Today’s digital assets are an investment vehicle that gain popularity every month. Nowadays, there are more than 8,400 different cryptocurrencies that you can invest in. But you probably wonder, what are the best cryptocurrencies to invest in 2021?
In this blog post, we will show you the top 5 of the best cryptocurrencies to invest in this year. But before we start ranking digital assets, let’s go through a few essentials aspects about investing in cryptocurrencies.
Let’s start with the reasons for investing in cryptocurrencies!
Why should you invest in cryptocurrencies?
Acquiring cryptocurrencies can be an investment with great potential. Why? Because it allows for micro-investing. Unlike traditional assets, digital assets make it possible to start with small amounts of capital to start your investing journey.
Additionally, investing in cryptocurrencies offers several other advantages:
- Low transaction fees.
- Anonymity and privacy.
- Easy usability and entry, compared to other methods of investing.
- Fast transactions.
So, is it worth investing in cryptocurrencies?
Investing in cryptocurrencies is a decision that must be made like any other financial decision: weighing in all the risks and the possible return on investment. Cryptocurrencies provide an investment opportunity at an increasing price, which doesn’t depend on governments or banks, and also don’t generate debt.
Furthermore, investing in cryptocurrencies offers an inclusive opportunity for different types of investors who wish to enter the cryptocurrency ecosystem. Whether you want to invest $10 or $100,000, the possibilities of buying cryptocurrencies are available to everyone.
On the other hand, it is essential to keep in mind that when investing in cryptocurrencies, you are not only investing in an asset; but also in a technology. Crypto assets are also valuable because of the technology that was designed to support them.
How to invest in cryptocurrencies?
Investing in cryptocurrencies is easy with Bitcaribe. You only need to enter Bitcaribe, select the cryptocurrency that you would like to purchase and the amount. This must be followed by your Wallet address and your preferred method of payment.
The top 5 cryptocurrencies to invest in 2021
Having covered the aspects of why you should invest in cryptocurrencies, it’s time to know what the best cryptocurrencies are to invest in this year.
Indicators to know if it is worth investing in a cryptocurrency
- Innovation, progress, and improvements regarding the usability of the cryptocurrency.
- Adoption. That is, how many businesses, exchange houses, or even governments accept this cryptocurrency.
- Market capitalization and the current volume of transactions.
- Community size. This point is key because it is the community itself that often builds and develops applications for cryptocurrencies.
- Roadmap. The future of technological projects is defined in a document called the Roadmap. This document shows the progress that has been made and what is the goal of the project.
The top 5 cryptocurrencies to invest in 2021
- Bitcoin (BTC).
- Ether (ETH).
- Binance Coin (BNB).
- Chainlink (LINK).
- Polkadot (DOT).
Let’s cover in detail why these are the top 5 cryptocurrencies to invest in 2020:
1. Bitcoin (BTC)
Bitcoin is the first cryptocurrency in terms of capitalization and market volume. Additionally, it’s the most popular cryptocurrency worldwide, attracting millions of users every year. On February 21st 2021, Bitcoin hit a new ATH (all-time high), surpassing $58,000, which prompted the attention from thousands of new buyers around the world.
2. Ether (ETH)
Ether has been the second-largest crypto on the market by capitalization and volume for many years. It is also known for being the developers of ERC-20 smart contracts and tokens ERC-20.
3. Binance Coin (BNB)
Binance Coin is the official crypto asset of the Binance exchange, one of the largest in the world. This token was created primarily to support transactions on the exchange. However, over time, it was adopted by other exchange platforms and today it is among the first cryptocurrencies in terms of capitalization and volume.
4. Chainlink (LINK)
Created in 2014, Chainlink is a network of decentralized oracles which transports data to the blockchain with the support of the Ethereum network and the LINK token. This token was created to encourage all participants to use the network in an honest way. Currently, LINK holds the 10th position in terms of market cap.
5. Polkadot (DOT)
Polkadot (DOT) is one of the main altcoins (alternative cryptocurrencies) on the market. Polkadot’s value proposition is to serve as a ‘multi-chain’ network that connects blockchains which operate separately. For example, the Bitcoin blockchain and the Ethereum blockchain. Nowadays, Polkadot is the 6th biggest cryptocurrency in terms of market cap.
So, there you have them, the top 5 cryptocurrencies to invest in 2021. Don’t forget to visit our platform to start investing in your favorite cryptocurrencies.