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Promising cryptocurrencies for investment in 2021

The cryptocurrency market has shown significant growth over the past year. Bitcoin rate increased by more than 700%, up to $68,000, although now the rate has fallen to $55,000. Ethereum rose in price by almost 1200%, now the altcoin costs $2500. Most of the leading coins by capitalization showed similar dynamics, but not all of them. Among them, there are some that rose in price insignificantly over the past 12 months. Let's break down the promising cryptocurrencies in 2021 for investing.

Cryptocurrency Prospects: opinions and forecasts by market experts

The head of Exantech Denis Voskvitsov believes that this time altcoins can also show significant growth. In case of many assets the most profitable moment for purchase was missed. However, most of the altcoins are still not that expensive to invest in, the expert shared. «Maximum growth of alternative cryptocurrencies begins after the bitcoin rally comes to an end, and the price of the asset ceases to show active dynamics. With high probability, after confident passing by BTC of $40 thousand, we will see impressive growth of altcoins," Voskvitsov said.

He singled out several coins which investors should take a closer look at. Voskvitsov suggested considering the purchase of coins which have mobile applications with the ability to issue bank cards linked to a cryptocurrency wallet. As an example, the expert cited the Crypto.com project, it has all of the above features, and its token price has significantly corrected recently. It is also worth paying attention to the WAVES project, Voskvitsov added. Right now, the token is at a comfortable price level for buying and may have the potential for further growth. DeFi token platform yEarn Finance (YFI) has good speculative potential. But it is worth keeping an eye on it after the next correction, the expert specified.

From his point of view, bitcoin and ether act as investment leaders right now. There is little doubt in the further growth of these assets, Voskvitsov is sure. He explained that these blue chips of cryptocurrency market are chosen by conservative investors and supporters of protective assets. Institutional demand supports BTC, and it is unlikely that big capital will start selling the coin's stock in the near future, the expert suggested.

Financial analyst of Currency.com Mikhail Karkhalev agreed that it is better to stop attention on BTC and ETH. These coins have «just crazy» prospects, even despite the already high cost. The expert shared that these are the two assets that investors should include in their portfolio for life.

As riskier cryptocurrencies, Karkhalev suggested considering Uniswap, Polkadot, Compound and Chainlink tokens. They can be invested in with a perspective for the next couple of years. The analyst doubted the future of TRX, EOS, BCH and ETC tokens. Once top altcoins were unable or unwilling to demonstrate what they loudly announced. The Tron platform never became anything even close to resembling «Internet 2.0» EOS did not become the ether «killer. BCH did not evolve into a simpler and more widespread payment method instead of bitcoin. ETC failed to develop into the so-called classical version of ether. Therefore, Karkhalev believes that investors should not rely on these coins.

«I don't know whether these tokens will be able to grow, but in the long term I wouldn't bet on them. It seems to me that cryptocommunity also understands it, which is not willing to invest into those who did not fulfill absolutely any expectations once again," Karkhalev believes.

Founder of the stable cryptocurrency platform STASIS Grigory Klumov also believes that the tokens that gained popularity in 2017 will not be so interesting to the market now. Back then, there was a mania among retail investors, they were buying any asset with the word «cryptocurrency». Now, on the contrary, there is institutional demand in the market, the expert said. According to him, this category of investors carefully analyzes an asset before investing in it. For example, they will not buy anonymous coins such as Dash, Zcash and Monero because of delisting risks.

The institutional buyer will not buy EOS or TRON either, Klumov continued. These projects haven't found their niche and haven't formed an adequate product. Ethereum Classic and Bitcoin Cash forks fall into the same category. Instead, investors can consider projects that over the years were able to become useful to the market and experiment in new niches or adapt to existing ones in the fintech sphere, added Klumov. Among them, he named the Stellar token. It is a project that continues to interact with financial institutions and experiment with central bank digital currencies. Blockchain startups NEO and PolkaDot could also be considered, the expert suggested.

Another interesting sector is DeFi, Klumov believes. The expert named 0X (ZRX) as a project. This protocol introduces limit orders, the possibility to use which is missing in many decentralized exchanges. Therefore, the project has good prospects for this year, Klumov summarized. In the future, the project has good prospects.

List of promising cryptocurrencies: cheap but promising coins

Inexpensive but promising to grow. This is what they say not only about virtual currency, but also about other objects for investment. It's top-notch to find a promising and inexpensive coin when it's new, before others get their hands on it, and turn it into a never-ending source of income.

In 2021, experts predict unprecedented growth of the entire cryptocurrency market with record rates and total capitalization volume, emergence of new serious players capable of completely changing the usual course of action. Let's get acquainted with the main contenders, which can shoot in the nearest future. Our task is to make sure that this arrow will fly exactly to your virtual vegetable garden. Of course, as in any business, there is always the risk of losing the money invested. But there is a way out how to reduce it.

Prospective cryptocurrencies in 2021

The risk associated with investing in cryptocurrency can be minimized by not investing in a single asset, but splitting your capital into several of the most potential and attractive ones.

  1. Siacoin (SC).This promising newcomer to the cryptocurrency market is not so much a virtual payment instrument but rather an innovative cloud storage technology capable of protecting all your assets even in the event of a force majeure system failure. It is a global decentralized storage that provides users around the world with an unprecedented level of privacy and information security.

The developers of Sia cloud use local encryption, which means they encrypt the entire file and every part of it individually. This way, no one can know which files you are storing on the platform. Right now, siacoins cost mere pennies, and the Sia network is growing and plans to become the main service for decentralized cloud storage on the Internet in the future. Hurry up to study siacoin deeper, so that you don't miss the moment and one day stumble on the news of its unimaginable price increase.

  1. Cryptocurrency Tron (TRX) prospects for 2021. Decentralized protocol that allows users to meet their online entertainment needs by taking full advantage of blockchain. The coin did not start trading until September 2017, and already in January 2019 it was among the top 10 largest cryptocurrencies in terms of capitalization. This blockchain platform, provides users with quality entertainment content without restrictions: various applications, games, videos, graphics. Moreover, the service allows them to create and distribute content themselves, even their own internal currency.

The TRON project's total capitalization at the moment is $9 billion, and the market of digital entertainment is not oversaturated to say the least. And now, while the TRX exchange rate is still very low, it's a good time to take a closer look at this promising youngster.

  1. Verge (XVG). One of the safest and most anonymous coins. Released back in 2014 and designed with a focus on privacy. Verde uses Proof of Work and supports 5 algorithms for mining (Scrypt, X17, Groestl, Blake2s, Lyra2rev2). Currency is constantly evolving and supported by a large number of wallets. It is traded on many exchanges, but the main volume is on Bittrex.
  1. Cardano (ADA). Open cryptocurrency project, which is a decentralized public blockchain. Its authors aim to improve the smart contract platform, which will allow users to create applications and contracts inexpensively and securely. By doing so, a new decentralized economy will be created and the financial industry will become more democratized. A new highly secure programming language Haskell has been developed for the project, which provides increased security for the entire system. To date, this is the most secure programming language.

Cardano is really perfectly adapted to the cryptocurrency economy. When the coins begin to be actively mined, their value will sharply go up, analysts believe. And they characterize Cardano as a worthy option for long-term investment.

  1. Stellar Lumens (XLM). Stellar is called a decentralized consent platform that supports any type of cryptocurrency. Moreover, is equipped with a built-in decentralized exchange. The developers of the service believe that this simple and effective technology will help improve the financial infrastructure in the world.

With Stellar, users (people/companies/financial institutions) can execute exchanges as quickly and easily as possible. Thus, everyone gets free access to financial transactions without the need for intermediaries, and this significantly reduces costs and increases profitability. At the Sibos 2017 conference in Toronto, this platform was supported by major industry companies and leading banks. The main prospect of Staller is that it can become the main intermediate cryptocurrency to provide exchange between different cryptocurrencies, which will increase their liquidity.

Cryptocurrency Market Forecast Today: Prospective Cryptocurrencies in 2021

These coins? according to experts? can bring profits to holders and traders.

Bitcoin cryptocurrency (BTC) Growth forecast

  • Growth potential: up to $100,000 (+90%)
  • CoinMarketCap rating: 1

The top most promising digital currencies for 2021 starts with the orange king of the crypto market, bitcoin (BTC).

Review.Today, bitcoin is one of the most profitable assets in history. In terms of profitability, it has left such big names as Amazon, VISA, Microsoft and JP Morgan far behind.

Reasons for Growth. Is it profitable to buy bitcoins for more than $50,000? Turns out, yes! And it's not just random retail players. Giants like MicroStrategy, 3iQ or CoinShares are investing in BTC. The Grayscale fund is the main intermediary between the cryptocurrency market and institutional investors. In addition, it was recently revealed that Guggenheim Partners and MassMutual also recently invested in cryptocurrency. This is the first cycle where the rally is driven by institutional interest. Bitcoin holders have been waiting years for this, and now the new trend could bring them unprecedented profits, proving once again that bitcoin is a cryptocurrency for long-term investment.

forecast.The involvement of major financial institutions and the impact of other macroeconomic factors could trigger an explosive rise in BTC prices in 2021. According to former Bear Stearns and JPMorgan analyst Ton Weiss, the price of bitcoin could climb as high as $100,000 by the end of the year. The price of bitcoin could rise to $100,000.

Reasons to buy:

  • Current rate: $53,000
  • Growth potential: +90% (up to $100,000)
  • Risk level: medium
  • Market capitalization: $1 trillion

Stellar Cryptocurrency Value Forecast (XLM)

  • Growth potential: up to $1.21 (+149%)
  • CoinMarketCap rating: 16

Review. Stellar (XLM) is a blockchain network for storing and transferring money. It was founded in 2014 to increase financial inclusion in different regions of the world and help companies transfer funds. The main objective of the network is to offer a low-cost payment service with a transaction fee of only 0.00001 XLM. Stellar has managed to integrate with several fintech companies. Several years ago it launched World Wire together with IBM. The platform provides transactions between different assets, such as stabelcoins. PPayments for Stellar.

Reasons for growth. XLM got a boost after Grayscale Investments created a separate trust for the coin. Germany's oldest bank, Bankhaus von der Heydt, announced the creation of the Euro Stablecoin (EURB) on the Stellar blockchain. This is the first token of this type issued by a banking institution.

forecast. The cryptocurrency is among the top five coins that have brought investors the highest ROI. XLM is up nearly 800% from its March low of $0.026 to $0.48. Stellar is currently experiencing a correction. The historical high (ATH) was hit in January 2018 at $0.94 and is still quite far away, which gives the coin a lot of upside potential in 2021. According to some projections, Stellar could reach 1.21 before the end of the year

Reasons to Buy:

  • Current rate: $0.48
  • Growth potential: up to $1.21 (+149%)
  • Risk level: medium
  • Market capitalization: $11.2 billion

Cryptocurrency outlook in 2021: forecast for Tezos (XTZ)

  • Growth potential: up to $8.50 (+105%)
  • CoinMarketCap rating: 38

Review. Tezos (XTZ) has created its own blockchain network for smart contracts. The project aims to avoid the mistakes of Ethereum and Bitcoin. Adaptability, open structure and the impact of validators on the network are its main advantages. A recent update to the Tezos network, called Delphi, should cut gas fees by 75% and attract DeFi developers to the ecosystem. However, Tezos' applications don't stop there; they include the latest trends in the cryptocurrency market, such as NFT, video games and the movie industry.

Reasons for Growth. Tezos recently announced a $121 million partnership with European film producer Logical Pictures. This is one of the first film and TV series tokenization initiatives, allowing investment in the film industry using cryptocurrency. It is possible that Tezos is now shaping a new standard for investing in Hollywood films, providing greater profitability and transparency in the film industry. The value of XTZ has been rising steadily since Tezos launched its main network in 2018.

Foresight.The sensational results of the first half of 2020 and the structural strength of the uptrend make Tezos one of the most promising cryptocurrencies to invest in early 2021. According to some traders, XTZ will rise as high as $8.50

Reasons to buy:

  • Current rate: $5.2
  • Growth potential: up to $8.50 (+80%)
  • Risk level: below average
  • Market capitalization: $4 billion

What cryptocurrencies are promising in 2021? Pay attention to Binance Coin (BNB)

  • Growth potential: up to $750 (+25%)
  • CoinMarketCap rating: 9

Review. Launched in China in July 2017, the centralized Binance exchange has the highest trading volume and offers access to a wide range of assets. The platform was founded by the charismatic Changpeng Zhao (CZ), who has long been a cryptocurrency celebrity and one of the most recognizable characters in the industry. CZ was included in the «Bloomberg 50» published in December 2020. The list includes 50 people who are shaping the global financial, political, technological and scientific landscape in 2020. Binance has had a huge impact on the cryptocurrency market for years. According to CZ, Binance earned between $800 million and $1 billion in 2020. In 2019, profits reached $570 million. By 2020, this record figure is likely to double. In addition, the launch of Binance Smart Chain allowed the exchange to enter the DeFi market. The platform promises fast and low-cost transaction processing across multiple asset classes.

Reasons for Growth. Binance's prospects can't help but affect the platform's own token, Binance Coin (BNB), which is likely to be an excellent investment choice.

forecast. The advantage of owning BNB is the lower or zero trading fees on Binance and the ability to use it to buy other tokens in periodic sell-offs. LongForecast.com predicts that the token could reach $750 by the end of the year.

Reasons to buy:

  • Current rate: $605
  • Growth potential: up to $750 (+25%)
  • Risk level: above average
  • Market capitalization: $92.7 billion

Cryptocurrency Uniswap (UNI): prospects

  • Growth potential: up to $50.27 (+20%)
  • CoinMarketCap rating: 9

Review. Binance is a prime example of how money flows to cryptocurrency exchanges. And if we combine the growing potential of trading platforms with the biggest cryptocurrency hits of 2020, which undoubtedly include decentralized finance (DeFi) and decentralized exchanges (DeX). The leader in this niche is the exchange Uniswap with its UNI token. Although DeFi's impressive market boom collapsed in early September, the industry's popularity will continue to grow in 2021. The number of users in the DeFi space has reportedly increased more than tenfold over the past year, from less than 100,000 to more than 1 million.

Reasons for growth. Uniswap is the leader among decentralized exchanges in many ways. It has a total blockchain value (TVL) of $1.47 billion. Users have already created 600,000,000 addresses related to DeFi.

Foresight. In September, the exchange created and issued its own management token, UNI. As with Binance, the move opens up new investment opportunities for Uniswap users. For example, the resource Cryptonisation predicts UNI to be $50.27 by the end of the year. Preferred to UNI.

Reasons to Buy:

  • Current rate: $40.34
  • Growth potential: up to $50.27 (+25%)
  • Risk level: below average
  • Market capitalization: $21 billion

Cryptocurrency Market Forecast: what will happen to Ethereum (ETH)

  • Growth potential: up to $3000 (+20%)
  • CoinMarketCap rating: 2

Review. Listing the most promising cryptocurrencies, one can't help but think of Ethereum. The year 2021 promises to be successful for the second largest crypto project. Unlike bitcoin, Ethereum blockchain is a decentralized system that provides a platform for many other cryptocurrencies and smart contracts. The creators of the Ethereum project have an ambitious goal to build a worldwide network for decentralized applications (dApps) that would allow the development and use of software protected from fraud, technical delays and censorship. The path for developers to achieve this goal has been long and thorny. Only in late 2020, after many months of preparatory work, the cryptocommunity finally waited for the launch of the Beacon Chain, phase zero of the updated Ethereum 2.0 protocol, which laid the actual foundation for the long-awaited transition of the Ethereum blockchain from the PoW (Proof-of-Work) consensus mechanism to the PoS (Proof-of-Stake) algorithm.

Reasons for Growth. The application potential of applications developed on the Ethereum blockchain is truly enormous. In fact, the entire decentralized finance (DeFi) segment is built on it. Moreover, this ecosystem is always open to new investors. Many institutional investors have already joined Ethereum through the Grayscale fund (ETHE). The example of Grayscale has been followed by Canadian company 3iQ, which also intends to launch an ETH fund for its clients. According to recent reports, CME Group, which is the world's largest financial derivatives exchange, is preparing to launch ETH futures contracts.

Prediction. According to this news, institutional investors' interest in cryptocurrencies will not be limited to bitcoin alone in 2021. The currency still has room to grow, which means the potential returns on ETH could be much higher. For example, Placeholder partner Chris Berniske expects ETH at $3,000. Partner Chris Berniske expects ETH at $3,000.

Reasons to Buy:

  • Current rate: $2500
  • Growth potential: up to $3,000 (+20%)
  • Risk level: medium
  • Market capitalization: $317 billion

Polkadot cryptocurrency (DOT) Growth forecasts

  • Growth potential: up to $58 (+45%)
  • CoinMarketCap rating: 8

Review.Polkadot (DOT) is an open-source, sharding-based protocol that allows data and tokens to be transferred between different blockchains. Such interoperability is intended to create a fully decentralized and private network for developing applications and services. The DOT project's native token performs several functions at once. It is a management token, an operational token, and also provides for the creation of parallel circuits (so-called parachemes).

Reasons for Growth.The listing of the token on most leading cryptocurrency exchanges pushed the DOT price to an all-time high in early September. Despite the subsequent correction, the token has stabilized and accelerated its growth rate. This potentially bodes well for its positive momentum in 2021. Polkadot is firmly on course to join the club of the most significant cryptocurrency projects. According to Lark Davis, a popular YouTube crypto investor and analyst, Polkadot could have the same impact on the cryptocurrency market in the current cycle as Ethereum did in 2017. According to Davis, this young and growing ecosystem is already starting to seriously challenge its competitors. Project founder Gavin Wood, who was also involved in the creation of Ethereum, recently said that Polkadot should not be seen as a «killer of Ethereum». Rather, the project is «the blockchain-maximalism killer». The Polkadot example should clearly demonstrate that it is not necessary to focus and place all bets on a single blockchain. Instead, it is more effective to build a «network of networks» in which the most important aspect is the creation of bridges and interactions between different blockchains.

Prediction. Perspectives differ on the growth potential of the DOT. Some analysts promise a stunning future for the token, while others are more pessimistic in their predictions.

Reasons to Buy:

  • Current rate: $45.60
  • Growth potential: up to $58 (+45%)
  • Risk level: medium
  • Market capitalization: $33.4 billion

Prospects and problems of VeChain (VET) cryptocurrency

  • Growth potential: up to $0.38 (+171%)
  • CoinMarketCap rating: 14

Review.The VeChain (VET) project has carved out a niche in the blockchain technology ecosystem focused on decentralized business applications, supply chain management and the Internet of Things (IoT). VeChain aims to increase the efficiency and transparency of all shipment-related procedures, as well as reduce associated costs and give individual users more control over the situation. Private blockchain is a niche in the blockchain ecosystem.

Reasons for Growth.The project has brought true innovation to an industry that has remained dormant for years. Now, companies looking to optimize transparency, efficiency and control are looking to use blockchain technology in their business operations. VeChain recently announced a partnership with KnowSeaFood, a U.S. company specializing in the seafood industry. Through this partnership, consumers will now be able to know the true origin of the products they buy. The VET token rate pushed back from its March low and marked an all-time high of $0.023 in August. The price rose 1,478%, but was followed by a correction of about 63%. However, VET was able to recoup the lion's share of the losses, formed strong support and resumed growth. The stock has been able to move back upwards.

forecast.According to analyst Benjamin Coven, investment in VET between March and December 2020 showed a record return on investment (ROI), second only to the LINK token. If VET maintains its recent momentum in the new year, it stands a good chance of renewing its all-time high in 2021. And by 2023, according to Coinswtich, the token's price could reach $0.38. Token's price could reach $0.38.

Reasons to Buy:

  • Current rate: $0.18
  • Growth potential: up to $0.38 (+171%)
  • Risk level: above average
  • Market capitalization: $12.1 billion

Cryptocurrency Chainlink (LINK): perspective

  • Growth potential: up to $43 (+27%)
  • CoinMarketCap rating: 12

Review. 2020 was a breakthrough for Chainlink (LINK). This project's coin has firmly established itself at number one in the blockchain oracle segment, and has also broken into the top 10 cryptocurrencies. The fundamental drivers behind Chainlink's increasing growth are the healthy growth of its ecosystem (which currently has more than 350 partnerships) and the expanding mass adoption across a variety of areas of the global economy.

Reasons for Growth In early July, LINK broke through resistance at $5 and soared to an all-time high of around $20 within just a few weeks. The scale of the subsequent correction was 65%, but that did not deter LINK enthusiasts, and the project began to build value again. Between August and December 2020, the number of LINK hodlers grew by 59% and at the time of writing was 285,361. The number of LINK hodlers increased by 59%.

The project's co-founder and iconic figure, Sergey Nazarov, took second place in the recent DeFi Person of the Year award ceremony («DeFi Person of the Year»). Nazarov was surpassed only by Andre Cronje, the creator of the notorious Yearn Finance project, in terms of his influence in the crypto space. This choice of nominee confirms that Chainlink is becoming the standard solution when it comes to data management in the blockchain oracle segment.

Prediction.In Benjamin Coven's list of cryptocurrencies with the highest return on investment (ROI) between March and December 2020, Chainlink came out on top. Analyst Kevin Swenson confirms this as well. He points out that in 2020, LINK went from $1.50 to $20. This growth has made this coin the most profitable project among the top 20 currencies. If this trend continues, LINK has chances to become one of the top cryptocurrencies in 2021. If this trend continues.

Reasons to buy:

  • Current rate: $36.5
  • Growth potential: up to $43 (+27%)
  • Risk level: below average
  • Market capitalization: $15.3 billion

The list presented in this article is purely subjective. In fact, there are a huge number of other promising projects and currencies in the cryptospace, which have also shown great potential recently. For example, we can mention Litecoin, Aave, Kusama, Zilliqa or Theta. However, the author was not able to include them in this ranking because the competition is very high and the list is not unlimited. The author, however, was not able to include them in this ranking because the competition is very high and the list is not limitless.

On the other hand, always keep in mind that CoinMarketCap currently monitors more than 8,000 cryptocurrencies, and most of these koi will fade into oblivion and deprive hoarders of their investments. In this regard, always be very thoughtful, careful and responsible about which cryptocurrency to invest in, as this space still continues to be «Wild West».

Prospective cryptocurrencies for mining

When choosing a coin for mining, there are several key indicators to take into account, such as the market capitalization of the asset, liquidity, volatility, current value, and perspective. It is especially important to understand the development prospects of a project because many coins are created with the sole purpose of making money for their creators. By investing in such scam projects, users will ultimately end up with no money.

An important selection criterion is the liquidity of the asset, in other words the ability to convert cryptocurrencies into cash quickly and with minimal effort.

The liquidity of an asset is generated by supply and demand. And if there is active interest in it on the market, it indicates a high level of liquidity. Simply put, a liquid asset is easier to sell or buy. It is also important to choose a coin depending on the initial investment. Roughly speaking, you need to understand what equipment you have enough money for. Then you work from there.

No matter what you invest in, you always want to know how much you will make. To calculate the profitability of mining, you should use calculators. Two of the most popular and convenient ones are nicehash.com and whattomine.com.

In general, it's very difficult to predict how much you'll earn by mining. There are a number of variables that influence this:

You can't predict how much you will earn by mining.

  • The complexity and actual hash rate of the mining network;
  • Mining at the current exchange rate
  • Current rate of the coin;
  • Electricity costs;
  • Equipment costs, etc.

In view of the high volatility of the crypto market, in order to get the maximum profit from mining, it is necessary to constantly monitor the market and follow the news background.

It is also important to have a few good cryptocurrencies in mind, and when market trends change, switch to mining the most promising coin.

Cryptocurrency Growth Prospects: Tips for Beginner Investors

In this matter, it is better to be guided by the world's leading crypto-experts, because who else but them can tell about the prospects of certain coins. Which cryptocurrency is better to invest in can also be judged by the liquidity parameter. It shows how realistic it is to sell tokens at market value. Investors pay increased attention to this indicator for good reason, because the higher the liquidity, the greater the prospects for the cryptocurrency.

The following advice is for traders who can afford to monitor rates 24 hours a day, 7 days a week. Due to the high volatility of the market, prices of different cryptocurrencies can rise or fall by more than 100% and 200% within a day, and sometimes within a few hours. It is better to buy coins during &lquo;rollback phase; that is, when the currency rate deviates from the average by 20-30%.

By the end of the day, it is better to buy cryptocurrencies in the &lquo; from the market.

There is no doubt bitcoin is the benchmark for investing today, so if possible, it is better to invest most of your money in it. Though BTC had its downfall, its price always recovered its value in time. Even with short-term investing in this digital asset, the risks are minimized due to its high volatility. You should set aside at least 60% of your capital for bitcoin. It is also recommended to dilute your investment portfolio with popular altcoins, including inexpensive ones, because there have been many cases when one or another coin increased in value many times.

Please remember that all investments carry risks, and the risk multiplier is even higher with cryptocurrencies. To avoid problems (especially at the beginning of your investing career) you need to be mentally prepared to lose your invested funds. If you're not prepared for that, it's better to postpone the initiative. Crypto trading will not turn an ordinary person into a millionaire overnight. The smartest approach is to start with small amounts, allocating, for example, one tenth of your income to buying tokens.

Main factors influencing the prospects of cryptocurrencies

When choosing a cryptocurrency to invest in 2021, you need to understand that “any investment involves risk, but investing in digital assets - especially. But in case of a successful deal “all risks are more than repaid. And if not to choose the object of investment “on the fly” but to study the criteria, really affecting the prospects of the selected cryptocurrency, the chances for success will be incredibly high. So, when choosing a cryptocurrency to buy, you need to pay attention to:

  • A team dedicated to the promotion and development of this cryptocurrency project. There is always a whole team of people behind every product, and the louder their names, the higher the chances that the project will attract a lot of public attention right from the start. Cryptocurrency developers are specialists in their field by default, but the experience they already have and the existence of successfully implemented similar projects are key. The more skilful, experienced and authoritative the development team is, the higher the degree of trust in the product will be. However, it happens that the people behind the cryptocurrency project prefer to remain incognito: there are no names, their location, or any other data about the creators. Conversely, the authors of the project can engage in the most open dialogue with users, share goals and plans, conduct socially active professional activities, participating in various mitups and conferences. It is logical that in the second case, the investor has much more reasonable reasons to invest their money in such a project.
  • Benefits and prospects of the underlying technology of cryptocurrency. As a rule, you can find detailed information about the project from its developers. But you have to understand that this primary data comes directly from the creators, people who are maximally interested in making their cryptocurrency popular and bringing income. That's why you shouldn't take everything you read on the cryptocurrency's official website as a pure coin, because there may well be marketing tricks there. It is important to get more objective information about the technologies implemented in the system from other verified sources, where experts in the field make their predictions about the prospects for this coin and analyze exactly the ideas that the developers put into their project in fact. As this will be disastrous for the success of your investment over time.
  • Discussions and reviews about cryptocurrency on the authoritative Bitcoin Talk forum. This is where the very first code of the very first bitcoin cryptocurrency was published, and this is the forum where most activity around one digital currency or another is concentrated today. The more attention forum members pay to a particular cryptocurrency, the more information about it they have and the more actively they discuss it, the more chances it will live and develop for a long time. Active discussion of the cryptocurrency and interest in it from current and potential investors is a clear marker of the promise of this digital asset.
  • Project website and social activity of the community. A modern, multi-lingual, intuitive and user-friendly interface is an important component of any project or business. It's hard for newbies to navigate the nuances of cryptocurrency, so developers need to offer a product, which will be easy and effective to work with even for beginners. For more advanced users, extended functionality and availability of analytical and statistical tools are important.In general, a convenient, functional and concise website is a must. Moreover, now every cryptocurrency project has its own groups in popular social networks, where all news about coins are published regularly. The higher the activity in these publishers and the larger the community that unites fans of this digital currency, the more it has a greater investment appeal to potential buyers.
  • How often a cryptocurrency pampers. Pamping is artificially inflating the price of a cryptocurrency in order to generate interest in the rate and increase demand, and then sell the assets at a higher value. As a rule, this speculative trick is initiated by big market players and for it they choose a popular and stable currency on which they can definitely make money. Why is this criterion important to a potential investor? The reason is that the big traders, who initiate the pumping, have much more information than ordinary users, and the frequent pumping of this or that cryptocurrency indicates that it is a good instrument to earn money. Investments in this asset are most profitable at a time when the market value of its tokens is at a relatively low level. Then there is every chance to make money on the rate during the next plummet.

Cryptocurrency prospects: advantages and disadvantages of cryptocurrency investments

Investing in cryptocurrency instruments, like any investment in financial assets like stocks and bonds, involves risk. But that's the only thing the two formats of investing have in common so far. By and large, crypto, as an innovative asset, has advantages such as:

  • The ability to conduct almost instant financial transactions within the entire planet and in any amount (scalability). On average, it takes 3-4 seconds to transfer money in the «Ripple» ecosystem (Coil, Xrapid, xCurrent). For comparison - to make a normal bank international transfer between the owner's own accounts would take at least 3 -4 days. This property of crypto to be a part of practical use-case or financial system is one of the main attractions of investing in digital assets.
  • In second place after the demand for crypto as a real financial payment instrument is returnability. Naturally, while the crypto market is at its initial stage of development, we should expect the arrival of institutional investors in this segment. Then, those impressive growth rates of thousands of percent for bitcoin or XRP in 2017 will seem like child's play. For example, the daily volume of financial transactions in the world is about $8 trillion to $12 trillion. It is not hard to imagine what will happen if at least 50% of this liquidity goes to cryptocurrency payment systems. That's why there are rumors among cryptocurrency investors that soon bitcoin will be worth at least $100,000 - $250,000, and the Ripple token so disliked by haters around the world will finally go in the direction of tuzemun, pleasing its loyal hodlers with a bar of $50 - $100.
  • .
  • The third place of honor for the attractiveness of investing in crypto is the relative safety of storing assets, despite the fact that periodically there are scandals about the theft of bitcoins and other cryptocurrencies from this or that exchange. The blockchain system is designed in such a way that it is impossible to seize an asset without instantly showing an attempted hacking across the entire transaction chain, recorded in hundreds of thousands of computers.
  • Anonymity. Generally speaking, blockchain transactions in cryptocurrency systems involve an anonymity protocol for financial transactions. This is not to say that this method serves as a good way to hide and launder criminal money. First of all, it speaks about the protection of investor's personal information, as, in fact, banking secrecy no longer exists in the world at all. Just remember the recent scandals with Cyprus and Swiss banks, «panama's dossier» that were ready to provide any information on their clients.

Listing all of these obvious advantages, it is still not possible to ignore and such an important advantage of investing in crypto, as elementary convenience. It is possible to invest money, withdraw it, send it anywhere in the world, and there is no need to store assets in safes and bank vaults. I.e., the investor's money is always with him, he always has access to it, and its safety is guaranteed.

The only disadvantage of investments in crypto is weak infrastructure, which allows using crypto as a legal tender. This includes the absence of full-fledged payment systems, normal cash-out systems. This also includes the desire of states to put this instrument under their control, which guarantees everyone, without exception, real financial freedom instead of financial slavery, which was offered by the outdated usurious (credit) banking currency system for hundreds of years.

Investing in cryptocurrency today: risks and prospects, reviews and opinions of experts

The most recent Chainalysis research confirms that at the moment cryptocurrency is attractive for large long-term investors due to falling confidence in traditional markets.

CEO of analytics software provider MicroStrategy Michael Saylor has ordered to invest more than $250 million in BTC and is not going to lock in a profit yet, promising to hold bitcoins for 100 years. Today that investment is already worth $700+ million. MicroStrategy set an example for other institutions to follow immediately.

Paul Tudor Jones, a well-known trader, sees bitcoin futures trading as a capital insurance policy against the backdrop of central banks printing money to fight a pandemic. Thus, we can conclude - at the moment, cryptocurrency is seen more as a protective asset than a tool for generating returns. And that makes its growth more sustainable.

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