Cryptocurrencies has successfully introduced a new landscape for business. It was able to introduce yet another asset for investors to put money on in the goal of growing their money. Currently, 3% of the world population are in digital money trading. The numbers have been increasing steadily every year. New cryptocurrencies have landed the market for them to choose from.
If you are looking to enter the digital money community, you might probably be asking: what crypto should I buy? Players have started with different reasons, you probably have one, too. Whatever it is, read here to know why Bitcoin, Ethereum, and Diem will make good investments in 2021.
Reasons to Buy Crypto
Cryptocurrency has been used globally and its network and usability has been continuously expanding. Here are the reasons why people are interested in answering: what cryptocurrency should I buy.
Digital money is widely accessible in a global scale. You can use them or trade them wherever and whenever you want. Cryptocurrencies allow decentralized, peer-to-peer transactions. There is no bank or government managing them. It also means that there is no banking schedule to follow. As long as you have the connection, you can access your coin and do a transaction as you please.
The whole cryptocurrency system banks on the blockchain technology. Blockchains are notorious for having an extremely complex system that is near impossible to hack. Digital money platforms have also ways to ensure your identity so that no one can access your assets without your knowledge. With cryptocurrency, you do not have to worry much about identity theft or frauds.
3. Low fees
Having low fees are what some people love about it. Especially for banks or other entities and individuals who often do huge transactions, this is definitely a plus. You can save a whole lot from the transaction cost. To give a perspective, transactions costing thousands of US dollars can be facilitated with just cents of fees. This is probably the reason why banks have eventually entered the digital currency landscape as customers.
4. Transaction Speed
Using cryptocurrencies allow parties to experience an extremely fast transaction speed. Because everything is done inside a blockchain, you do not have to worry if an unexpected payable comes in the moment. Anxieties from days-long verification processes in banks are avoided. Here, you can save time and finish what you need to do in just minutes.
Investment is probably the number 1 reason to make someone ask: what cryptocurrency should I buy. This aspect needs not much explanation because of the popularity of cryptocurrencies to appreciate in market value. Thus, it makes a good investment for your assets that you want to grow. May it be through trading, staking, or simply a passive set-up, you can make your money double in a few years, less if you get lucky.
As much as it is cliché to say that you must not put all your eggs in 1 basket, it is extremely true. Financial experts always advice the public to diversify assets. In case an unfortunate event happens to one field, you will not be affected as much because your money is scattered in several opportunities. If you feel like you have enough investments, still consider cryptocurrency as one of the means to cover all your bases and diversify your basket selection.
Promising Coins in 2021
To help you answer what cryptocurrency should I buy, we have listed several of the most promising coins that has the least risk to put your money in for the year 2021.
Bitcoin has been the no-fail cryptocurrency ever since it started to be known almost a decade ago. It is that one coin who helped popularize digital money around the globe. For some people, they even heard the word “Bitcoin” first before the term “cryptocurrency”. It consistently has the greatest number of users up to this date. Its main goal upon its inception is to become a global digital cash and they did just that. It is highly liquid, meaning there would no problem for you If you will be using it for your payment transaction because almost everyone is using it.
With its wide usage, you will have no problem in trading Bitcoin. Someone is ready to match your offer almost every time. They are known to be the most stable cryptocurrencies. The best thing is that experts do not see a plateau in its value just yet. It is expected to still appreciate for the years to come.
In 2011, Bitcoin has a peak value of 32 USD. This year, it is valued at around 20,000 USD. Some experts project that it can appreciate up to 50,000 USD by 2021. Let these numbers speak for themselves.
Just when you thought that no one can compete with the current internet server services, creators of Ethereum comes into play. Ethereum revolutionized technology by introducing what is known as smart contracts. Smart contracts enable the launching of desktop and mobile decentralized applications at the backside of blockchains. Due to this genius platform, millions of engaged developers and companies will surely have the continuous need for Ethereum to support their contracts and applications for the years to come.
The above reason is what Ethereum makes a valuable investment. Its current price is not as high as Bitcoin, but with its unique functionality, it is projected to stay in the market for long. It also has high liquidity, so you can use it to pay your bills and purchases too. Consider this coin if you are thinking which cryptocurrency should I buy for investment and usual consumer activities.
With the announcement of the Facebook team making its own cryptocurrency, Diem is the most talked about crypto for next year which has not been released yet. On June 18, 2019, Facebook formally announced the release of the white paper of their first created digital currency – Libra. Just this December 2020, the company announced that Libra will undergo some rebranding which led to the changing of the currency’s name to Diem. Behold, its latest release schedule is in January 2021.
What adds to the potential of Diem, aside from the network of its creator, is that Diem transactions can only be processed by the members of the Diem Association which will utilize permissioned blockchain. Its exclusivity and potential reach surely make it a strong contender in the whenever you wonder “which cryptocurrency should I buy?” Learn more about cryptocurrency here!
No matter what your reason is for asking what crypto should I buy, your topic choices must include Bitcoin, Ethereum, and Diem. With their current liquidity, niche, and potential, they make good investments and means in making reliable, and faster financial transactions. Go consult a trusted financial advisor if you wish. We could attest that these 3 will continuously be making big names for the years to come.