Blockchain has been central to the growth of the cryptocurrency sector. Blockchain technology was developed to create bitcoin, but it has been vital to other digital currencies as well.
Are you looking forward to investing in crypto this year and making some passive income? With over 7,000 digital coins to choose from, how do you tell which is the best cryptocurrency?
Here is a guide on the most promising coins and tokens that have come into prominence as a result of blockchain technology.
Bitcoin (BTC)
It’s been a decade-plus since Satoshi Nakamoto created BTC, the most widely used crypto in the world. Bitcoin is famous for its secure peer-to-peer transaction and user autonomy. It has earned favor among users thanks to low transaction fees and zero banking fees. Buying BTC for the first time at xCoins is a breeze if you prefer electronic money transfer. The first week of 2021 saw a wild surge in the Bitcoin price that briefly topped $40,000. Experts predict that it may hit $100,000 before 2022. With a market cap of over $1 trillion, it makes for the best name for investors- both new and experienced.
Blockchain was developed to create this new cryptocurrency. Blockchain led to some scalability issues, but has since proven to be a remarkably useful technology for it.
Ethereum (ETH)
Ethereum is the second most liquid digital coin that allows decentralized mobile apps and smart contracts through blockchain. Other than decentralizing funds, ETH has decentralized the internet to create a single computer for the investors. Its market cap is approaching $160 billion. Last year in November, the price stood at $579 but has since skyrocketed to $1,368 (by 30th January 2021). If you choose ETH, you benefit from one of the top cryptocurrencies as well as its broad range of uses.
Ripple’s XRP
Ripple uses a leading-edge payment platform built on the blockchain foundation and offers incredibly low exchange rates. Its quick validation process allows smooth fund transfers that are superior to any central bank. This is the best year to invest in XPR given that its price is relatively low ($0.3042 as of January 30, 2021) compared to other coins. The price is expected to rise again to even cross the LTC. Unlike other cryptocurrencies, XRP is non-mineable yet the value has grown significantly over the past 12 months. Ripple created over 100 billion coins, 40% of which are circulating in the economy. The rest are in the hands of the company and cannot be sold to avoid a negative price effect.
Litecoin (LTC)
One of the crypto coins with a higher block reward is Litecoin. Mining is incredibly swift as it takes about two minutes. LTC has adopted many features of the BTC, making it a ‘lite’ version with faster transactions. Regarded as the silver of cryptocurrency, the LTC price stands at $131.2. This is an impressive result given that in November 2020 it was valued at $68.
Teslacoin
Teslacoin is a new cryptocurrency that mimics the price movements of the Tesla stock. It is currently trading at $0.002359 a coin, although it could grow a lot faster in the future. You need a $250 deposit, but it can be a great investment to try.
Basic Attention Token (BAT)
The Basic Attention Token reached its peak in 2018 and looks promising in 2021. The cryptocurrency is a favorite for web developers, content writers, and digital marketers. BAT was developed by Brendan Eich, a co-founder of the browser Mozilla Firefox. It relied on some of the latest advances from blockchain.
It is one of the altcoins projected to boom in 2021. Currently, at $0.342, it is predicted to reach $0.37 by February 2021 and an expected maximum of $0.46. A good percentage of internet users prefer BAT’s Brave browser which grants rewards in form of coins. While it is still in the infancy stages, the value of tokens is likely to rise as more people adopt BAT.
To make money on investing with maximum growth potential better to choose recently issued tokens. Which newly projects look the most promising and what to look out for is detailed by the top finance media Investing.com.
Perhaps you have never invested in cryptocurrency before and don’t have deep knowledge of the history of various coins. This guide has shown you why 2021 is the best year to invest in the aforementioned cryptos. Invest now while most coins are in their stages of growth because they have a big potential in the future. Finally, avoid misguided active trading and only invest funds you can afford to lose.