2020 has proved to be quite a challenging year for the traditional financial environment with the global pandemic, lockdown, and worldwide recession shaking it to the core. Therefore, institutional investors made a beeline for the best cryptocurrencies to invest in to protect themselves from major economic threats and even to alter their fascination with traditional global currency systems.
At the helm of 2021, the world seems perfect for the broader adoption of cryptocurrencies as a major asset class which will bring about a radical change in the traditional financial system. Like the Internet, electricity and machine learning have proved to alter our lives profoundly, the adoption of blockchain technology by major institutions will also be doing so in the near future.
The Change has Started
2020 has already started witnessing change in the financial world. JP Morgan has initiated providing financial services by banking Coinbase and Gemini, Visa and Mastercard are offering financial services to potential crypto majors, PayPal has introduced a new feature by which the users can retain, buy and sell cryptocurrencies, and Fidelity has launched a new Bitcoin Index fund to substitute the high-dollar institutional crypto bets. All said and done, 2021 is going to be one of the most exciting years for all crypto traders and crypto enthusiasts worldwide.
The Best Cryptocurrencies to Invest in 2021
Without further ado, let us check the most profitable investments that you can do in cryptocurrencies in the coming year.
Bitcoins
The popularity of the name says it all. Bitcoins have come a long way and have disrupted the risk-reward equation by being more flexible, less risky, yield-bearing, and stable sources of wealth that are resistant to inflation. Though new cryptocurrencies emerge each day and go out of fashion, Bitcoin has been the most stable of them all and has survived financial storms over the years.
At the time of writing this article, a lone Bitcoin’s transaction value is around 23040 USD. It has surpassed all its previous growth trends, reaching an all-time high of around 177 percent. Blockchain specialists predict that it will soon reach the 100000 USD mark, which is set to happen in 2021.
Ethereum
Ethereum dominates the second-largest market capitalization in the world of crypto, reaching the 68.127 billion USD mark in December 2020. Its transactional value also witnessed a significant climb of almost 380 percent, rising from 125 USD to 600 USD. It is one of the safest and very promising cryptocurrencies that you can invest in 2021.
Ripple
After being created as an alternative financial ecosystem that facilitates lightning-fast cross-border payment, Ripple has started receiving all the attention it deserves and has been adopted by more than 300 financial providers across 40 countries. Ripple’s perspectives have broadened with the growing support of the European Commission which encourages the transition to digital finance and is planning to create a novel legal framework using DLT technology that leverages Ripple’s crypto assets.
Litecoin
One of the fastest and most highly affordable best cryptocurrencies to invest in the block, Litecoin commands a transactional value close to 87 USD and commands a market capitalization of around 5792 billion USD. With one of the lowest times required for mining and yielding a high block reward value of 25 LTC, Litecoin is a highly prospective financial investment for you in 2021.
Tron
Tron aims to utterly revolutionize and democratize the market of content creation and the entertainment industry, despite being launch as a part of the Ethereum network. Tron’s upward movement has continued throughout 2020 and its spike has been greater than Ethereum itself. The beauty of Tron is that you do not require a middleman like AppStore or Google Pay. Instead, users who create and share content are rewarded by TRX or Tron.
Closing Thoughts
Amongst the range of options that you have in financial investments in 2021, cryptocurrencies are undoubtedly some of the most prospective and promising. Cardano, Tezos, Iota, Bitcoin Cash, and Stellar Lumens could be other potential crypto market players that disrupt the financial system in 2021. Hence, look out, do your personal research, and invest wisely!
