Rock star investor Warren Buffett described Bitcoin rat poison as a mirage and worthless. He also pointed out that cryptocurrencies are basically useless because they "don't produce anything."
Carl Icahn recorded a description of cryptocurrencies as "ridiculous." But at least he's also noted that he might be too old to understand them.
Mark Cuban, the owner of the Dallas Mavericks, said he prefers bananas over bitcoin ... after all, you can at least eat bananas. But you can also exchange 1 Bitcoin for more than 150,000 bananas. So this may not be the wisest advice Mr. Shark Tank has given.
Then there's Jimmy Dimon, CEO of JPMorgan Chase. He referred to the digital currency as a "fraud". He also said that people stupid enough to buy it will pay for it in the future. Soon it was ... it turns out that Bitcoin investors paid a price and a big one at the time.
Even the "fools" who jumped into Bitcoin during its 2017 highs have seen a return on their investment, although it took a few years. And those who waited for the 2017 crypto frenzy to die down were even more fortunate.
Here's a first-hand chart from Coindesk showing the last year of Bitcoin's value (perceived or otherwise, Mr. Buffett).
If the past year has proven anything, it's that cryptocurrencies have a lot more power than critics think. So our list of the best cryptocurrencies is definitely a worthwhile endeavor.
So without further ado, here it is ...
The Best Cryptocurrencies to invest in 2021
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Binance Coin (BNB)
There are many cryptocurrencies. And many of them are simply not worth the space they take up on your hard drive. Take, for example, the beloved Dogecoin on the internet. This altcoin was created in 2013 and recently broke into uncharted territory when it was worth (* check notes *) an entire cent.
But this also helps explain part of the cryptocurrency withdrawal. There are tons of people who threw a few hundred dollars at you from a time ago when it was one of the best cryptocurrencies in India. In March 2020, a single Dogecoin was valued at $ 0.001774.
Fast forward in less than a year and a buy and hold strategy (or hold, if you like) will increase your profits by 460%. This is a solid return regardless of the type of investment. This brings us to the best cryptocurrencies to catch and "collect" for the foreseeable future.
Sure, it's the most obvious. But this is for good reason. After all, there is something to be said about the cryptocurrency that started it all. With a market capitalization of more than $ 600 billion, it is without a doubt one of the best cryptocurrencies in history.
Its high price keeps many potential investors on the sidelines. But this should not be the case. I just collected $ 17 worth of Bitcoin on my Robinhood account.
Sure, this only logged an amount of 0.00046577 Bitcoin for me. But these little static images expose me to the most prominent cryptocurrencies out there.
For every Batman, there is a Robin. Although Bitcoin rules the cryptocurrency roost, Ethereum is a powerful secondary tool with a lot of upside potential. Like Bitcoin, enthusiasts are looking to Ethereum as an alternative to fiat currency. But blockchain technology (also known as a database) focuses more on decentralized applications than digital currency. But this did not stop the rapid appreciation of the altcoin.
While functioning as a software platform, it allows you to create and run decentralized applications without fraud or interference from third parties (such as Apple and Google). Applications that run on your platform run through their own cryptographic token. This is what makes this crypto sought after by developers looking to enhance and run applications within this network.
Ethereum is also one of the few cryptocurrencies that can be used on exchanges to buy other cryptocurrencies. While its market value is declining compared to Bitcoin, it is progressing slowly. And with momentum on its part, Ethereum is an easy option for one of the best cryptocurrencies available.
This cryptocurrency, founded by former Google employee Charlie Lee, shares many similarities with his older brother, Bitcoin. It was developed with the aim of improving transaction times (around two and a half minutes) and lower transaction fees. It has a much faster block generation rate than Bitcoin. And unlike best cryptos, the list of merchants that accept Litecoin is growing rapidly.
As the use of Litecoin became more and more popular, it stands to reason that its value would only increase. This makes this one of the best cryptocurrencies out there ... whether you want to keep it and watch it grow or use it as a payment method.
Bitcoin Cash (BCH)
Bitcoin Cash will always hold a special place in the history of cryptocurrencies to invest in. It is one of the oldest hard forks in Bitcoin. And, by far, it is the most successful.
Since cryptocurrencies are decentralized in nature, when there is a discussion about potential issues with the underlying code, no changes can be made without consensus. If the miners and developers cannot come to an agreement, the digital currency can be divided or forked.
In this case, there has been a heated debate about the scalability of Bitcoin. Bitcoin remains the same. Bitcoin Cash was created with updates to its code. This code change increased the size of the blocks from one megabyte to eight. This allowed for much faster transaction times.
Although it has yet to catch up with a few competitors, the scalability of Bitcoin Cash may allow it to accrue value faster than most of the competition.
Binance Coin (BNB)
Binance is the world's largest cryptocurrency exchange based on volume. It's not even close. The Binance coin, of course, is the official token of the Binance exchange. It allows users to trade other cryptocurrencies with perfect efficiency. Binance Coin can also simplify transaction fees and even pay for goods and services. There is even a Binance card available now. This allows people to pay for things as they would with a normal credit card. The only difference is that they load the card with Bitcoin or Binance Coin to pay for groceries or a new crypto hard wallet.
Based on its usability alone, Binance Coin is one of the best cryptocurrencies available. As of now, it is also the cheapest.
Not so good Cryptocurrencies to date
Two of the best cryptos that weren't on this list lost it for two main reasons. One is under investigation. The other does not exist yet.
Ripple (XRP) has been one of the most popular cryptocurrencies in India for years. It has experienced fluctuations in value just like the others. But while many of the cryptocurrencies are on the rise, Ripple is reeling. At the end of 2020, Ripple took a major hit and it is unknown how long the damage will last. But in all likelihood, it will be for some time.
The Securities and Exchange Commission (SEC) sued Ripple Labs and two of its executives in late 2020. The lawsuit alleges that $ 1.3 billion was raised through a security offering for unregistered digital assets. That is a big no. no. Ripple has been drastically reduced. Will it return to its previous heights? That remains to be seen. But for now, investors should steer clear. Or at least, they should be very careful.
Then there is Diem (formerly known as Libra). It could be the most overvalued cryptocurrency in history. Heck, it's responsible for Congress trying to wrap their collective brain on what exactly cryptocurrency is. While it's not surprising that our politicians are still largely in the dark, the opportunity for Facebook's cryptocurrencies has long been in the limelight. And when it launches sometime this year, it wouldn't be so surprising if name recognition rewarded early users.
Conclusion for the best cryptocurrencies to invest in, this year
There is a lot of competition in the world of cryptocurrencies. Volatility is a characteristic of many of them. That is why this list of the best cryptocurrencies is mainly aimed at the audience that buys and holds. Perhaps with the exception of the Binance coin, simply due to its convenience, ignoring daily and weekly price fluctuations may be in the best interest of you.
Also Read: Air travel to be expensive: Govt raises limits on domestic airfares