Cryptocurrencies have changed the business world by introducing another type of asset, which individuals can trade. Right now, only around 3% of people trade digital currencies, but this trend is constantly changing with more and more people turning to crypto trading.
Still however, traders need to be careful and spend a lot of time examining trends to better predict what direction will the market take in the future. At the same time, this is a difficult challenge on its own – make sure you stay up to date with market news and price movements.
Why cryptocurrency trading is so exciting?
Cryptocurrencies serve as a digital asset along traditional money as a means of storing value and exchanging goods, but with the added benefit of ensuring the security of the online financial transaction. One of the main questions is why trade digital currencies ins the first place and it turns out there are good reasons in favor of this argument.
Availability: Getting access to cryptocurrencies is easy – individual traders are also able to trade them practically anytime.
Security: Trading cryptocurrencies is actually incredibly safe in terms of identity protection as transactions are anonymous.
Low Commissions: Charges of trading digital currencies are typically much lower than fees when trading traditional assets.
Diverse Portfolios: Cryptocurrencies are also utilized as more diverse investment and a different scope of work.
Which are the TOP 5 Cryptos in 2021
1. Ethereum Ethereum is based on the popular decentralized application platform, which makes it so powerful. According to some analysts, Ethereum may even catch up with bitcoin. Although not everyone shares this view, Ethereum is indeed expected to grow in 2021. 2. Bitcoin This list cannot exist without Bitcoin. After three years of great growth and great declines, in 2020 bitcoin stabilized, so there is much to be expected from the most popular crypto in 2021. Bitcoin is the best choice for traders who want to lower their risk and hope for a small return over a long period of time. 3. Litecoin Litrcoin may be much cheaper than Bitcoin and Ethereum, but this lower price does not equal its market potential. Trading Litecoin can be a significant opportunity, as its price is lower, but its technical conditions allow it to perform as a global network of transactions, which is enough to be of investment interest. 4. Ripple Ripple is another cryptocurrency with the potential to dominate the market. At the moment its value is on the lower side, but as with most cryptos, this could quickly change if it becomes an official solution for banking infrastructure. Some argue that Visa and Western Union may soon adopt Ripple as their base technology, which will make it really significant. 5. NEO NEO is expected to grow significantly in 2021. Its infrastructure is full of potential, so the Chinese government is also considering a commitment to NEO. And if that happens, NEO could become one of the cryptocurrencies that brings the most trading opportunities to the flexible traders.