Given the growth that cryptocurrencies experienced in 2020, it may be difficult to believe that they will ‘explode’ in 2021. However, most of that growth was down to Bitcoin and its stunning price rise of over 300% over the calendar year. Most other crypto assets did not grow at anything near that rate, and thus there are a lot of opportunities still around for investors looking to get in early on cryptocurrencies, like those who made bets on Bitcoin back when it launched in 2009, and are now laughing their way to the bank. It is not as if Bitcoin’s rally is done; most experts believe that Bitcoin could be on its way to $100,000, so there is still definitely a lot of money to be made potentially there as well. However, Bitcoin’s price rise last year had the effect of bringing cryptocurrency into mainstream interests and conversations, and this is now expected to drive growth into other crypto assets as the market grows and matures. Of course, there are many benefits to owning cryptocurrencies, while people have made lots of money by timing their investments right as well. You can learn more about how to make money from cryptocurrency from this article published on the Winz.io casino blog, but if you already know about all that, these are some of the cryptocurrencies to keep an eye out for this year, as they are set for an ‘explosion’.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency in the world, and the underlying blockchain is the most sought-after for third-party applications. This is because while the blockchain for bitcoin was narrowly defined as just a peer-to-peer payment application, the ethereum blockchain introduced smart contracts, which are contracts which can be completed without the need for human intervention or confirmation. This has made the ethereum blockchain the most popular one for companies looking to implement blockchain networks for a variety of functions, and this, in turn, has led to ETH becoming popular as well. Thus, we can expect Ethereum to continue to gain price and territory in the coming months and years.
Ripple (XRP)
One of the topics which most people in the crypto community are most passionate about is decentralization, since this is the core concept behind the creation of cryptocurrencies. However, Ripple turns that on its head. XRP is tied to a central institution, which means that it is not ‘minable’; instead, supply is managed by humans, akin to currencies operated by central banks. Ripple has offered a cheap, quick alternative to wire transfers, however, especially for small transactions, which is where it has been able to get some sort of traction in the crypto space.
Litecoin (LTC)
The emphasis with Litecoin was on transactions of smaller value, which became even more important as the price of Bitcoin soared. Litecoin transactions are also extremely quick, much faster than Bitcoin, and these advantages over the biggest crypto mean that it has been able to carve a niche in the crypto market, which will be maintained in the future as well.
Bitcoin cash (BCH)
Even though Bitcoin has changed the crypto market, and quite possibly the wider world of finance, it is still dogged with inconvenience. This had led to the creation of Bitcoin Cash, which is essentially an offshoot of the original bitcoin blockchain. One of the biggest factors going for BCH is its name – since bitcoin is the most recognizable cryptocurrency, the simple fact that this altcoin is called Bitcoin Cash means that it has already got a lot of interest and investment due to name recognition, so in a way, the better Bitcoin does, the better the prospects for BCH.