By a wide margin, the star of the show on the 2020 cryptocurrency scene was (of course) Bitcoin. Though its historic rally beyond $30,000 for the first time technically edged into 2021, it was still the biggest thing to happen in a terrifyingly turbulent year.
“We always knew Bitcoin would exceed $30,000 in value at some point, we just did not know exactly when,” commented a representative at Bitvavo – one of the web’s most popular cryptocurrency trading platforms.
“If last year’s performance is anything to go by, it is hard to predict anything other than further gains – if not on quite the same immense level – for Bitcoin and several other major cryptocurrencies.”
Interesting stuff, but what does this translate to for those looking to make their mark on the whole crypto scene this year? Whether new to crypto trading/holding or simply out to extend your current portfolio, what are the main predictions with regard to performance and profitability for the year ahead?
As always, there are no guarantees – and anyone claiming any crypto commodity is a safe bet is kidding themselves and everyone else. Nevertheless, there are at least five crypto coins that are pegged for a successful year ahead, as far as most analysts and economists are concerned.
Each of the following looks set to be a major trading and investment commodity in its own right during 2021:
1. Ripple (XPR)
XRP has been around for some time and has more than its fair share of points of appeal. Security and reliability being e its most attractive qualities, along with its ridiculously low exchange rate and super-fast transaction completions.
If you are all about the ‘buy low and sell high’ approach to trading – i.e. the sensible approach – XRP is still one of the cheapest coins you can pick up right now, trading at less than $0.70. This would mean XRP would not need to rally in value a great deal in 2021 to net you a profit.
2. Ethereum (ETH)
While it may never overtake Bitcoin in terms of popularity of value, Ethereum is still a super popular crypto coin in its own right. As of the end of last year, the value of Ethereum had exploded to around $580.
Ethereum remains the world’s second most liquid cryptocurrency
and is known for attracting those who are somewhat discouraged by the often OTT volatility of Bitcoin. It is by no means a second-rate alternative to the market leader – it’s a valid contender in its own right and one to watch in 2021.
3. Litecoin (LTC)
If Bitcoin is the gold standard for cryptocurrency, Litecoin is silver. Which is by no means an insult or an indication of low quality or value – the value of Litecoin skyrocketed to around $68 by the end of next year. 2020 proved to be a fantastic year for Litecoin, which by October was enjoying the kind of popularity none could have predicted at its initial launch.
A few weeks later in November, Litecoin leapt into the top 10 to become the eight most popular cryptocurrency in the world. This is a pretty impressive achievement giving the competition – especially from a crypto coin that is exponentially quicker to mine than most.
4. Basic Attention Token (BAT)
While it may be unlikely to replicate the peak of its fame reached in 2018, BAT – or Basic Attention Token – continues to go from strength to strength. It is by far the number-one crypto choice for marketers, public relations specialists, web developers, content writers and in some arms of the IT industry.
The accessibility of Basic Attention Token has made it an exceptionally popular choice and enabled it to hold its own in the face of ferocious competition. Even if it doesn’t reach its 2018 peaks this year in terms of popularity and prestige, Basic Attention Token will continue to play a major role in the wider cryptocurrency landscape.
5. Bitcoin (BTC)
Last up, it would be nonsensical to outline any crypto predictions for 2021 without acknowledging the monstrous appeal of Bitcoin. Predictions as to the value of BTC by the end of this year vary wildly – anything from $50,000 to more than $300,000 in the eyes of some optimistic analysts.
In any case, it is rare to come across anyone who does not see Bitcoin being worth exponentially more at the end of 2021 than it is right now. Though as the first few days of the year have already shown, the risk of sudden and major plummets in value with any form of cryptocurrency cannot be ruled out of the equation.