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3 Cryptocurrencies are Best investment in 2021 and these are their Risks

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3 Cryptocurrencies are Best investment in 2021

Among the more than 5,000 digital currencies that are currently offered in global markets, experts advise 3 cryptocurrencies that they consider the best investment in 2021, led by “Bitcoin”, based on the age of the currency, its price, the number of its investors and network technology operated through it.

Cryptocurrency is digital money that is not managed by a central system, such as governments, but is based on "blockchain" technology, and it is becoming more and more popular as these currencies can be used to make purchases, while most people treat it as a long-term investment.

However, investing in cryptocurrencies can be risky if you don't know where to start, according to the “Yahoo Finance” service, which classified 3 digital currencies as “worth investing in 2021”, pointing out, at the same time, the risks of hiring money at.

Read moreHow Do I Get Bitcoin.

1. Bitcoin

The existence of this coin preceded all the others, and it is easy to see why it is a leader for its price, market capitalization and trading volume that far exceeds any other investment option. Even with thousands of cryptocurrencies, Bitcoin still accounts for 40% of the market capitalization of these coins combined.

Many companies accept Bitcoin as a payment method, which makes it a smart investment. For example, Visa takes care of it, and Tesla CEO Elon Musk recently invested $ 1.5 billion in it. Major banks have also started incorporating bitcoin transactions into their offerings.

Bitcoin Investment Risks

Its value tends to fluctuate so much that you can see the price go up or down by thousands of dollars during a given month, sometimes in just one day. And if those wild fluctuations make you nervous, you might want to avoid this coin. But as long as you keep in mind that cryptocurrency is a smart long-term investment, this volatility shouldn't be a big concern.

There is another reason to reconsider investing in this coin, which is its exorbitant price, which recently surpassed $ 50,000, which is why most people cannot buy it.

2. Ethereum

Ethereum differs from Bitcoin in that it is not just a cryptocurrency, but also a network that allows developers to create their own cryptocurrency using the Ethereum network. While it is far behind Bitcoin in terms of value, it is also far ahead of other competitors.

Although it entered the market years after other cryptocurrencies, it has surpassed its niche in the market due to its unique technology.

Risks of investing in Ethereum

While Ethereum uses blockchain technology, it only has one "lane" for transacting, and this can make transactions take longer to process traffic when the network is overloaded.

His hack in 2016 resulted in the loss of more than $ 60 million due to a flaw in the Ethereum wallet. Although the company has made great strides in increasing its level of security, vulnerabilities are always a risk in any cryptocurrency investment.

3. Binance Coin

It is one of the few cryptocurrencies that reached its peak after 2017. During that year, the market was bullish and the prices of all cryptocurrencies rose, peaked before stabilizing and falling a bit.

Unlike the rest of the cryptocurrencies, Binance Coin continued a slow but steady upward trend after 2017. Due to its performance, this coin has proven to be one of the most stable investment options, which means less risk.

Binance Coin Investment Risks

What sets it apart from its competitors is that it was built by one company rather than a group of tech developers. Although its commitment to maintaining the blockchain is strong and has captured many skeptics, some investors remain concerned about this cryptocurrency and its potential security issues.