Statistics on New Potential Cryptocurrencies That Might Bring Good Profit in 2021
The year 2021 is, without a doubt, the year of various changes. It is also an interesting time for cryptocurrencies. Wall Street analysts might be a bit confused seeing that cryptocurrencies such as Bitcoin, Ethereum, XRP, and others keep on soaring have increased their value even more.
While investing in cryptocurrencies, you need to know that sometimes investing in them is simply a popularity contest in which the most popular currency wins.
In 2021 there are a lot of digital assets investment opportunities. However, before you start investing, you should know a bit more about the potential rewards and risks. what can bring you a profit.
The significant risk of cryptocurrencies is created by the fact that it doesn't have intrinsic value. Somehow users decide on its worth. The coin that has more users is more useful and the higher is its price. However, if this coin is no longer popular, it can drop down to zero.
COPYRIGHT_WI: Published on https://washingtonindependent.com/statistics-on-new-potential-cryptocurrencies/ by Alberto Thompson on 2021-05-20T03:28:03.705Z
While investing in cryptocurrency, you have to believe that someone else is going to buy it from you at some stage for more money. As with any investment, the goal is to get decent money. As you might know, people who invested in Bitcoin at its early stages got a huge turnout as its value drastically grew.
In 2021 some new competitors have popped up and are ready to take over. Some financial prognosis says that because of speculation that takes place, the value of cryptos can be affected. In China, a Central Bank-backed crypto was created. A similar idea appeared in the USA.
That means that unregulated cryptocurrencies can at some stage compete against state-sponsored ones. However, cryptos still seem to be strong on the market, even though the economy slowed down because of the pandemic. If you want to risk a bit but get a potentially huge turnout, keep reading to discover the best crypto to invest in 2021.
This blockchain is relatively new. It has the ability to create "smart contracts." The cryptocurrency from this blockchain is called Ether and is considered an advanced version of Bitcoin. Currently, it’s growing faster than Bitcoin.
Ethereum is not considered a "digital gold" as it runs on a series of contracts. Because of that, it can be compared to Google Wallet or Apple Pay. The whole deal depends on real-world events. Buyers and sellers set up particular situations when the trade takes place.
In comparison to Bitcoin, these blockchains are much faster. Instead of 15 minutes, transactions take 15 seconds. This makes it a good choice for real-time users. Yet, it is still pretty expensive in costs. It also has widespread usage and is relatively safe in comparison to other new cryptos.
This crypto can be considered number one when it comes to risk-to-reward potential.
Bitcoin is one of the most known cryptocurrencies. Even though it is not so technologically advanced, it is a still great investment choice for 2021.
Because of its popularity, this crypto is considered a good choice for mainstream investors. Even if you don't know much about crypto trading, you can use Square or Paypal to buy bitcoin for $1. It doesn't mean bitcoin is just for small investors. A big investment can proceed with the Chicago Mercantile Exchange (CME).
The liquidity of this crypto is sure, as it holds around two-thirds of the entire cryptocurrency market. It is also resistant to various attacks by people who want to manipulate the blockchain.
Even though it’s so popular, Bitcoin has its downsides. First of all, the transaction is pretty slow and can take up to 15 minutes. Additionally, it can cost $12. That's all right if you consider this crypto "digital gold," but is not going to work well if you want to use Bitcoin as a day-to-day currency.
This crypto is also exposed to macroeconomic movements. It can lose a lot of value with just a stock market downturn. As the economy in 2021 is not stable, Bitcoin can lose even 50-80% of its value.
This cryptocurrency is centralized, and because of that, it can limit the high costs of transfers between banks.
XRP is the currency that is predicted to have the highest potential in 2021. This crypto is managed by Ripple Labs instead of the crypto community. Thanks to centralization, you can use Visa and other centralized payment methods. You can also negotiate with banks, receive more security thanks to control policies, etc.
However, if you reach for the centralized institution, why would you use a cryptocurrency at all? Ripple controls more than half of the XRP supply, and it's registered to have some accounting issue.
However, XRP can have great potential and bring a change into the cryptocurrency scene in 2021. Some financial institutions use it as an alternative to the SWIFT network. Thanks to this, it has a real-world application.
It also has a low price-per-coin which makes it easier to see a higher percentage grow.
This crypto grew 200% in the first week of this year. Because of that, it is a very promising choice for 2021.
XLM was created to facilitate cross-border transactions. When the XRP started to have issues with this, Stellar filled the void. Thanks to that, it became more popular.
The Cardano network created ADA. So far, it's one of the most technologically advanced cryptos. It can handle payments like Ethereum but keep track of transactions just like bitcoin. That means this new crypto is one of the best choices that might overcome its predecessors.
However, if people are not going to adopt ADA, even the newest technologies are not going to help it survive.
The cryptocurrency market is speeding up. While throughout the world the idea of crises hovers, people are turning even more towards cryptocurrencies. While Bitcoin is still in the game, there are new players, such as ADA or Stellar. Are they going to turn the whole market upside down? We are going to see soon.