The “online-only” currency concept is changing the world and the way people trade, buy, and invest. The most common thing to do with cryptocurrencies is trading them for profit, but when it comes to finances, it is important to know how to invest and trade wisely.
One of the main reasons for such popularity of cryptocurrencies is that they are considered by many, as the “money of the future”. So, everybody is rushing to buy as much as possible now, before their prices rise significantly. There actually is a bunch of advantages to owning cryptocurrency.
They can be owned and used anonymously, which may also avoid transaction costs and fees, what’s more, when it comes to cryptocurrencies, the money supply is not managed by central banks, which means that they don’t get to speculate on inflation.
It may seem like there are only pros and cons to owning cryptocurrency. You should be aware that cryptocurrency is kind of a lottery. The prices are unstable and the risks from investments are pretty high. So, let’s see what the researches on the best cryptocurrencies to own in 2021, have shown.
One of the most frequently mentioned cryptocurrencies is Bitcoin. It is the biggest, oldest, and most influential one on the market, with around 40% share in the market cap.
Bitcoin prices vary a lot during the day, not to mention the ups and downs it has faced during the past few years. A decision about whether to invest in Bitcoin or no depends only on your confidence in its future. However, some of the stated facts may help you decide.
The growth rate of Ethereum throughout the years 2017 and 2018 made it the second-largest cryptocurrency after Bitcoin. With ETH2 full release, it will become even more attractive because of the network speed and adoption perspectives. If you are interested, check the Ethscan block explorer for details and the current state of the Ethereum 2.0 network.
Ethereum’s platform gives developers the opportunity to build their own cryptocurrency, which is something that Bitcoin cannot offer. In case you want to manage the supply of your business through a blockchain, you won’t have to start from scratch. Ethereum provides opportunities for blockchain projects and contributes a lot to their launch.
It is also estimated that the price of Ethereum would rise by the end of the year, so it looks like investing in this cryptocurrency makes sense.
Ripple takes the third spot on the list. It used to be the number one candidate for the best cryptocurrency in 2017. Unfortunately, in 2018 it suffered a sharp drop in price like all of the other cryptocurrencies. However, Ripple is considered one of the best to invest in.
Apart from being a digital currency, it is also a payment system. Its blockchain technology, the one that is also used by Ethereum, makes transactions a lot faster and more secure than a bank payment. To sum up, the most important part of the investment is the understanding of the curiosities and unique features of every cryptocurrency. Make detailed research on the cryptocurrency you want to purchase.