[2021] Why Buy Bitcoin + 5 Best Crypto Coins to Buy

The kind of swing Bitcoin experienced from 2017 highs to the region around $65,000 certainly shocked a lot of people. People that really understood the fundamentals of this coin rejoiced the market reaction and a lot of people started flooding the market.

A lot of retail traders were over leveraged and the market is currently undergoing a 50% correction phase.

Whenever a market dips below 50%, it always creates a lot of FUD (fear, uncertainty and doubt), and it shakes out all the weak hands in the sector.

Now, the main question which seems to be on everyone’s mind is whether or not to involve Bitcoin in their portfolio?

Is it really the ultimate inflation edge?

The answers to these questions are not easy to justify.

However, there are certain metrics using which you can gain an edge and if your plan is to play for the long term, we have good news for you.

In this article, we are going to discuss the current market condition, best forecast model which you should always refer to before taking a position in this asset, and much more.

Also, we are going to tiptoe around the recent environmental concerns everyone seems to be worried about, and answer the question: What are the best altcoins to buy in 2021?

* Disclaimer: ScamBitcoin.com is not a licensed financial advisor. The following material is provided for educational purposes and not as investment advice.

Best Bitcoin Forecast Model

One thing which makes Bitcoin stand apart from all the other cryptocurrencies is the kind of transparency it adores.

Many people might be confused by it because a lot of traders seem to think of Bitcoin as some mysterious and anonymous way of exchanging the money.

Bitcoin is the only currency in the world wherein using on chain metrics anyone can see what everyone is doing with their share of the wealth.

Identity of the people using the wallets is definitely anonymous, but the ledger clearly reveals everything you need to know.

Below, we have gathered the recent clip from Bloomberg channel wherein Cathie Wood talks about where BTC is headed.

If you read in-between the lines, it is clear that as more and more institutions will get into it, the next parabolic move is most likely to occur.

The exact time of the next bull run is something no one can predict with accuracy, but as the next halving nears, volatility stabilizes, the instrument will reflect the market cap and it will reach the equilibrium point.

As retail investors, it is a little touch to get the groove of the markets and you might wonder, if there is any tool that paints a clear picture of the health of the cryptocurrency you want to buy. As far as Bitcoin is considered, stock to flow model is the best one to use for analysis.

If you look at the history, this model as always predicted the trends very precisely and at the end of the day, it is the best one out there.

The data clearly shows that despite the high prices, BTC is still early in the adoption curve and even if you enter at the current prices, there is a lot of room for profits.

Inflation Hedge and How does it act like it?

A lot of famous personalities like Cathie Wood and Elon Musk have said that Bitcoin is the ultimate inflation hedge.

However, that statement is not entirely true.

Of course, it has a lot of benefits compared to fiat options, but it does not quite match gold.

For example, gold rises whenever there is panic and once things go back to normal, it stabilizes.

Bitcoin on the other hand, falls quickly during panic selling.

However, once the conditions are stabilized, it recovers quickly than any other asset and over-performs.

After analyzing the data over the years, one thing becomes very obvious and that is BTC is something you should incorporate into your portfolio.

Even 1% share of BTC in the basket will also affect the net profits drastically and combined with derivatives and risk management, it is the perfect combination.

Environmental Concerns and FUD

In recent days, a lot of people are criticizing Bitcoin for the amount of heat it produces and the energy it consumes.

For a long period of time, governments were silent on this matter, but as some well respected crypto influencers started talking about it, the market took a swing down due to the FUD.

While thinking about Bitcoin investing, as an investor it is natural to worry about the sustainability of the mechanics.

Before reaching any kind of conclusion, we suggest you to read this report from Galaxy Digital posted on Yahoo Finance.

The research done by Galaxy digital clearly shows that BTC is bringing value to the table and the traditional banking system consumes more than 10 times energy compared to this virtual currency.

This report alone is enough to put an end to the debate around the environmental concerns and as data clearly suggests, this coin does have a bright future.

Always do your own research and next time anyone talks about the sustainability issues with BTC, do not listen to the hype instead just focus on the hardcore data because it never lies.

Best Crypto Coins to Buy in 2021

Many people in the crypto space missed out on the gains Bitcoin produced.

Thankfully, now as the market is rapidly expanding, there is no shortage of opportunities.

Nonetheless, it does not mean you should start injecting capital to every coin out there, because let’s face it, most of them will go to zero.

At the time of publishing this post, there are over 10,000 cryptocurrencies. Newbies in the sector might get overwhelmed by the amount of choices presented to them.

Though we cannot predict the future, we have listed out a few coins which display a lot of potential.

Remember, this content is for educational purposes only and as always you should do your own analysis before investing into any coin.

Ripple (XRP)

Ripple is a name which many crypto investors are familiar with.

It has been around for roughly a decade now and in the past year alone, it has moved up over 400%.

The main reason behind the comparatively cheap price of this cryptocurrency is the lawsuit against the parent company.

So far, looking at the proceeding, we strongly do believe that Ripple will shoot up once it’s day at court is over.

This token opens up blockchain technology to the corporate world and as far as transaction speed goes, it can handle more than 1,500 per second.

The market cap is also not that high and it means there is plenty of room for profits.

Cardano (ADA)

Cardano is one the most rapidly growing blockchain platforms.

ADA tokens are designed to build decentralized applications.

The developers behind this project are well known and as you might already know, this digital currency is developed by one of Ethereum’s co-founder Charles Hoskinson.

As far as practical uses go, ADA helps in traceability which means it is highly likely to be adopted by the industries that need to track their manufacturing process.

Also, it can be used to construct secure voting mechanisms for token holders.

At the time of writing, cardano is priced at $1.53.

Considering the kind of problems this token is trying to solve, we do feel confident in their abilities and it does deserve a spot on your watchlist.

Nano (NANO)

If you particularly believe in the environmental concerns argument against Bitcoin, then NANO is the coin that you should look into.

This token has been around for 6 years now and currently it is trading for a little over $6.

Year to date, it has produced a returns of 500% plus.

It has a very negligible amount of carbon print.

More importantly, this coin doesn’t rely on mining and as a result, it consumes way less energy compared to other major solutions.

TRON (TRX)

Tron was launched in September 2017 by the Tron Foundation, a Singapore-based non-profit organization.

It is led by CEO Justin Sun and developed by a team of renowned technical specialists.

This token is extremely liquid and if you are a fan of trading instead of holding, then this is the one which might be more suited towards your needs.

The main idea behind this token is to eradicate the middle men and create an ecosystem which is fair to both content creators and viewers.

Chia (XCH)

Chia Network develops a smart transaction platform. This system was created by Bram Cohen who is the founder of BitTorrent.

The main aim of this crypto is to provide people with a token that is hassle-free, hard to crack and nearly impossible to steal.

Currently, XCH is trading at around $550.

Though it might be steep for some retail investors, the potential it holds certainly sweetens the deal.

Moreover, as the down trend is about to get over.

Now, it may be a good time to add this coin to your portfolio and diversify risk.

How to Move Forward in 2021?

If you do not yet have a trading account with Binance, one of the best and most trustworthy online cryptocurrency exchanges, then we’d recommend that you go ahead and open one for free today.

No matter where you are located in the world, Binance will allow you to purchase, sell, and trade Bitcoin or any one of the other altcoins mentioned above (along with hundreds of others).

If you are new to trading, make sure to check out our Binance Day Trading Guide.

Thank you for reading this article.

Feel free to leave your thoughts as comments below. Looking forward to hearing from you!