Getting started in the world of cryptocurrency investment can leave you feeling a little like a kid lost in a toy shop – there are so many different options to choose from, so how are you supposed to know how to spend your money wisely? Choosing the right currencies can lead to excellent long-term return on investment, so it’s worth giving the matter some thought.
Luckily, market analysts and seasoned investors will often share their tips on which currencies are ripe for investment, making it easier for beginners to choose wisely. Here are five currencies that we’ve got our eye on for investment in 2021.
The original and still the best? Some investors avoid bitcoin in favour of newer, more exotic coins – but as one of the best-established currencies on the market, it still has a lot going for it. Because bitcoin has been around for longer, it has far better support than many other coins, and has proven itself to be far more than just a fad. Bitcoin is easy to buy and sell, and a simple coin to get started with. Do exercise caution, though, as it is also particularly volatile. The price of bitcoin has been known to both rise and fall dramatically over short periods of time, meaning that your capital may be at more risk than with other, more stable coins.
If stability is your concern, then you might be interested in Tether. As a so called stablecoin Tether is backed by real currency (in this case, the US dollar), meaning that its value is far less volatile. That means buying Tether is a less risky proposition, but also a less lucrative one. Tether is a great cryptocurrency to choose if you’re interested in using your crypto to make transactions, but not necessarily the favourite among investors hoping for huge growth.
Litecoin was conceived of as simpler and quicker version of Bitcoin back in 2011, and since then it has grown a loyal following. It continues to grow, and remains a popular choice both for investors and for those who want to use their cryptocurrencies for practical purposes.
Seen by many as effectively an upgraded version of Bitcoin, Bitcoin Cash is a similar currency that allows for more transaction per block. Like Litecoin, it also offers faster transaction times – and in many cases, lower fees. Over the past few years it has proven to be a reliable investment choice, with steady growth. Of course, there’s never any guarantee of future performance, so investors need to use their own discretion.
For some, the appeal of cryptocurrency comes from the possibility of increased data security. ZCash is targeting this market, boasting “confidentiality to protect your privacy and your financial history.” So called ‘privacy coins’ are certainly of interest at the moment, and ZCash appears to be leading the pack. However it’s also volatile coin that won’t be for the more faint-hearted.
Remember, this is not financial advice, so if you’re unsure of how to invest your money you’ll need to speak to a dedicated financial adviser. However, we hope we’ve given you a crash course on some of the biggest cryptocurrencies for 2021. To get started investing in crypto, you can use an app such as the Bitqt App to purchase your preferred currencies.