Among crypto enthusiasts, 2017-2018 is often referred to as ‘the year of cryptocurrency’. Record numbers of new digital assets – and a surge in investor interest – caused the market to explode, with the majority of cryptos achieving their highest ever prices. Bitcoin hit $20,000 per token, while Ripple XRP grew by 36,000% in the space of a few short months.
However, could 2021 be the new year of cryptocurrency? Some analysts think so. From a number of key network upgrades to the increase in crypto usage worldwide, there are various factors that suggest the coming year could be a turning point for virtual assets everywhere.
Whether you’re a seasoned investor or someone on the hunt for an introduction to cryptocurrency, you may be wondering which cryptocurrency is the best to invest in from 2021. In this article, we’ll share some of the top cryptos you may wish to consider adding to your portfolio.
It should come as no surprise that Bitcoin is at the top of our list. Launched back in 2009, not only is Bitcoin the world’s first cryptocurrency – it’s also the biggest and most popular. According to the Bitcoin Market Journal, there are an estimated 100 million live Bitcoin wallets in existence, and that number is expected to increase as the crypto market continues to edge into the mainstream.
Considering Bitcoin’s current price is over $19,000, there is strong reason to believe that 2021 could rival 2017-8 when it comes to Bitcoin’s performance. While many investors see its previous all-time high as something of a fluke (the market experienced rapid inflation before crashing back down a few months later), its rising price now is the result of increased confidence and the belief that crypto is becoming more accepted. The fact that PayPal has recently given users the option to pay via Bitcoin on its platform has cemented this belief and inspired many people to add Bitcoin to their portfolios.
Ethereum has long been Bitcoin’s second-in-command. With a price of $612.01 and a market capitalisation of $69,354,000,905, it’s the second-largest cryptocurrency on the market. Many staunch fans believe that Ethereum is a better technology than Bitcoin – and with the anticipated launch of its network update Ethereum 2.0, it seems more people are starting to agree.
Ethereum could be good investment opportunity for 2021 because this update will greatly improve both its usability and its environmental impact. The network powers many decentralised apps (dApps) in the financial space, and as the demand for these continues to grow, the demand for Ethereum is also likely to increase. This will drive up the price, making it a crypto to watch in 2021.
Launched in 2017, Ripple XRP is a third-generation cryptocurrency. This means its founders have been able to learn from the mistakes made by earlier cryptos and adjust their own asset accordingly. For some people, this makes Ripple a much stronger alternative to older offerings such as Bitcoin and Ethereum.
Ripple aims to make it easier for banks to send cross-border payments. As conversations around cryptocurrency regulations become more pressing, Ripple’s partnerships with high-profile financial businesses means it’s well-placed to weather any regulatory changes. This means it could be a strong investment choice for 2021.