As the pandemic-driven volatility of global stock markets continues, some investors are starting to switch their attention to cryptocurrencies. The Global Blockchain Business Council found that 19 per cent of investors will be using cryptos regularly by 2021. So with demand clearly growing, which are some of the best digital currencies for investors? Well, with over 2,000 cryptocurrencies in existence, you may find it difficult to choose the right one. That’s why at Global Fintech News we decided to make a list of the top seven to make your life just that little bit easier. So, without further ado, let’s get into it!
If you’re already familiar with cryptocurrencies, it should come as no surprise that Bitcoin tops the list. 2020 was an incredible year for bitcoin, rising from its yearly low in March of under $4,000 to ending the year at $28,000. Some investors may feel they already missed the boat. However, some analysts believe that within the next 12 months, Bitcoin could even reach an incredible $300,000.
Like Bitcoin, Ethereum experienced incredible growth in 2020. The cryptocurrency climbed from around $125 at the beginning of the year to finish the year at about $600. This equates to a 380 per cent surge in growth all within 12 months. Ethereum’s strong position as the leading altcoin makes it a tasty proposition for investors.
This cryptocurrency has backing from massive financial institutions including American Express, JP Morgan and HSBC Holdings. Ripple has now expanded to over 40 countries and serves more than 300 providers. The digital currency has the potential to displace SWIFT due to its powerful speed, security and traceability. Its price took a massive hit towards the end of 2020 due to a suit filed by the SEC; however, it should return to its former heights.
Due to concerns over Bitcoin’s ability to scale effectively, Bitcoin Cash was created to process transactions more quickly than the Bitcoin network. Although it’s nowhere near the same level as Bitcoin, its scalability could result in its value to increase even faster than Bitcoins.
This cryptocurrency boasts one of the most efficient times required for mining, and with four times the supply of Bitcoin, it looks like a good choice for investors. It’s also reasonably affordable coming in at just under $140 (at the time of writing). Analysts from CoinSwitch predict that the price could reach $600 by the end of 2021.
This cryptocurrency is used to pay fees on the Binance crypto exchange. However, you can also use the digital currency to pay for goods and services through their Binance Card. Some cryptocurrencies are difficult to use in everyday situations, but Binance Coin certainly isn’t. According to predictions, the price of the digital currency could rise to $123 by the very end of 2021.
Chainlink utilises blockchain technology to create smart contracts, and they are now the most widely used oracle network when it comes to powering universally connected smart contracts. In early January of 2020 Chainlink had a price of $2.09. Today, Chainlink trades hands at $15.61. This growth is larger than what Bitcoin experienced in 2020, and it shows no signs of slowing down in 2021.