5 Promising Cryptocurrencies To Invest In 2021 : With Pros & Cons
1. Bittorent (BTT)
Pros & Cons Of Bittorent
- It can be traded on major exchanges such as Binance, OKEx, Upbit, Huobi Global, CoinTiger, and others.
- Users can pay others using the BitTorrent Speed functionality to obtain faster downloads.
- Direct distribution of content among internet users in a cheaper and efficient manner.
- More decentralized solutions have been adopted to appeal to its crypto users.
- It has a great reputation for being a top peer-to-peer file sharing system that has been in existence for a very long time. This means it is a reliable or even long-term investment.
- It is continuously being relevant due to its file sharing service and token advantages that follow it.
- Innovative developments of the network make it promising with improvements such as BTFS node repair mode, accepting BUSD with BitTorrent Classic Pro, speed boost in BitTorrent Web downloads, tokenized incentives, BitTorrent Web Pro for safety assurances, live streaming with the platform- DLive.
- Users can enjoy blockchain-based content sharing while streaming live on the same platform, plus, earning BTT rewards in the process.
- Ensures security through their BitTorrent Web Pro innovation, where there is an automatic scan of files to provide valuable information before download.
- There is a faster speed for transactions and downloads, which makes the network efficient.
- The platform is user-friendly, has no requirement for your computer resources as well as mining.
- The only security guarantee is that users protect themselves against any forms of malware or cyber theft.
- If you are not an active day trader or speculator, this might be too risky for you because it is comparatively highly volatile.
- Anything linked with Tor has the reputation of attracting hackers.
- The BTT’s price is very low, meaning it is easy to manipulate due to its low capitalization.
- There is a massive release of BTT every month, which means the price will tend to decrease.
Is BTT a promising cryptocurrency and Is BTT a good investment opportunity this year?
BitTorrent’s price chart | coinmarketcap.com
2. Ripple (XRP):
Pros & Cons Of Ripple
- It is adding more customers and more partnership deals with banks and their most recent deal were with the National Bank of Egypt.
- Buying XRP is relatively low-risk with a huge investment return potential.
- Its mechanism uses less energy and there’s no central authority controlling traffic or demand and supply.
- It has an increased mainstream appeal and is low price.
- It is decentralized, yet more reliable and faster than other networks on blockchain
- Enables instant transaction verification without any administrator directing traffic.
- It is a problem solver for powerful and small financial institutions with its ability to speed up the capital flow.
- Compared to the guru- Bitcoin, is cheaper, faster, and stress-free in currency exchange. More than 10,000 transactions can be handled per second and confirmations done in 4 seconds.
- Can operate and manage transactions across borders.
- Have recognition from influential institutions and individuals and continues to appeal to larger banks.
- Reliable with a constant increase in value over the years.
- It is a digital payment network for any financial transactions and the same time, a cryptocurrency
- A cost-efficient open-source platform with a rapidly expanding network and solid tech.
- Its validation process bypasses the central bank, the reason for its instant confirmation and amazing low interest rate.
- No more new Ripple coins release. All XRP are already in circulation since they are pre-mined coins.
- No decentralization since its main purpose is solving banking issues and has less focus on store value of exchange with ordinary people.
- Fear of overinflation in price since XRP is in the hands of a few. XRP’s shares (about 60%) are massively own by few Ripple officials. For instance, Ripple’s chairman, Chris Larsen owns 1/3 of all XRP, and CEO, Brad Garlinghouse together with other senior board members equally own significant share.
- Like any other cryptocurrency, Ripple (XRP) is volatile digital money with instability and investment risks.
- Strong competition with SWIFT, which is the largest global payment method
Ripple price chart | credit: ychart.com
3. Chainlink (LINK)
Pros & Cons Of Chainlink
- Improved accuracy and information security as a result of decentralized smart contracts.
- Eliminates reliability issues that are frequent when using a single centralized source.
- Allows the inclusion of banks and payment services in their system.
- Digital securities, asset management, and supply chain are characteristics that attract the use of Chainlink oracles.
- Provides data from off-blockchain sources to on-blockchain contracts.
- It inspires confidence due to its cooperation with influential companies like SWIFT, Google Cloud, etc.
- Users receive data that is timely, uncorrupted, and accurate.
- Have great returns for long-term investments given its technological capacities.
- The LINK token helps facilitate the growth of the on-chain network ecosystem.
- Permits secured connection of smart contracts on Ethereum for payment systems, external data sources, and APIs.
- Low development speed. The implementation speed for solutions affecting financial transaction execution is unknown.
- A little complex for a general understanding of how it functions. This reduces interest.
- Little guarantees for investors on the length and fruitfulness of partnerships.
- No official roadmap that could guide the public on the system.
Therefore, is Chainlink a promising cryptocurrency to invest in this year?
Chainlink’s Price chart | Credit: coinmarketcap.com
Pros & Cons Of Dogecoin
- Transaction speed. It enables blockchain transactions very fast and it literally less than a minute to send.
- Transaction fees are very low, lower than Litcoin or Bitcoin, and usually at 0.0075 USD.
- Though you need a computer with a good graphic card to mine, it is still cheaper than Bitcoin. Some people even use Dogecoin for training in crypto mining.
- More vendors are getting interested in it, and the network is increasing.
- Devoted community. It is fun to be part of the community and sometimes they raise funds for charitable donations like the one they did to sponsor Nascar and did a 30,000 USD raise for clean water in Kenya.
- Some businesses accept DOGE as currency for payments or transactions and this unique token can be used to securely transact value to anyone globally.
- Mining Dogecoin is merged with Litcoin for more security reinforcement purposes.
- There are no limited amount of coins to be minted. And with its low price, this means beginners can lose coins and still purchase more.
- Great marketing strategy to make influential celebrities and billionaires talk about it on social media. People like Elon Musk, CEO of Tesla, and Rapper Snoop Dogg among others.
- Very friendly community. Probably because of the cute logo with a dog, but the Doge community is friendly and generous. Sometimes tipping and donations are done in a fun way.
- Widely accepted on exchanges, has no network congestion, and designed for day-by-day use.
- With an unlimited amount of Doge mining done, there is equally a ridiculously huge supply of coins, which makes the currency difficult to grow in value.
- Very little or unnoticeable development or innovation going on around the system, and without development, there is little or no progress (price increase), or worst, another memecoin could take over the show.
- I highly recommend it only for short-term investments because it is some sort of pump and dump cryptocurrency where community members can decide when to be active and raise its value by getting more people in and thereafter relax.
- It is more or less secured (in terms of investment returns), matured, and stable.
Considering the above points, would you envisage being an investor in Dogecoin?
Dogecoin price chart | credit: ychart.com
5. Polkadot (DOT)
Pros & Cons Of Polkadot
- It is highly scalable, relatively secure, and supports smarts contracts.
- It empowers developers to create and share their own DApps. These apps build by developers can interact with other ledgers via a relay chain. Plus, the blockchains created by developers here benefit from the security that Polkadot’s blockchain already possesses.
- Para chains can issue their token through this system. It allows cross-chain transactions, that is, value transfer between different blockchains.
- This unity system equally allows interoperability, the connection of blockchains and oracles whether authorized or not for collaborative work.
- Unlimited scalability. With the para-chain concept, it can support as many blockchains as possible and connect all together.
- Has a more sophisticated design of blockchains that can operate higher transactions with a shared security concept. Here, small chains are protected under a unifying security umbrella.
- Exponential growth. To be a cryptocurrency with less than five years of existence and being among the top five cryptocurrencies in coin ranking shows an impressive surge that continues to amaze investors and potential investors.
- It has lower transaction fees as compared to Ethereum.
- With its multiple blockchain host capabilities, Polkadot can equally support upgrades without resorting to drastic hard forks to execute change.
- Not enough marketing is done to promote the system, therefore having rivalry problems with larger coins or tokens.
- Its security has been compromised before by hackers who exploited code vulnerabilities twice. This obviously led to the loss of millions in USD.
- Some slots of para-chains are sold under auction, which may override the price of smaller chains.
Monique is a crypto writer, graduated in journalism and translation, a former editorialist in the national press.