Crypto Predictions for 2021: Where to Invest
Cryptocurrencies have been around for several years, becoming some of the most lucrative and profitable investment opportunities. Cryptocurrency assets have consistently outperformed traditional investment assets like stocks and commodities like Gold and Oil.
If you are looking at investment opportunities then cryptocurrencies are your best bet, however, it could be a daunting task to select which crypto you should invest in which is why we have made some crypto predictions for 2021, which should help you figure out where to invest.
There are several options that you, as an investor, can look at. Bitcoin is the most obvious choice but there are other cryptocurrencies beyond Bitcoin. XRP is gaining traction among investors according to the XRP price prediction, giving them a stellar return on their investment. Other investment options among cryptocurrencies are Ethereum, Litecoin, BAT, and Cardano. If you are interested in going into a little more detail, take a look at our list of crypto predictions to help you decide where you want to invest in 2021.
Top Crypto Assets for 2021:
Take a look at these top cryptocurrencis to invest in 2021, and start off your investment on the right foot.
Ripple is an excellent investment choice for individuals who want to invest in cryptocurrencies without spending too much money. Ripple's current trading price is $0.42, making it an attractive proposition for investors. The cryptocurrency is the fourth largest currency globally and an excellent option for investors who tend to be a little cautious. Created as an alternative to traditional payment systems, Ripple aims to transform cross-border payments, offering low exchange rates and instant confirmation for transfers.
Ripple's price is expected to increase in 2021, with experts predicting that the cryptocurrency could reach $3 by the end of the year.
Ripple's partnerships with global financial institutions in over 40 countries have seen Ripple position itself as an alternative to the SWIFT payment system. The cryptocurrency addresses major issues like speed, security, scalability, and transparency.
With growing support to cryptocurrencies like Ripple, 2021 seems to be a good time to invest in Ripple and make a significant profit.
Cardano is an excellent investment option for the short and long-term. Cardano is described as a third-generation cryptocurrency that solves issues like speed and scalability that plague first-generation and second-generation cryptocurrencies. Cardano is the first peer-reviewed cryptocurrency, offering better scalability through its layered architecture.
Cardano was founded by Charles Hoskinson, who had previously worked with Vitalik Buterin at Ethereum. Hoskinson teamed up with Ethereum co-founder to set up Input Output Hong Kong (IOHK), the company behind Cardano. Cardano uses Ouroboros, a Proof-of-Stake consensus mechanism that guarantees the integrity, performance, and longevity of the protocol by using mathematical game theory, cryptography, and combinatorics.
Currently, Cardano is trading at $0.67 and has a market capitalization of around $21.5 billion. This is set to increase in 2021, with most cryptocurrency space experts agreeing that Cardano will see steady appreciation in price, averaging around $0.70 in 2021 and could rise to $1.50 by 2023.
Litecoin is one of the best cryptocurrencies you can invest in, an excellent option for beginners and experienced investors. Litecoin's market capitalization currently stands at around $9.8 billion and is expected to increase further.
Litecoin shares a lot of similarities with Bitcoin, but Litecoin addresses some critical issues that plague Bitcoin. It requires less computing power than Bitcoin, with even ordinary laptops and desktops able to mine it.
Litecoin is also a lot quicker than Bitcoin, taking just two and a half minutes to process one block. Bitcoin takes ten minutes to process a block.
Litecoin is currently trading at $152, with its price set to increase in 2021 and beyond. The cryptocurrency saw significant development in 2020, the highlight of which was Litebringer, an RPG running on the Litecoin blockchain. Litebringer tripled the transactions on the Litecoin platform, accounting for over 70% of all transactions, leading to an increase in the currency price.
Litecoin's similarities with Bitcoin also make it an excellent investment asset.
Bitcoin is the largest and most popular cryptocurrency globally, and no list is complete without it. Although the cryptocurrency endured a rough start to 2020 with a significant price drop, it rallied spectacularly after falling to its lowest point in March. Bitcoin reached its highest recorded price in January 2021, when the cryptocurrency's price surged to $40,519.
Bitcoin is set for a bull run in 2021 on the back of increased institutional interest, which experts believe will be a significant factor in the price of Bitcoin.
Significant recent developments like Elon Musk's car firm Tesla has said it bought about $1.5bn (£1.1bn) of the cryptocurrency Bitcoin in January and expects to start accepting it as payment in future, and JPMorgan Chase's JPM coin going live and MassMutual announcing the purchase of $100 million in Bitcoin show the amount of interest that Bitcoin is generating.
Experts predict Bitcoin will see mass adoption as a mode of payment in 2021, thanks to PayPal announcing that users of the platform can buy and sell Bitcoin and make purchases using Bitcoin. This announcement is expected to open up a vast market for Bitcoin.
The general consensus within the cryptocurrency industry is that Bitcoin could cross $100,000 by the end of the year and possibly cross $300,000 by the end of 2022. With predictions like these, this is an excellent time to invest in Bitcoin.
Ethereum is the second-largest cryptocurrency in market capitalization after Bitcoin. Often called the "King of DeFi," Ethereum has seen an influx of several next-generation DeFi projects, with several institutions making Ethereum their platform of choice for their DeFi products. Experts believe that Ethereum 2.0 and the growth of DeFi. The platform has become an integral cog in the DeFi space.
DeFi saw incredible growth in 2020, and Ethereum was the platform that gained the most from it. 2021 is expected to be more or less the same for Ethereum, and its price is set to increase even further.
With Ethereum 2.0 also coming into the picture, 2021 is predicted to be a very bullish year for the cryptocurrency. Ethereum 2.0 promises better speed and scalability with the switch from a Proof-of-Work (PoS) consensus mechanism to a Proof-of-Stake (PoS) consensus mechanism.
Ethereum's current price is around $1630, which could increase further thanks to DeFi and Ethereum 2.0 having a positive influence on the price of Ethereum.
Basic Attention Token (BAT)
The Basic Attention Token was developed by one of the co-founders of Mozilla Firefox.
BAT is popular among IT professionals, web developers, marketers, and writers. BAT is a well-known cryptocurrency in the cryptocurrency space and has grown steadily since its inception.
It was created to improve the security and fairness of digital advertising. The BAT token is built on the Ethereum platform and is the native token of the Brave browser. The BAT token is currently trading at $0.41 and, although still in development, is expected to see steady growth in 2021. BAT provides a relatively low-risk investment opportunity for investors.
Conclusion: Top Crypto Assets for 2021
Accurately predicting the price of cryptocurrencies is a tricky business, as several factors affect the price. Market sentiments can change at any time, having a negative effect on the price of digital currencies.
Cryptocurrency prices also depend on other cryptos' performance, and the performance of other currencies could have a positive or a negative influence on your investments. It is essential to be thorough in your research before investing.
However, that being said, most cryptocurrencies are predicted to see considerable growth in 2021 and beyond. Invest smartly, keeping in mind your investment goals, and you shall see a significant return on your investments.
eToro – The Best Cryptocurrency Platform
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.