Best Cryptocurrency to Invest In Now.
Author: Văn Phương Tính
2021 has been the year of cryptocurrencies and digital assets with a wide range of currencies including Bitcoin witnessing large gains in terms of their value. Due to the pandemic, people have become more inclined to rely on digital means of sending and receiving funds which is one of the reasons why reliance on crypto ATMs has reached an all-time high. Digital currencies are now becoming a part of the mainstream finance environment as both commercial and consumer sectors have started to embrace them.
All these promising factors mean that cryptocurrencies could see further positive growth in 2021 and lead to great opportunities for traders and investors. This guide will help you to shortlist the best cryptocurrency to invest in 2021.
Compare the Best Cryptocurrencies to Invest In
Let's explore the best cryptocurrencies to invest in and the reasons why they make for such a popular investment.
1. Bitcoin (BTC)
Bitcoin is the very first and most popular digital currency project that was started in 2009 by an anonymous developer named Satoshi Nakamoto. The BTC project relies on a decentralised Proof of Work governance and verification structure which means miners need to validate transactions by finding solutions to cryptographic problems.
Bitcoin has shown immense resilience during the COVID-19 pandemic and currently holds more than 60% of the total cryptocurrency market cap. Many institutional investors have been attracted to Bitcoin due to these reasons and it has also gained widespread acceptance among businesses with some accepting it as a means of payment.
2. Ripple (XRP)
Ripple was developed to facilitate the payments system used by financial institutions by ensuring the quick and affordable transfer of funds across the globe. Ripple functions differently as compared to other blockchain-based cryptocurrencies as it has been pre-mined. The total number of coins available is 100 billion which are used for validating transactions. The coin was the subject of controversy after an SEC suit in the US but continues to remain popular among various financial institutions.
Ripple has been able to strike partnership deals with a multitude of banks and financial institutions around the world which means there's a real-world application for the network.
3. Monero (XMR)
Although in terms of market cap, it is not included in the top twenty coins as of now, Monero is one of the very few blockchain projects that have stayed true to the core of decentralisation ensuring private, secure and untraceable transactions. While Bitcoin and other popular tokens and projects promised absolute security and anonymity, they moved away from that particular objective to comply with a range of regulations and overcome mainstream acceptance challenges.
4. Ethereum (ETH)
After Bitcoin, if any other blockchain and cryptocurrency project can compete in terms of popularity and mainstream acceptance, it's Ethereum (ETH). The project is an expansion of the primary idea behind the BTC project as Ethereum takes on the challenge of building a new decentralised internet. It facilitates the development of smart contracts, decentralised services, and decentralised apps (dApps) along with the ability to hold initial coin offerings (ICOs).
Ethereum was based on a Proof of Work mechanism but with the ETH 2.0 update, the project has shifted to a Proof of Stake protocol that doesn't require a lot of computing power for validating transactions and is more environmentally friendly.
5. Litecoin (LTC)
Litecoin is a lighter version of Bitcoin. If BTC is the gold of the crypto world, then LTC is considered to be the silver. Over the years, the LTC project has been able to develop the blockchain effectively. It is one of the top ten cryptocurrencies in terms of market capitalisation. The total supply of LTC coins is 84 million with the circulating supply standing over 66 million tokens.
The project was initiated to ensure secure, quick, and cost-efficient transactions relying on the essential characteristics of blockchain technology.