The idea of investing in cryptocurrencies can be very thrilling but also challenging based on the nature of market and many options. Although there are several wonders coin to invest, but the world of cryptocurrency should be quiet and let Bitcoin (BTC) take a rest.
Bitcoin: The First of Its Kind and Most Dominant Market Player
In addition to chattel; the first and most valuable — as well as best known by a vast majority of people on Earth, is Bitcoin: The Cryptocurrency. High liquidity and market dominance mean its to a degree safer, than other cryptocurrencies.
Through every market cycle, Bitcoin has shown its resiliency and ability to retain value after a downturn. Institutional interest in Bitcoin has also been on the rise, with big corporations and investors have stacked up significant amounts of BTC as part of their portfolio.
Ethereum: The Giant of Smart Contract
One of the most popular crypto for investment in 2021 is Ethereum (ETH). Ethereum, being the second largest cryptocurrency by market cap is a digital currency but also supports decentralized applications (dApps) and smart contracts.
This would be further boosted by an upcoming upgrade (Ethereum 2.0) enhancing it even more with its key strengths, scalability and energy efficiency — hence driving a higher demand for ethereum transactions leading to increased value.
Ethereum also powers the early industries in crypto, like DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens).
Diversification with Altcoins
Altcoins such as Binance Coin (BNB), Cardano (ADA) and Solana (SOL) could be worth looking at for investors seeking to diversify their portfolios.
These coins have some sort of special function such as faster transaction times, lower fees, great smart contract capabilities or others that in the future will be used to benefit in ways other alts (alternative cryptocurrencies) can’t.
That being said, the altcoins will come with more risk and thus research is required to funnel some smarter money in those developments.
Conclusion
So to sum it all up, while most people see Bitcoin and Ethereum as safe picks with strong support in the world of cryptocurrency which also grow considerably over time, we recommend exploring a bit more profitable coins for those willing to experiment.
Remember to invest only as much as you can afford to lose, the market is volatile.