Top 5 Cryptocurrencies to Buy in 2021
Cryptocurrencies are gaining more acceptance each coming year. Several companies are utilizing the potential of blockchain technology in the quest to shape the future.
Industries including healthcare, energy, entertainment, finance (banking), and telecommunication are all leveraging the potential of blockchain technology.
As an investor, you should gauge the potential of a cryptocurrency by weighing in on its underlying blockchain project, demand, real-life application/applications, and growth potential.
In this article, we will explore the top 5 cryptocurrencies you should buy in 2021.
Here are the 5 cryptocurrencies you should buy in 2021.
Let’s face it, Bitcoin (BTC) was always going to be on this list. Bitcoin experienced a tremendous surge in price in January 2021.
Institutional demand has seen the stock of Bitcoin rise – MassMutual invested $100 million in the prized cryptocurrency while MicroStrategy invested $250 million in the crypto asset.
While institutional demand is not the sole reason behind Bitcoin’s rise from $19,382 on the 1st of December 2020, to $36,365 at the time of writing (3rd February 2021), it is a reason for optimism.
If insurance companies and pension funds buy into Bitcoin, its price could well breach the $50,000 mark this year.
Ethereum (ETH) was priced at $605 on the 1st of December 2020 and has soared to $1,540 at the time of writing.
The last 24 hours have been particularly good for the cryptocurrency as it has gained 12.42%.
The Ethereum blockchain is home to thousands of altcoins – Ethereum is without a doubt THE platform for enterprise blockchain solutions.
Given Ethereum’s proven use-case, investors believe in its potential and the cryptocurrency could well cross $10,000 in the near future.
To put it into perspective, the crypto asset was priced at $189 exactly a year ago.
Given Ripple’s relatively low price and mass appeal, it is a good investment option in 2021.
Ripple (XRP) is a digital payment network that supports fast transactions that are secure and are associated with low fees. Several American banks use Ripple’s software for cross-border payments.
Ripple’s co-founder Chris Larson said that the network aims at replacing systems like SWIFT in the future.
Unlike cryptocurrencies like Bitcoin and Ethereum which are quite expensive, Ripple is trading at just $0.385 presently – you can buy several Ripples for an investment of let’s say $1,000.
Stellar (XLM) is another crypto token with huge potential. The cryptocurrency was trading at just $0.065 on the 4th of February 2020 and is currently trading at $0.339.
Stellar has strong partnerships with established organizations like IBM and serves the same purpose as Ripple – to facilitate instant (and easy) cross-border transactions at minimal fees.
Stellar is one of the best performing altcoins in recent years and is tipped for a big future. Like Ripple, you can buy several Stellars by investing a relatively small amount of money.
Priced at just $2.33 on the 24th of March 2020, Chainlink’s present value is $23.57 – the cryptocurrency’s price has risen ten-fold in less than 11 months.
As the name suggests, Chainlink (LINK) offers a bridge between off-chain (old legacy) systems and on-chain (new) blockchain systems.
This connectivity allows the advantages of both systems to be leveraged without needing to completely overhaul current backend systems.
Couple that with the security Chainlink offers and its future potential is sky-high. Chainlink could reach $100 soon and is a definite long-term investment solution.
All 5 cryptocurrencies mentioned in this article have huge potential for growth.
You can choose to invest in these crypto tokens in the long-term or the short-term. Whatever be the case, be sure to keep an eye on the latest news governing these cryptocurrencies.
If you are a serious investor or aspire to be one, you should check cryptocurrency prices multiple times a day and set alerts to stay on your toes.
You could use the volatile nature of cryptocurrencies to your advantage if you spot a potential upward trend or invest when a cryptocurrency is on the rise.