Cryptocurrencies are the new gold. What to invest in 2021/22?

It has been more than a decade since the world’s most famous cryptocurrency Bitcoin (BTC) was created. Today, there are a plethora of digital coins and tokens on the market to choose from. When investing, should you bet on some established giants like Ethereum (ETH) and Litecoin (LTC), or relatively new but promising projects like PolkaDot (DOT) and Uniswap (UNI)? Or should you bet “safe” and reach for the gold in this industry, namely Bitcoin?

Update: 08.05.21 – For now, Dogecoin is on top because it allows you to make big money. The Bitcoin price seems to be holding up well despite the sudden crash on Tuesday. The Ripple price, on the other hand, fell below the bottom of the demand zone at $1.33, but showed signs of recovery. Moreover, the cryptocurrency world is looking forward to Elon Musk’s appearance on Saturday Night Live tonight. Musk just issued a new warning about investing in cryptocurrencies. Dogecoin continues to gain value ahead of Musk’s appearance, with one Doge now worth $0.70. Dogecoin also started the space now known as “memecoin”. If you’re looking for the next big memecoin, it could be SafeMoon, which launched in March 2021 and already has more than a million users. SafeMoon encourages investors to buy and hold by charging a 10% fee to anyone who sells their tokens. For trading, we recommend this exchange. (new window).

Why invest?Greenlight for cryptocurrencies.
Predictions, forecasts (ranking)Why are prices rising?

XRP, ETH and DOGE ? What to invest in?

In this article, we review the latest market developments and look at five coins that could be in your portfolio in 2021 and 2022. Because, as you know, Bitcoin is expensive, which it wasn’t just a few years ago. So are several lesser-known cryptocurrencies that any of us can buy and wait for a bull market in the exchange platforms. Example below.

bitcoin price exchange rate

In 2016, bitcoin cost £2,225. Today, other promising currencies are at that same price or lower.

In such a fast-paced and dynamic industry, it can be rather difficult to forecast and isolate the major currencies driving the market. However, following the latest developments in adoption rates, demand, and regulations can make it easier to predict the near future in the cryptocurrency market. Below we have gathered some of the latest news on XRP, ETH, LTC, ADA and of course about BTC. Dogecoin won’t be missed either, because as the greats say, prices will rise in this industry.

No doubt cryptocurrencies will be important in the future, but the snag is that it’s not clear which ones.

It is important to mention that on October 21, the world-renowned digital payment service PayPal revealed the launch of a new service that will allow users to buy, store and sell cryptocurrencies in their digital wallet. According to the press release, the service is set to be made available in the United States in the coming weeks and will initially include BTC, ETH, BCH and LTC. Although XRP and ADA are not included in their service, they have decided to include these currencies in their portfolio of promising projects. ☺

The company’s CEO, Dan Schulman, commented: “The move to digital forms of currency is inevitable, with clear benefits in terms of financial inclusion and access; payment system efficiency, speed and security; and the ability of governments to disburse funds quickly. We are eager to work with central banks and regulators around the world to offer our support and make a significant contribution to shaping the role digital currencies will play in the future of finance and commerce.

PayPal plans to expand its offerings to the Venmo service and international markets in the first half of 2021, and allow its customers to use cryptocurrencies to shop online. However, PayPal is not the first major company to show interest in cryptocurrencies this year. For example, financial technology company Square (SQ), co-founded by Twitter CEO Jack Dorsey, recently bought 4709 bitcoin for $50 million, while MicroStrategy has bought $425 million worth of BTC in the past few months and is looking to buy even more. From here, the clear message goes that bitcoin is the currency to invest in in 2021, but no doubt, it’s not the only gold in this market.

It’s been a good year for cryptocurrencies, but what’s next?

2020, many central banks also began to see the value and potential of cryptocurrencies. While the People’s Bank of China has been busy testing a new digital currency e-RMB, seven of the world’s largest central banks, including the Bank of England, the European Central Bank and the Federal Reserve, have set out the terms under which central bank digital currencies, or CBDCs, could operate.

Also positive news is coming from India, a country where a two-year ban on cryptocurrency trading by the central bank was lifted in early 2020. In its report, online banking platform Cashaa announced the launch of a new platform called UNICAS, which will provide customers with cryptocurrency services such as savings accounts, investment cryptocurrencies, and traditional banking at 22 locations in northern India.

Dinesh Kukreja, managing director of United Multistate Credit Cooperative Society and CEO of UNICAS, said: “This will allow us to build, scale and offer customized financial and crypto products to local Indian markets.”

Southeast Asia’s largest bank by assets, DBS Bank, is also launching a new fiat-to-crypto-currency exchange. The trading platform will allow users to trade BTC, BCH, ETH, ETC and XRP against the US dollar, Japanese yen, Singapore dollar and Hong Kong dollar.

So, against the backdrop of such positive changes in the industry, what is the current ranking list of the best cryptocurrencies worth investing in?

Predictions and forecasts for cryptocurrencies for 2021

Update: 08.05.2021 For trading we recommend this exchange. (new window)

Ethereum (ETH) – rating (7/10)

In the third quarter of 2020, Ethereum’s market capitalization increased by 60 percent, from $25 billion to $40.5 billion by the end of September. At one point – on September 1, ETH reached a price of $483.24 per coin, and its market capitalization reached $54.3 billion. Then it ended the month falling to 358.4 USD.

In the following weeks, the cryptocurrency once again surprised many investors when its price rose above to $410 on October 22. Founded in 2014, Ethereum is currently at the forefront of the decentralized finance (DeFi) boom. If the trend continues, it could spark interest in ETH from both retail and institutional investors.

While the ETH futures market is still smaller than the BTC market, the daily volume of ETH futures transactions reached a record high of $14 billion on August 2. While in September the monthly volume increased from $163.1 billion to $172.3 billion.

The growing popularity of DeFi, as well as the successful Ethereum 2.0 update and rising ETH adoption rates are likely to support the price of the coin in 2021. Here the latest forecasts for Ethereum.

chart for (ETX)

Yearly chart for Ethereum (ETX)

Cardano (ADA) – rating: (8/10)

ADA Cardano known as the third generation cryptocurrency was launched in 2015 and is ranked second in our ranking. During the broader March sell-off, the coin’s price reached this year’s low of $0.024 . It then began to rise sharply, peaking at $0.15 in July 2020.

After holding near the $0.14 level for the next three weeks, the ADA entered a downward trend, falling to $0.074 by September 24. This was followed by a massive 33 percent rise as the coin surpassed $0.1 and reached $0.113 on October 13.

In addition, Cardano successfully transitioned from the Byron era to the Shelley era and initiated several changes on Voltaire earlier this year. Its voting app: Catalyst, was recently released on the Google Play store, allowing more users easier access to vote on new project initiatives. What’s more, its Daedalus wallet also received a number of security updates and improvements.

Cardano’s upcoming Goguen era, which will introduce new features such as smart contracts and decentralized applications, is seen as one of the most important steps for the project to become a true competitor to Ethereum. According to the timeline, Goguen’s core network is estimated to go live in February or March 2021.

Yearly chart for Cardano (ADA) cryptocurrency.

Ripple (XRP) – rating: 5/10

After Ripple’s XRP lost its title as the third largest cryptocurrency to Tether (USDT), many rushed to remove it from their wallets. But has the coin really stopped being as “shiny” as before?

The cryptocurrency has seen huge gains over the past year, with its value increasing by over 1,000 percent since last April. The surge in XRP’s price follows another court ruling in favor of Ripple – the second in the same week. The currency, which just a week ago was the seventh most popular cryptocurrency, is now the world’s fourth largest by market value.

The SEC’s lawsuit against Ripple is being closely watched by the XRP community and the cryptocurrency industry worldwide, given not only the potential impact on XRP investors, but also the legal precedent it could set for other cryptocurrencies.

Unfortunately, not many people are currently tempted to buy Ripple. That’s because the Securities and Exchange Commission (SEC) has sued Ripple, its CEO Brad Galinghouse and co-founder Chris Larsen. They are alleged to have illegally raised $1.3 billion in capital. In addition, according to media reports, it was felt that XRP should be treated like shares in the company rather than a currency.

What is significant is that the registered representative of Ripple will be based in Cheyenne. Secretary of State Caitling Long published a post on Twitter welcoming Ripple to the state of Wyoming. And moments after the post was added, the price of XRP skyrocketed by 20%. At the time of this writing, a correction has already taken place and Ripple is trading at around $0.55.

Yearly chart for Ethereum (ETX)

LTC (Litecoin) – rating: 6/10

Litecoin’s price is down about 87 percent from the record high of $371 seen in late 2017. However, Litecoin is up almost 12 percent in the past week, with the price at around $68.50. Technical analysis showed a major bullish trend line emerging soon to produce more similar increases.

Analysts are betting on a price tag of $ 70 in 2021, but don’t predict spectacular prices anytime soon. For the coin has consistently made lower peaks and the price has failed to reach historic highs in consecutive years, which ends up being negative, at least from a long-term perspective.

Yearly chart for Ethereum (ETX) from 2020 to 2021.

Bitcoin (BTC) – rating 7/10

While there are many promising new cryptocurrencies today, BTC remains one of investors’ favorites, holding about 65 percent of the overall market capitalization of cryptocurrencies.

After falling below $5,000 in March, the coin’s price has risen by half, driven by improved investor sentiment. On May 9, BTC cost $9,962. It then embarked on an exciting rollercoaster over the summer, jumping from $10,000 in the first few days of June to $9012 on June 28 and $12318 on August 17!

In early September, BTC began to lose value sharply, falling to $9,933 on September 7. However, another uptrend was just around the corner and the coin soared to over $13,000. On October 28, BTC reached $13,837 per coin, its highest price since January 2018, and on October 31, its value surpassed $14,000.

Yearly chart for Bitcoin (BTC)

Dogecoin (DOGE) – rating 8/10

Dogecoin has continued to rise in recent days, becoming more valuable compared to other big names like Twitter, Ford, and Snap. But how far will the cryptocurrency develop? There has also been speculation about what might happen next with Dogecoin because of Tesla CEO Elon Musk, who has been a supporter of Dogecoin. Many are predicting that the value of the coin will increase even more due to DOGE’s upcoming appearance on “Saturday Night Live”.

Dogecoin’s volatility makes it very difficult to predict what will happen. Its rapid rise in 2021 has even surpassed bitcoin. Professor Carol Alexander, a leading cryptocurrency researcher at the University of Sussex, said for The Independent: “It’s Dogecoin’s price relative to bitcoin that makes it so remarkable now. From January 1 to the [previous] market peak on April 19, DOGE was about 35 times higher than Bitcoin and 70 times higher than the US dollar.”

The media has made no secret of the fact that this is a low-cost, high-risk investment with the potential for huge returns – something that cannot currently be found anywhere else. Even risky junk bonds now offer virtually no return.

Yearly chart for DOGECOIN (DOGE). We can see the price rising rapidly here, but the predictions for this currency recommends caution.

Is it worth investing in cryptocurrencies?

In 2020, many people have decided to invest in cryptocurrencies, which can be a guideline for new people who are afraid to enter the stock market. However, caution, as in any business, is advisable. For virtual currencies, linked to a distributed public ledger known as blockchain, foster true decentralization. Their value is based on market dynamics and are not influenced by centralized authorities such as the Federal Reserve. Moreover, trading is 24/7, 365 days a year and open to virtually anyone with access to the Internet.

Is it worth investing in Dogecoin? Forecasts say yes, but caution is advised. This happy dog is kind of high.

However, this time, the major upward trend of the cryptocurrency market may have nothing to do with the sector itself. Analysts say that e-currencies could potentially soar because they are not stocks. This looks similar to how citizens in the U.S. voted for Joe Biden or against President Donald Trump.

So there is an investment-related reason why people are abandoning stocks for cryptocurrencies. It is likely that people are buying crypto because they simply don’t trust stocks. It is worth mentioning that Kraken Intelligence conducted a customer sentiment survey for 2021 and 2022, of which about 72% were investors or traders, 18% institutions (such as broker, custodian, hedge fund, venture capitalist, etc.), 4% crypto service providers or miners. There were 323 respondents in total.

After asking respondents about bitcoin price targets in 2021, the team found that the average target price for BTC in 2021 is $36,602 (£135,427), while the median target price is $25,000. The most commonly reported target is $20,000. The survey found:

  • up to. 61% of respondents believe bitcoin will reach if not exceed $20000 in 2021;
  • up to. 20% of respondents reported a target price ≥ $50,000;
  • up to. 8% of respondents indicated a target price ≥ $100,000.

Will LTC, ETH, Litecoin, etc. repeat BTC’s rally?

Everyone would like to see weaker cryptocurrencies repeat Bitcoin’s success. The problem is that BTC rallied in the stock market because few gave it a chance to succeed. Now that the market is buoyed by the ambitions of new entrants, the situation is a bit more complicated.

Currencies like XRP, ETH, Litecoin, and Dogecoin are becoming popular for a number of reasons, one of which is that many people dream in repeating the success of BTC. While no one is denying that it won’t happen again in 2021 or in 2022, no one is offering any guarantees for that either. Due to the fact that the mentioned currencies are not expensive at the moment, the losses in case of a slump will be small.

Below in the article:
Should you invest in crypto?The world opens up.
Predictions for 2021 and 2022.BTC rally replay.