Cryptocurrency has boosted digital assets as it is designed to work as coin ownership, and the transactions being recorded simultaneously make it a bit secure. Before Talking about the trends it might follow in 2021, we must first know the pros and cons of the cryptocurrency because diving in the deep when you don’t even know how to swim is nothing but stupidity.
Cryptocurrency was first introduced in 2009 by the name Santoshi Nakamoto whose identity is still shady. Bitcoin was the first cryptocurrency to be introduced to the market, and since then, the crypto market has only seen heights after it gained people’s trust. Cryptocurrency was introduced to create a new payment method that could be used worldwide without the hassle of any financial institution being involved in it.
Current status of cryptocurrency
The use and investments in cryptocurrency are increasing. The initial times faced by cryptocurrency were not good. The people did not trust this new payment mode, but eventually, everyone seems to like it, and it’s boosting day by day. Two companies are looking forward to developing their cryptocurrency, which has been successful, namely Kodak and Facebook’s social network. The first created KodakCoin and the second one, Libra. Other companies prefer to allow these virtual currencies as a payment method. From hotel chains, airlines to tourist perks, all of them have a bet on the use of cryptocurrencies.
How did it trend?
The sole reason for the popularity of cryptocurrency is that it has a low fee. When people choose various kinds and find which one is profitable, they invest more often. It brings out better deals, which is an attraction for market lovers or those in the queue to quickly make numerous amounts of money.
Cryptocurrencies are not associated with any world government, which is again a plus point as they won’t deteriorate even in crisis in any specific country. The stability factor is what makes it more faithful. There is a chance or potential for profit as one can buy it when its price is not much and then can enjoy the profits whenever the prices boost again. The easiness that is increasing day by day makes it more popular as the online companies are adopting it, and it is becoming handy with the increasing usage of gadgets.
Overall security is essential, and in modern times, the usage of online payment through cryptocurrencies is much safer than the existing payment options online. The security of cryptocurrencies has helped it gain much popularity and heavier usage across the world as people like to use more comfortable and safer modes more often.
The customer-friendly and easy purchase of cryptocurrencies are again helpful for the buyers as they don’t have to hustle much for the same. It’s easy to purchase it from reliable and reputed sources, and thus it became more popular over time as it gained people’s trust.
People see the future in it, which means that money is seen differently and with profit or benefits that would ultimately help the investor grow. Therefore there can be witnessed a sudden rise in this crypto market. The future doesn’t bring growth, and the evolution of how we see the market, money, and trades made worldwide; how we can make them easier also counts to it.
Top cryptocurrencies to know in 2021
To ensure that you’ve benefited from your future steps, you must know the options you have to invest in.
Like bitcoin, Ethereum, XRP, and others have rocketed in value, never before has Wall Street seemed so hesitant about “digital gold,” a name they use to invoke a margin of safety. But according to the existing investors of cryptocurrency, that’s not how this works. This market is a race of popularity among the options, and the winners have lead just because of their popularity and nothing else.
To know about the top cryptocurrencies that one can invest in, we need to explore the world of altcoins- the upcoming coins you can buy for cheap. It’s because it’s beneficial if you get in early. For example, $1,000 invested in Ethereum’s initial coin offering (ICO) would be worth $3.3 million today.
There are also certain risks when investing in cryptocurrencies, but we’ll talk about that later. The top valued or overvalued companies that investors should rely or can wait on are,
Ethereum, in comparison to others, is a newcomer but still has risen to levels that can compete with the existing ones, and due to its superior technology, it can create “smart contacts.”
Approximate Market Cap: $100 billion
Year Established: 2015
Cost Per Transaction: $10
2020 Return: 470%
Bitcoin is one of the most popular and most adopted cryptocurrencies worldwide. It is not advanced the most in terms of technology but still is vital in leading the pack and has a firm grip over the market.
Approximate Market Cap: $600 billion
Year Established: 2009
Cost Per Transaction: $15
2020 Return: 309%
XRP is a centralised cryptocurrency that is more bent towards taking over the high costs of inter-bank transfers.
Approximate Market Cap: $13 billion
Year Established: 2012
Cost Per Transaction: Nominal
2020 Return: 16%
It’s a competition to XRP’s crown, offering low-cost, cross-border transactions.
Approximate Market Cap: $5 billion
Year Established: 2014
Cost Per Transaction: Nominal
2020 Return: 189%
It’s the largest third-generation cryptocurrency and has much more upside potential in 2021.
Approximate Market Cap: $8 billion
Year Established: 2017
Cost Per Transaction: $0.07
2020 Return: 441%
It got instant internet attraction and got very popular after Elon Musk tweeted about it.
It was established as a meme which is just a modern way of saying a ‘joke.’
Approximate Market Cap: $1 billion
Year Established: 2013
Cost Per Transaction: $0.03
2020 Return: 118%
Although the list has many more names, these few are the leading ones that may lead the trend. Also, to stay healthy in this market, you should be aware of the threats and risks to that avail in this cryptocurrency world.
The most significant risk or threat to this market is that it’s volatile. There can be unexpected twists or turns that might affect the market sentiment, which will eventually affect cryptocurrencies’ prices. There can be a sudden rise or fall in the prices due to the same. So, invest SMART, earn SMARTER!