In this article, we are going to know the best cryptocurrency to invest in 2021. Bitcoin grabs a lot of attention in the news and has certainly become a fascinating and still developing new market for investors throughout the world and you can easily access to digital market.
The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.
Over the past one year, we have seen massive growth in the cryptocurrency market.
Take as an example of Bitcoin which started at less than $9000 last summer, now, up over 600 percent in 2021. That means if you invest just a $1000 one year ago, today that money would be worth over $6000 right now.
To begin the first cryptocurrency on my list is
Bitcoin is a digital currency which aims to do away with all the problems we have paying for things online.
You might think that the system we have is pretty good but everything we buy today has to go through a bank or credit card company, who take a cut of the transaction and who rely on our trust that they will do everything right.
After a while, those payments start to build up and added to that is security. You have to trust your card company to keep your details safe.
How do you proved that you have paid for something? In 2008, a solution was offered by anonymous programmer going by the name Satoshi Nakamoto.
His proposal was instead of bank or credit card company recording every transaction in one central ledger, all of the users would record all of the transaction at the same time, as a result any attempt to fool the community would be noticed and the payment rejected.
Bitcoin is the best cryptocurrency to invest in 2021.
Ethereum is currently the number two cryptocurrency that allows smart contract and decentralized applications to operate on it’s network and this cryptocurrency proves to be much more than your ordinary store value that of Bitcoins claims to be and it’s allow users to create, build and revolutionized the world through the use of it’s smart contracts.
The future of Ethereum is bright as it continue to make network upgrades that support in increasing demand and usage. It is the best cryptocurrency to invest in 2021
I personally believe as the adoption of crypto continues, Ethereum will always be an essential network needed to supply the power and resources for many of the decentralized applications.
Right now, there is more than 2700 decentralized apps using Ethereum.
Ethereum will continue to be the king of my topic list.
Currently they have come down to its previous all time high over $4000.
Polygon or Matic Network
It is a multichain scaling solution for Ethereum and the goal is to provide faster and cheaper transactions on Ethereum using layer two side chain.
Polygon is a bit fascinating on top of layer one and layer two upgrades, they offers solutions that creates ecosystem of many different scaling solutions such as sidechains, Plasma, ZK Rollups and Optimistic Rollups.
Matic team has taken a comprehensive approach to create solutions to the blockchains problems they have identified primarily focused on scalability. They are improving speed and security by implementing matic side chains, by adding these side chains higher throughput can be achieved with speed of up to ten thousand transactions per second on a single side chain.
For the security, the matic chain operators stake to participate in the proof of stake protocol.
By making the side chains public, they can be used to support multiple protocols. The matic network is a fast growing scaling network that seeks to enhance user experience.
In the last two years, Chainlink has become one of the most popular projects in the entire crypto eco system with a large community of followers.
But, what problem does chainlink solve and how does it work? what is the purpose of chainlink token LINK.
Chainlink crypto numero uno in 2019 due to it’s nearly 500 percent return on investment. Making chainlink is the highest performing crypto assets for 2019 even outperforming bitcoin.
The price of chainlink was around 30 cents at the beginning of 2019. We are not going to make a chainlink price prediction.
Chainlink is a decentralized oracle network. In crypto, an oracle is a data feed that connects blockchains to off blockchain data. What this means is information that is not native to the blockchain.
XRP is a digital assets for representing the transfer value across the ripple network also known as the Ripple. Created by US based technology company.
The main goal for ripple is to connect banks, payment providers and digital assets exchanges to provide a solution for real time and cost effective global money transfers.
X Rapid is an on demand liquidity solution provided by ripple labs. It is designed for financial institute’s to use ripple XRP assets as a bridge currency between fiat currencies when making cross border payment XRP and X rapid.
It’s important to note that two banks don’t have to use XRP to transfer assets between them. Instead, they can chose to keep an open tab using IOU’s only.
Cardano is another smart contract platform but it actually aims to be a little bit better than Ethereum in terms of scale, speed and energy efficiency.
Cardano was founded by one of the ex-founder of Ethereum by the name of Charles Hoskinson and the project was launched in 2017. It is one of the best cryptocurrency to invest in 2021.
The main differentiating factor between bitcoin, ethereum and cardano is that cardano operats using what’s called a proof of stake consensus model. What that means in a quick second is that cardano allows the people that are actually holding cardano the stakeholders to actually verify and validate transactions, so the more cardano you hold the better of a chance you have to actually get these tokens back through what is called proof of stake.
So, it’s really incentivizes the stakeholders to stay on cardano netework.
Bitcoin and Ethereum model, you have what’s called proof of work. So, in proof of work, you have miners and miners are actually solving computational puzzles using their computers to verify and validate transactions on those blockchain networks.
Cardano is the second best cryptocurrency to invest in 2021.
Is Bitcoin legal in India
There is no specific law which either regulates or specifically bans crypto assets in India. Hence, cryptocurrencies are legal in India.
After the verdict from Supreme court came out, the government in 2021 has come out with a bill called a cryptocurrency and regulation of digital currency in India bill 2021 which removes the ban on cryptocurrency in India.
How does Bitcoin work?
What does it mean to have a Bitcoin? Many people have now heard of bitcoin. That’s it is a fully digital currency with no government to issue it and no banks needed to manage accounts and verify transactions.
Actually, no one knows who invented it. Yet many people don’t know the answer of this question.
Bitcoin is just the first implemented example of a cryptocurrency, and there are now thousands more on exchanges with traditional currencies.
Bitcoin would not exist without a whole network of people and a little thing called cryptography.
Bitcoin is a fully digital currency, and you can exchange bitcoins between computers in a worldwide peer to peer network. The whole point of most peer to peer networks is sharing stuffs , like letting people make copies of super legal music or movies to download.
A bitcoin is actually an entry on a huge global ledger called Blockchain. Blockchain records every bitcoin transactions that ever has ever happened.
So, when you send someone bitcoins, it’s not like you are sending them a bunch of files. Instead, you are basically writing the exchange down on that big ledger.
Even though, blockchain is a central record, there is no official group of people who update the ledger and keep track of everybody’s money like bank does , It’s decentralized. In fact, anybody can volunteer to keep the blockchain up to date with all the new transactions.
It all works because there are lots of people keeping track of the same thing to make sure all the transactions are accurate.
So, for every transactions, you are announcing a couple of things to the bitcoin network.
- your account number
- the account number of the person you are sending to
- how many bitcoins you want send
All the user who are keeping the copies of the blockchain will add your transaction to the current block.
Why do they get out of maintaining the blockchain? Well, bitcoin actually has a built in system to reward them. Today every time you win the race to add a block to the blockchain, 12 and a half new bitcoins are created out of thin air and awarded to your account.
Bitcoin Price in dollars
Cryptocurrency value changes every minute and it’s hard to predict that the price will go up or go down.
This is the approximate value of cryptocurrencies in the last 24hrs. The price value may change.
Now, Bitcoin price in India is Rs-25,75,094.74.
If you want to obtain direct exposure to the demand for digital currency, Bitcoin is a smart investment. Bitcoins might help diversify your portfolio because their use is expected to grow in popularity over time. It also has the potential to become the first truly international currency in the long run.