What is the best cryptocurrency to invest in for the short term? Once you figure out whether cryptocurrency is an investment that you have an appetite for, it’s time to figure out which coin you want to put your money behind.
But before that, it’s important to know whether to opt for long-term investment or jump on the short-term volatility of the market. But what’s the difference between both?
Difference between Long Term and Short Term Cryptocurrency Investment
Short-term cryptocurrency investment usually costs less money, generally no more than 36 months. Its purpose is to obtain greater returns in a shorter period of time. Therefore, the risk and labor intensity of short-term crypto investments are often higher than long-term investment.
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Conclusively, the difference compared comes down risk reward and time.
Which is Better?
I am committed to allowing global users freely choose professional investment strategies and easily complete crypto assets through different fund products that best suits them.
After all, the best investment is one that you can manage with confidence, and comes from understanding.
Investors and speculators are both possible to invest and speculate in the cryptocurrency market. So Investors should find a reliable cryptocurrency project that meets their model.
However, it is pertinent to know that the long-term position of cryptocurrency is still not suitable for the current market.
Many people may not want to hold and invest in bitcoins for a long time, but only want to earn short-term profits and short-term investments. Compared with long-term investments, the risk is greater! You need to pay close attention to the price fluctuations of cryptocurrencies, so you still need to be cautious.
This article is centered around cryptocurrency investment in the short term, so here are the best cryptocurrencies to invest in for the short term.
Best Cryptocurrencies to Invest in for the Short Term
Here is a list of the best cryptocurrencies to Invest in 2021 for short term right now:
- Solana (SOL)
- Shiba Inu (SHIB)
- Polkadot (DOT)
- Ripple (XRP)
Follow the trend of 11,500%! Without anyone predicting it, the cryptocurrencies Solana and Shiba Inu made it to the global top ten. The Solana token, created in 2017, only recently experienced a price explosion, and in a month, has risen from approximately 67 euros to a full 160 euros.
With this growth, it ranks 7th among all cryptocurrencies by market capitalization, and it is the best cryptocurrency to invest in for the short term.
What is Solana?
In an upward trend, Solana relies on a new timestamp algorithm called Proof-of-History. The algorithm supports automatic trading, which happens within a fraction of a second.
Traders’ increasing interest in Coin Solana is also reflected in the market value. It is now approximately 33.3 billion euros, so Solana is now ranked seventh among the most important cryptocurrencies.
At the beginning of the year, the market value was slightly less than 80 million euros, with a peak growth of more than 11500%. The price of Solana at the time was 1.57 euros, but in early September it rose to the current historical high of 170 euros.
Solana predicts: There is still a lot of potential here, as with loads of virtual cryptocurrency. But note that the better the token development, the higher the risk, because it can reverse the drive just as fast.
Shiba Inu Coin (SHIB), a meme token inspired by Dogecoin, is a perfect cryptocurrency investment for the short term. It was invented by the anonymous “Ryoshi” and is a token on the Ethereum blockchain. Shiba Inu has been vying with Akita Inu and others for alpha status for a long time.
This coin was praised by Tesla CEO Elon Musk and others, but so far, has not entered the top ten cryptocurrencies, which gives it ample room to explode in the short term.
Whether this will happen in the future should also depend on the interests of the community and the great sponsor, Musk.
Polkadot is another top cryptocurrency to invest in today for the short term. The cryptocurrency, Polkadot also ranks among the top positions in the popular rankings with a market value of approximately 25 billion euros.
The token was designed by Ethereum founder, Gavin Wood, in 2017, and like its competitor Shiba Inu, relies on blockchain technology.
Positive: In Polkadot, different blockchains are connected to each other and can communicate as a network. With this unusual concept, Gavin Wood raised nearly $150 million in its initial coin offering at the end of 2017.
Forecast: Good background! Cryptocurrencies like Polkadot are considered the future of the current generation of financial world, but also because they can generate passive income through Polkadot staking.
One place in front of Solana is the cryptocurrency Ripple (XRP). With its market value currently exceeding 40 billion euros, XRP is one of the best cryptocurrencies to invest in 2021 for the short term .
Unlike many other open source projects, there is a private company behind cryptocurrency: Ripple Labs. It is headquartered in San Francisco and is now considered the most valuable startup in the world, with a market value of more than 120 billion U.S. dollars.
Today, it is only 5 positions behind the industry leader Bitcoin, and is based on an idea from Web developer Ryan Fugger, businessman Chris Larsen, and programmer Jed McCaleb.
Ripple is certainly nothing new, however the cryptocurrency may see some kind of rebirth which might cause it to explode in the short term.
This all depends on a major legal battle with the US financial regulator who accused RippleLabs of issuing illegal securities. An allegation extending to the XRP token itself.
If Ripple wins the debate, then the possibility of cryptocurrency exploding in 2021 is very high. Investing in it now will be a shrewd move for those seeking short term gains.
Are Dogecoin’s forecasts still positive? The popularity of Dogecoin is attributed to Elon Musk. At first, the token was considered a pure internet gimmick until the American billionaire tweeted it.
Then the hype began. First, users of the Internet platform, Reddit, followed suit, and then international cryptocurrency investors. In May 2021, the price of Dogecoin climbed to a previous high above 0.50 Euro.
However, since then, things quickly went downhill again. Currently only 0.17 euros must be paid for DOGE tokens, which leaves the question of where it will go.
To be sure, Dogecoin is currently one of the top ten cryptocurrencies in the world. If you invested a year ago, your wallet will have increased by 7733.9%.
Dogecoin prediction: The value is still high risk. However, investors should look up rather than down. The current state of the chart shows a bottoming out at around 0.15 euros.
The firm promise of Elon Musk and Dogecoin may break out again anytime, making it a great cryptocurrency to invest in 2021 for the short term.