Cryptocurrency might have started out as a Wild West of investing dominated by mavericks, but it’s now firmly in the financial mainstream. Institutional investors and big banks treat it as a serious asset, even during a year marked by volatility and regulatory crackdowns in China and elsewhere.
If you need evidence of how volatile, consider this: As of late September, the world’s largest crypto, Bitcoin, had seen its price range from a 52-week high of nearly $65,000 to a 52-week low of less than $10,400.
Despite that volatility, many crypto investors remain on the lookout for the next big payoff. Keep reading to learn which cryptocurrencies might explode in 2021.
Profit and Gains from Crypto
But much of the public attention remains focused on crypto — largely because of the huge potential profits. When trying to identify the next big cryptocurrency, two things to keep an eye on are similar to what a stock investor would keep an eye on: market capitalization and price.
Market cap works for crypto because it shows how much has been invested in a specific network. As a general rule, the larger the market cap, the more stable the asset–though it also means the coin has less room to grow. It’s also important to keep an eye on the price to determine whether investors are bullish or bearish on the crypto.