The crypto market has taken the financial world by storm since its inception in 2009. Digital currencies are becoming very popular amongst the youth and their value is growing with every passing year. According to the 2021 Global Crypto Adoption Index by Chainalysis, India ranks second for cryptocurrency adoption. But, what could be the possible future of crypto investment? What will be the best crypto investment platforms? Will cryptocurrency continue to grow further? These are some questions that often come to the minds of crypto investors. Through this article, let’s find out what could be the significant growth in the future for crypto investments.
Reasons For Growth In Crypto Investment
The five major reasons why crypto is the future of investors in 2021. Understanding the 5 concepts of crypto investment will skyrocket your income in a short period of time.
- Decentralization of currency
Cryptocurrency will never have to conform to the whim of banks or governments since it is a decentralised form of money. Because of its freedom, it is a currency that won’t be impacted by upcoming political upheaval or global events.
The future of currency will be shaped by cryptocurrency’s adaptability. While there is a decreasing need for physical banking facilities, there is an increasing need for buying and investing while on the road. The digital money of the rapidly evolving future is cryptocurrency.
- Secure encryption
Cryptocurrency employs encryption techniques that result in a code that can only be decoded by specific individuals who possess the key. The need for safe means of delivering money will only increase in the future due to the ongoing threat of internet theft and fraud.
- Peer-to-Peer freedom
A significant component of cryptocurrency’s attraction is the peer-to-peer aspect of its transactions. The entire procedure is expedited by removing the intermediary for anyone who wishes to transfer or receive money. As a result, money that is simple to exchange holds the future.
- Global use
A significant benefit of adopting cryptocurrencies is that they not only offer a flexible means of transferring funds but also make it incredibly simple to do so internationally. Worldwide, it is simple for people to transfer and receive Bitcoin and other cryptocurrencies. The ability to cross borders allows cryptocurrencies to be future-proof.
Which Cryptocurrencies Might Boom In Future?
Decentraland (MANA-USD) with a 52-week range of $0.3737 – $5.90
The Ethereum blockchain powers this decentralised, immersive virtual reality application. It appeals to both consumers and companies since it blends entertainment, gaming, and e-commerce components. Users may establish art galleries, music venues, and other enterprises in addition to playing games. Additionally, the platform enables users to purchase LAND, or virtual land tracts, using non-fungible tokens (NFTs). With the use of 3D content, games, and other apps, players may develop and earn money from their land. Among the metaverse currencies, Decentraland is considered the front-runner. Within its metaverse, the network has drawn well-known businesses including JP Morgan Chase, Samsung, and Coca-Cola. With a market value (cap) of $4.78 billion, it is among the top 50 cryptocurrencies and has increased by more than 150% over the last year.
Polygon (MATIC-USD) with a 52-week range of $0.2985 – $2.92
By offering a secondary chain that links to the Ethereum network, Polygon aids in scaling Ethereum. The network links numerous blockchain projects that might not be compatible with one another on Ethereum as a Layer 2 scaling solution. Additionally, it makes transactions speedier and less expensive. The cryptocurrency that drives these layer 2 platforms is called MATIC-USD. To assist in scaling the Ethereum network, Polygon makes use of its Proof-of-Stake (PoS) blockchain and Commit Chain connection. The goal is to address inefficiencies that could prevent blockchain technology from being used more widely. Polygon is used by well-known decentralised finance (Defi) initiatives such as SushiSwap, Curve, and Aave.
Ripple (XRP) with a 52-week range: $0.5127 – $1.96
Ripple offers lightning-fast transactions and real-time payments. The native coin of the Ripple network that is utilised to speed up currency exchanges is called XRP-USD. The Ripple platform is frequently cited as the financial institutions’ most effective interbank flow settlement alternative. As a result, institutional and individual investors continue to choose Ripple. In reality, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) communications network has been replaced by this new option. Ripple thus poses a danger to the international wire transfer industry.
Before taking the plunge into crypto trading, it’s however prudent to follow this checklist of dos and don’ts :
- Do your research to dispel the prejudice and misconceptions around cryptocurrency.
- Learn about the hazards related to cryptocurrency owing to its volatility. It is recommended to invest in cryptocurrencies on one’s knowledge of the technology behind the assets.
- Understand how demand affects a cryptocurrency’s liquidity and stability. The more popular and well-supported a cryptocurrency is, the more profitable it is for investors.
- Learn about the crypto rules and make sure that service providers abide by Indian law. Being a digital asset, cryptocurrencies have a fundamentally different approach, and international rules are constantly changing.
- Before investing, consider the coin’s maximum supply. For instance, there are a total of 21 million coins in Bitcoin.