Investing in Cryptocurrency: The Digital Assets in 2021
What Lies Ahead for Crypto?
2020 was a year we want to forget for so many reasons. Crypto enthusiasts, however may disagree, as the year proved golden in the digital asset space.
Towards the latter half of 2020 and well into 2021 we saw Bitcoin testing its ATH and breaking it. 2020 was the year that also kicked off Bitcoin’s fight into the mainstream as institutional players began dipping their hands into the crypto arena.
So, what lies ahead? Will the crypto bubble be short-lived, or will it continue to soar to new heights? While Bitcoin dominates the media, it is most definitely not the only fish in the crypto ocean. The digital asset market is awash with a number of potential profit drivers. From well-established currencies to emerging players, we have compiled a list of the best cryptocurrencies to have on your watchlist.
Why Now is a Great Time to Add Cryptocurrency to your Portfolio
Tesla, MicroStrategy, PayPal, Square, and Morgan Stanley are just some of the big-names that have made crypto part of their long-term plans. Cryptocurrencies, in particular Bitcoin, have transformed from what once was a niche asset to something that is shaping wider industries and markets. Digital assets are no longer perceived as an exclusive domain of fintech distributors and tech geeks alike. With the ability to use Bitcoin and other cryptos in everyday life and with mainstream traders & institutional investors increasingly eyeing up digital currencies, skepticism decreases. There is little doubt surrounding the success digital assets such Bitcoin and Ethereum have had, but for why?
Before we dive into the benefits, let’s begin with some hype. Say you invested $500 in Bitcoin in 2010 it would be worth somewhere in the region of $145 million now. This statistic is merely our way of point out the remarkable opportunities that cryptos such as BTC have to offer. This being said, with the volatility that precedes the market it can be risky, and we are not saying that cryptocurrency trading is a get-rich-quick endeavor. Other reasons people flock to the digital coin space include:
Hedge Against Inflation
There has been a shift in the crypto narrative. For what was once held a lot of cynicism is now being viewed as a long-term store of value and hedge against inflation by many. Inflation has no impact on digital currency value, in comparison with fiat currencies whose price movements are heavily affected by governmental and other factors.
The cryptocurrency market never closes meaning traders can buy, trade or sell their assets at any time.
Broad Range of Assets
A balanced portfolio is always a great way to mitigate risk. With crypto trading, there is a vast selection of different assets to choose from allowing the spread of risk.
Cryptocurrencies are built on a technology called the Blockchain. This allows one-to-one transactions without the need for an intermediary, meaning a more streamlined payment process. As a result, traders benefit from faster execution and lower cost.
The nature of crypto is to allow one-to-one transactions cutting out the need for an intermediary and streamlining the payment process. As a result, users get faster execution and lower cost without it impeding security. Take TradeOr as an example we offer our traders instant Bitcoin deposits, and they can trade with 0% commission.
2021’s Best HODLs
The cryptocurrency market has been a hot investment sector since its inception, but more so over the last 12 months. As the Covid-19 pandemic caused a stir and fears of a 2008 banking crisis repeat Bitcoin slowly began separating its association to Gold and emerging as an alternative to traditional currencies such as the US Dollar.
The crypto space is an exhilarating place to be, nevertheless, the unpredictable price swings can test your mettle. So, here is TradeOr’s top crypto picks for the year ahead.
Approximate Market Cap: $600 billion 2020 Return: 309%
Bitcoin, the crypto trendsetter needs no introduction, unless maybe you’ve been living under a rock. Love it or hate it, there is no denying its enviable staying power, market dominance, and continued significance within the crypto ecosystem.
Developed in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin has paved the way in the currency market. The crypto market cap is currently above $1.5 trillion with the “king of crypto” owning 59.8%. of that.
With its popularity, however, comes hype. In the latter half of 2020, we started to see big players turn green on the crypto. This adoption has rolled over into 2021 and the first quarter has seen interest from Tesla, MicroStrategy, Goldman Sachs, and Morgan Stanley to name a few. The increased interest has caused BTC’s price to jump to new levels above $60,000. Furthermore, Anthony Scaramucci, a recent crypto convert and founder of SkyBridge Capital predicted a price of $100,000 by the end of this year.
Whether or not the digital asset’s price continues to soar or the market dips, BTC’s dominance within the crypto arena will not change. Despite the volatility that surrounds the market, it is demonstrating consistent growth.
Approximate Market Cap: $100 billion 2020 Return: 470%
Ethereum (ETH) is the second-largest crypto coin after Bitcoin. Ethereum’s main objective is to replace the internet by replacing the servers with a worldwide system of nodes. In essence, they aim to create one computer for the whole world. Following the price trends of BTC, ETH has also seen significant growth in 2020 and into 2021. The assets year to date return is up over 131% and earlier this year the price skyrocketed to an all-time high of $2036. ETH is currently trading at $1,710. Late in 2020, the platform introduced ETH 2.0 the upgrade coupled with the decentralized finance system could be the reason for the growth of the crypto.
Approximate Market Cap: $13 billion 2020 Return: 16%
XRP can be viewed as the odd one out in the crypto space. XRP is a centralized currency that is mined, managed, and governed by Ripple Labs. The asset has the added benefit of it being both a cryptocurrency and a digital payment platform.
The digital asset is like other cryptos in that it has a finite supply. However, it is not mined the same way as BTC & ETH which is seen as an advantage in terms of speed & cost. XRP’s returns year to date is up 155.11% and has hit a high of $3.40.
XRP is the largest currency to have 10x potential for the year ahead and would be a missed opportunity not to have on your watchlist.
Tron one of the biggest hyped cryptos in the headlines in recent months was founded by the Tron foundation. TRX was developed with the objective of providing a costless, global digital entertainment network. Within this ecosystem, users can share content and are compensated as a content creator for the content and data created. In 2017 Justin Sun, CEO of Tron was added to “Forbes 30 Under 30 in 2017.”
Anyone is free to place their content on the blockchain-built system which means publishers can avoid intermediaries and reduce costs. The company has indicated big-name partnerships such as Poloniex, Samsung, BitTorrent, Swisscom Blockchain, and Opera. Furthermore, Tron routs more dApps than ETH which could drive the price up and make the digital asset a lucrative investment for 2021.
Approximate Market Cap: $12 billion
Some digital currencies tend to seem ambiguous, especially if you have a hard time grasping the technology behind them. This is why Litecoin came along. One might say it is a cryptocurrency that has used the best features of Bitcoin and improved on features that weren’t user-friendly. Thus, it has faster transaction times and less complex system requirements. These factors make it an appealing investment, especially because PCs can mine Litecoin. Another main reason to invest in LTC is its high liquidity and large market cap. Its limited supply of 84 million coins also makes for increased demand in the long run.
After new lows in 2020 LTC recently bounced back and surged more than 630%, bringing its total market cap above $12 billion. This growth has made it the 9th largest crypto globally with predictions of a price move past $200.
Bitcoin Cash (BCH)
Digital currencies are based on blockchain technology. This means blocks store 1 megabyte of data. And as a currency becomes popular, the blocks fill up, increasing the price. A pure result of the market’s demand. The Bitcoin Cash, however, was created in 2017 with the aim of having blocks that store 8 megabytes of data allowing more transactions to occur at lower fees. This also makes it much more scalable and gives BCH more potential than its predecessor. This is why it is on the list of digital currencies worth investing in this year.
Approximate Market Cap: $1 billion 2020 Return: 63%
Dubbed as the China-based Ethereum, NEO is a smart contract platform, which allows developers to launch decentralized applications on the blockchain. The technology behind it is advanced and improves on the existing frameworks. Sitting in the top 20 liquid assets, NEO is gathering a lot of credibility and value along the way.
Neo is similar to Ethereum in that it allows the creation of digital assets, smart contracts, and applications. However, tokens are used to prove ownership of assets, not as an asset itself. This makes it ideal for setting clear transfer shares and equities.
In 2018 the coin fell hard amid restrictions that were put in place by the Chinese government. Nevertheless, so far in 2021, the coin has made it come back and investors are confident that NEO will continue to shine.
Stellar Lumens (XLM)
Approximate Market Cap: $5 billion 2020 Return: 189%
Another coin following the BTC price trend XLM surged over 200% to start 2021 on a high. Stellar was produced to facilitate cross-border transactions, and a lot of the asset’s success can be attributed to the shortcomings of XRP.
Up over 200% year to date and a high of $0.88, keep an eye on the growing potential of XLM.
Basic Attention Token (BAT)
Binance Coin (BNB)
If you’re looking for a diversified portfolio of investments, BNB is for you. Quite similar to Ethereum, Binance Coin is more than a cryptocurrency. The Binance DEX is a decentralized platform, where users can buy, sell, and convert BNB to other cryptos. In a way, it is the cryptocurrency exchange market. The success of BNB stems from the resourcefulness of its founders. As it stands, it is the fastest-growing cryptocurrency this year in terms of trading volume. Consistency in growth and steady price increase is proof that this is a good investment opportunity.
In February, the coin reached its all-time highest value and reached $342. Moreover, BNB shifted other cryptos to climb the CoinMarket list, currently ranked number 4 with a live market cap of $39,378,837,136.
Ready to Invest in Crypto?
With many experts hopeful for greater gains for the remainder of 2021 now is the time to get involved. TradeOr’s innovative platform allows you to reap the full benefit of the cryptocurrency market through integrations with TradingView & ChartIQ our traders are able to make important decisions quickly. Better yet, trade your favorite assets with 0% commission.