Considering the evolution of digital assets and analyzing the different trends of the year that is ending, it is important to invest in cryptocurrency in 2021. To properly enjoy such an investment, it is necessary to have a substantial portfolio. Indeed, 5 essential cryptos must appear in your wallet. They should constitute a priori, about 87% of your portfolio.
Bitcoin (BTC), an essential cryptocurrency in 2021
First, to invest in cryptocurrency in 2021, Bitcoin should be your first resort. Indeed, Bitcoin is the most famous cryptocurrency of all cryptocurrencies. Also, can be found on all cryptocurrency buying platforms. In addition to being the most accepted cryptocurrency, it is the very first of the cryptocurrencies. It is very important to have a large part of your wallet in this cryptocurrency. Sometimes Bitcoin goes up in value while at the same time others fall.
The need to own Bitcoin
When other cryptocurrencies rise, Bitcoin in turn falls. It could vary, but an average Bitcoin wallet helps rebalance. Also, it allows you to secure your cryptos. Bitcoin is a cryptocurrency with a larger capitalization. This includes that it is the cryptocurrency in which a large portion of investors invests the most.
It thus constitutes a form of security, a form of insurance. Also, most large funds and institutions invest in the majority in Bitcoin. Few rarely, if not almost not in other much less reliable, exotic cryptocurrencies. As a percentage, you can build your portfolio up to 47% Bitcoin. Then can follow a second cryptocurrency that will allow you, like Bitcoin, to invest in cryptocurrency in 2021.
Chainlink (LINK)
Chainlink (LINK) is a cryptocurrency that will be very essential in the future. What gives it this place is actually its Oracle project. The oracles project is in fact to bring information outside the blockchain into the blockchain.
Smart contracts
Chainlink allows you to create smart contracts. These smart contracts will then be able to interact with their environment. It is indeed very essential to use oracles in most smart contracts. This is what actually prompts Chainlink to develop a project like this. Seen from this point, it represents a feat and therefore really allows you to invest in cryptocurrency in 2021. Also, one of the advantages of Chainlink is that it has very little competition.
A competitor of Chainlink
BAND Protocol, one of its competitors, should not be overlooked. This is because this crypto is similar to Chainlink and varies between fourth and fifth place on CoinMarketCap. In fact, it is a cryptocurrency that has a very large capitalization. So this is also a very good investment. However, your portfolio could contain up to 22% Chainlink.
This will allow you to be able to invest in cryptocurrency in 2021 without taking any risk and without being afraid of losing all your funds, all your investment. Aside from LINK, there are other less fluid but very reliable cryptocurrencies. However, these cryptos will only represent a small part of your wallet for a good margin of safety.
Binance Coin (BNB)
Binance is actually a company with millions of customers. In addition, it was able to generate up to $ 1 billion in profit last year. Additionally, Binance has a product that is already working in the market.
Binance: a reliable platform
Binance has a very large number of customers that it can satisfy. It gives them enormous satisfaction. So the customers are quite confident in the Binance company. So Binance has everything it takes to be a worthy business. Binance has premises, employees all over the world. The staff is very warm, always available to give customer satisfaction.
Binance actually has a very good heritage. These resources actually add value to Binance society. This gives more confidence to customers and attaches them even more to the company. It’s a business that is running at full speed. This is therefore a very good guarantee in terms of security and insurance. No one fears by investing in Binance Coin, nor its loyal customers, let alone you.
Insurance and security
In reality, your investment in Binance is actually stock. In addition, it can be very rewarding given its enormous features and benefits. A good heritage, good operation, good customer satisfaction, and very adequate products meeting the needs of its customers. Binance is doing very well and making a very good profit with a very good real and tangible project.
Which in fact allows you to truly believe in any investment in Binance. It is actually this confidence in Binance that makes it possible to invest in cryptocurrency. This allows the cryptocurrency to still function. His business is running smoothly and at full speed. Additionally, Binance is creating deflation. In fact, this is due to how it works.
A novel strategy
Binance auto buys its own cryptocurrencies. Then it takes a part of the percentage of its turnover. This transaction allows him to buy his own crypto-currencies. Binance’s goal is to be able to burn them down. Thus, it makes them disappear.
In retrospect, this will reverse inflation with the euro. Because of course, the demand will increase. But on the other hand, for its part and at the same time, the supply will decline. A good ploy, since in reality it can cause the price of the cryptocurrency to rise as its supply increases.
The probable rise of the Binance coin
It should be noted that its price will multiply over the years. It is therefore very essential to make very good profits from it to be able to use it for a good investment in cryptocurrency in 2021. However, always for a very good balance and a good margin to guarantee, it will only represent 9% of your wallet.
Certainly, there are other cryptocurrencies less reliable than the previous ones but very interesting, if you want to invest in cryptocurrency in 2021. Obviously, all the cryptocurrencies mentioned and which will be quoted regardless of the difference in their percentage will be essential for your portfolio to invest in 2021.
Ethereum (ETH)
Ethereum (ETH) is a cryptocurrency similar to Bitcoin (BTC). A good portion of funds and institutions invest in Ethereum (ETH). In fact, a very large part of investors prefers it after Bitcoin. Therefore, they invest a very good portion of their fund in ETH, i.e. Ethereum.
The basis of all smart contracts
Ethereum is the basis of all smart contracts. In other words, all smart contracts on the blockchain owe their existence to it. Nevertheless, a lot of cryptocurrencies land on Ethereum. Indeed, ETH is like a skeleton to which other cryptos on the Blockchain attach themselves. To invest in cryptocurrency in 2021, Ethereum (ETH) is a very good resort because this crypto has a good future.
Ethereum 2.0
In addition to its biggest benefits and strengths, the all-new update is Phase 2.0. That is Ethereum 2.0. This phase has many more advantages and greatly favors any investor wanting to get into the Ethereum Blockchain (ETH). But despite its advantages, ETH should only make up 8% of your cryptocurrency wallet. However, Ethereum (ETH) just like Bitcoin (BTC) and Binance Coin (BNB) is a very good investment.
Especially for all new investors who will want to invest in cryptocurrency in 2021. Finally, to fill the list of five essential cryptos. It should be noted that these are not the only cryptocurrencies that exist.
Aave
The Aave cryptocurrency belongs to the decentralized finance (Defi) sector. Do you want to invest in cryptocurrency in 2021? Do not miss to have it in your wallet. However, it should only occupy 3% of your wallet. However, it offers you, like the previous ones, a good guarantee and a good margin of safety. As long as you use them in the right way. The Aave cryptocurrency is one of the DeFi decentralized finance cryptos. This crypto spills a lot of ink and spit.
Why hold AAVE cryptocurrency in 2021?
Recently AAVE made the headlines of all the crypto newspapers. In fact, the decentralized finance cryptocurrency DeFi allows you to make loans in cryptocurrencies. How does it happen? Well, you just need to put up some deposit, that’s it. This will allow you to make loans in cryptocurrencies. In addition, it gives you other advantages.
In fact from the deposit you give and the loan to which you subscribe, DeFi decentralized finance through its cryptocurrency allows you to earn very good interest. The interest that decentralized finance grants you is also in cryptocurrency. So this is a very good investment. If you really need to invest in cryptocurrency in 2021, Aave of Decentralized Finance should not be missing in your wallet. But, obviously at a reduced percentage for a good profit margin and safety.
The advantages of the AAVE digital asset
In addition, thanks to DeFi decentralized finance, Aave offers all its users very great advantages. This can therefore favor any investor. You can therefore choose AAVE for your cryptocurrency investment projects in 2021. Decentralized finance has a very large customer base. This gives you a guarantee of security. This is a very good investment. Decentralized finance DeFi represents, among other things, the future of finance.
Its Aave product and all its services are very good proof of this. If we can say it, DeFi decentralized finance is the future of finance. Indeed, DeFi decentralized finance promises a very good future to any investment, to any investor. This is a very good asset for investing in cryptocurrency in 2021. However, we can add a sixth cryptocurrency to the list. In fact, it has a very large capitalization. This is therefore a good source of investment in cryptocurrency in 2021. This cryptocurrency offers many advantages like the previous ones.
XRP
The XRP crypto nugget is actually one of the three largest capitalization cryptocurrencies. XRP is hugely accepted and has a very good partnership. It is therefore very interesting to use it also to be able to make a good investment in cryptocurrency in 2021. Also, can we add a very last one always to allow you to have a broad spectrum of action?
Synthetix (SNX)
The Synthetix asset does indeed use tokenization. Thus, it tokenizes the actions of all kinds. Very often, the actions of large investors, large companies, or even large institutions. All in all, it is very essential for any investor to get into cryptocurrency in 2021. Indeed, cryptocurrency in 2021 represents a very good investment. Also, in view of the revolution generated by crypto, it is very essential to invest in it.
How to build your portfolio?
To better invest in cryptocurrency in 2021, you need to have a well-balanced portfolio. Indeed, it must comprise on average 87% of five types of fairly profitable cryptocurrencies. So it is Bitcoin (BTC) with a share of 47% of your wallet. Then Binance Coin at 9%, Chainlink at 8%, Ethereum, and finally Aave. You can, however, add other cryptocurrencies such as Synthetix and XRP to your wallet. But, they represent cryptocurrency poker hits. In fact, you can win or lose everything with them.
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