Top 5 Cryptocurrencies to Watch Out For Next Year
It’s clear that 2020 was a challenging year for the world's economy. More and more investors are turning to cryptocurrencies as a hedge against inflation and an alternative to traditional assets. Now that 2021 is fast-approaching, many investors will turn to cryptocurrency.
This guide will introduce you to the top five cryptocurrencies you should go for in 2021, but before we dive in, how do you choose your cryptocurrencies before investing?
How to Choose a Cryptocurrency for Investment
Before investing in any cryptocurrencies, there are three essential factors that you should consider:
- Price Movement Prediction: It's not advisable to invest in a cryptocurrency predicted to have a reduced value in the next year. Always check the price movement prediction of any currency before you invest in it.
- Popularity: If the currency can be found on all of the leading exchange platforms and peer-to-peer networks, it's a promising cryptocurrency.
- Safety: Consider the safety of the cryptocurrency before you invest in it. The network must be highly protected from hackers and other cyber attacks.
The Top 5 Cryptocurrencies to Invest in during 2021
Bitcoin
Bitcoin, also known as the king of cryptocurrencies, is at the top of our list for countless reasons. It has been a market leader since 2009 and is showing no signs of slowing down.
All the predictions point to a massive increase in value by mid-next year, with the highest price prediction at $100,000. It also has a quick recovery rate and predictable price volatility.
Litecoin
Another cryptocurrency investment worth considering in 2021 is Litecoin. With the price set at $67.56, it has a market capitalization of billions of dollars and it’s still increasing.
The different price predictions are giving different values, some going as high as over $650 by the end of the year, but they are all positive. The projections are also showing short-term downside movement, which gives you a window to purchase it at a lower price for future price increases. You can easily invest in Litecoin by converting your ETH to LTC.
Ethereum
Ethereum is the second largest cryptocurrency in terms of market capitalization, right behind Bitcoin, and it has maintained this level for approximately five years. One reason you should look out for it in 2021 is the much-anticipated launch of Ethereum 2.0, which will most likely positively affect the market.
The price predictions for 2021 are showing short-term downside movement but long-term positive movement too.
TRON
TRON emerged in 2017 on an Ethereum network and later moved on to set up an independent blockchain platform; because of this, its market demand is quickly growing.
The currency is also related to technology markets, which will positively influence its performance in 2021. Most price predictions are expecting volatility and for the value to increase by mid-next year.
Ripple
Finally, we have Ripple, an excellent cryptocurrency to invest in during 2021. It was released in 2012 and is currently approved by a long list of banks worldwide, which has led to a steady increase in its value.
Price predictions indicate the price will drop briefly before continuing its stable growth.
Start Investing Today
Rather than waiting for any of these cryptocurrencies' values to shoot up before you invest, start investing in them now, ahead of 2021. To make things easier for you, you can use the top cryptocurrency exchange platform, Godex, today!