Cryptocurrencies have seen considerable growth that could not be just ignored over the past few decades. The potential developments in blockchain technology and multiple cryptocurrency exchange platforms ushered in a wave of numerous cryptos made on decentralized peer-to-peer platforms.
This fast-growing legion has made cryptos a profitable digital asset for investment. Its uncontrollable growth has convinced more investors to invest in cryptocurrencies, and they have indeed reaped quite a good amount of profit from it.
Factors To Consider Before You Plan To Invest In Cryptocurrency
Like other investments, cryptos too come with many risk factors and vast potential rewards. Cryptos is indeed a profitable way of saving your income or making more revenue if you invest in it carefully, considering all risk factors. Focusing just on the current rate is not a good index as it might show a drastic change within a few weeks. Here are a few factors and indicators to consider before investing in cryptocurrencies.
The Volatile Nature Of Cryptocurrency
Cryptos are highly volatile and go through a lot of ups and downs all at once. It is important to be aware of its volatility and have a risk management plan to avoid unnecessary loss of your hard-earned money.
Cryptocurrencies should have a higher liquidity level for it to have a faster market sale price. Most cryptocurrencies like Bitcoin have a high liquidity rate making them an all-time favourite of traders.
Before you invest in cryptocurrency, ensure that you track its trading activity on multiple exchanges. It shows the number of transactions specific cryptos made over a certain period, which is a good indicator that shows the actual demand of a particular cryptocurrency among traders.
Best 5 Cryptocurrencies Could Make You A Millionaire
With an ocean of cryptocurrencies available in the market today, traders and investors are in a state of complete confusion in deciding which crypto to invest in.
To clear this fog of confusion, here are the top 5 cryptocurrencies in the market to invest in today and for the foreseeable future.
1. Bitcoin (BTC)
Bitcoin is the oldest and still one of the biggest most popular cryptocurrency in the market, with a 40% share in the total cryptocurrency market cap.
Though it has dominated the market since 2009, Bitcoin's journey was not so smooth, filled with ups and downs. It had a high hit of over $20,000 in December 2017 before falling to $3,234 by December 2018.
Bitcoin managed to hit a comeback in March 2021, with prices surging to more than $60,000 for a market cap of over $1.2 trillion. That is, Bitcoins accounted for almost more than 69% of the whole cryptocurrency market.
In addition to this, Bitcoin is most likely to bring the dominance index to 65-70% compared to other altcoins.
If you have plans to invest in cryptocurrency, it is always best to consider the one with the largest market capitalization in the crypto world. The changes in the BTC ecosystem, because of the active use of Lightning Network, are seamlessly enabling Bitcoin's implementation in decentralized applications, e-commerce platforms, and micropayments.
Read Also: Bitcoin (BTC) Price Prediction
If you plan to invest in cryptocurrency, then Ethereum, the Bitcoin alternative, is indeed one of the best and secure crypto to consider.
Unlike Bitcoin, Ethereum is not merely a digital currency but a more advanced blockchain project. It is a decentralized software platform based on practical smart contracts and Decentralized Applications (DApps), used by many projects to digitalize transactions.
The currency value of Ethereum is expected to increase because of its increasing demand for its blockchain and functions. In 2021, Ethereum is also expected to change its consensus algorithm from proof-of-work to proof-of-stake, which will allow faster transaction speed and zero forkings. Also, with a market cap of over $139 billion, investors foresee a millionaire future by investing in Ethereum.
Read More: Should You Invest In Ethereum In 2021?
Ripple, known as the 'king of banking infrastructure,' made its breakthrough in the crypto industry with the Ripple ecosystem's successful partnership with few significant financial players in the market. The reason for Ripple's popularity is that it is not merely a digital currency but also an efficient payment system. It makes international payments faster and more secure with its blockchain technology and is popular among traders.
It soared to a range of almost $2.4 in December 2017, which was a remarkable growth beginning from almost $0. Being the third-largest cryptocurrency by market cap and with steady growth, Ripple is indeed a good option to consider as your 2021 cryptocurrency to invest in for the future.
Read Also: Ripple Price Analysis for 2021
Litecoin was launched in 2011 by adopting several excellent features of Bitcoin. This is one of the main reasons for its popularity among investors and is also a good reason to consider it one of the best cryptocurrencies. With a faster transaction rate and a lower system requirement, Litecoin has considerable fast-growing merchandise in the market. It completes a transaction four times faster than Bitcoin, which is remarkable.
In May 2017, it was the first cryptocurrency to perform a Lightning Network transaction and gained much popularity after that. With a market cap of $10.1 billion as of 2021, along with a deadly combination of faster and easier transactions, Litecoin is an inevitable investment opportunity to add to your list of cryptocurrencies to invest in for securing a millionaire future.
Read More: Litecoin Price Prediction 2021-2025
A group of engineers, mathematicians, and cryptography experts created Cardano, an "Ouroboros proof-of-stake" cryptocurrency after a detailed research-based approach. Similar to Ethereum, Cardano aims to be the financial operating system of the world. It accomplishes this by establishing decentralized financial products and providing solutions for chain interoperability, voter fraud, etc.
Though Cardano is still in its early stages, it has managed to secure a profitable name in the crypto world as an 'Ethereum killer' as it has more capabilities and opportunities comparatively.
One ADA trades for $0.31, and it has a market capitalization of $9.8 billion as of January 2021. This is indeed a significant rate and is profitable ground for investors who plan to invest in cryptocurrency for the long haul.
Read Also: Cardano Price Prediction
The Bottom Line
If you are looking for a long term investment plan, then one of the best and easiest options you have is to invest in cryptocurrencies. With a market surging with crypto tokens and exchange platforms, it is easy to lose track, and this might lead to a great loss of your hard-earned savings. If you have a strong will and good decision-making skills, these are the top 5 cryptocurrencies that you can invest in to secure a millionaire future for the long haul.