2020 has been a year in which many investors have turned to cryptocurrency as a safe haven because the traditional market failed them during the pandemic’s early stages. Many cryptocurrencies, in particular Bitcoin, Ethereum, and Litecoin, surged this year.
Now that 2021 is fast-approaching, crypto investors are wondering what they should go for and what lies ahead in terms of crypto investing. With Bitcoin at the top of the list, other coins like Ethereum and Litecoin lead the party.
Bitcoin (BTC) Price Analysis
Bitcoin is well-known as the king of cryptocurrency and the leader in terms of market cap. The price of Bitcoin has peaked at almost $20,000 recently, showing an impressive doubling in value. This was unexpected since the price halved in May and remained around $8,000.
With the high value of Bitcoin, many investors are extending their shares, and other institutions are entering the market, leaving only a little over 3 million Bitcoins remaining.
Another factor contributing to the continued surge in Bitcoin’s price is PayPal’s new crypto service. With PayPal owning 70% and Cash App owning 30%, there is a shortage in supply and an increase in demand.
Ethereum (ETH) Price Analysis
Ethereum is the second largest crypto in terms of market cap, but various price predictions point to it as one of the best cryptocurrencies to invest in during 2021, after Bitcoin. Although Bitcoin’s prices are now increasing, Ethereum is mildly but steadily recovering from the February-March blow.
It experienced a 100% growth in the second half of 2020, and some analysts even say that it will outperform Bitcoin in 2021. With the upcoming ETH 2.0 in 2021, investors are ready to rush into this market. It’s also the best altcoin right now and, like Bitcoin, it will be supported by PayPal, meaning it’s expected to increase in value next year.
Litecoin (LTC) Price Analysis
In September 2020, Litecoin reached $52.64, after the announcement that it would become a PayPal-supported currency, and price predictions are pointing at a super increase of $600 at the end of next year.
From all the optimistic crypto predictions and analytics, Litecoin is considered one of the candidates for the best cryptocurrencies to invest in during 2021. The PayPal announcement, steady increase, and active Litecoin community will increase its value next year.
What Should You Invest in during 2021?
As we approach the final days of 2020, many crypto investors are looking forward to what 2021 will have to offer in terms of increased values and investments.
The CEO of Messari, a cryptocurrency tracking site, has predicted that Bitcoin and Ethereum will keep their current positions of first and second top currencies in terms of market capitalization. Conversely, Litecoin is appearing as a risky long-term investment to many investors, but it is still a rewarding cryptocurrency to trade in 2021, either in the short or long term.
Invest for Huge Returns
Don’t only focus on what the best cryptocurrency is in general, whether it’s BTC, ETH, or LTC, but also focus on which one will be best for you and your trading strategy. It’s also a good idea to diversify your portfolio as you approach 2021 due to the volatile nature of cryptocurrency trends.
To make your crypto investment journey easier, go for Godex – the top exchange platform. Exchange hundreds of cryptocurrencies anonymously, such as ETH or LTC, with fixed rates, unlimited volumes, and record speed.