best Promising Cryptocurrencies For 2021

The official history of cryptocurrency began in 2009, with the advent of the Bitcoin payment system. As in the case of the work of William Shakespeare, its creation is associated with a pseudonym – Satoshi Nkomati, under which both an individual person and a development team could hide. Anonymous first showed the world the digital currency protocol and the software with which this protocol was implemented.

Body Tag: 980x250 billboard responsive | with lazy-loading | repeatable

Today, in technical terms, cryptocurrency is understood as a computer code, access to which the user receives after the successful completion of complex calculations on a computer or powerful devices – farms for the extraction (mining) of cryptocurrency. In the economic sphere, it is referred to as a digital currency, that is, an auxiliary type of electronic money. Despite the relative youth, the popularity of the digital asset and the decentralized nature of its turnover have become the reasons for the rapid development of the cryptocurrency market, which now unites the state, the banking sector, private companies, investors and traders from all over the world as participants. The success of a particular currency depends on its popularity among the population. With an increase in the interest of citizens in a coin, its value and total capitalization increase. Therefore, the newest cryptocurrencies can become more promising than traditional leaders. What is the future of digital currency and which cryptocurrency is better to invest in in 2021, we will talk in our article.

Investments in cryptocurrency: who did not have time, he was late?

Many cryptocurrency millionaires have made their fortune through the right moment.  Many investors today continue to wait for a repeat of the situation, investing their savings in promising cryptocurrencies in 2021. Whether that moment will come, no one knows. Experts and giants of the cryptocurrency market are expressing new theories about the future of digital coins. Some say that the “Bitcoin crypto bubble” will soon burst due to a decline in popularity and limited prospects. Proponents of the opposite version believe that new transaction processing technologies will be able to set the course up again.

Body Tag: Rectangle top (above the fold) responsive | without lazy-loading | single use

But to make a fortune on expectation and faith in the future of cryptocurrency is unlikely. The above success was the result of a properly selected entry into the cryptocurrency market and a good exit time. In simple terms, the golden rule of trading worked: buy low, sell high. Therefore, it is still important to be able to accurately determine the moment of entering the market in order for the rule to work. For this, experienced traders independently conduct an analysis of the market situation, using a combination of technical and fundamental approaches to analytics. Novice players often use the help of consultants or attend specialized courses.

In practice, investing in cryptocurrency is not limited to investing in bitcoin.  This option is considered optimal, because it is not known in advance which cryptocurrency will work and bring profit. Investments in blockchain development are also popular. More and more large companies are interested in this technology, developing their own projects based on it. But the prospects for cryptocurrency in 2021 are vague and are associated, first of all, with the possibility of technical renewal of the cryptocurrency world.

Is it worth investing in cryptocurrency?

It is difficult to answer unambiguously. The emergence of factors affecting the cryptocurrency market can cause both growth and fall in the exchange rate of any currency. Against the backdrop of news about government regulation in the developed countries of the world of the circulation of digital coins, many traders are worried about a significant decrease in profits. Usually, the news is accompanied by a sharp drop in the exchange rate, which is skillfully used by experienced players for quick speculation. Excessive centralization can negatively affect the volume of trading and the growth of the rate of popular coins, because the appearance of administrative barriers will complicate the turnover of assets. On the other hand, news about fraud and theft of digital coins negatively affects the general mood of the market, so tightening the rules and strict regulation will help reduce the likelihood of crime. The safe circulation of digital currency will attract more large investors, which means that the total capitalization and value of coins will increase.

By the end of 2021, Russia plans to adopt a draft law “On Digital Financial Assets”, containing provisions on the status of digital coins in Russia and the rules of circulation. The process of passing this legislative act began in 2018, but is constantly delayed. However, both world experts and representatives of the FSB insist on its need to combat the laundering of illegally obtained funds [1] .
The general modernization of the market has a positive effect on the overall growth of investment attractiveness. News agencies periodically publish expert opinions on promising cryptocurrencies in 2021. Analysts make detailed forecasts and think about which cryptocurrency is more profitable to invest in now. If earlier trading in expensive coins required large investments from investors, then the appearance of platforms for margin trading (using borrowed funds) allows even beginners not to limit themselves in choosing a currency. The release of new cryptocurrencies is often announced. Popular trading exchanges are improving protection mechanisms, introducing new analytics tools and increasing the level of service, making a choice towards legalization and transparency of work.

Today, bitcoin remains the most popular coin, overtaking new generation cryptocurrencies in terms of capitalization and trading volume. But the ambiguous trajectory of its course creates difficulties for trading for novice traders who do not have in-depth knowledge of the operation of financial mechanisms. Therefore, the best choice for beginners when working with bitcoin is long-term strategies focused on a significant increase in the rate in a few years.

If you want to make a profit here and now, you should pay attention to new cryptocurrencies or popular altcoins with a high market capitalization and liquidity level.  Growth is often due to artificial factors: advertising campaigns, speculation and general popularity, after which the rate falls.