Tech

How to invest in profitable cryptocurrencies in 2021

Many investors are looking for new investment alternatives and one of the most interesting is to  invest in cryptocurrencies:  assets that since their creation have experienced a great revaluation and that, according to experts, will continue to have an upward trend.

At Finect we have also created a section where you can see information on different platforms  where you can buy bitcoins or crypto currencies , compare and then decide which is the best one for you. Here you can see different platforms where to buy bitcoins.

What are cryptocurrencies

The  most widespread definition of digital currency is that it is a digital currency, not a physical one, that uses cryptography to secure and manage transactions, as well as to create new currencies.

This explanation of what a cryptocurrency is includes the two most important characteristics of these digital currencies. The first is that  there are no bills or coins like there are euros, dollars or pounds . Cryptocurrencies are virtual and, although they can be stored on physical devices, (so-called wallets or physical purses such as hard drives or USB memory sticks) they do not have a physical representation as such.

The second is that cryptography is used to create new units. P2P technology is what, for practical purposes, does not depend on any government or country:  there is no central body or government in charge of creating new currencies and putting more money in the market. As an example, Bitcoin uses blockchain technology to regulate the creation of new units . Also, in this case, the number of available coins is limited, something that is not always the case with other cryptocurrencies.

Types of cryptocurrencies

Dash, Ethereum, Ripple, Litecoin … there are many virtual currencies beyond the famous bitcoin. In fact, today the number of digital currencies stands at around 10,000 worldwide.There are also many
Best Bitcoin mixing services available in USA.

What differentiates the types of cryptocurrencies  is the technology they use on the one hand, and their philosophy on the other. To understand it better, a large part of virtual currencies use blockchain technology, but with certain changes that can make them faster in processing transactions, for example. In addition, there is a finite number of  coins that will be in circulation (in the case of bitcoin ).

Although when investing it is necessary to have sufficient financial knowledge and know exactly what are the products in which we are depositing our money and what risks we are assuming. At Finect we tell you which are the best cryptocurrencies to invest  and what you should take into account to choose them.

List of cryptocurrencies

How many cryptocurrencies are there? The data vary constantly and are not entirely accurate, but it is estimated that currently, by the end of 2021, there are more than 10,000.  Every week some new virtual currency is created in a process called ICO and which we will summarize later.

The most popular digital currencies are the following:

  • Bitcoin
  • Ethereum
  • Ripple
  • Monero
  • Stellar

The number of existing virtual currencies is much larger and continues to grow every day. To consult the legal cryptocurrencies you can consult pages with more than 800 virtual currencies and their corresponding quotation such as : World Coin Index and CoinMarketCap.

In both places you will be able to consult a list with the most important virtual currencies and also see the price of these virtual currencies .

On the other hand, if you are considering investing but don’t want to complicate management, a good option is roboadvisors . Automated managers allow you to take your first steps easily and safely.

Also Read : Affiliate Marketing Ideas For Newbies

New cryptocurrencies

The world of virtual currencies never stops and new proposals appear almost daily, known as altcoins or alternative coins in reference to being alternatives to bitcoins . In the previous point we have already reviewed some of the most important and now we are going to see how to invest in new cryptocurrencies.

Just like there are company IPOs, cryptocurrencies also have their coming-of-age. They are the so-called ICO or Initial Coin Offering and that the investor in the stock market will remind the IPO or Initial Public Offering that collect the market exits and are called IPOs in Spanish.

ICOs are used to finance business projects and culminate in the birth of new virtual currencies

Earning money with cryptocurrencies is possible, but you have to know which one to bet on and how to do it. In this sense, there are different ways of investing in cryptocurrencies from trading with cryptocurrencies to mining virtual currencies .

Best cryptocurrencies to invest in 2021

What have been the most profitable cryptocurrencies in 2021? Which ones have a higher market capitalization (current price x outstanding supply)? You can see the full lists on sites like Coinmarketcap.

  • Bitcoin: $ 1,126,003,150,905
  • Ethereum: $ 497,355,012,423
  • Binance Coin: $ 94,714,099,542
  • Tether: $ 73,800,274,945
  • Solana: $ 65,404,281,505
  • Cardano: $ 61,377,488,814

Source: CoinmarketCap. Market capitalization as of November 17, 2021.

  • Axie Infinity accumulates a profitability of + 22880.60%  in the last year.
  • Kadena  accumulates a profitability of + 13402.52%  in the last year.
  • Fantom  accumulates a profitability of + 12,618.80%  in the last year.
  • Solana  accumulates a profitability of + 11,599.86%  in the last year.
  • The Sandbox  accumulates a profitability of + 8770.57%  in the last year.
  • Poligon  accumulates a profitability of + 8498.01%  in the last year.