Success in the cryptocurrency market is partly down to your ability to spot opportunities and exploit them and partly a product of your choice of a cryptocurrency to invest in. Believe it or not, there are well over 5,000 known cryptocurrencies, each valued differently and promising a unique ROI. When making a crypto investment, always consider the market capitalization and liquidity level of the digital currency you are eyeing. Try to base your decision on more than one source of data, and make a point of diversifying your investments. Here are five cryptocurrencies expected to perform best in 2021:
Bitcoin
The king of cryptocurrencies seems to get more popular by the year. It’s relatively high liquidity makes it quite desirable among beginners, and you can try it if you want something whose information you can find easily on the internet. While you shouldn’t have any problems buying Bitcoin in 2021, selling it has proven to be a more challenging task even to experienced investors. Ensure you know how to sell Bitcoin and are aware of the platforms that offer the best deals before getting rid of any crypto in your digital wallet.
Basic Attention Token (BAT)
Having performed incredibly well in 2018 through 2020, BAT is projected to take its run of good form into 2021. Individuals use BAT primarily to tip people on the internet for their content, including copyright-free visuals. Some use it to reward users for watching their ads. The fact that so many coins have collapsed but BAT hasn’t been affected is one reason the crypto is expected to be among the most sought-after digital currencies of 2021.
Litecoin
The main reason people are considering investing in little-known Litecoin is its large market cap and high liquidity. Just so you know, lower market caps translate to higher risks and vice versa. 2021 looks to be the year Litecoin finally explodes, thanks to its limited coin supply and a relatively high block reward. The average block mining time on the Litecoin blockchain is also higher than the market average.
Ethereum
Ethereum is only second to Bitcoin in liquidity and is, without a doubt, one of the most stable mainstream cryptocurrencies. Experts expect it to keep on with its slow but steady growth trajectory in the foreseeable future, thanks to the presence of a loyal community and team. What’s more, there is a much bigger room for Ethereum tokens to exist compared to Litecoin and even Bitcoin.
Ripple
Only Bitcoin and Ethereum beat Ripple on the market capitalization front. The cryptocurrency is mostly used by large financial institutions looking to facilitate instant transactions for their overseas clients. This institutional support, coupled with SEC regulation immunity, puts Ripple at the perfect place to explode and earn itself a place among the most reputable cryptocurrencies.
Endnote
There is no formula for determining which digital currency will produce the best performance in the years to come. However, based on past patterns, the above five are highly likely to have a productive 2021. Take the time to research each of them individually before making your choice.
