Top 5 Cryptocurrency To Buy And Hold in 2021
The cryptocurrency market was created as a result of the financial meltdown that occurred in Cyprus(really? Not the one in 2008?). Many people lost faith in banks and decided to turn towards digital currencies as a way to hold their wealth. The idea is simple- prevent one’s wealth from being used by others after their death or bankruptcy. This basic concept made the cryptocurrency market grow into an asset that people could invest in. Today, several major companies, like Amazon, accept payment via Bitcoin and other digital currencies.
Unfortunately, the cryptocurrency market is extremely volatile. There have been many instances where the price of some currencies dropped to such lows that they could be considered worthless. However, these crashes do not last too long, and the prices go back to their normal levels soon after. A good example of this is Ripple, which was at one point selling for less than $0.01 (one-hundredth of a penny). Today, it has risen to nearly $0.3, 30 times its lowest point, a price that offers good returns on investments.
Several digital currencies have been tried and tested over the last few years. We’ve chosen to write about the ones we believe can provide good returns on investments – in both short and long term periods of time. Here are our top 5 picks:
1- Bitcoin BTC
Bitcoin is probably the most famous cryptocurrency. It was created by an unknown developer that goes by the alias of Satoshi Nakamoto. The currency’s value has increased exponentially over the years, and it is expected to continue growing in the future despite its many fluctuations.
Bitcoin was released for free in January 2009. It operates via P2P technology without a central authority controlling the currency supply or transactions made with it. Transactions are not public, but the information of every single transaction that has ever occurred is stored in a public ledger. This is what led to its initial popularity, its anonymity.
Bitcoin can’t be counterfeited or duplicated, and its supply is limited by a market cap(just like physical gold )– making it stable and reliable as an investment option. It has been around for some years now, and people have realized that they can use it to pay for various goods and services, including international transactions. It is one of the few cryptocurrencies that can be used to buy real-life things (gold, petrol…)
There are a few methods of estimating the market capitalization of Bitcoin. One method estimates the number of Bitcoins in circulation and applies a corresponding dollar value. Another method is based on the quantity theory of money, stating that the number of Bitcoins times its price equals the total value of all Bitcoins in existence. From these two estimations, a range of $2 billion to $4 billion is determined as Bitcoin’s current market capitalization.
Bitcoin has grown in popularity over the past years because of the open-source technology that allows programmers to make improvements upon it. These developments have led to a digital wallet being created, which is what most people use today when dealing with Bitcoins. The future is indeed bright for Bitcoin as it will continue to grow to newer heights as the most popular and mainstream cryptocurrency.
2- Ethereum ETH
Ethereum was released in July 2015. It uses a technology similar to Bitcoin with several improvements like faster transaction times and lower fees. Ethereum is a platform that runs smart contracts as well. Smart contracts are applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. This had led to the rise of altcoins that traditionally ran only on the Ethereum blockchain.
The best thing about Ethereum is the ability to create decentralized apps (DApps) on it. Anyone can use it to build DApps and offer them over the Internet. No single person or entity owns a DApp, so it can be decentralized and not under the control of any organization. What makes Ethereum unique is that instead of having a central authority to dictate changes, all updates are decided by its users. It’s an open-source network, which means anyone can contribute to and use its tools.
Ethereum has a market cap of $357,414,174,324 and is trading at $3,053.56 per token.
3- Litecoin LTC
Litecoin has been around since 2011, but its price only recently skyrocketed, in 2017. Former Google employee Charlie Lee– who worked on the Chrome project– created is the creator of Litecoin, which functions similarly to Bitcoin, but is faster and has lower transaction fees. It also goes by the ticker ‘LTC’ instead of ‘BTC’.
Charlie Lee left his job to concentrate on Litecoin full time. He wanted to make some changes to improve Bitcoin’s technology without creating any conflicts with the core team. The changes he made to Litecoin were approved by the Bitcoin developers, as they recognized that it was a better solution.
Litecoin consists of four times faster block processing rates than Bitcoin, which makes transactions quicker. It also means that merchants get paid faster for their products and services, and when you buy something with Litecoin, you get your product or service faster.
Moreover, Litecoin is much cheaper than Bitcoin, making it advantageous for merchants to accept payments in Litecoins rather than Bitcoins. As a matter of fact, many popular online vendors like; Microsoft, Dell, and Expedia accept this cryptocurrency as a valid payment method.
Litecoin has a market capitalization of $11,345,061,569 trading at $169.94 per token.
4- Ethereum Classic ETC
Ethereum Classic is the original version of Ethereum created by an anonymous developer known as ‘ Vitalik Buterin’ in late 2015. It was a hard fork of the Ethereum network, which means that it kept its blockchain history from before the fork.
The only difference between Ethereum and Ethereum classic is that the latter does not accept any updates to its technology. It sticks with an older codebase while the former keeps moving forward towards a more efficient platform. This might make it seem like the ethereum classic is outdated, but it still has a market cap of $8,178,587,288 and is trading at $63.36 per token.
5- Dash
Dash was released in January 2014 and has been one of the most profitable altcoins since its creation. The cryptocurrency allows anyone to submit a proposal for how Dash Dividends should be spent. The money goes to projects that advance the network, increase adoption, and attract new users.
If you apply for funding, it has to be approved by most of the network’s miners. This ensures that your proposal ends up in the hands of someone who can do something with it. For example, if you’re a Dash developer, it will be hard to get funds from the community if you don’t have any experience in coding or development.The inherent mechanism of the master node network ensures that miners are engaged and incentivized to help with decisions. This makes for a mutually beneficial system. If something goes wrong with a proposal, the network can always vote to halt the funding right away.
Dash has a market capitalization of $2,042,989,493 and is trading at $198.63 per token.
Summary:
The cryptocurrency market is growing, and it’s not slowing down anytime soon. Numerous altcoins are waiting in the wings, each promising to be even better than Bitcoin. Having said that, there are only a handful of cryptocurrencies that will truly make a mark on the world, so investing in cryptos should come with careful consideration.
It’s important to do your research, and each year that passes, you’ll see more and more cryptocurrency becoming available. While selecting the best cryptocurrency to invest in for 2021 might be a difficult choice to make, it’s important not to rush into things without doing any research.
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