Five Top Cryptocurrency You Need to Invest in 2021

Shalom Solomon 28th January, 2021

Do you want to build your income through investments? Cryptocurrencies are the new oil and gold of the digital era with vast profitable investment opportunities. With over five hundred cryptocurrencies currently on the market, going into crypto investments can be overwhelming for a beginner. Below are the best cryptocurrencies experts selected, to buy for investment in 2021.

First of all, what are cryptocurrencies?

Cryptocurrencies are simply virtual or digital money in form of tokens and coins. They are intangible and can be used for transactions, investments and in the case of bitcoin, tax payment.

Cryptocurrencies - Photo Credit: Pixabay

1. Bitcoin (BTC)

Bitcoin was released in 2009 by the anonymous Satoshi Nikomoto. It is the first cryptocurrency and is known as the gold of cryptocurrency. Bitcoin has had a lot of fluctuation in its price and market value; hence, it is not suitable for currency. That aside, bitcoin is a great investment opportunity. As of March 2020, as a result of the pandemic, its price dropped to $4000. It recovered and by November 2020 was at $16,000. This year, its price has grown to around $31,000. CitiBank's analysts predict that Bitcoin could hit $300,000 by the end of 2022.

Benefits.

User autonomy and anonymity
Low transfer fees for international transfer
Greater liquidity compared to other cryptocurrencies.
Widely accepted as method of payment.
Low transaction fees compared to others.
Intrinsic value from built-in scarcity.

Bitcoin's major flaw is its security risks. So be careful, avoid ponzi schemes they always crash, make proper research, read reviews and ask questions before making any move with your money.

2. Ethereum (ETH)

Ethereum was released in 2015. It is the second most popular cryptocurrency after bitcoin. It uses smart contracts that allows for the building of decentralized applications (also known as Dapps) that run without any downsides, fraud, control or interference from a third party. One of the key features of Ethereum is that it is programmable, meaning that developers can use it as a market place for financial services, applications, etc. that are built on its platform. Ethereum was initially developed to complement Bitcoin with the same blockchain network, but it has grown to become bitcoin's competition. According to The Motley Fool, ethereum has arguably the best known blockchain network. An ether was sold for around $579 () as of November last year it's price is currently at $1,326 (28th January, 2021).

Benefits

It is the second most liquid Cryptocurrency in the world.
It has higher block reward compared to it's competitors.
It is the largest and most well established open-ended decentralized software platform.

MIT consultant for Stellar in 2018 predicted that the value of ether not the ethereum network itself would run down to zero. Some analysts and crypto prophets predict that ethereum would eventually hit $9000. Gov capital however predicts that ethereum would remain around $1400 and climb to $4000 in five years time.

3. Litecoin (LTC)

Litecoin was developed by Charlie Lee and launched in October, 2011. It was one of the first cryptocurrencies to copy bitcoin's structure. Litecoin is often refered to as the silver to bitcoin's gold. Although it is nearly identical to Bitcoin, Litecoin is has a shorter block generation time of 2 minutes against Bitcoin's 10 minutes which allows it to confirm transactions faster. Litecoin is a peer-to- peer cryptocurrency just like Bitcoin, it is an open-source decentralized payment network which means it is not controlled by a central authority. Litecoin has a supply limit of 84 million LTC coins which are estimated to finish in 2144 it has currently mined 77%. Lite coin sells at $130 and is estimated to reach $1260 at 2025.

Benefits

It very fast, four times as fast as bitcoin
Transactions have minimum commission
everything is done electronically, so your financial records are secure.
it can be directly exchanged for other Cryptocurrencies on the block chain using atomic swap.

It's main draw back is it's anonymity which makes it easy to use for illegal activities on the dark web. It is also not supported by major cryptocurrency trading websites. There are also no refunds on failed transactions as it is decentralized.

4. Binance Coin

Binance Coin was launched in 2017 by Chanpeng Zhao as a cryptocurrency used to pay fees on the binance exchange platform for Cryptocurrencies. Unlike other Cryptocurrencies that deal with physical cash, binance coins transacts purely with other cryptocurrencies. Its value per coin is $44 as of January, 2021. The exchanges is one of the most widely used in the world.

It is predicted to rise to $123 by the end of 2021.

5. Bitcoin Cash

Bitcoin Cash is a spin-off of Bit coin. It was designed to help Bitcoin resolve it's scalability problem and improve it's speed. It was created in 2017 with a bigger size limit of 32mb allowing more transactions to be processed and improving scalability. It's value is currently at $393 and predicted to rise to about $1100 per coin.

Phew, this has been a long ride. Investing in Cryptocurrency is a very attractive venture considering the rise of Cryptocurrencies relative to their initial start up price. But there is also the problem of their volatility; their value can fall at anytime. Also although Cryptocurrencies are being worked on, they are are vulnerable to hackers and there are no clear laws regarding cybercrimes involving cryptocurrencies. Also keep in mind that there aren't refunds for lost cryptocurrencies as a majority of the run on a decentralized network.

Finally, if you're looking into investing in Cryptocurrency, keep your eyes open and look before you take any step.

Adios..