The world is changing and there is a massive shift from traditional currencies to digital currencies. Presently, several people are investing in cryptocurrencies and there are a lot of options in the market. As of now, there are over 4000 cryptocurrencies in the world with people investing in different coins. The drive towards cryptocurrencies is really massive. In 2020, about 3% of people trade with digital currencies. Presently, about 15% of people in the world do their transactions with digital currencies.
Despite the popularity of cryptocurrencies, there is a need for extreme care when investing. Investors have to carefully evaluate the future of a cryptocurrency before investing in it. Examining the progress of a digital currency is not entirely easy. This is why we have this post as a guide for identifying the best opportunities in the market.
We will look at the top 5 cryptocurrencies to consider if you want to invest in a digital currency. This post will also examine the recent trends as well as the advantages of purchasing digital currencies.
Top 5 Cryptocurrency to purchase this year
Here are the five best cryptocurrency to invest in this year. Let’s check them out one by one.
1. Bitcoin
According to many crypto investors, Bitcoin is the oldest digital currency. This coin is not just old (12 years), it is also one of the most sorted cryptocurrencies. Just like other digital currencies, Bitcoin has its ups and downs. However, a careful evaluation of the market helps its investors to make money with it. As of 2019, Bitcoin sells for a little above $10,000. Presently, according to prices.org, one Bitcoin is selling for above $55,000. Thus, we can see a massive increase for investors within the past two years. Investors of 2019 can currently sell off their investment for about five times the price. If you want to play safe, Bitcoin may just be the “safest” crypto to invest in right now.
Over the past few years, there have been no significant losses with Bitcoin investors. This is true for those who are patient enough and didn’t hurry to sell off when it hits one of its lows.
2. Ethereum
Ethereum gets its drive from a popular dApp processing platform. In terms of investment safety, this crypto is less safe than Bitcoin. In fact, its statistics over the past six years have been pretty unstable according to Statista. However, those that got this coin in 2015 when it was selling for just over $1 are currently making a fortune as it is currently selling for over $1,700.
However, considering the brief spike in the price of this coin in 2018, many are still skeptical. Recall that in January 2018, this coin sold for over $1,000. Predictions were that its price will continue to increase but this was not the case. By March 2018, it was already selling for just over $400 and by October 2018, it sold for just over $100. Throughout 2019, the price of this crypto remained low and this caused a huge loss for some investors, especially those that invested between July 2017 and March 2019.
However, Ethereum fortunes changed from May 2020 and its price has been pretty high since then. However, looking at the progress of this coin, it will be an uphill task to reach Bitcoin’s level. Nevertheless, considering its latest performance, it is worth giving a look.
3. Litecoin
Litecoin has been around for a long time but its price tag remains low. This is exactly the reason why we believe that it is still yet to hit its full potential. Investing in Litecoin will be an opportunity for many but it will also be a serious risk. Over the past five years, its price has been quite volatile thus potential investors need to be really careful.
However, the opportunity here is that the investment risk is not very high. This coin presently costs less than $200 according to live price tracker thus, the investment risk is not high. Secondly, to become a global transaction network, Litecoin has technical preconditions. This is enough to make users consider investing in it.
4. Dogecoin
Who knows Dogecoin right now? Probably very few people but there are huge potentials with this cryptocurrency. Presently, it is barely worth $1, specifically, according to live price tracker, Dogecoin is worth $0.055. Well, it was worth much less a few weeks ago.
Why the sudden popularity of this cryptocurrency? It has everything to do with Tesla’s CEO, Elon Musk. Over the past few weeks, there have been at least 8 Twitter posts from Elon Musk singing Dogecoin’s praises. In fact, in one of his numerous tweets, he gave this coin a “god” status. In one of his tweets, he wrote: “The Lion King…Dogecoin is everyone’s digital currency…You don’t need to be a super boss…There are no highs, no lows, only dogs”. After these tweets, there was a huge rise in the price of this cryptocurrency. In what we call a “week of madness”, Dogecoin’s price rose by almost 1000%. In early 2021, after Musk’s comments, the growth rate of Dogecoin exceeded that of Bitcoin.
If Dogecoin continues to get the traction it is currently getting, then there is a huge potential with this coin.
5. Bitcoin Cash
A spin-off of the original Bitcoin, Bitcoin cash hit the road as a result of a hard fork. As of today, this coin is worth just over $500. However, over the past few years, it has been pretty consistent.
Why do people invest in cryptocurrencies?
Here are the most popular reasons why people invest in crypto coins
- Security: You have to be rest assured that whatever you are doing with crypto money is completely untraceable. There is no risk of identity theft and other frauds. However, we should know that a good percentage of financial fraud has links with cryptocurrencies.
- Lower operating fees: The operating cost of digital currencies are much lower than that of conventional currencies.
- Access: Presently, there are over 4000 digital currencies in the world. Purchasing any of these currencies is as easy as getting air to breathe. Digital coins are widely accessible and you can trade them wherever and whenever you want.
- Transaction Speed: With a single click, you can complete a transaction with cryptocurrencies. This is one of the reasons why people prefer digital currencies.
Conclusion
If you want to invest in cryptocurrencies, you have to take some time to learn about digital currencies. Not only that, you have to also learn how to study market trends. Examine the performance of the coin over a period and see how it behaves. While investing in cryptos can be very profitable, it can also bring huge losses. You have to know when to buy or sell. The cryptocurrencies above are promising options. Let us know what you think about it in the comment section below