It’s been a little over a decade since Bitcoin first hit the market back in 2009. Since then, the cryptocurrency world has exploded, resulting in thousands of cryptocurrencies for investors. Unfortunately, not all of them are created equal.
Many investors new to crypto assume that Bitcoin investing is their only option. There are plenty of other up-and-coming cryptocurrencies out there. However, the best crypto for investors isn’t always the one that’s currently leading the pack. Altcoins such as Litecoin, Ethereum, Ripple, and others all deserve recognition.
To unearth more about the best cryptocurrency for investors in 2021 and professional account management? Keep reading to discover why high-net-worth (HNW) investors trust the modern wealth management services of Seth Maniscalco.
The Benefits of Crypto Investments
Before discussing individual options, let’s take a look at the bigger picture. If you’re a traditional investor, you may be wondering why you should add bitcoin or altcoins to your portfolio? There are plenty of reasons to get into cryptocurrency, and this novel investment medium makes a perfect complement to a traditional portfolio.
Here’s why so many serious investors are jumping on board with the crypto revolution:
- There’s no need for banks to act as a middle-man.
- The transaction fees associated with crypto trading are low.
- The blockchain technology behind decentralized cryptocurrencies is incredibly secure.
- The best cryptocurrencies for investors offer the potential for high returns.
- Established cryptocurrencies are nearly inflation-proof.
- Cryptocurrencies are becoming the new normal and gaining wider acceptance.
- It’s not just profitable to find the next big cryptocurrency but also exciting.
Like any investment, crypto has its risks. You can help mitigate those risks by learning the market, keeping up with cryptocurrency news, and developing a sound investment strategy. Alternatively, you can work with a crypto wealth manager such as Seth Maniscalco who understands the business.
Bitcoin Still Leads the Pack
When it comes to name recognition, Bitcoin (BTC) still leads the pack in 2021 and was developed in 2009 by Satoshi Nakamoto, based on a revolutionary technology called blockchains. The use of blockchains allowed Bitcoin to be bought, sold, and traded on a decentralized network, removing banks from the equation entirely.
Since its launch, Bitcoin has continued to dominate the crypto markets. Analysts don’t expect that to change in 2021. Many experts predict that Bitcoin will retain its leading position in terms of market capitalization. Analysts believe it will continue to draw in new investors as it competes with traditional assets like gold.
It’s relevant to note, the market for Bitcoin is very volatile. In March 2020, it took a severe tumble, hitting a low of $4,721. By the first week of the new year, the price of Bitcoin was back up to $40,000. The analysts at Citibank predict that after this recovery, 2021 could be the already popular cryptocurrency’s best year yet.
Modern Wealth Management With Altcoins
Bitcoin may still lead the pack when it comes to market capitalization and sheer name recognition, but it’s not alone. There are plenty of altcoins, or alternative forms of cryptocurrency, that could also provide excellent returns in 2021.
Here are just a few of the most promising altcoins that could give Bitcoin a run for its title as the best cryptocurrency for HNW investors:
1. Ethereum (ETH)
The Ethereum blockchain system was developed in 2015, but it’s already poised to give Bitcoin a run for its money. Its associated cryptocurrency, Ether (ETH), has done what some thought no altcoin could do by maintaining a consistently strong market cap since its initial release.
Other reasons include:
- There are plenty of reasons to be excited about the future of Ethereum and Ether. When Bitcoin and nearly all other altcoins took a severe hit in late March of last year, Ethereum’s performance remained strong. In late December, it hit its highest price point of 2020.
- It’s not just the company’s cryptocurrency that is performing well, either. Ethereum is also getting ready to release Ethereum 2.0 sometime in the coming year. The first iteration of this platform was already a key player in the decentralized finance (DeFi) sector, processing payments using Chainlink (LINK), Maker (MKR), and others.
- Improving efficiency and increasing the transaction volumes of crypto processed on Ethereum could also boost Ether’s value. To give an idea of scale, Ethereum processed just under $3 billion worth of transactions in 2019. In 2020, it processed $13.5 billion worth of DeFi exchanges. The launch of Ethereum 2.0 could drive an explosion in popularity in 2021.
Bitcoin vs Ethereum: Which is Better for HNW Investors?
When it comes to the best crypto for investors, there’s no right or wrong choice between Bitcoin vs Ethereum. They have both established cryptocurrencies but still, come with their fair share of risks. The primary difference is that Ether still has more room to grow.
Experts believe there’s a good chance that ETH will enter the mainstream fully in the coming year. The CME Group announced in 2020 that it would be launching futures contracts for ETH in early 2021. That means institutional investors could be readying themselves to make the switch.
Unlike Bitcoin, Ethereum has yet to break the all-time high it reached in January 2018. It would need roughly 100% growth to match that $1,432 price point. That means there’s plenty of potential for serious profits should everything go well with the Ethereum 2.0 release.
2. Litecoin (LTC)
Litecoin launched in 2011 to release a cryptocurrency with faster transaction times and lower fees than Bitcoin; however, on the same kind of decentralized blockchain technology, blocks get generated much faster. It takes just 2.5 minutes to create a block of LTC compared to Bitcoin’s 10 minutes.
This altcoin hit its highest price point since its inception back in 2017, when LTC experienced a growth rate of over 8,000 percent. It hasn’t dropped off savvy investors’ radar since then. Though it’s not the most bullish altcoin, with a price point of just over $170, it’s still showing strong growth.
There are two primary reasons to believe Litecoin could be a top contender for the best cryptocurrency for HNW investors in 2021.
- First is the recent launch of the LiteBringer role-playing game (RPG). It runs on the LTC blockchain, and its release caused an enormous surge in transaction volumes. In just one week following the release, LTC transactions tripled.
- The second reason investors are taking a serious look at LTC this year is that its usage is becoming more commonplace. While most altcoins are introduced to the market then quickly forgotten, the list of online and local merchants willing to accept LTC is growing.
The very fact that experts believe Litecoin deserves a spot on any list of the best crypto for investors in 2021 is also helping to fuel growth. Some analysts are predicting that prices could rise to as high as $600 in the coming year.
3. Binance Coin
Binance is best known as a crypto trading exchange. By some metrics, including transaction volume, it’s the largest crypto exchange in existence. Its official token is the Binance Coin (BNB). Though the platform allows users to exchange a wide array of altcoins, using BNB simplifies transactions and reduces fees. Additionally, BNB can be used to pay for products and services.
The upward trajectory of BNB since the platform’s launch can be explained by its connection to Binance’s impressive transaction volumes and ever-growing popularity. It went live just a few days after the exchange opened in 2017 and reached an all-time high in December 2020 of $40.17.
An all-time high of $40.17 may not sound like much compared to major players like Bitcoin and Ethereum, but there’s more to BNB than meets the eye. For one, HNW investors who hold BNB are subject to lower commissions on Binance. They can also use BNB to take advantage of periodic sale campaigns for other tokens on the platform.
Finally, Binance has taken another step that sets it apart from the competition. It released what’s known as the Binance Card. The Binance Card is used as a regular credit card. Users load it up with BNB or BTC, and then they can use it more like they would conventional fiat currency.
The improved usability of BNB coupled with Binance’s ever-expanding growth puts the Binance Coin on a potentially positive trajectory. As more average users and merchants embrace Binance Cards’ use and more traders move to the platform, it could compete with more popular alternatives for the title of the best cryptocurrency for HNW investors in 2021 and beyond.
4. Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is a lot like its parent crypto, Bitcoin. It was developed due to one of the earliest splits, or forks, in the cryptocurrency’s history. Let’s back up for a moment to explain what that means.
Since Bitcoin and the other cryptocurrencies that followed in its footsteps are decentralized, there’s no way to change their underlying code without a consensus. When parties can’t reach an agreement, the cryptocurrency can be forked or split to develop a new crypto form.
BCH’s release was the result of code updates that increased block size and facilitated faster transaction times. These updates occurred after developers and miners disagreed about how scalability will impact Bitcoin’s future. The fork occurred in 2017, but BCH has already risen into its rightful position as the world’s sixth-largest cryptocurrency.
If you’re looking for the best crypto for investors interested in mid-term returns, BCH may be a good option. Analysts’ predictions for the future of BCH vary, but it’s already got a foothold on the 2021 markets. Most predict that it could rise to $500 in value within five years. If you want to reap those potential returns, now’s the time to invest.
5. Polkadot (DOT)
Unless you’ve already done your homework on cryptocurrency development, you probably haven’t heard of Polkadot (DOT) yet. Chances are, everyone in the industry will hear about it soon. Polkadot aims to take the essential decentralized nature of blockchain technology one step further by using open-source sharding protocols that allow data and tokens to transfer between blockchains.
This novel platform’s idea was to create a private and fully decentralized network that focuses on interoperability. Its native token is the DOT, which also helped to develop bonded parachains.
The project’s founder defines Polkadot as a “network for the networks.” Unlike most novel cryptocurrencies, it’s designed to coexist with other major industry players like Ethereum. This novel industry player’s performance in 2020 was variable, hitting an all-time high of $6.84 in September but stabilizing and growing since then.
Polkadot deserves a spot on any well-informed list of the best crypto for investors in 2021 for three reasons:
- First, the token’s platform is taking a novel approach to development that could fuel crucial industry changes.
- Second, its performance in 2020 could lay a foundation for positive action in 2021.
- Third, DOT’s price point is still low since it is in its infancy, which means there’s plenty of room for growth.
No investment is a sure thing. As an as-yet relatively unestablished cryptocurrency, DOT may or may not take hold. Investors with a relatively high-risk tolerance may find that it’s worth taking a gamble for a potentially prolific payoff in the coming year.
Tips for Successful Investment Strategies
If you already have experience investing in conventional markets like stocks, forex, or real estate, don’t assume you’ve got what it takes to become a successful crypto trader on day one. Trading crypto and finding the best cryptocurrency for HNW investors requires some different strategies.
You’ll need to do some research before you get started as well as:
Learn From Others’ Mistakes
Nobody is born with what it takes to identify the best crypto for investors and make savvy trades. That doesn’t mean you should avoid crypto entirely. It has the potential for impressive returns if you invest wisely and learn from other traders’ mistakes.
The easiest way to develop an effective trading strategy is to consult with the professional account management services of Seth Maniscalco. My management solutions provide HNW investors access to everything from up-to-date industry news and market forecasts to personalized investment advice.
Diversify Your Portfolio
As with conventional investments, it’s best not to put all your eggs into one digital basket. Bitcoin and the five most promising altcoins described above could all benefit your portfolio. That doesn’t mean you should choose just one. It’s better to diversify your crypto investments by purchasing multiple offerings.
Develop a Solid Investment Strategy
Cryptocurrency investment is not for the weak of heart. The markets can be volatile, and you’ll need a solid investment strategy based on careful analysis, not emotion. You should rely on industry experts experienced with modern wealth management to develop a strategy to optimize your returns.
Understand Your Options
You won’t be using a conventional investment account to hold your cryptocurrency, nor are altcoins traded on traditional markets. Getting used to the decentralized nature of crypto investing can take some time. Ensure you understand all your options regarding exchanges, wallets, and other particulars before purchasing any tokens.
Beware of Frauds
In 2021, financial experts understand that cryptocurrency, in general, is not a scam. Unfortunately, there are still many fraudsters and scammers out there looking to take advantage of its lack of centralized regulation. You can avoid falling prey to common frauds and scams by sticking to well-known exchanges and consulting with current industry experts like Seth Maniscalco.
Starting Bitcoin Investment Strategies
You’ll never make a cent off of Bitcoin investments if you don’t try. Of course, it takes more than just setting up a wallet and signing up for a top crypto exchange to develop an effective investment strategy. Proper wealth management and professional accounting services produce the belt results.
For HNW investors wanting venture alone, here are some tips to get started:
1. Set up a Secure Wallet
Since the most popular cryptocurrencies are decentralized, you won’t hold your bitcoin or altcoins in a bank account. Instead, you’ll need to set up a secure digital wallet. The main types of digital wallets are hardware, software, and paper crypto wallets. Each has its pros and cons, and you’re not limited to just one.
2. Sign Up for a Crypto Exchange
You should be careful when signing up for a crypto exchange. Unfortunately, there are a lot of scams out there, and most bitcoin thefts occur on exchanges. You’ll need to find a reputable platform that offers plenty of security to protect your assets. It’s also relevant to note, some exchange platforms focus on just Bitcoin, which can limit your options.
3. Purchase Cryptocurrencies
Before buying bitcoin or altcoins, you’ll need to do some research. Some altcoins have more potential than others. Professional account management can help evaluate bad market options, which avoids investing in a dud.
4. Where to Go From Here?
If you’ve already got a digital wallet, an account on a reputable exchange platform, and a little money invested, you might assume you don’t need coaching. Unless you’ve devoted years to studying the markets, you’re probably mistaken.
You can still benefit just as much as an absolute crypto newbie from learning from the experts and developing a personalized investment strategy.
Expert Wealth Management Services
Investors looking for the best cryptocurrency in 2021 shouldn’t jump straight into the deep end alone. Instead, they should trust Seth Maniscalco. Decentralized finance is the future. Tomorrow’s most successful HTW investors are being created today with modern wealth management and LP futures hedge funds services.
High-net-worth investors seeking professional account management can contact the modern investor, Seth Maniscalco now for more information. Please feel free to browse my website, submit an application, or schedule a call today.