The aggressive upward trend of the world’s main cryptocurrency makes you think about the upcoming correction. It is not for nothing that analysts are increasingly paying attention to Bitcoin’s competitors. The problem is that altcoins’ dependence on their “big brother” shapes market trends.
Which cryptocurrency to invest in 2021? We will help you determine which cryptocurrency to buy in 2021.
Investing in cryptocurrency
Any cryptocurrency investment, in addition to bitcoin, runs into the rigid dependence of the entire market on its headliner. It is clear that over time this dependence will soften, and it may disappear, but certainly not in the coming years.
So far, this connection is strong enough to form sustainable trends. According to experts, the greatest weight belongs to the late stage of growth and the early stage of the fall of bitcoin, which lead to the effect of excitement. At the beginning of 2021, on a severe bullish trend, financial injections from institutional investors and large businesses into the growing bitcoin caused another market warming up.
However, along with a new stage of growth, there was talk about the formation of a “bubble”, which could lead to a hard correction and a rollback to the minimum values of the BTC rate. However, the upward movement from BTC does not look like an artificial boom, but rather indicates strong organic growth. A steady, progressive increase in the number of new bitcoin addresses also speaks in favour of the greater stability of the first cryptocurrency relative to 2017.
As for altcoins, experts believe that one cannot rely on past market experience about their pricing. We need to find new patterns that affect investments in cryptocurrency.
Meanwhile, the market is now witnessing the highest growth phase, during which the overflow of investments from bitcoin to altcoins is possible.
The main prerequisites for the implementation of the trend are the growth of traditional financial markets converted into money, as well as the additional emission of fiat currencies by world economies to support business amid the coronavirus crisis.
The very first answer to the question: what cryptocurrency to invest in 2021, and, of course, the first place in our impromptu top is bitcoin. This is an absolute must-have for a beginner or experienced player in the digital currency market. Moreover, there is a consensus that the quantitative easing program, leading to a depreciation of the dollar, will continue, which will positively affect BTC. To understand the advantages of BTC you can look through xmr to btc exchange rate or some other pairs.
Analysts predict a long-term upward trend for this coin, primarily associated with the transition to the second version of the network (Ethereum 2.0). This up-and-coming cryptocurrency heavyweight will have a staking feature to generate passive income simply by keeping Ether in their wallet.
- to buy up some of the coins to provide the necessary “steak”;
- to start creating pools, again pulling the coin out of the market space.
The fewer coins, the less speculative. And this is a direct path to the harmonious growth of investments in this cryptocurrency.
Ether is the stable and consistent growth of cryptocurrencies that also run on the Ethereum blockchain. Another positive trend is the growing popularity of decentralized financial applications (DeFi), where on-air development is also used.
- Bitcoin Cash;
- Binance coin;