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With cryptocurrencies emerging as the go-to investment option for millions of people struck by the pandemic worldwide, it is only natural why the total market capitalization of the cryptocurrency sector shot from $1965 billion in January 2020 to more than $700 billion towards the year-end. The past 3 months have witnessed more than 50% of the profits.
Much of this sudden surge can be attributed to institutions as pension funds and publicly-listed companies have been searching for crypto assets to invest in. Find out more about the reasons for investing in cryptocurrencies this year. Here are the top cryptocurrencies to invest in the coming year:
- Bitcoin: This has always been one of the best bets for cryptocurrency investments; in the weeks before Christmas, the coin managed to shoot up to $24,000. While many people felt prices would be corrected and trade volumes would decline during the festive season, the exact opposite happened. BTC values went through the ceiling, attaining $28,288.84 on 27TH of December. With companies like Grayscale and Micro Strategy embracing Bitcoin and Grayscale starting a fund for investors to help interested investors to get exposure to Bitcoins without having to own the assets directly, Bitcoins appears to be a reliable crypto asset for investment in 2021.
- Ethereum: This crypto-asset comes second in terms of total market cap and is one of the most reliable cryptocurrencies to invest in. the coin had outperformed Bitcoin throughout 2020 primarily because of its blockchain that was a solid foundation for DeFi protocols. The blockchain is undergoing upgrades since it is slowly moving towards a PoS of Proof of Stake mechanism. Since ETH is likely to find application in many real-use cases and there is plenty of room for growth along with a healthy demand, ETH can turn out to be one of the best bets for investors this year. The network should be able to accommodate a greater number of transactions and this, in turn, will attract more businesses and developers.
- Ripple: This had been launched as an alternative to traditional payment systems to facilitate swifter cross-border transfers and make these completely secure, free, and instant. In 2013, Ripple had received a lot of attention from financial organizations and eventually got accepted by many. Now, the blockchain has expanded further, including 300 and more providers spread across 40 nations. It is expected that Ripped and its distributed ledger technology could replace the SWIFT resolving issues like speed, security, cost, transparency, traceability, and risk management.
- Litecoin: This crypto asset is both affordable and fast, swinging around $87. It takes less time for mining but offers an impressive block reward. It might not have been excellent in terms of performance but it continues to occupy a position in the top ten cryptocurrency listing. The blockchain benefitted greatly from the RPG fantasy game LiteBringer that is based on Litecoin. Following this game’s launch, Litecoin prices skyrocketed. It is hoped that prices will keep going up after the halving.
- XRP: While this crypto asset may have faced a decline in value following SEC’s lawsuit against it and Coinbase delisting it, XRP continues to be a safe cryptocurrency for investment in 2021. Investors typically wish to invest in coins when prices have fallen and then sell them when the prices rise. So, while buying XRP now may seem slightly risky, one can keep a watch on it because once the legal problems are over, chances are high that the coin could make a significant comeback.
