After the speculative peak of 2017, cryptocurrencies have started a pretty healthy correction process. With the Covid-19 crisis, the intense risk aversion at the beginning of the year caused a major low point in many crypto currencies. The subsequent relaxation of the financial burden, the massive injections of liquidity and the most recent attempts at institutionalization led to an extremely strong rally in virtual currencies. There is no shortage of cryptos with 3 or 4-digit performance. The challenge for 2021 will be to seize any bullish or bearish opportunities.
1. Bitcoin: the benchmark cryptocurrency
Daily volume at the end of 2020: EUR 15 to 25 billion (7% of capitalization)
Bitcoin remains the main cryptocurrency and gives a good overview of the trends of all other cryptos. 2020 will have been a year of all records for Bitcoin. The capitalization has multiplied by more than 2.5 over the course of the year! Bitcoin’s capitalization has overtaken that of companies like LVMH or Bank of America.
The rally in Bitcoin can mainly be explained by the injection of liquidity, the resulting decrease in the financial burden, but also by the desire to institutionalize cryptocurrencies. 2021 will be a crucial year for Bitcoin. The dangers would be that of an abusive speculative dynamic or even a strong return of risk aversion due to economic adjustments.
Conversely, Bitcoin should continue to be propelled by the decline in the dollar index, continued injections of liquidity, and its future uses. However, due to the possible liquidity pressure, correction risks could arise in the medium term.
2. Ethereum: the most widely used Bitcoin and Crypto challenger
Daily volume at the end of 2020: EUR 7 to 10 billion (15% of capitalization)
Ethereum (ETH) is the second largest cryptocurrency by valuation. On an annual average, ETH is one of the best large cryptocurrencies. ETH is often viewed as the most widely used virtual currency. This is due to the presence of many tokens (corporate cryptocurrencies) based on the use of ETH. ETH may be associated with an exchange index as the companies that make up it are actors in the crypto industry.
However, ETH remains more volatile than Bitcoin. The daily volume in relation to the capitalization is proportionally larger. ETH will be interesting in 2021, depending on the degree of democratization of the agents and the financial burden of the markets.
Also read our When and How To Buy Ethereum article
3. Binance Coin: The crypto that invites you to join the big leagues
Capitalization: € 3,460 million
Daily volume at the end of 2020: € 211.6 million (6% of capitalization)
Binance Coin, for its part, rose from a capitalization of almost EUR 1.7 billion to over EUR 3.5 billion, which shows the magnitude of capital flows in 2020 and the pause between the increase in 2017 and 2017 suggests that of 2020 quite well : Investments are no longer just speculative.
Binance Coin, issued by the famous platform of the same name (Binance), is one of the 10 largest cryptocurrencies in the world. Binance is one of the giants benefiting from the democratization of cryptocurrencies in terms of individual savings. An increase in the price of the major cryptocurrencies could only benefit the platform. However, due to the correlation between the price of BTC and Binance Coin, particular attention should be paid to possible corrections in 2021.
4. Ripple: Much more than a crypto, a passport for decentralized finance
Daily volume at the end of 2020: EUR 5 to 8 billion
Among the largest cryptocurrencies, the ripple in the landscape stands out. Indeed, Ripple has benefited less from returning to late 2017 / early 2018 levels, despite its capitalization multiplying by more than 2.5 times over the year.
Ripple is a start-up that has made no secret of its ambitions to step into DeFi (decentralized funding) this year. Above all, the company offers its services to institutions to make fast and international payments. Although the annual average performance is statistically lower, the ripple makes it an attractive cryptocurrency.
5. Litecoin: A competitor to Bitcoin that remains in the top 5
Daily volume at the end of 2020: EUR 2 to 3 billion
Litecoin (LTC) is a competitor to Bitcoin. It retains its place in the top 5 uppercase cryptos. Its amount is ultimately capped at 84 million LTC, up from 21 million for BTC. This cryptocurrency, accepted by many agents, offers a higher speed of mining (2 minutes and 30 seconds per block).
Litecoin is a cryptocurrency to consider, if only for the momentum that started in 2020. However, unlike BTC, Litecoin is still way below its records. As long as the trend in all cryptos remains strongly bullish, Litecoin could benefit from a relative catch-up effect. Conversely, risks can persist with crypto voltages.
6. Cardano: A crypto based on a double blockchain and well established in the top 10
Daily volume at the end of 2020: € 520 million (13% of capitalization)
There is also Cardano (ADA) in the 10 largest cryptocurrencies to date. Cardano is a blockchain platform that sets itself apart from its competitors through a double blockchain. This enables secure and scalable transmissions (ability to react to high requirements).
Even if Cardano does not return to its level in late 2017 / early 2018, the momentum that has started remains interesting, while trading volume has hit new records, which shows investor interest in 2020. The commitment will be to know whether this interest will also be noticeable in 2021 and whether the company can meet its ambitions.
7. CHSB: a « little crypto » that does everything great
Capitalization: € 110 million
Daily volume at the end of 2020: € 1 to 2 million
The CHSB is part of what we might call « little cryptos » with an interesting profile. The capitalization is more than 110 million euros compared to 7 million euros in January 2020. The CHSB token is issued by SwissBorg, a growing crypto investment application. The company raised almost 50 million francs in 2017 and has really gotten off the ground this year.
These cryptos remain very volatile but have significant and serious long potential. 2021 could mean a continuation of the observed trend.
Cryptocurrencies: What are the prospects for 2021?
2020 will have been the year of all records for cryptocurrencies. Although the record prices cannot be seen everywhere, the past year was mainly characterized by the massive inflow of capital. This influx is the result of a decline in risk aversion, an injection of liquidity and, above all, the desire for regulation and institutionalization. The fundamental trend is expected to remain strong in 2021, although the risks to liquidity and democratization remain. The recent speculative move unleashed after this fundamental surge is likely to be among the greatest price risks in 2021.
All of our information is generic in nature. They do not take into account your personal situation and in no way constitute personalized recommendations for the execution of transactions and cannot be equated with financial investment advice or an incentive to buy or sell instruments. financially. The reader is solely responsible for the use made of the information provided, without recourse to the publisher of Cafedelabourse.com being possible. The responsibility of the editor of Cafedelabourse.com can in no way be accepted in the event of errors, omissions or inappropriate investments.
Which crypto for 2021?
|Surname, surname||Market capitalization||Average price (USD)|
|Ethereum (ETH)||+ $ 22 billion||$ 200|
|Ripple (XRP)||more than $ 9 billion||$ 0.21|
|Bitcoin Cash (BCH)||+ $ 4.8 billion||$ 260|
|Tether (USDT)||+ $ 4.6 billion||$ 1|
What are the 10 largest cryptocurrencies called?
The 10 richest people in bitcoins and cryptocurrencies
- 6 – Brian Armstrong ($ 900-1 billion)
- 7 – Matthew Roszak ($ 900 million to $ 1 billion) …
- 8 – Anthony Di iorio ($ 750 million to $ 1 billion) …
- 9 – Brock Pierce ($ 700 million to $ 1 billion) …
- 10 – Michael Novogratz ($ 700 million to $ 1 billion) …
What future for Ethereum?
The price of ether rose 483% in 2020. That’s more than Bitcoin, which rose + 303% over the past year. Ethereum’s valuation is now at $ 110 billion (570 billion for Bitcoin). In late 2020 and early 2021, many records will be signed in the cryptocurrency market.
What are virtual currencies?
Virtual currencies are characterized by the fact that they have no physical support (no banknotes or coins), that their value is not tied to gold or any other traditional currency, and that they are not regulated by a central bank or financial institution.
How does the virtual currency work?
The use of a virtual currency presupposes the existence of an electronic wallet and of currencies that enable their circulation and storage. The purpose of virtual currency is the same as that of real money: anyone can buy goods online or in a physical store.
Where can you buy cryptocurrency?
|Page? ˅||For whom ?||Payment method|
|Coinbase||Beginner||Credit card, transfers, cryptocurrency|
|eToro||Beginner||Credit card, bank transfer, PayPal …|
|octopus||Experienced||Credit card and transfers|
Where can you buy Bitcoin for free?
eToro offers the possibility to buy cheap Bitcoin as well as other cryptocurrencies like Bitcoin Cash. With eToro, it is possible to buy Bitcoin securely from an online broker whose reputation is well established.
Which cryptocurrency should be invested in 2020?
What are the 3 most promising cryptocurrencies? In our opinion, the most promising cryptocurrencies for 2020 and in the coming years are the Tezos (XTZ), the Stellar Lumens (XLM) and the ChainLink (LINK), whose prices have risen sharply in recent months.
How to invest in Bitcoin in 2020
How do I invest in Bitcoin in 5 steps?
- Register with Bitcoin Trader using this link.
- Create an account on the broker platform.
- Fund your account.
- Select Bitcoin and click « Buy ».
- Open a Bitcoin trading position.
How do I invest in cryptocurrency?
How do I invest in a cryptocurrency? You can invest in cryptocurrency by buying tokens through a special platform. You can also trade cryptocurrency through an online broker like eToro and invest in a derivative that is based on the virtual currency.
How does the value of a cryptocurrency increase?
The number of people using the currency that trust leads to more or fewer people using the currency, which of course also adds to the value of the asset. What defines the value of a cryptocurrency is therefore also its popularity.