If you are keen to invest in cryptocurrencies in 2021, do you know which ones you should trust? Despite the global pandemic and current economic turmoil that is affecting every country, some cryptocurrencies continue to have strong potential for offering really high long-term returns. It is not enough to focus only on current crypto rates as these can change dramatically within a few days; you should look at market cap and liquidity levels of the currencies before investing in these. For instance, crypto coins like the Ethereum, Bitcoin, or Ripple have high liquidity rates.
- Bitcoin remains the most reliable crypto coin to invest in, having also been the first in the long line of decentralized, digital currencies and the highest in terms of market capitalization. The Bitcoin was founded in 2009 by an anonymous individual creator or group of creators called Satoshi Nakamoto. The records of Bitcoin transactions are stored on a public ledger or blockchain that cannot be tampered with. The first price surge was witnessed in 2017 when its prices experienced a 20-fold leap in a single year. The next year prices came crashing down but investor disillusionment with bank monetary policies have led to prices climbing up, reaching to an all-time high of almost $30,000 now.
- Ether (ETH) is the currency belonging to the Ethereum blockchain and this coin gained a lot of popularity in 2017 when Ethereum emerged as the go-to destination for ICOs. Its smart contract technology has attracted a wide community and secured a strong position for this currency in the days to come. Unlike the Bitcoin, ETH is based upon smart contracts that are being used by businesses for digitalization of transactions. ETH’s success and failure will be largely dependent on the upcoming fork and implementation of Proof-of-Stake algorithm.
- Ripple (XRP): This digital currency was originally meant to facilitate cross-border payments. Ripple is currently the third most sought-after cryptocurrency in terms of market cap. With more and more financial institutions expressing an interest in it, XRP continued to secure a top position in the list of the most trusted and leading cryptocurrencies. Experts have referred to it as “king of banking infrastructure”. For instance, you can see the possible replacement of SWIFT for accelerating money-transfers between parties. You should invest in Ripple for long-term profits.
- Litecoin: This is essentially a Bitcoin spinoff that had been founded in 2011 by Charlie Lee. The main purpose was to make transactions speedier than what traditional Bitcoins were offering. So, there are some technical differences between the Litecoin and the Bitcoin. It has been generated as a faster alternative to the Bitcoin and can guarantee transactions four times faster compared to the Bitcoin. Litecoin is more scalable and offers lower transaction fees; you can get Litecoin wallets for free. Compared to the Bitcoin that is capable of processing 7 transactions every second, Litecoin can process 56 transactions.
- Bitcoin Cash was the result of a hard fork in the Bitcoin blockchain. This currency also focuses on scalability and ease-of-use of cryptos for everyday payments. BCH or Bitcoin Cash was launched by developers and Bitcoin miners with concerns for Bitcoin’s limited scalability. They believed that the SegWit2x could not resolve the scalability problem for the Bitcoin meaningfully and the process to introduce the SegWit2x was not transparent enough. So, in 2017, miners initiated a hard fork to launch the BCH which has its individual blockchain and offers a larger block size for accelerating the process of verification. So, Bitcoin Cash can process transactions faster than the Bitcoin, guaranteeing shorter waiting time and lower transaction fees.