Best Cryptocurrency to Invest in the USA in 2021

Millions of Americans are planning to invest in cryptocurrencies this year after learning of the broad range of benefits these digital coins offer. Some view crypto as an asset that can help them get rich quick, while others believe it will eventually replace fiat currencies like the dollar.

Crypto investing has never been easier, as a number of high-quality cryptocurrency exchanges allow you to rapidly buy crypto currency online, and the entry threshold is low. However, it can be difficult to know which the best cryptocurrency to invest in is.

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Bitcoin (BTC)

Bitcoin is the largest and most popular cryptocurrency by a considerable margin. It was created in 2009 and uses peer-to-peer blockchain technology to facilitate instant payments. Bitcoin is a decentralized cryptocurrency, meaning there is no need for intermediaries like banks or other financial institutions to get involved. Cutting out the middleman allows Bitcoin users to reduce transaction fees when sending and receiving money online.

Bitcoin also naturally transcends borders, making it an attractive international payment method. Transactions are quick, cheap, safe and secure, so it is easy to see why it has become so popular for consumers and businesses alike. Microsoft, AT&T, Burger King, KFC and Subway are among the household names that accept Bitcoin, and you can even visit a Bitcoin casino or Bitcoin gambling sites, but is it the best crypto to invest in? Should you buy Bitcoin?

Pros

It is certainly a volatile investment compared to bonds or index tracker funds, but that is true of all cryptocurrencies. Its larger market cap means it should be less volatile than many rival cryptocurrencies, and it is one of the most liquid investment assets due to the established network of global crypto trading platforms, exchanges and brokers. It is immune to inflation, which can be attractive during times of uncertainty. Bitcoin increased from $7,347 at the start of 2020 to $28,990 by the end of the year, and then soared past the $35,000 mark in the first week of 2021. Its value has continued to increase, but the number of new BTC addresses remains lower than the levels seen in 2017, suggesting the growth is organic rather than viral.

Cons

The major downsides to investing in Bitcoin are its volatility, the threat of online hacking, the lack of regulation and the potential to lose wallets. However, those risks are common across all cryptocurrencies, so many beginners like to start off with Bitcoin before diversifying into the wide range of altcoins on the market.

Ethereum (ETH)

Ethereum is a decentralized, open-source blockchain that runs smart contracts. Ether is the cryptocurrency built on top of the open source Ethereum blockchain, and it is also a popular option among investors that buy cryptocurrency USA. Is it the best cryptocurrency to invest in now?

Pros

The Ethereum blockchain has a wide range of exciting uses and it has received backing from a number of notable financial institutions and venture capitalists. Its advantages include high levels of security, broad acceptance and strong authenticity across the burgeoning crypto USA universe.

Ether has a shorter block time than Bitcoin, meaning transactions are generally quicker. It is also a lot cheaper than Bitcoin. Many other cryptocurrencies also run on Ethereum as ERC20-tokens, so it is helpful to hold Ether as you build up your portfolio. Ether has also increased significantly in value over the past few years and many esteemed commentators believe it is the best crypto to buy right now.

Cons

Ether tokens have swung by around 800% in one year alone, so it is an extremely volatile asset class to invest in. It has lower recognition than Bitcoin and fewer consumer uses, although it continues to grow in prominence on an ongoing basis.

Ether has had scalability issues in the past, but they are slowly being solved. Its history is not exactly spotless, as it has had two major issues since it was created in 2015: the infamous DAO Hack, which saw 3.6 million ETH affected; and the Parity bug, which hit around 1 million ETH. Those scandals have put some investors off, but Ether has survived and many still feel that it is the best cryptocurrency to invest in 2021.

Tether (USDT)

Tether is the world’s foremost stablecoin. It aims to achieve stability by pegging one for one to the US dollar. The idea is to achieve this by holding at $1 in reserve for each USDT issued. In 2019, it admitted that Tethers were not actually 100% backed by dollars, but included loans to affiliate companies.

Yet Tether has continued to enjoy strong popularity and achieve stability, and it is the third largest cryptocurrency by market cap. Is it the best crypto to invest in, or should you avoid it?

Pros

Despite the controversial revelation in 2019 that Tether was only backed 74% by cash, this coin has endured. It still plots a stable course: it has been known to drop to $0.90 or increase to $1.21, but it always recovers quickly and the exchange rate is generally very close to $1.

That assuages the main concern that many investors have regarding crypto investing: volatility. Bitcoin, Ethereum and various altcoins have enjoyed tremendous growth during bullish conditions, but they have also rapidly suffered swift and immense decreases in value over the years. If you want to enjoy the benefits of crypto for online transactions, but you are concerned about volatility, Tether is a great choice.

Cons

However, if you are looking for the best crypto to invest in now, or you are searching “crypto buy and sell” in a bid to make a margin, Tether is a poor choice. It tracks the value of the dollar pretty closely, so you are not going to make any significant gains by investing in it.

Ripple (XRP)

XRP is the fourth largest cryptocurrency by market cap and it is used by several banks and financial institutions across the globe. Ripple itself is a real-time gross settlement system and currency exchange that pledges to facilitate “secure, instantly and nearly free global financial transactions of any size with no chargebacks”, and XRP is the native coin of this ledger.

Ripple was released in 2012, and it began to receive interest from banks that wanted to use its payment system the following year. By 2018, more than 100 banks had signed up. XRP is built for digital payments, using decentralized blockchain technology that settles transactions in less than five seconds.

Pros

XRP can be processed more than 1,000 times faster than Bitcoin. It is a very quick, cheap and effective way to send and receive money online. It has tied up agreements with the likes of JP Morgan, Santander, Bank of America and MoneyGram.

It is very affordable compared to BTC and other cryptocurrencies. It is also a fully-fledged company as opposed to a simple decentralized currency. Ripple has more than 500 full-time employees worldwide, and some investors like this tangibility.

Cons

If you are asking yourself, should I buy crypto, you want to be armed with all the potential downsides of investing in XRP. You should bear in mind that Ripple chairman Chris Larsen owns around one-third of all XRP, while chief executive Brad Garlinghouse holds a significant amount too, as do other board members. A lot of it is therefore concentrated in a few hands, meaning the price can be overinflated.

XRP also goes against the original spirit of crypto, as it is not decentralized. Many would argue that it is therefore not a real cryptocurrency. Unlike Bitcoin, it is available for crypto mining, and it is designed to solve issues in the banking sector rather than revolutionize online payments. Ripple Labs was also sued by the SEC in December 2020 for selling XRP tokens, which it classified as unregistered securities, so potential regulatory issues could have a negative impact on its valuation.

Litecoin (LTC)

Litecoin is an early spinoff from Bitcoin that made its debut in October 2011. It is a popular altcoin that is almost identical to BTC in technical details. Google employee Charlie Lee, a notable commentator in the crypto sphere, released Litecoin via an open-source client on GitHub.

It became a top five cryptocurrency in 2017 and it still holds that lofty position. Is it the best cryptocurrency to invest in? Let’s explore whether you should snap it up or look elsewhere to buy cryptocurrency online USA.

Pros

Some people feel that Litecoin is the best cryptocurrency to invest in 2021 because it has a few key advantages over Bitcoin. They include faster transaction confirmation times and a level of supply that is four times larger than Bitcoin, which allows for greater scalability.

Litecoin boasts substantial industry support, and the trading volumes and liquidity are strong. It has a much smaller market cap than BTC, but it continues to grow, and it has been continually improving since it was launched. It is easy to mine and trade, it is compatible with all the best US crypto wallets and the development team has proven itself to be trustworthy, so some do consider it the best crypto to invest in.

Cons

Litecoin has improved upon Bitcoin in many ways, and some feel that it is the best crypto to invest in, but it has never managed to achieve the same levels of popularity. Its credibility took a blow when Lee sold his holdings near the all-time high in 2017, which caused many people to question his faith in the coin.

Bitcoin Cash (BCH)

If you want to buy cryptocurrency, US investors would often recommend Bitcoin Cash. This altcoin was a later spinoff from Bitcoin following a fork in 2017. It later forked again, with Bitcoin Cash and Bitcoin SV going their separate ways.

Bitcoin Cash was created to accommodate a larger block size than BTC, allowing a greater number of transactions within a single block. That is the major philosophical difference between BTC and BCH, but they retain many technical similarities and use the same consensus mechanism.

Pros

Many people that buy cryptocurrency USA feel that BCH is the best crypto to invest in because it is extremely efficient and scalable compared to BTC. The development team is quick to implement changes, and its scalability makes its future potential for adoption high, so many more people that buy crypto currency online are likely to consider BCH.

It has low transaction costs and it is easy to acquire. It is by no means as popular as BTC, but it is definitely a popularized cryptocurrency, with a number of high-profile cheerleaders that sing its praises when asked for the best cryptocurrency to invest in.

Cons

It has arguably greater growth potential than a more mature coin like BTC, but it could also be subject to greater volatility and a larger chance of becoming obsolete. Adoption is currently pretty low, branding issues have a negative impact upon investor faith and it has lower liquidity than BTC.

Other Altcoins

We have already listed the most popular coins in our guide to the best cryptocurrency to invest in, but there are hundreds more to consider. They include Cardano, Polkadot, Stellar, Chainlink, Binance Coin, Wrapped Coin, USD Coin, Bitcoin SV, EOS, Monero, NEM, TRON, THERA and Tezos.

Binance Coin is especially popular due to its links to the Binance trading platform, and you can buy BNB on the Best Trading Sites in 2021. You should conduct thorough research into each coin before deciding whether to invest in it, but many people that buy crypto currency online like to have a diverse portfolio of coins, and TRON and Cardano look like some of the best crypto to invest in due to their strong potential upside.

Conclusion – Choosing the best cryptocurrency to invest in

The number of people thinking about investing in Bitcoin or browsing Bitcoin Cash trading USA, Ethereum Coin Trading USA, Litecoin Trading USA or Ripple Trading USA continues to increase. Ultimately you have to assess the level of risk you are comfortable with, as the likes of Monero and Bitcoin Cash are a lot more volatile than Tether. The best all-round cryptocurrency to invest in this year is probably Bitcoin, as it is ripe for further adoption, but it helps to have a diversified portfolio of holdings and there are significant advantages to investing in Ethereum and Litecoin too.

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