$2000 to Invest? 5 Growth Cryptos to Buy and Hold in 2021
Do you want to skip the read and get right to our top picks? The top growth cryptocurrencies to buy and hold in 2021 are Bitcoin, Ethereum, and Ripple.
2021 is all set to become one of the biggest years for cryptocurrencies. 2020 has been one of the most challenging years that we have ever faced. Not only has the COVID-19 pandemic wrecked several families, but it has ravaged the global economy as well. However, towards the end of 2019, investors have tended to use cryptocurrencies as a hedge against significant economic risks.
What does this mean for cryptocurrencies in 2021?
This has two major implications for digital assets in 2021:
- Firstly, with cryptocurrencies proving themselves to be investor-friendly in late-2020, one could expect more influx. Many financial institutions have started recognizing the game-changing potential of crypto, while some, like MicroStrategy, have started making huge investments. This has positive implications for overall network growth.
- Secondly, with digital payments becoming the new normal, it could have tremendous implications on mass adoption. Plus, along with DeFi becoming big, it could have even more positive long-term implications.
So, how can you get your slice of the crypto pie? Well, suppose you have $2,000, here is what you need to do.
Looking for growing cryptocurrencies in 2021?
The Top 5 growth cryptos to consider buying and holding in 2021
We have put together a list of the best growing cryptos in 2021.
So without further ado…
1. Bitcoin - isn't going anywhere and will continue to grow
Over this year, Bitcoin has grown up 158% and is currently trading for $18,400. Many might consider BTC to be a little too overpriced. However, many analysts believe that we are on the cusp of a significant bull run.
Firstly, as we have already mentioned, there is a growing amount of institutional interest. MicroStrategy has already bought a little over 40,000 BTC. Secondly, multiple price models are predicting BTC to have a monstrous 2021.
Plan B, the creator of the controversial bitcoin stock-to-flow (S2F) price model, predicts BTC to reach $100,000 by August 2021. However, do note that the model predicted the price to reach $30,000 by 2020 end, which looks pretty far-fetched.
2. Ethereum - ETH Will Continue to Rule DeFi
The smart contract giants have experienced gains north of 350% starting the year at ~$125. However, this could be just the start. 2021 will be a massive year for Ethereum as it consolidates its Ethereum 2.0 upgrade and works on becoming a pure proof-of-stake (PoS) protocol. However, technical changes aside, the biggest factor behind Ethereum’s valuation will be the booming DeFi sector.
The total value locked (TVL) up in DeFi was around $3 billion in 2019. However, this year, that amount has surpassed $13 billion. The rate at which the TVL in DeFi is increasing far outstrips the rate at which the crypto market cap is rising. DeFi is the most practical use case of blockchain technology and something that can help usher in a bunch of new investors into Ethereum's ecosystem.
3. Ripple - XRP to Get Love from Institutional Investors
As mentioned before, Ripple is primed for institutional adoption in 2021, with FRMO Corp singling it out as one of the more intriguing cryptocurrencies of 2020. Ripple had expanded to more than 300 provides across 40 countries, including Banco Santander (SAN) and American Express (AXP), JP Morgan (JPM), HSBC Holdings (HSBA), HDFC Bank Limited (HDB), and the Bank of America (BAC)/
As per OMFIF (the Official Monetary and Financial Institutions Forum), Ripple could “position itself as an alternative to SWIFT,” and solve the five major issues of cross-border finance – security, speed, traceability, cost, transparency, and risk management.
With increasing adoption, Ripple could potentially see itself ruling the roost in 2021.
4. Litecoin – Faster than Bitcoin
Litecoin has nearly doubled in size over 2021 having grown from $40 to $76. While post-halving growth of LTC may not have been as big as expected, it still has some growing potential. Despite this, the fact remains that Litecoin has never left its place in the top 10, and it doesn't look like it's going to go down in 2021 either.
The launch of LiteBringer – a Litecoin-based RPG fantasy game where each move is a transaction – brought a lot of utility into the protocol. Right after the game's launch, Litecoin transactions skyrocketed, exceeding 130,000.
According to Cryptoground.com, Litecoin will trade at $88 in one year and will then climb up to $347 by the end of 2024 following the next halving.
5. Tezos - XTZ to provide a DeFi alternative
Since the beginning of 2020, Tezos has climbed up from $1.34 to $2.13. Tezos is a smart contract platform like Ethereum, but it utilizes the delegated proof-of-stake (DPoS) algorithm, which allows it to be far more scalable and flexible. This also means that it presents a viable DeFi platform alternative for developers who may not be satisfied with Ethereum.
Along with speed, Tezos is significantly cheaper than Ethereum. In this November's Delphi upgrade, Tezos managed to reduce smart contract gas fees by 75% to attract developers. The upgrade is “crucial to enable novel applications on Tezos that target areas like DeFi, collectibles, and gaming.”
Upon proper implementation, Tezos can leverage DeFi to boost its valuation significantly.
We believe that these five coins have an immense upside for 2021. Before you take the plunge and invest, we request you to do your own research.
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