To answer the question of which cryptocurrency to invest in in 2021, we studied the market and the latest developments in the industry. The result is a list of the 10 most promising cryptocurrencies of 2021, which are showing the best results right now.
As mentioned above, despite all the problems, bitcoin remains the main cryptocurrency in the world. That is why investments in it remain relevant for both beginners and experienced players in the digital currency market. Even taking into account fluctuations, the bitcoin rate remains somewhat stable.
In addition, several large companies have already demonstrated confidence in the first cryptocurrency in 2021, which positively influenced the image of bitcoin. For example, at the end of March, the American automaker Tesla allowed US customers to buy cars with Bitcoin. At the same time, the company will keep the received cryptocurrency in its accounts without transferring it into traditional money. Also, one of the largest real estate agencies in the United States, Caruso, began to accept Bitcoin for payment. And the leading investment funds are gradually increasing the share of BTC in their portfolios.
The second most popular cryptocurrency in the world and the main altcoin Ethereum in 2021 looks like one of the most attractive investments. Since January, the ether rate has been steadily growing – if on January 1 it was $ 740, then in May the cryptocurrency was trading at a price above $ 4,000.
In part, the rise in the cost of Ethereum is due to the imminent transition to a new version (Ethereum 2.0), so many minor updates were marked by an increase in price. When the network is finally updated to the second version, ETH can no longer be obtained through mining – the cryptocurrency will switch to the staking model. This means that Ethereum holders will be able to receive passive income by keeping coins in a wallet connected to the network.
On the one hand, experts say, investors will buy back some of the coins in order to keep them and receive income. On the other hand, they will start creating pools by pulling the coin out of the market space. The fewer coins there will be on the market, the less the rate will be subject to speculation, experts are sure. And this will lead to a harmonious growth in investment in this cryptocurrency. Also, the value of ETH can be positively influenced by the stable and consistent growth of cryptocurrencies, which also work on the Ethereum blockchain. In addition, the rapidly gaining popularity of decentralized financial applications (DeFi) is based on the technologies of the second digital currency.
Another promising altcoin is Bitcoin Cash. This digital asset has a great chance of reaching new heights. This is partly due to the fact that PayPal and its Venmo payment service have added the ability to buy, sell, store and transfer this cryptocurrency. Bitcoin Cash is believed to be more suitable for retail transactions due to the fact that it uses larger blocks: 8 MB compared to 1 MB for BTC. At the beginning of 2021, Bitcoin Cash was trading at $ 342, and in May its price reached $ 1,500.