2020 was one of the most challenging years for the global economy and the traditional financial system. With the spread of the worldwide pandemic, closures, and fear of a global recession, many investors have turned to the best digital currencies to invest as a potential alternative to traditional financial assets or hedge against major economic threats.
So the year 2021 looks ideal to continue adopting the best digital currencies for investment and to make a massive change in the current financial system. The widespread adoption of digital currencies is essential to unleashing their full potential as an asset class.
In 2020, financial institutions with a global reputation realized the importance of cryptography. Both Visa and MasterCard provided services to crypto companies; PayPal launched a new service that allows users to buy, sell or hold digital currencies.
Best Digital currencies – Bitcoin
New Cryptocurrencies come and go, but Bitcoin maintains its global position. At the end of November 2020, Bitcoin surprised everyone and reached a new record high of $ 19,857, extending growth from the start of the year to 177%.
Analysts share strong views on Bitcoin’s future and expect it to reach an incredible price of $ 100,000, $ 170,000, and even $ 318,000.
Among the main price drivers of Bitcoin in 2021, we can cite increased institutional demand, rising inflation, and an increasingly negative perception of current monetary policy. All these forces individual and institutional investors to search for alternative options to protect the value of their capital. Cryptocurrencies, led by Bitcoin, seem to be the perfect solution.
Best Digital currencies – Ethereum
We cannot ignore the mention of Ethereum as one of the best cryptocurrencies to invest.
In December 2020, Ethereum was the second-largest cryptocurrency after Bitcoin. It is considered one of the fastest-growing digital currencies. The massive influx of market participants contributed to Ethereum’s current and firm position as the best alternative to Bitcoin. It dominated the sector and accounted for 96% of the total volume of transactions.
Ripple – a new payment system
Ripple was created as an alternative financial payment system to transfer and facilitate payments across borders, making it 100% safe, almost free, and instant.
In the early days of Ripple in 2013, the platform attracted the attention of many financial institutions. After years of being adopted by more than 100 financial institutions, and in 2020, Blockchain Ripple expanded to more than 300 suppliers in 40 countries.
What are the main drivers that make you believe that Ripple is one of the best digital currencies to invest in?
According to the report of OMFIF (Official Forum of Financial and Monetary Institutions), with blockchain technology, Ripple can position itself as an alternative to the SWIFT system, solving five significant problems: security, speed, traceability, cost, transparency, and risk management.
Litecoin – fast and affordable
Although we cannot call Litecoin the best and best performing digital currency to invest in this year, it has not left the list of the ten most popular cryptocurrencies all these years, and 2021 will not be an exception.
Some analysts also believe that the price of Litecoin will tend to rise in the coming years. According to optimist forecasts from analysts, Litecoin will be trading as high as $ 347 by the end of 2024.
Best Digital currencies – Tron
It was initially launched on the Ethereum network and revolutionized the entertainment industry, and democratized content creation. The company has several high-profile partnerships, including with Samsung and the Chinese search engine Baidu.
The TRON ecosystem functions as a platform for sharing content. Users who create or share content are rewarded with TRX, which acts as a more transparent monetization system than traditional social networks. It also does not require an intermediary, such as AppStore or GooglePlay.
Conclusion – What are the best digital currencies to invest in 2021?
2021 will be an excellent year for the entire crypto market. Although the lists of cryptocurrency charts may be different, they can provide some good trading opportunities, especially when trading CFDs.
CFDs can be an excellent alternative to buying cryptocurrencies because, with CFDs, you can benefit from upward and downward movements. Stay up-to-date with the latest market news, track the price of your favorite digital currency, analyze its return and make a long or short trade accordingly.