It’s been a decade since Satoshi Nakamoto created the world’s first and foremost cryptocurrency, Bitcoin. Since then, it has become not just a trendsetter but a de facto standard for digital currencies, with thousands of cryptocurrencies emerging daily. Currently, there are over 1500 cryptocurrencies despite thousands failing to survive the digital money wave. With such a wide range, how do you find the best cryptocurrency to invest in? Check this list for the safest digital currency to trade in 2021.
Bitcoin (BTC)
Since its first mining in January 2009, bitcoin has grown to dominate the digital currency market and is the closest you will get to a blue-chip digital currency. Bitcoin has seen its fair share of challenges, dropping from $20,000 in December 2017 to $3,234 before the new year. However, it has appreciated to more than $10,000 with a market cap of around $200 billion, representing 57% of the cryptocurrency market. Despite its unpredictability, Bitcoin remains the best for investors new to the resource class due to its name and recognition among other currencies.
2. Ripple (XRP)
Launched in 2012, Ripple is a real-time worldwide network that offers instant and easy global payments. The currency has chalked huge successes due to its business model, making it one of the most appealing cryptocurrencies among conventional financial institutions. As the third-largest cryptocurrency globally, Ripple is always searching for ways to develop cross-border payment. The price of Ripple has appreciated from $0.21 to $0.57 as of December 2020, with a market capitalization of $10.84 billion.
3. Litecoin (LTC)
The underlying cryptocurrency technology appears obscure and complicated for most individuals to understand. However, Litecoin is different, as its founder Charlie Lee developed the platform as a lite version of Bitcoin to assume the function of the “silver to Bitcoin’s gold.” The currency adopts the most prominent bitcoin features while including its twists. For example, while bitcoin requires specialized hardware and raw computer strength, low-end PCs can mine Litecoin while offering a simpler mix for investors and users. Litecoin transactions are faster, with less than 3 minutes to confirm.
4. Bitcoin Cash (BCH)
Bitcoin Cash is an altcoin or spin-off created in 2017. Cryptocurrencies are declared a blockchain innovation that stores data on crypto transactions inside its block, containing 1 megabyte of information. With its growing popularity, bitcoin data blocks topped off, therefore slowing transactions; this prompted its developers to create a new version called Bitcoin Cash (BCH). The BCH platform allows for faster transactions than the Bitcoin network, contributing to its growth and popularity. Despite being its predecessor, BCH’s scalability gives it an incredible potential boost and places it as one of the best currencies to look forward to in 2021.
Like traditional currency trading, cryptocurrencies have a potential for substantial profit returns, yet you must be willing to risk losing money. You require a good deal of knowledge and investment strategy to make significant gains in the digital market as well.