What is The Best Cryptocurrency to Buy Now?
The year 2020 will remain in the history of finance as one of the most dramatic years that tested economies globally.
At the same time, many investors saw cryptocurrency investing as a great opportunity and a hedge against economic threats and recession.
Furthermore, blockchain technology became widely adopted in areas, such as medicine, identification, and even voting, because of its potential to facilitate interoperability and safety.
Even traditional giants like JP Morgan turned to crypto banking.
If you’ve also given some thought to cryptocurrency, let’s look at the top 7 cryptocurrencies to invest in now in terms of adoption, processing times, market enthusiasm, and growth potential.
From some popular coins to lesser-known competitors, here are the best coins to buy now:
The Best 7 Cryptocurrencies to Buy Now:
2. Bitcoin Cash
5. Binance Coin
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How to Choose the Best Cryptocurrency to Buy
When it comes to picking up the best cryptocurrency, you have to look at various important factors.
One of the biggest factors that affect crypto prices is demand and supply. As we know, the higher the demand, the higher the price, and vice versa. As many coins have a limited supply, experts believe that this might lead to an increase in prices.
When the supply of bitcoins reaches 21 million, for instance, prices will no longer depend on the artificial inflation mechanism of the halving of Bitcoin rewards.
Let’s not forget that though cryptocurrencies have no physical form, they have a real cost of production. Cryptos that rely on mining, for example, depend on the cost of extraction. If costs continue to increase, prices will also be affected.
When it comes to Bitcoin, we should mention that Bitcoin requires huge amounts of power and expensive equipment. Figures show that Bitcoin mining is consuming more power than the whole of Denmark!
Crypto regulations are another factor to consider when choosing the best crypto to buy. While regulations can be positive, restrictive rules may lead to repression and a decrease in crypto prices. Unfortunately, being in a legal gray area, cryptos are still trying to find a balance between technology and regulations.
Media is another catalyst for price increases. There’s no doubt that market sentiment and speculation drives moods in the crypto sectors and affects demand. Manipulations caused by crypto whales also have an impact on cryptocurrency investing.
Competition, tech innovations, and internal governance are another reel that drives prices. With new Initial Coin Offerings (ICOs) constantly on the horizon, competition can be fierce, especially in terms of speed and scalability.
Here we should mention that the availability of crypto exchanges is also crucial. The more popular the exchange, the more popular the coin. Binance’s popularity, for example, has helped Binance Coin establish itself as one of the leaders in the field.
Last but not least, when choosing a crypto to buy we need to consider the economic situation in the concerned country. The year 2020 was a clear example that financial crises do affect crypto prices. When traditional systems collapse, many investors turn to alternative assets; the more people turn to crypto investing, the greater the capitalization of the crypto market.
Anyways, the Best cryptocurrencies to buy below give you the option to choose between different types of cryptocurrencies.
So just choose the coins you can understand. Read on to discover the top 7 cryptocurrencies to buy now.
1. Bitcoin (BTC)
With a market cap of $686,328,177,991, Bitcoin is no doubt one of the best cryptocurrencies worth watching now.
Since its launch in 2009, Bitcoin has been creating history. It transformed the whole financial sector and resulted in the creation of thousands of altcoins.
Bitcoin is more than a crypto and a digital method to execute cross-border payments, though! Bitcoin is arguably the gold standard in crypto investing.
And although other coins have also gained astonishing gains, Bitcoin remains the most traded and widely adopted cryptocurrency in 2021. Bitcoin is like a blue-chip asset!
Despite its bumpy journey and associations with the Dark Web, Bitcoin surged to over $40,000 in January 2021, with bitcoins accounting for over 69% of the crypto market. For long-term holders that was a great opportunity.
That said, Bitcoin remains highly volatile. Note that after BTC had reached its all-time highs, it lost almost 26% of its value in less than 32 hours, which was a drastic sell-off.
Yet, analysts are optimistic about BTC prices based on institutional demand and negative attitudes towards traditional monetary policies. Note that if the US dollar regains power, though, this may put pressure on BTC and other digital assets.
So let’s see what the year 2021 holds for Bitcoin and the whole cryptocurrency market!
2. Bitcoin Cash (BCH)
Bitcoin Cash is another crypto worth considering now. Bitcoin Cash is, as the name implies, naturally linked to Bitcoin. Bitcoin Cash is one of the most popular forks of Bitcoin created in 2017.
In fact, with a market cap of $7,900,800,002 and an impressive user community, Bitcoin Cash is one of the largest Bitcoin forks. Given the support it gets in the crypto sector – with Roger Ver (known as the Bitcoin Jesus) being among its most passionate advocates – there’s no surprise that Bitcoin Cash is worth watching now.
Let’s not forget that Bitcoin Cash also led to a trend of forking the Bitcoin blockchain.
Here we should explain that Bitcoin Cash was designed to resolve Bitcoin’s scalability issues by changing the size limit of blocks from 1MB to 8MB, further increased to 32MB. Larger blocks also lead to faster processing times and lower fees.
Because of its potential, many experts believe that BCH will increase in value in the future and may be a profitable investment. Note that according to some optimistic predictions, BCH prices may range between $500 (min) and $1,900 (max) in the next few years.
Mass adoption may further boost its price soon after January 2021, so let’s keep BCH on our watchlist!
3. Litecoin (LTC)
If you are new to the world of cryptocurrency investing, then put Litecoin also on your list. This crypto was created to help users understand the underlying technology of the crypto market and create a lite version of Bitcoin.
As many people say, Litecoin is the silver to Bitcoin’s gold.
Litecoin was created in 2011 by Carlie Lee in order to improve Bitcoin’s processing times. In fact, Litecoin is one of the cryptos with the lowest processing times in terms of mining.
Note that in contrast to Litecoin, it takes up to 10 minutes to validate transactions on Bitcoin.
No surprise that though Litecoin is not the top #1 performing coin, it has never left the top 10 for years; it’s currently ranking #8 as per CoinMarketCap. Many experts believe that 2021 won’t be an exception, claiming that LTC may climb up to $347 in a few years time.
According to some even more optimistic predictions done by CoinSwitch, LTC may hit $600 in 2021!
We should mention that prices may be driven further by innovations and projects, such as the first Litecoin-based role-playing video game LiteBringer. As we know, gaming is one of the largest and fastest expanding industries worldwide, with blockchain technology being a major force in game development today.
So LTC is definitely still in the game!
4. Ethereum (ETH)
Ethereum is one of the best cryptocurrency to buy for investors new to the asset class.
While one of the main ideas behind Bitcoin and other coins is the decentralisation of money and payments, Ethereum took a step further and decentralised not only payments but services. The introduction of smart contracts and decentralised apps (dApps) led to a complete revolution in the financial sector.
Ethereum also created Ethereum’s World Computer, one computer for the whole world with nodes being spread across the globe.
Besides, many coins were initially developed on the Ethereum blockchain, which has increased the popularity of Ethereum.
Ethereum also supports different crypto platforms that are active in the Decentralised Finance (DeFi) area. Note that in 2020, the DeFi ecosystem reached new highs and an influx of users.
No wonder that Ethereum’s native coin Ether (ETH) is one of the most traded coins in the crypto sector. With a market cap of $161,726,694,608, Ethereum is second only to Bitcoin.
Ethereum showed excellent performance during 2020, which was a challenging year for economies, and experienced a bullish start to the year 2021. According to figures, ETH increased by 13.09% in the past few days (by January 24).
Experts believe that ETH may break through $1,500 levels and may test resistance at $1,750. We can only wait and see!
5. Binance Coin (BNB)
Binance Coin is another top cryptocurrency worth buying this year. Binance Coin was originally created on the Ethereum blockchain but later moved to its own blockchain, Binance Chain. It completed its Initial Coin Offering in 2017 and in less than a few years, it became one of the top coins worth considering.
Binance Coin was created by the popular exchange Binance as an alternative method to pay trading fees and act as a discount coupon. This discount strategy is definitely a magnet for users!
Let’s not forget that deals worth billions take place on Binance, which is one of the reasons Binance is establishing itself as a leader in the crypto field.
Binance Coin, however, is much more than that and expanded to become one of the coins with the best use cases. Binance Coin can be used to execute payments for goods and services, including property, travel, and virtual gifts.
Because of its wide range of uses, BNB became a coin with deep pools of liquidity and a market cap of $6,776,923,662.
While many factors can affect BNB prices, including the end of the offered discounts, experts predict that Binance Coin will rise in value.
According to TradingBeasts, BNB will reach $34.557 by the beginning of February, with an expected max price of $43.584 and a min price of $29.637.
6. TRON (TRX)
And while we associate cryptos with crypto trading and investing, the truth is that digital assets have the potential to transform areas far beyond finance, including the entertainment industry. TRON is one of the leaders that aim to democratise and improve content creation and user experience.
TRON is a peer-to-peer network created in 2017 that also can be used as a content-sharing platform. Those who create content get rewarded. TRON is much more transparent than social media channels and doesn’t require a middleman like AppStore.
In other words, TRON is not about stealing data like other services but protecting its customers and even rewarding them through Tronix (TRX).
Believe it or not, TRON’s dApp transactions surpassed even Ethereum in terms of volume, which makes TRON one of the main competitors of Ethereum. No surprise that TRON is collaborating with high-profile companies like Samsung and Baofeng, referred to as the Chinese Netflix.
Despite its success, TRON’s development hasn’t stopped: in 2020 TRON’s 4.0 Great Voyage protocol was implemented as an upgrade, introducing privacy features. This makes experts positive about the bullish future of TRON.
Thus, 2021 may be a positive year for TXR, currently ranking #21. TradingBeasts predicts that by the end of this year, TRON has good possibilities to reach $0.4 for a certain period.
7. IOTA (MIOTA)
And when it comes to alternative cryptocurrencies, we can’t ignore IOTA and its investment potential in 2021!
IOTA was designed to become a new data transfer and transaction settlement layer for the Internet of Things (IoT).
IOTA has the potential to collect data between millions of people, machines, and everyday devices, improving interoperability across services.
As the Internet of Things relies on sensors, software, and other innovations to extract and exchange data, many believe that the Internet of Things is smarter than the Internet. Note that according to data, there are billions of devices connected to the Internet of Things.
Its underlying distributed ledger technology Tangle is what makes this coin unique in the crypto sector; many believe that the Tangle is more secure and efficient than blockchains used by other cryptos.
Though IOTA’s market cap went down from its 2017 highs, many believe that IOTA will keep improving throughout 2021. Some predictions for February 2021, for instance, suggest that MIOTA will reach $0.502.
Should I Buy Cryptocurrencies Right Now?
While there are many factors to consider before buying cryptocurrencies, you should always conduct independent research and consider your risk tolerance. Look at historical charts, technical analysis data, and crypto announcements.
Note that current prices are not the only factor to consider; pay attention to market sentiment, circulation, and market cap instead. Try to understand the technology and the problems the crypto you are interested in is trying to solve.
ICOs, for instance, present you with a good opportunity to get big gains without relying on past data but recent trends.
Research the leadership of the coin as well! To provide an example, though now Tezos is one of the most innovative platforms, the project had a bumpy start as its ICO was followed by in-house drama and various legal issues.
To spread your risk, look for stability and strengthen your portfolio by diversifying it. Coins with low price fluctuations are ideal, especially for crypto beginners. That said, though Bitcoin is highly volatile, it’s still considered a safe investment!
Before choosing a crypto, stick to facts, not emotional decisions, and remain vigilant to ensure possible lucrative returns.
Final Words on the Best Crypto to Buy
The year 2021 has started with bright promises for the widespread adoption of cryptocurrencies and blockchain technologies.
Amidst the coronavirus pandemic, the interest in the cryptocurrency sector keeps increasing. Simply because many people consider cryptos a safe alternative to collapsing traditional systems!
Bitcoin surging to $40,000 in January 2021 was just one of the signs that proved that cryptos are here to stay long after the end of 2021.
Thus, though cryptos remain risky and volatile, experts believe that this year will be a good year for the entire market. More and more new products are being produced in regulated environments, with more and more use cases on the horizon.
Besides, the spike in interest among institutional investors will keep pushing prices up through 2021. Central banks will also join the trend and start producing their own tokens. China’s digital yuan is a clear example of the rise of cryptocurrency!
The truth is that 2021 will allow cryptos to thrive further. Thus, as the lists of the best cryptos to buy often vary, it’s worth considering other giants like Cardano, Ripple, Dash, EOS, NEO, ChainLink, and Tezos, each with its advantages and challenges.
Cardano, for instance, is one of the most promising coins in 2021 that has a two-layered structure to improve both transactions and smart contract development. Tezos, on the other hand, keeps attracting more and more investors with its democratic governance; whereas ChainLink aims to revolutionise the sector by enabling blockchain platforms to access real-world data.
The list of popular and lesser-known, often undervalued coins, goes on and on. One thing is for sure: even if mass vaccination proves to be effective, cryptocurrencies are here to stay long after the end of 2021
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Virtual currencies are highly volatile. Your capital is at risk.
- The best cryptocurrency to buy now is Bitcoin or Ethereum.
- The year 2020 was a challenging year for economies worldwide. Yet, while the virus was infecting investments, cryptos managed to rise to a new hedge against inflation and recession.
- Bitcoin is still the most traded coin, with the largest market cap and retail adoption.
- Bitcoin Cash is one of the most popular alternatives to Bitcoin that offers faster process times and larger blocks.
- Litecoin, known as the silver to Bitcoin’s gold, also offers fast processing times.
- Ethereum, known as the king of smart contracts, is second just to Bitcoin, offering impressive opportunities for smart contract and dApp deployment.
- Binance Coin is increasing in popularity, which is supported by the impressive credentials of Binance itself – one of the largest crypto exchanges.
- TRON is one of the top coins that can transform the entertainment sector and improve content creation.
- IOTA offers impressive alternatives to blockchains and may transform the Internet of Things ecosystem as a whole.
- Other cryptos to consider now are Cardano, Ripple, Dash, EOS, NEO, ChainLink, and Tezos.
Cryptocurrencies are here to stay! So if you want to choose the best cryptos to buy now, simply sign up with eToro that allows you to buy and sell cryptos, as well as trade CFDs of over 90 pairs with 0% commission.
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