Best Cryptos To Buy Now: 3 Cryptocurrencies To Snap Today
Cryptocurrencies have not been performing well over the past month. Despite the correction that saw most of them lose over 50% of their value in a month, the cryptocurrency market is still outperforming the rest.
For context, the S&P 500 is up by about 12% year-to-date, while the FTSE 100 is up roughly 8% in the same period. Comparatively, Bitcoin and Ethereum are up by over 200% year-to-date, the correction notwithstanding. Some cryptos like Dogecoin are still up by over 12000% despite the correction.
The market also seems to have found some ground after the correction. This means there is strong potential for a rebound. Against this background, we are going to dive deep into three cryptos we’d buy right now. All of them have lots of growth potential, not just in 2021 but for many years to come.
Top 3 Cryptocurrencies To Snap Today
Ethereum is one of the cryptos that hold a lot of promise at the moment. While its price action may look uninteresting at the moment, a lot is going on with this crypto.
One of the most promising aspects of Ethereum is the shift to Ethereum 2.0. Ethereum is in the process of shifting to a Proof-of-Stake algorithm, and the implications will be huge.
The most important one is that it will multiply Ethereum’s capacity by a huge magnitude. This will in turn, lower gas fees and increase transaction speeds. Essentially, Ethereum is about to eliminate the key selling points that its competitors thrive on. For a project that already has the network effect, this is a big deal towards its value appreciation.
So far, the shift to Ethereum 2.0 is in top gear. According to the project’s founder, Vitalik Buterin, the shift is a top priority and is expected to be complete by the end of 2021. Investor uptake of Ethereum staking is on the rise too.
Since Ethereum staking became a reality in December 2020, the amount of staked Ethereum has been growing exponentially. The latest data shows that by the end of May, 5.2 million Ethereum worth about $13.6 billion was staked. It is an indicator of investor interest in the project.
Even better is that there are lots of projects that are working to make Ethereum more efficient. Projects like Polygon and Polkadot are making Ethereum interoperability achievable and layer 2 scaling a reality. Simply put, Ethereum competitors don’t stand a chance of dethroning it, especially in the fast-expanding DeFi space.
These are pretty solid reasons to hold Ethereum with the short to medium term in mind. The project has been performing pretty well too and is up by over 200% year-to-date.
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Binance Coin (BNB)
Binance coin is another crypto that holds lots of potential not just in 2021 but for many years to come.
One of the strongest arguments for BNB is its coin burns. Since its launch, Binance coin has had regular coin burns that have been instrumental to its demand and supply dynamics.
With every coin burn, the price of Binance coin has gone up, making it one of the most successful cryptos to date. Even more interesting is an announcement by Binance that they intend to speed up the coin burn over the next five to eight years. This will serve to drastically shrink its supply against ever expanding demand. Economics 101 dictates that such an asset is a winner.
There is also the fact that Binance coin is one of the few cryptos with a real-world use case outside of trading speculation. Binance coin is used to pay fees in Binance’s ever expanding portfolio of products.
For context on how big of a deal this is, Binance is the largest crypto exchange in the world. The exchange, through its Binance Smart Chain, is also giving Ethereum a run for its money in DeFi and NFTs.
Such use cases, coupled with its coin burns make Binance coin one of the best cryptos to buy now and hold.
Cardano is another crypto with good prospects in 2021 and beyond. One of the factors that have thrown Cardano to the limelight is the energy consumption factor in crypto.
News reports are increasingly pointing at how much energy Bitcoin is consuming, even calling it a dirty currency. The reason cryptos like Bitcoin and Ethereum consume so much energy is that they use the Proof-of-Work algorithm. This requires the use of complex energy-sipping machines to mine new coins.
Cardano does not have this problem. That’s because it runs on the Proof-of-Stake algorithm. Ethereum is working on shifting to Proof-of-Stake too, but Cardano already has it.
The Cardano Proof-of-Stake algorithm is one of the best in the market. It is scientifically proven to be secure, and run as it is supposed to. Given that energy concerns are not going away any time soon, Cardano is likely to be a top performer all through the year and beyond.
Cardano has many use cases as well, many of which could see it get adopted globally. For instance, Cardano’s Atala PRISM is a blockchain solution for storing personal data in a tamper-proof manner. This has the potential of widespread adoption in healthcare and academia. The increasing number of hacks targeting critical institutions give even more weight to this use case.
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From the above, it is quite clear that Ethereum, Binance Coin, and Cardano hold lots of potential for growth. Their core fundamentals point to increasing intrinsic value.
Over and above their core fundamentals, the broader market supports their potential for growth. One of the broader market factors in favour of growth is the increased acceptance of crypto as an asset class.
According to a report by Financial Planning Association, 14% financial analysts now recommend crypto to their clients. The report also shows the growing acceptance of crypto as a viable hedge against inflation.
With monetary and fiscal policies so out of touch with reality, inflation fears are higher than ever before in decades. This is a factor that is already playing a role in crypto adoption, and a boost for Ethereum, Binance Coin, and Cardano.
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