Are you exhausted from being dependent on an unstable economy? Then the new electronic money is for you! Are you tired of high bank transfer fees? Look towards the cryptocurrency! In this article, we have prepared a short guide on the most popular crypto pairs based on the data of our reputable exchange service. Maybe our choice will not make a fuss, but if you have not yet compiled your investment portfolio, then you will definitely find the information below quite useful. Let’s roll!
Which cryptocurrencies to invest in
The choice of an asset for investment must be made depending on your goals as well as the desired income plus the level of experience shall not be neglected.
Many experts are confident that in the upcoming year, the direction of the crypto trend in terms of the most popular types of digital money will not change, which will be facilitated by a drop of the confidence level in the traditional banking system and state control methods. In addition, a significant inflow of speculative capital is expected in this area, which will for sure provoke further growth in quotations.
When and How to invest in cryptocurrencies
The decision to invest in crypto requires the most thoughtful attitude.
When choosing an investing method, don’t forget to take into account 2 main indicators such as:
- the amount of available capital;
- the amount of time that can be spent gaining profits.
It is important to remember: exchange trading, as well as mining, requires serious financial investments as well as thorough preparation. Moreover, such options do not make it possible to get a profit immediately, since they are long-term investments.
In case your investment amount is too small for serious cases, experts recommend starting with cryptocurrency faucets. This method does not require financial costs, but time.
Today the exchanges are the only viable option for short-term investments and quite convenient for long-term ones. Many altcoins can be purchased exclusively on exchanges, there are no other ways. However, keep in mind that a cryptocurrency that is not in the top 50 may only be available on little-known exchanges that have no reputation whatsoever.
There are actually three ways to buy cryptocurrency today:
- Exchange services. This is suitable for those of you who want to buy a small amount of cryptocurrency for a long-term perspective.
- Private individuals. They may offer the most favorable conditions, but you need to follow the safety rules, there is a risk of fraud.
Before buying crypto coins, be sure to follow these guidelines:
- Research the market in order to understand the concept of cryptocurrency, especially if it is a new project in the industry.
- Invest as much as you are ready to lose with an easy mind.
- The cryptocurrency portfolio must be diversified. The more cryptocurrencies are in, the lower the risks are.
- Do not store large amounts of coins on a crypto exchange. There have been many cases of hacking and stealing billions of US dollars in coins from crypto exchanges.
Top 10 cryptocurrencies to invest in
Сatch as catch can our list of cryptocurrencies to invest in 2021:
And the Oscar goes to…No doubt that the number one cryptocurrency will remain in the lead next year. According to experts, in the long-term, the BTC halving of May 2020 will support the rise of the coin price.On December 17th, the BTC value for the first time in history reached $ 23K. Since the beginning of the year, the price of Bitcoin has increased by more than 300%. As the coronavirus crisis is not over yet, and its consequences can put pressure on the economy for a long time, BTC will retain its investment attractiveness in 2021.
This currency awaits serious updates: the development team plans to implement the first stage of the Ethereum 2.0 upgrade within a year. This can be a powerful impetus for the rapid growth in the ETH popularity. In addition, the Ethereum network is used in the DeFi sector, which is actively conquering the market. According to the co-founder of the startup Vitalik Buterin, investors of the Ethereum 2.0 of the cryptocurrency will be able to earn on staking by storing Ethereum in wallets.
#3 Ripple (XPR)
Ripple (XRP) is the successor to Bitcoin for many experts, as this digital coin was created by former Bitcoin developers with the aim of improving BTC performance. XRP is also called the “king of banking infrastructure.” The cherry on the cake was integration with Western Union and a potential replacement for SWIFT to speed up and reduce the cost of transfers of substantial amounts between counterparties. As of today, the overall growth of Ripple cryptocurrency reaches 30,000%. Over ¾ of all coins will be mined next year, which makes the asset in short supply and automatically hints at a speedy rise in value.
Litecoin is among small cryptocurrencies to invest in 2021 and it is arguably the most successful Bitcoin-based altcoin. In August 2019, the second halving was held on the Litecoin network and due to the opinion among many crypto experts, LTC is unfairly underestimated. Its shared code with Bitcoin automatically makes LTC an attractive asset, as well as technological superiority in making payments in the real world. Over ¾ of all coins will be mined next year, which makes the asset in short supply and automatically hints at a speedy rise in value.
The favorite cryptocurrency of the rating compilers from the China Information Technology Development Center has repeatedly featured in forecasts for the next few years. Many analysts recognize this project as a direct competitor to Ethereum, which indicates its thoughtfulness and popularity among users. In the near future, the organizers of EOS Block.one are planning to launch the Voice social network, with the help of which it will be possible to earn tokens for creating content. This is also expected to have a positive impact on the value of the coin.
#6 TRON (TRX)
Tron digital currency (TRX) is a very prospective coin among the penny cryptocurrencies to invest in 2021 that are evaluated below one US dollar. They are considered to be an alternative type of investment. TRON project is aimed at hosting various entertainment content where the authors are keeping its placement, promotion and monetization under full control. TRON Foundation invests in its own development by purchasing demanded companies. The idea attracted many investors and raised $70 million during the initial coin offering. Putting all the variables and facts together, it becomes obvious that interest in the company itself and the cryptocurrency is constantly growing.
Dash is among other cryptocurrencies to invest in 2021. It is another peer-to-peer cryptocurrency like Bitcoin, but it integrates more complex features like instant and private transactions. Cointelegraph Consulting added Dash to the list of trusted blockchain technology providers for enterprise-grade solutions. Dash is gearing up to roll out its decentralized application platform. The developers of the cryptocurrency announced this on their Twitter. Dash platform, for the first time in history, will allow developers to create decentralized applications and payment solutions that are completely secure and uncensored, without the need to learn complex blockchain programming languages.
#8 Neo (NEO)
NEO is the Chinese equivalent of Ethereum, working with smart contracts. In the near future, several large-scale updates and the introduction of new modifications are planned on the platform, which, according to forecasts, should have a positive effect on the value of the coin such as moving to a new blockchain that will allow for increased throughput, stability and security. NEO is a fundamentally strong and promising project. Its developers are not interested in the rate manipulation but are focused solely on development. If they manage to realize their plans, then NEO is likely to enter the TOP 10 coins.
Monero is an anonymous cryptocurrency that uses ring signatures and hidden addresses. Several significant advantages affect the positive movement of the value, the demand and prospects of the coin such as:
- complete anonymity of users within the network;
- no restrictions on emissions;
- resistance to ASIC miners;
- an extensive network of partnerships.
Over the past few years, the coin has been incorporated into many projects. A special leap in the rate was provoked by the collaboration with the AppStore. According to the experts, Monero has the prospect of experiencing the greatest growth in the upcoming year.
#10 DogeCoin (DOGE)
Altcoin has established itself as one of the most convenient to transfer between exchanges. In the summer of 2020, the altcoin meme became popular again due to the challenge on TikTok. Major exchanges have taken advantage of Doge’s peak in popularity and have provided their clients with more options for interacting with altcoin. Dogecoin has been embraced by retailers such as eGifter, AllGamer.net, and hundreds of other online stores as a way of payment for products and services.
Why Should you Choose Godex
You may ask yourself, why is it worth choosing Godex.io crypto exchange service?
Please be informed that according to the ratings in the recognized surveys, Godex.io is one of the best crypto exchange services on the market nowadays, exchanging without limits. Godex.io system tracks online the most favorable rates on top recognized platforms such as Bitfinex, HITBtc, Binance and others providing its users with the top-level exchange experience ever. Godex.io customers are not afraid of the market highs and lows as they are given with the fixed exchange rates that remain unchanged until the completion of transactions.
Trade Cryptocurrencies with Godex
Any exchange made with the Godex exchange service is absolutely safe. This is supported by a fairly long service life as well as Godex placement in reputable review services. You can exchange not only Bitcoin for Ether, but also for a huge number (200+) crypto coins and 40,000+ trade pairs.
How to invest in cryptocurrencies?
Similar to any exchange-traded asset, whether it is currencies, stocks or bonds, there are two main strategies referring to the question on how to invest in cryptocurrencies and earn income?
- The strategy called “Investor” or “HODL”: buy and wait for the growth in the value of currencies in the future;
- Strategy “Trader”: trade and earn on rate changes;
Benefits of Trading:
- Potentially big earnings;
- You can get money from falling prices.
- No need to waste time;
- Significantly less risk of losses.
Investing usually means that a person invests money, buys cryptocurrency and does not touch it for as long as possible: a year, two, three. During this time, the price of the same coin on exchanges can rise 20–30 times.
Aggressive trading within the day often results in losses, as it is very difficult to predict price behavior in time frames of less than 12 hours.
What are the top cryptocurrencies to invest in?
Frankly speaking, the list of top-rated cryptocurrencies for investment in 2021 has remained virtually unchanged over the past two to three years. The first places are traditionally occupied by Bitcoin and Ethereum, and new projects are trying to catch up with the leaders, increasing capitalization and daily trading volumes.
2020 brought many surprises to the traders and investors. Due to the pandemic and quarantine, many traditional market assets have become less promising for capital investments. On the other hand, cryptocurrencies showed excellent growth and attracted increased attention. The top cryptocurrency Bitcoin has increased in price by 50% since January, Ethereum has risen in price almost 3 times. And the DeFi cryptocurrencies soared in value even more. And experts predict: this is not the end of rapid growth.
Can you get rich from Cryptocurrency?
If you are an investor, you are wondering what cryptocurrencies to invest in now. You should be aware of the fact that this asset is practically similar to other trading instruments.
How to find out where the cryptocurrency rate will move? Digital coins do not differ from other exchange-traded assets, their rates can be predicted using modern methods of fundamental and technical analysis.
How much can you earn with cryptocurrency?
It is impossible to unequivocally answer this question, because the amount of profit depends on many factors such as
- a chosen cryptocurrency;
- an invested amount of money along with the experience and knowledge of a trader;
- the miner equipment power, etc.
If we talk about traders, then the more money an investor is able to invest in a cryptocurrency and the more competently he does it, the higher the income will be.