Regardless of whether you’ve studied investing before, one way or another, you’ve probably heard about cryptocurrencies. The main world cryptocurrency at the moment is Bitcoin. However, in addition to it, there are also currencies such as Ethereum, Lite coin and others. Investors have been able to make millions with cryptocurrencies, which is why many people are considering using them in their own portfolio. However, in addition to the potentially high profits, there are also big risks. However, being carefully thought out will help you multiply your investment. IAFT analysts have prepared a list of 10 major cryptocurrencies to look out for when investing in 2021.
5 criteria for choosing a cryptocurrency for investment:
Real world use
Current price and dynamics
Supply and demand analysis
Why you should consider investing in cryptocurrency in 2021
The cryptocurrency industry is one of the fastest growing markets in the world. On February 21, 2021, Bitcoin’s market capitalization was estimated at $ 1,072.21 billion. At the same time, many promising altcoins grew even faster than Bitcoin. According to experts, the global blockchain technology market will reach $ 23.3 billion by 2023. These numbers testify to the rapid development of cryptocurrencies. These digital currencies not only offer excellent investment opportunities, they can also be used for online transactions, domestic and cross-border money transfers.
Best Altcoins vs Bitcoin
While Bitcoin is still a major player in the cryptocurrency world, there are other digital currencies that are showing active. If we look at the market cap and dominance of cryptocurrencies, we can clearly see the positive trend for altcoins. This leads to the fact that Bitcoin begins to lose its position as the dominant cryptocurrency in the market.
Cryptocurrency rating 2021: IAFT review
If you are trying to find the right cryptocurrency to invest in, you may face significant challenges. There are over 5,000 altcoins, so choosing the right assets to invest in can be tricky. IAFT analysts bring to your attention a list of the best altcoins that can be used for investments. The list was selected after the IAFT’s own research by cryptocurrency specialists.
Our methodology for selecting promising cryptocurrencies
To prepare the review, the IAFT cryptocurrency specialists used a special assessment methodology. It includes 6 main factors:
Technology. The IAFT specialists included altcoins in the top cryptocurrencies in 2021, which showed the best dynamics of development, have promising technologies and ideas.
Practical use. Cryptocurrency analysts have assessed whether a cryptocurrency from the list is a means of payment and what are the prospects for its development in this direction.
Fundamental analysis. We analyzed supply and demand for altcoins, current prices, historical price values, volatility, etc.
Degree of decentralization. Decentralization is one of the key factors for cryptocurrencies, because they are designed to reduce the influence of central government.
Value for money and quality of work. In the case of cryptocurrencies, it is extremely important to prevent Pump and Dump, therefore IAFT analysts have carefully analyzed the validity of current and historical prices.
Impact on the world. We focused on those cryptocurrencies that have had a significant impact on the financial industry or collaboration with large corporations.
What allows coins to get into the cryptocurrency rating?
Despite the fact that there are many cryptocurrencies on the market today, many of them do not have the potential to develop and use as a tool for investment. We have evaluated cryptocurrencies across all points of our methodology and narrowed the list down to only the best cryptocurrencies suitable for investment and trading purposes.
Finance Coin (BNB)
Finance Coin (BNB) is the official cryptocurrency of the Finance exchange. The coin is currently priced at just over $ 310. The coin has a maximum oscillator value of 56.19 and a relative strength index of 62.34. Over the past 12 months, the value of BNB has grown significantly, from under $ 20 to over $ 300. The cryptocurrency is also backed by one of the largest altcoin exchanges.
Charles Hodkinson, the developer of Cardan, is also known as the co-founder of the Ethereum project. Interest in ADA only started to grow in early 2021. On January 4, 2021, the coin was valued at just $ 0.29. Currently, the value of the coin has exceeded $ 1 per token and continues to grow.
Ripple is a digital technology that was created to help streamline online payment solutions. The system was developed and released in the year 2012. Jed McCauley and Chris Larsen are the minds behind the coin. The distributed open-source protocol used in the Ripple blockchain provides instant processing of payments, along with advanced security features. Within the past year, the coin varied in price between $0.17 and $1.96.
Dogecoin (DOGE) recently underwent a valuation and was valued at $ 10 billion. The coin is based on an internet meme and has generated interest from both individuals and corporations. Companies like Strange Donuts, Dallas Mavericks, airBaltic and others are already using Dogecoin as an internal payment method for customers.
Polka dot (DOT)
Polka dot (DOT) was originally seen as an addition to the world of blockchain and cryptocurrencies, but now it is already surpassing Bitcoin in some areas. Large institutions have taken notice of Polka dot, and the coin is even called Ethereum Killer. Although the coin has dropped in value over the past few months, experts believe it will recover in the near future.