The bitcoin rate drop in May 2021 was the third dramatic collapse in the entire history of the currency after November 2018 and September 2011. May 19 went down in the history of the crypto market as a “black Wednesday”, when bitcoin lost 34.5% of its value in one day. Therefore, many investors try to be more careful with their predictions, taking into account the high volatility of such assets. Still, whether you believe in cryptocurrencies or not, you can make good money on them. Today, we will share with you our view on the most promising cryptocurrencies for now.
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Your First Investment
Let’s say you decide to invest in cryptocurrency and make money on the difference in the exchange rate. How much to invest and in what currency — everyone decides for himself. We recommend beginners invest only the money that they are willing to lose, and, of course, constantly monitor the crypto news as issuance of dai stablecoin, state regulations, and recent crypto rates.
Any currency has periods of decline and growth. The very principle of making money on crypto is speculative: buy cheaper when prices fall and sell higher when prices rise. For example, in December 2017, the bitcoin price reached a maximum of $19 thousand, but after that, it fell. Analysts have partly attributed this explosive growth to the previous halving when miners’ rewards are halved. The halving occurs approximately every four years and is associated with the depletion of bitcoin coins. So, the main thing you should do when investing in crypto — carefully study the market, analyze trends and withdraw your money on time. Now let’s move on to the most promising crypto for now.
Top Crypto Projects for Investment in 2021
In May, the quotes of most cryptocurrencies fell sharply due to the fall in the bitcoin rate to $30 thousand. Now altcoins are traded 50-70% cheaper than historical highs. Those who are looking for reliable investments in the crypto market should pay attention to projects that have been working for a long time, have some kind of product and its application:
- Chainlink, Filecoin are of interest to other companies, so they are constantly expanding their partnerships. Since 2017 and ICO, they have not disappeared anywhere, but continue to develop. The money they raise is used correctly;
- In the field of decentralized finance, you should pay attention to the Uniswap exchange. Its UNI token is promising as the company is the market leader. You can focus on the fact that the audience of this exchange will gradually grow;
- The Polkadot project deserves attention as it connects blockchains and forms a new ecosystem. It is a progressive, fast-growing startup;
- The Cardano project is a manufacturer of tools capable of transferring control over world systems from corporations to individuals whose talent allows them to create something new and useful. Cardano is a very ambitious direction for investment.
Finally, stablecoins are now of great importance, since they are comfortable tools for managing funds in a decentralized space without the risks associated with volatility.
