Making a million by investing money in the cryptocurrency market has been a popular pursuit for many years. It takes time to build a seven figure profit. But obtaining the cryptocurren’s high-single digit annual returns on a regular basis could turn a modest monthly investment into millions.
Cryptocurrencies have been around for quite a few years now, going from something that only crypto enthusiasts would invest, to becoming one of the most sought after investment opportunities. Today, cryptocurrencies easily beat profits generated from conventional investment opportunities like the stock market.
But what are cryptocurrencies?
Cryptocurrencies are digital currencies secured by cryptography. This makes them virtually impossible to counterfeit. Cryptocurrencies are not issued by any central authority, which makes them immune to any third party interference.
There are many investors, new and experienced, who are looking to invest in the cryptocurrency market, and with good reason, since cryptocurrencies are on a bull run and this is the perfect time to buy them. However, there are over 500 different cryptocurrencies, and the chances are that choosing one would be quite overwhelming. This applies particularly in the case of beginners.
There are several cryptocurrencies for investors to choose from. Cryptocurrencies like Bitcoin and Ethereum have been around for a long time. There are other options like Litecoin, Bitcoin Cash, Ripple, etc. Even though predicting the crypto market is tricky, experts believe that 2021 will see cryptocurrencies make significant gains thanks to market recovery after COVID and other factors.
This article will discuss the best cryptocurrencies you can buy in 2021 and the outlook for those cryptocurrencies. So which are the best cryptocurrencies to buy in 2021?
The Top 5 Cryptocurrencies To Buy in 2021:
5. Bitcoin Cash
5 Cryptocurrencies Could Help You Make A Million:
No cryptocurrency list is complete without the inclusion of Bitcoin. The cryptocurrency does not need any introduction and is on the wishlist of every investor. Bitcoin has dominated the cryptocurrency market since its inception in 2009. It is the largest cryptocurrency by market capitalization and the most popular, and there is no sign that it will be dethroned anytime soon. Experts are predicting that 2021 will be the strongest year yet for Bitcoin. Experts predict that Bitcoin will consolidate its position as the top cryptocurrency in 2021.
The value of Bitcoin took a severe hit when the pandemic hit, hitting a low of $4721. But this was brushed aside as Bitcoin rallied stunningly, breaching $60000 in JMarch 2021 and touching $62299. There was a price correction that saw Bitcoin come down to $35000, and at the time of writing, the cryptocurrency is trading at $58,283.
So what is 2021 going to be like for Bitcoin? Some experts have predicted that Bitcoin could cross $100,000 by the end of 2021. Some have predicted that it could even go up to $300,000 by 2022. If these predictions are true and Bitcoin does hit these heights or go even beyond, you could make the best investment going into 2021.
Read More: Should You Buy Bitcoin?
Ethereum is Bitcoin’s closest competitor, the second-largest cryptocurrency by market capitalization, and the second most popular. Ethereum was released in 2015 and has grown exponentially with several projects making Ethereum their platform of choice. Ethereum has a market capitalization of almost $138 billion, and despite the COVID-19 pandemic rattling cryptocurrencies, Ethereum had a strong year.
Ethereum hit $2000 in 2021 and is currently trading at $2777.67 at the time of writing this article. What are the factors behind the surge in the price of Ethereum? There are two factors. The first one is the growth of DeFi (Decentralized Finance).
Ethereum is the platform of choice for new DeFi projects, and the platform supports major cryptos that drive the DeFi sector. The second factor behind Ethereum’s growth is the launch of Ethereum 2.0. Ethereum 2.0 promises to make Ethereum more efficient and able to handle more transactions per second.
DeFi and Ethereum 2.0 will continue to influence Ethereum positively in 2021, with the cryptocurrency set to enjoy a bullish 2021, making this a great time to invest in Ethereum.
Read Also: What Will Ethereum Be Worth In 10 Years?
Litecoin is an excellent option to invest in 2021. It can be a good investment for beginners and experienced investors alike. Litecoin’s market capitalization is just shy of $18 billion and is expected to grow further.
Some investors see Litecoin as a copy of Bitcoin. However, there are several advantages that it has over Bitcoin. Litecoin is a lot faster than Bitcoin, taking only two and a half minutes to process a block. Bitcoin, on the other hand, takes ten minutes to process a block. Litecoin also requires less computing power, and even ordinary desktops can mine Litecoin.
2020 also saw Litecoin unveil some significant developments. The year saw the launch of Litebringer, an RPG that runs on the Litecoin Blockchain. Litebringer caused transactions to triple, with the game accounting for over 70% of transactions. Litebringer had such an impact that some platforms have predicted a sharp increase in the price of Litecoin in 2021. Litecoin’s close ties with Bitcoin also make it the preferred choice for investors.
Read More: Is Litecoin a Good Investment?
Ripple is an excellent choice for those looking to invest in cryptocurrencies without wanting to spend too much money. Ripple has a low price, currently trading at $1.50. Don’t let the low price fool you. It is the fourth-largest cryptocurrency and is an excellent choice for investors who are a little cautious while investing.
Ripple is expected to see an increase in price in 2021, with experts predicting that it could reach almost $3 by the end of 2021. The cryptocurrency is predicted to correct itself after it achieves its price high.
A good strategy would be to buy the cryptocurrency now and sell it before the price corrects itself. Ripple is a good option for those starting out investing in cryptocurrencies or for investors who want to enter the cryptocurrency market at a low price point and make a profit.
Read More: Ripple Price Prediction for 2025 and 2030
5. Bitcoin Cash
Bitcoin Cash is an electronic cash system. It is considered a scalable version of Bitcoin. It has a market capitalization of over $17 billion and is the 11th-largest cryptocurrency by market capitalization.
Bitcoin Cash is currently trading at $915.49, and its outlook for 2021 remains bullish, with the cryptocurrency expected to make some serious gains over the year. Experts believe that Bitcoin Cash could be one of the best cryptocurrencies to invest in 2021, making this an excellent time to add it to your portfolio.
Read More: Could Bitcoin Cash Be A Millionaire Maker?
Predicting cryptocurrency price trends is tricky as the price depends on market sentiment, which could change anytime. Cryptocurrency prices also depend on the price of other currencies. However, the cryptocurrencies listed above are predicted to see considerable growth in 2021. Every investor has different goals. Investors must do thorough research before investing in cryptocurrencies.
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Virtual currencies are highly volatile. Your capital is at risk.