or single administrator is in charge of BItcoin, and that is the best thing about it.
Investing in cryptocurrencies can be risky. However, going with coins that are backed by experienced investors can help mitigate some of the risks and help you maximize your profits. Ethereum is one such digital currency that went live on 20th July 2015, with an initial supply of 72 million coins. As of writing, it had a market capitalization of $195.54 billion. It is considered by many to be one of the safest and most profitable cryptocurrencies in circulation today.
First released in 2012, Ripple is unlike other cryptocurrencies. It is essentially a venture-backed startup that helps banks settle finances directly and instantly across national borders. Large banks, including Bank of America, have used Ripple, so the coin comes with a strong history. Ripple, which is represented as XRP, has a market capitalization of $26.8 billion, with one XRP trading at $1.01 (as of 27th May 2021).
4. Binance Coin
You can’t buy or sell cryptocurrencies just like that. You need to do it through a cryptocurrency exchange. The Binance Exchange is the largest cryptocurrency exchange in the world, facilitating millions of transactions per second. Binance Coin was created by Binance Exchange to enable investors on their platform to buy other cryptocurrencies. One of the great benefits of using Binance Coin is that users receive a discount in transaction fees on the Binance Exchange as an incentive.
Litecoin enjoys a market capitalization of $13.8 billion. It has great liquidity value and unlike Bitcoin’s 21 million supply, there are 84 million Litecoins in circulation. Mining a Litecoin is also faster than any other cryptocurrency, with the average time of mining being just two minutes. It works almost like Bitcoin, but processes a block and confirms transactions quicker.
6. Bitcoin Cash
Like Bitcoin, Bitcoin Cash also has a limited supply. However, unlike Bitcoin, Bitcoin Cash allows for a larger block size, which means more transactions can be stored in a single block. Some of its technical capabilities are similar to Bitcoin, while it has a market capitalization of $10.8 billion.
No one can predict which cryptocurrency will be the best to buy in 2021, but if you want to acquire cryptocurrency in the following months, the six coins listed above are all interesting options to explore. However, any investments you make should as always, be part of a well-diversified portfolio.