A long-term strategy for investing in cryptocurrencies can bring huge profits or equally tangible losses. There are thousands of digital projects in the crypto industry. That’s why sometimes it’s even difficult for an expert to choose a promising asset.
There are many factors to consider. In addition, a list of coins is constantly updated with new ICOs. Let’s dwell on five of the most promising digital investment projects in 2021, according to most experts.
Despite the still unresolved problems with scalability, due to which transactions are processed from 10 minutes or more, the legendary token rightly occupies 1 place in our mini-rating. The main fact that determines the stability of the oldest cryptocurrency project is the world recognition of Bitcoin as an official payment system. In addition, the following factors argue in favor of long-term investment in BTC:
- BTC is listed on all cryptocurrency exchanges.
- Traders are guided by BTC behavior – if its quotes fall, this is followed by a decrease in the value of other coins and vice versa.
External factors include growing inflation as well as inadequate monetary policy of world financial institutions. This motivates large players to consider Bitcoin as an alternative. For example, Elon Musk, who invested $1.5 billion in BTC, thus causing an impulse for further price growth.
Over the past two years, the ETH exchange rate has grown by 1000%. Experts say that the growth will continue in 2021, as this currency is popular all over the world. Ethereum was created by a team of professionals who regularly upgrade the platform so that coins can be mined much faster than before.
There is an opinion that this is the only currency that can seriously compete with Bitcoin and even exceed its rate. Therefore, the second well-deserved place is occupied by Ether. The main reasons for investing in ETH are as follows:
Support of Uniswap (UNI), Maker (MKR), and Aave (AAVE) projects, which are actively functioning in the DeFi ecosystem. Thus, DeFi sector is able to give independence to insurance, credit, and savings projects.
The total investment in DeFi is $13 billion (2020), which is 10 billion more than last year. At the same time, 98% of financial transactions were carried out with ETH as the leading coin in this sector.
Thus, these factors contribute to an increase in the market cap of Ethereum and, as a result, to an increase in the cost of the altcoin.
It’s a Chinese cryptocurrency project, which occupies the 3rd position in the rating. The attractiveness of long-term investment in Ripple is due to a DLT protocol, which can become an alternative to SWIFT in the future, realizing a number of urgent tasks:
- transparency and risk hedging.
Given the growing support of the European Commission regarding the implementation of digital currencies, Ripple’s bright prospects don’t seem fantastic or overvalued.
As a fork of Bitcoin, Litecoin was created to solve the problems of its ‘big brother’ associated with the speed of transaction processing and high fees. Despite its relatively low rate, the currency is highly popular. Miners even call it digital silver. It’s a reliable platform that can boast of stability and popularity.
Litecoin has never left the top 10 list of cryptocurrency projects in terms of market cap in its long history. The launch of a decentralized, first-of-its-kind LiteBringer RPG game had a beneficial effect on the blockchain ecosystem. It also led to an increase in the volume of financial transactions with Litecoin by 130 thousand times. According to CoinSwitch experts, productivity growth will lead to a guaranteed increase in value. By the end of 2021, LTC will be worth approximately $600 against the current $315.
Binance Coin (BNB)
And last, but not least coin in our mini-rating of the best digital projects of 2021 is a BNB token, developed by a popular cryptocurrency trading platform Binance.
A BNB owner obtains several privileges within the trading platform – transactions with this coin are less expensive than financial transactions with other altcoins. Experts believe that the value of BNB will grow. This trend is facilitated by the steadily growing trading volume, which today is equivalent to $3,7 billion per day.
What other worthwhile cryptocurrencies do you know? Feel free to share your knowledge in the comments!