Cryptocurrencies popularity has continued to grow over the past decade, now reaching a point where many people and businesses see investing in crypto as an important step to diversify their assets. Choosing which crypto is the best to invest into can depend on various factors including budget, timescale, it’s practicality, current trends and so much more.
Learn about the top 5 crypto coins to look out for in 2021, and find out which coin might be a good choice to invest in!
Ethereum
Ethereum is a blockchain platform that has its own cryptocurrency, Ether (ETH). It is known for being the pioneering blockchain platform that introduced smart contracts that enabled developers to create both desktop and mobile decentralised applications powered by secure blockchain technology.
These decentralised applications, also known as dapps, run without any downtime, fraud, control, or interference from a third-party. Apart from the obvious Bitcoin, Ethereum/ Ether is one of the most well-known cryptocurrencies to invest in, it has solidified itself as one of the top coins, thus making it relatively one of the more stable cryptocurrencies.
Why Ethereum might be for you
Ethereum’s goal is to offer a decentralised suite of financial products that everyone across the world can access no matter their country of origin or background. This has made it incredibly appealing for those in countries that have no, or little state infrastructure and state identifications. By using Ethereum they are able to access bank accounts, loans, insurance, and other financial products.
Pros and Cons to investing in Ethereum today
Pros for investing
- Ethereum is one of the most popular tokens available on the market right now
- It broke its all-time high recently and could most definitely reach even higher in the future
- The smart contract platform could replace Wall Street’s back end
- ETH 2.0 is rolling out
- A growth in the demand for decentralised finance (DeFi) signals a market for Ethereum, suggesting a higher potential for growth in the future.
Things to keep in mind when investing
- Ethereum has had recent challenges and struggles with the scaling due to the strong demand for DeFI (Decentralised Finance).
- A large quantity of Ethereum is held by ICO (Initial Coin Offering) treasuries that could potentially dump their tokens.
- Competition is rife, with many competitors looking to become the Ethereum killer.
- Fees have continuously risen, discouraging investors from transacting in the token
On balance Ethereum is a strong crypto to invest in. It has been widely acknowledged across Wall Street that it is here to stay and could potentially become more profitable than bitcoin. However, with incredibly strong gains in 2020 and early 2021, there is always the chance of it running out of steam, something that is common in the volatile cryptocurrency market.
Litecoin
Litecoin has been around since 2011, in the cohort of cryptocurrencies that arrived after Bitcoin. It has been described as the silver equivalent to bitcoins ‘gold’ status. What Litecoin does differently to Bitcoin is down to its faster block generation rate that in real terms means faster transaction and confirmation time.
Litecoin is the sixth largest cryptocurrency in the world and has solidified itself as a coin that has great potential. With a growing number of merchants accepting Litecoin, this cryptocurrency has become a very attractive currency for many companies and individuals, and this continuous growth in popularity has helped
Litecoin make a name for itself as a ‘best of the rest’ amongst the cryptocurrency community.
Why Litecoin might be for you
As of today, Litecoin is down at £98.13, from a high of £273.86 in May. Litecoin has, in recent years shown that it could be a solid investment for those looking for a cryptocurrency that is solidified in the market and has potential to grow over the next five to ten years. Litecoin will never reach the heights of Bitcoin but it could prove a profitable investment for the long-term.
The pros and cons of investing in Litecoin today
Pros for investing
- Litecoin is one of the fastest available. Compared to Bitcoin it is four times faster with transactions occurring in under 2.5 minutes, whilst Bitcoin can take up to 10. Not only does this save time but makes it safer against attacks as hackers would have less time to attempt double-spending attacks.
- Litecoin has relatively low transaction fees
- Litecoin is highly scalable as it can process 56 transactions per second compared to Bitcoin’s 7 and Ethereum’s 15.
- Litecoin has a limit of 84 million coins, four times bigger than Bitcoin. What this means is that the risk of inflation is eliminated, whilst still providing a sizeable pool of coins for investors to invest in.
Things to keep in mind when investing
- The main thing that needs to be looked at and considered when investing in Litecoin is that it has not reached the status as a competitor to bitcoin, something that Etherium is considered, which has left it still in the top 10 alternative crypto coins but with some proper branding it could be doing much better.
Overall Litecoin presents a lucrative and relatively stable market for new and seasoned investors. Experts predict that it is a crypto that will see a gradual rise over the next couple of years. Away from whether Litecoin will make you money or not, the cryptocurrency has gained more and more support from e-wallets and other payment gateways as a legitimate way of paying for goods and services.
Cardano
Cardano has become a cult favourite in recent years amongst traders. It is powered by Ouroboros blockchain technology, which uses two blockchains rather than one, with one managing normal transactions whilst the other deals with managing smart contracts.
This allows Cardano to be scalable and fast as two types of transactions won’t slow it down. Its popularity in Japan and the use of the Proof of Stake algorithm, something that Ethereum has been planning to move to, has given Cardano the label ‘the Japanese Ethereum’
Why Cardano might be for you
If you are already invested in Ethereum, Cardano could be a great hedge that has great potential in a net increase gain. Furthermore, the success of Cardano is dependent on fulfilling its core promises of providing high saleability, as well as a platform for smart contracts.
And they have continued to deliver on these promises, something that may strike many as a signal that Cardano is likely to grow in value, making it a promising asset to hold for those already invested and food for thought for those looking to newly invest. Overall Cardano suits investors that are willing to invest in a long-term project.
The pros and cons of investing in Cardano today
Pros for investing
- It is one of the most environmentally sustainable cryptocurrencies available due to the proof of stake blockchain that values the percentage of coins miners hold rather than the processing power they possess
- Highly scalable
- It has a reputable and skilled group continuously improving it.
Things to keep in mind when investing
- There are competitors in a similar space, Ethereum is at the top of this list and will likely stay at the top. Polkadot is also a competitor that has a larger development team and is growing at a faster rate.
- Low fees could be seen as a pro for getting into investing in Cardano but also it indicates a low level of demand for space on the network
Cardano is a promising application in the blockchain space today as it boasts strong fundamentals and has a lot of momentum behind the project. It will be extremely unlikely to live up to the ‘Ethereum killer’ label, but it will most certainly carve its own space in the global blockchain ecosystem.
Bitcoin Cash
With many doubting the scalability of Bitcoin it opened the door for the rise of Bitcoin Cash, a peer-to-peer electronic cash system that is incredibly scalable. The market cap of Bitcoin Cash is at $8,993,553,011, making it one of the largest cryptocurrencies. Especially with the Bitcoin name attached to it, Bitcoin Cash has become one of the hottest prospects for big-time investors to investigate.
Why Bitcoin Cash might be for you
If you have already invested in cryptocurrency, Bitcoin Cash could pose a great opportunity to diversify your investments. The 24-hour trading volume is at $3,346,185,115 at the time of writing, making it one of the top 20 traded cryptocurrencies.
This high trading volume means high liquidity — in simpler terms how easily an asset can be bought and sold.
If you are in the mindset that Bitcoin isn’t the only coin worth investing and in the mindset that larger blocks can improve scalability, then Bitcoin Cash might be a good investment for you.
The pros and cons of investing in Bitcoin Cash today
Pros for investing
- Bitcoin Cash has lower fees than Bitcoin at around 0.000018 BCH
- Bitcoin Cash has a maximum block size of 32 MB which has enabled BCH to be cheaper and faster.
- It is a good transactional cryptocurrency alternative to Bitcoin which is more of an investment cryptocurrency.
Things to keep in mind when investing
- Bitcoin Cash has a much lower liquidity compared to a crypto like Bitcoin. The real term effects of this are increased volatility in the market.
- Bitcoin Cash has struggled with relatively low adoption
Bitcoin Cash has shown to be a good investment for many as it is currently ranked 7th by market cap which shows it has an increased investment potential. Furthermore, it is being backed by the “Bitcoin Jesus” Roger Ver, so with his encouragement for more investment in Bitcoin Cash there is a potential for it to grow.
Like other cryptocurrencies on this list Bitcoin Cash is seen as a long-term investment that if given time to sort out its small problems and try to attract larger investors, has the potential to be a sizable and profitable cryptocurrency in the future.
Bitcoin
Bitcoin is undoubtedly the most well-known cryptocurrency in the world and that’s for a good reason. Bitcoin is a peer-to-peer cryptocurrency that was created in 2009, and has since grown in both value and popularity, with a single bitcoin now worth $32,504.50 at the time of writing.
Why Bitcoin might be for you
Bitcoin is and will continue to be adopted by many companies, many publicly backing the cryptocurrency. On top of this there has been a consistent rise of users that have adopted the blockchain wallet. The increased pace in which users are looking to invest is a massive indicator that Bitcoin’s popularity is going to continue to grow.
Bitcoin also presents a climate that is suited for macro investment. As Bitcoin was born and continued to grow through the financial crisis of 2008–2009, as well as dips in the economy in the last 10 years, it presents an alternative for businesses to look at, especially given its soaring popularity and unique value it offers.
The pros and cons of investing in Bitcoin today
Pros for investing
- It’s the most valuable cryptocurrency
- Protection from payment fraud
- Potential for high returns
Things to keep in mind when investing
- Bitcoin is highly volatile and whilst you can make a large amount of money from it you can also lose a significant amount.
- Bitcoin has suffered from scalability problems, a reason why some alt coins exist, meaning sizable transactions can take a fairly long-time. Simply put, Bitcoin has a problem of dealing with large transaction data in short periods of time.
2021 has been a rocky period for Bitcoin as it has pinballed in value from a high of $60,000 down to a low of $30,000 but this doesn’t mean you shouldn’t invest. With some of the top business people investing in Bitcoin and its promise to be the digital currency of the future, it is fair to say that many have faith in Bitcoin to climb back in value and continue to grow in the future. Bitcoin presents a decentralised alternative currency that can diversify a business’s portfolio of investments.
Cryptocurrency as a payment method
Cryptocurrency is becoming more and more accessible to everyone that has access to the internet. With its popularity growing over the last decade, cryptocurrency has now become an accepted source of payments for many goods and services.
For businesses looking to get into the crypto market and start accepting crypto as a form of payment, STICPAY offers a quick and easy solution.
As part of an award-winning service, merchants can accept crypto transactions from their customers at competitive fees in over 190 countries with STICPAY’s cryptocurrency payment gateway.
On top of that, via STICPAY’s e-wallet solution, both merchants and users can deposit, hold, convert (crypto-to-crypto and fiat-to-crypto), transfer, and withdraw crypto conveniently. Furthermore, the company’s smart algorithms monitor over five global exchanges to provide the best conversion rates for its customers.
Originally published at https://sticpay.com on August 24, 2021.
