If you are aiming to invest in cryptocurrencies, you are most probably spoiled with a choice since there are approx 7000 altcoins at this moment to trade with. Choosing the best is not an easy task. According to specialists in crypto trading, the year 2021 could be the best year for trading cryptos since the creation of bitcoin in 2009. At the moment of writing of these lines, the value of bitcoin has reached an amazing $20 000.
When trading cryptos, some take a long-term strategy (investors), others a short-term (trader). Either way, here are the three cryptocurrencies to watch out for over the next few months.
Ripple (XRP)
Despite an extremely competitive market, Ripple has stood out among digital assets. It is displayed alongside the most popular digital currencies like Bitcoin. And for a good reason, Ripple is not just a cryptocurrency. It’s also the name of a company and the Ripple blockchain network and also the name of its Real-Time Gross Settlement System (RTGS). Created in 2012 as OpenCoin by Jed McCaleb, XRP aims to provide another alternative to Bitcoin. In 2020, the Ripple has some impressive features when it comes to its weight in the market. Indeed, there are 44.2 billion XRP, 100 billion existing tokens, a stock market value of 8.3 billion dollars and a market capitalization of 18.8 billion dollars. Since all crypto assets are volatile, it is not possible to make reliable predictions, but Ripple looks promising.
Ethereum (ETH)
Ethereum or ETH is the second cryptocurrency on the market and therefore, the main competitor of Bitcoin. Yet, ETH was not originally intended to become a popular digital currency. The creator, Vitalik Buterin, wanted to design a blockchain in 2015. The goal was to create an exchange protocol (smart contracts) to simplify and secure online transactions. Today, Ethereum is worth more than around $ 450. It represents a market capitalization of over 20 billion euros and a total market volume of over 110 million euros. To invest in such a cryptocurrency, one should turn to approved trading platforms. Also, trading Ethereum requires some special skills related to trading strategies and ability to read the technical and fundamental analysis.
Litecoin – LTC
Litecoin could be a good investment due to the high liquidity as well as the large market cap.
Many experts for crypto are forecasting that the Litcoin will skyrocket in next year and in the years to come. Its supplies are limited to 84 million coins. Block reward for litecoin reached 12.5 LTC. That’s quite a high reward compared to the rest of cryptos. It’s not among technically the best currencies, but it has great potential. When it comes to mining litecoin, it takes approx two minutes to mine an LTC block.
Bitcoin (BTC)
Finally, Bitcoin (BTC) is the first digital currency on the market. Created in 2008 after the bankruptcy of the American bank Lehman Brothers which caused a multitude of economic reactions and a global crisis, Bitcoin keeps its first place on the podium. Considered today as a financial asset, Bitcoin also makes it possible to pay for purchases online and in certain physical points of sale. However, for the moment, this method of payment is still not very popular.
You can buy BTC either by obtaining peer to peer tokens or through an online crypto broker. Creating a crypto wallet is essential to store your tokens. Note, however, that Bitcoin is not unlimited, that is to say, that there is an exact number of tokens in the world and that the supply is reduced by 50% every four years during the famous halving. Like gold, Bitcoin is considered a safe haven, hence the fact that investors prefer to store them and not spend them while they gain value, to manage their finances well.
Learn More Before Using
No matter which of these recommended cryptos you choose for trading, be aware of risks that every investment. Don’t rush with your decisions. Before picking up the crypto, you have to do due diligence research of the market. Also, check out the crypto broker and compare their offers. Be sure to learn more about the way of work of the blockchain and crypto market. If you are a complete newbie, choose stable cryptos rather than just emerging altcoins. The coins we mention in this article are all perceived as a safe investment with strong networks and proven history. And most importantly, create your trading plan and achievable trading goals.