If you are ready to start investing in Cryptocurrency, it can be quite daunting if you aren’t prepared. With over 2000 cryptocurrencies currently available (and growing) this article is here to give you a stable foundation on which to start your portfolio.
How much you choose to invest and what percentage of your portfolio you dedicate to Crypto is entirely up to you. Everyone will give you a different answer ranging from 0% to 100%. I’m not here to tell you what to do with your own money, just where to put some of it if you so choose.
Before we begin; this is not financial advice, do your own research before investing into anything.
Number 1 – Bitcoin
The grandfather of all crypto, Bitcoin has risen from being a fraction of a penny, to over £30k. Yet, many believe that it still has a long way to go. Bitcoin is seen as a digital store of value, much like gold has been for decades. The younger generation of investors see Bitcoin as the new gold and over the past year institutional money has been pumping the price up. It recently received a major boost with the announcement by Tesla that it will start accepting the crypto as payment for its cars as well as CEO Elon Musk converting some of Teslas balance into Bitcoin as well. Hopes that more Fortune 500 companies follow suit and convert anywhere between 1-10% of their holdings to Bitcoin will sky rocket the price past $100k and make a lot of people rich. But even if that doesn’t happen this year, it is the largest cryptocurrency, and that means it also has by far the most exposure. So while the whole world of crypto is volatile, Bitcoin is the safest place to put your money.
Number two – Ethereum
The second largest cryptocurrency and the most exciting. The Bitcoin Blockchain can only do one thing; transfer value from one place to another. Ethereum on the other hand, can do virtually anything. Any upcoming blockchain projects are built on Ethereum as it allows you to build your own blockchain and create a cryptocurrency (known as a token) to work on it. But while there area lot of derivatives, it all comes back to the source, that is Ethereum. Because it is more open ended than Bitcoin, which has a finite source, one Ethereum will never catch up to Bitcoin in terms of value, but as decentralization works its way into more industries and becomes more of the norm, who knows how high it could climb?
Number three – Litecoin
Bitcoin on the Ethereum blockchain. Litecoin is supposed to mirror Bitcoin on the Ethereum blockchain. Don’t forget though, they are totally separate entities and the performance of one doesn’t impact the other. That has never been more evident over the past few months as Litecoin hasn’t been able to keep up with the rabid demand of Bitcoin. However, as Ethereum, Bitcoin and a lot of other Alternative Coins (Altcoins) are breaking past their 2017 high’s and powering ahead, Litecoin remains 50% off it’s all time high. It represents a riskier investment, but consider all the positive sentiment around the crypto market these days, it could be a good opportunity for some growth.
Number four – Cardano
Cardano is a really exciting altcoin that allows different blockchains built on Ethereum to communicate. As more projects get up and running and the interconnectivity of those projects grows. Cardano will be invaluable. It has been on an absolute monster rally of late and it is growing in stature every week, but is still a risky investment as the bull run could suffer a pull back, or even a major correction as early adopters cash out and take their huge profits. Unlike the top three mentioned above, it’s not available on every exchange, so do a bit of research before funding an account just in case.
Number five – NuCypher
Part of what makes blockchain technology decentralized is the fact everyone on the network can see the transactions happening. But what if you were transferring private information? That’s where NuCypher comes in. This relatively new Altcoin is a VERY speculative investment, but one with a lot of potential that can allow sensitive material to still be effectively transferred and verified by the network without being compromised. It has quickly grown in stature since it’s debut on Coinbase, currently the only major exchange it is available, and some big names in the industry are keeping their eye on it. But this is all highly speculative. This is the only investment here I feel could still go to 0 so only allocate what you are happy to lose here. Otherwise, if it’s potential is truly realised, being an early adopter could be a lucrative investment.
Number 6 – Meryt
While some coins provide stability, they don’t provide the insane growth rallies that can only be achieved by getting in on a project early. Meryt (MRT) is just such a project. Hoping to help add governance to DAO’s (Decentralised Autonomous Organisations), which is a space set to explode over the next few years, Meryt is an early mover in the next big market. Only launched in the 3rd quarter of 2021, the team is eyeing a token minting in early 2022. So getting in now could net you some tokens at their pre-listing price, and those are the kind of people who see the ridiculous 1000%+ gains.
Thanks for reading! What Cryptocurrency would you add to the list as a good 2021 investment?
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