The end of 2020 and the beginning of 2021 are simply phenomenal, as Bitcoin and its friend Ethereum are growing daily and breaking new records. They also lead other cryptocurrencies, and it is this fact that makes users wonder – what coins will continue to grow and where should they invest in order to make a profit in 2021?
In this article, we will briefly describe the behavior and potential of each of the popular coins, so that it would be easier for you to decide in favor of any of them, or to abandon this risky venture.
How to Choose The Best Cryptocurrency to Invest In 2021?
In fact, many cryptocurrencies can be invested in if you know what factors to look out for. You read it right – there are a number of indicators that will help you understand whether a particular cryptocurrency is good for investment.
- The popularity of the coin.
You know this rule – the more people invest money in the coin, the higher will be its price. That is why, if the coin you want to invest in is popular, people talk about it, discuss its potential, etc., then you can continue researching it.
Some of the wallets offer a lot of cryptocurrencies to store, but not every crypto is supported. Here I mean that you need to find a wallet that will support the best cryptocurrency to invest in, according to your opinion. The list of safe crypto wallets you may find on the Safetrading website.
Always check the past charts. If you see the coin had a low price, then suddenly climbed 300% higher, it will not be the best cryptocurrency to invest in now. We advise you to choose coins with adequate charts and high volume.
The Best Cryptocurrency to Invest In 2021
Despite all the factors and rules, there are some cryptocurrencies that are time-tested and show excellent dynamics. And, as you already understood, it is in these coins that traders invest money most often.
The best cryptocurrency to invest in 2021 is:
- Bitcoin (BTC).
- Ethereum (ETH).
- Litecoin (LTC).
- Stellar (XLM)
In this list, Bitcoin has always been and will be the best cryptocurrency to invest in now because it has the most potential. This cryptocurrency has been around since 2009. By the way, in 2009 it cost less than a dollar, and at the beginning of 2021, it already exceeded the $25,000 mark.
90% of experts are confident that this is not the end, and that the cryptocurrency will grow higher every year. Some even predict the value of Bitcoin at $1 million – will see!
Here I am trying to say that Bitcoin is always a good decision, and, to my mind, it is the least risky and the most profitable investment among cryptocurrencies.
Ethereum is the second best cryptocurrency to invest in 2021 and ranks high in the portfolios of many investors. It was launched in 2015 and crossed the $1,000 mark in early 2021.
However, unlike Bitcoin, it has not broken its past record. The absolute record for the value of the cryptocurrency, at the same time, was recorded on February 13, 2018, at around $1,432.
Ethereum may lose its altcoin status, becoming an independent cryptocurrency. This is the conclusion drawn by the specialists of the San Francisco Open Exchange (SFOX) in their research. Analysts explained their point of view by the high correlation of ETH and BTC rates. In their opinion, the reaction of the Ethereum course to events, similar to Bitcoin, speaks of the independence of the project.
All these factors promise us that $1,432 Ethereum price is not the first record Ethereum will break in the future.
The next big cryptocurrency is Litecoin that is one of the “oldest” cryptocurrencies and was released in 2011. This coin is stable, has good volume, and is appreciated among crypto enthusiasts, so is the third best cryptocurrency to invest in 2021. In addition, LTC correlates well with Bitcoin. The growth of the latter, which many investors believe in, could open up an opportunity for Litecoin to realize a positive direction.
Litecoin is one of the most popular cryptocurrencies for long-term investment. Developer Franklin Richards noted in January 2020 that more than half of all LTC issued have been inactive in the past 12 months.
This international transfer system is designed to simplify the system for sending and receiving funds. So, using the XLM token, ordinary people and large companies can quickly and without intermediaries conduct financial transactions via the Internet.
Stellar now cooperates with major banks and financial institutions – Kapilendo, Anchorage, Tempo, ICO Smartlands, and many others.
Stellar (XLM) has been doing pretty well in the cryptocurrency downtrend lately compared to Bitcoin. Perhaps the main reason for its stable position was the creation of a number of projects based on the platform.
Now, at the beginning of 2021, this coin costs $0.33 – this is not a record, but far from the lowest value, so it is the fourth best cryptocurrency to invest in now, to our opinion.
The Best Cryptocurrency to Invest In 2021 | Conclusions
Cryptocurrency trading and investment become more and more popular with the Bitcoin price increasing.
When choosing the best cryptocurrency to invest in now, you should also consider the following factors:
- the behavior of the cryptocurrency course largely depends on the decisions of the project team. Additional initiatives and development prospects can support the value of a digital asset.
- some coins are subject to pump schemes. In this case, representatives of the project can act as a source of pressure. Before looking for promising cryptocurrencies for investment, it is important to familiarize yourself with the peculiarities of the influence of various factors on the behavior of digital assets.
- a high level of cryptocurrency capitalization is not always a sign of quality. Many popular digital assets have critics.
- The crypto storage has to be developed by an experienced custom software development company like MLSDev or others.
That is why the first step in investment is your own research – you should never invest your money blindly.