What is the best cryptocurrency to invest right now in 2021 for Longterm ?
Tags: Ethereum Blockchain, Bitcoin, Cryptocurrency, Dogecoin

What is the best cryptocurrency to invest right now in 2021 for Longterm ? Wbupdatesteam Feb 20·4 min read

Cryptocurrency

If you know the answer to this question, you will soon be a millionaire (or may be a billionaire). My answer to the question is BITCOIN but lets also try to understand why and which are the best and most stable cryptocurrencies in existence today.

As you may be aware, cryptocurrencies have not been in the market for too long (just more than a decade) and yet managed to catch global attention.

The first cryptocurrency — Bitcoin was launched in the year 2009. Since then Bitcoin have come a long way and is now considered to be “Digital Gold”. [1]

Bitcoin remains a benchmark and every cryptocurrency portfolio needs to include some Bitcoin, may be as an unsaid rule.

As can be seen from the previous article[2], Bitcoin was priced at around under 1 $ in 2011 and rose to approximately 46,000$ last week (Feb 2021).

PC: Statista.com

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But why has Bitcoin grown so fast or Why is it SO GOOD?

The answer is simple:

The demand & supply determine the price of Bitcoin or any cryptocurrency .

. Like other precious metals, Bitcoin and a few many other cryptocurrencies are scarce or rare. Bitcoins are limited to 21 million in count and around 18.5 Million have already been mined (out of which another 3–4 million have been lost forever due to the loss of private key). This leaves only around 13–14 million in circulation.

As the demand is rising, the investors are buying the shrinking supply of an already scarce commodity, and this cycle keeps continuing, and hence the value of Bitcoin may keep growing.

The market capitalization of Bitcoin is almost 8 times bigger ($121 billion) than the second-best cryptocurrency in the world, Ethereum.

than the second-best cryptocurrency in the world, Ethereum. In terms of trading volumes, Bitcoin has the highest daily trading volume with more $40 billion worth of crypto being traded . This makes it easier to go in and out of the digital currency.

. This makes it easier to go in and out of the digital currency. Another reason is that many companies like Amazon, Microsoft, Spotify etc.. have started accepting Bitcoin payments which is making it a more acceptable currency.

Further, few companies like Real Vision have started converting their holdings into Bitcoin , making it rarer.

So for me, Bitcoin remains to be the leader of cryptocurrencies and we can probably call it the Apple of the cryptocurrencies.

Some other cryptocurrencies that look promising are:

1. Ethereum

Ethereum was not one of the first cryptocurrencies to be launched, but once Ethereum set its foot, the cryptocurrency market has never been the same. Because it isn’t just a payment cryptocurrency, much like the first assets to come onto the scene, but it is a full-fledged supercomputer that enables smart contracts for developers to take advantage of and build decentralized applications on top of. It takes full advantage of blockchain. Investment in Ethereum is like an investment into the future of finance. The smart contract platform has been positioned to replace Wall Street’s aging archaic back end and has already begun replacing company shares and bonds with tokens bound to smart contracts as part of certain business transactions. The growth of this currency can be steep, however, one must watch out carefully the trend.

2. Ripple:

Ripple as a company works directly with some of the world’s biggest banks. As Ripple starts seeing a massive adoption by the banks, the price of XRP is expected to rise significantly (as can be seen, it has grown 3 times this year). Ripple has been designed to move currency in an instant. With Ripple XRP, one can transfer money instantly anywhere in the world in under 4 seconds. Also the fee for such transfers is miniscule in comparison to the commission paid to the local bank. By comparison, Bitcoin transactions can take over 1 hour to be confirmed XRP can handle over 1,500 transactions per second. In contrast, Bitcoin can only handle 5 transactions per seconds.

There are various other cryptocurrencies like Litecoin, Dash etc, each having its own pros and cons, but the most important part is stability and acceptability and these 3 currencies mentioned above (Bitcoin, Ethereum and Ripple XRP), seem to fit the bill perfectly.

PS: However, please exercise caution and understand the risks involved while investing in any instrument.

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