Note: This is not trading advice, these are my own opinions. Investing in the cryptocurrency market comes with inherent risk. Always do your own due diligence.
I apologize that this article is a week late! May was a wild month in the world of crypto, to say the least. Bitcoin got crushed after Elon Musk made comments that he does not think it's good for the environment. He also claims to have sold some of Tesla's BTC holdings. This along with the public perception of the environmental harm caused by Bitcoin mining led to a massive decline in price. Having said that, Bitcoin is a very appealing BUY at the moment.
Here are the best cryptocurrencies to invest in during June 2021.
Again, these are just speculative plays. Investing in cryptocurrencies can result in losses. Only invest what you can afford to lose.
BITCOIN (current price at time of post: $40,520)
Bitcoin is always #1 on the list. The world's first digitally engineered safe-haven and the world’s first mainstream cryptocurrency, Bitcoin is stored and exchanged securely on the internet through a digital ledger known as a blockchain. Bitcoins are divisible into smaller units known as satoshis — each satoshi is worth 0.00000001 bitcoin. (from Coinbase.com) JP Morgan believes each Bitcoin will be worth $650,000 by 2031. Learn more here.
POLYGON (current price at time of post: $1.51)
Polygon goes by the ticker MATIC and is readily available on many exchanges. In fact, this token has succeeded over the last few weeks when just about every other cryptocurrency has fallen heavily. Buy it at Coinbase.com. Learn more here.
AMP (current price at time of post: $0.07)
Similar to Polgyon, Amp has recovered nicely from the crazy price activity of the market in May. Buy it at Coinbase.com. Learn more here.
ALGORAND (current price at time of post: $1.09)
Algorand is a cryptocurrency and blockchain protocol that aims to be simultaneously scalable, secure, and decentralized. It uses a consensus algorithm called pure proof-of-stake. (from Coinbase.com) Oh, and you can earn 6% interest if you hold it on Coinbase. Learn more here.
Where can I buy crypto?
There are hundreds of platforms called "exchanges". An exchange is a place for investors to buy, sell, and hold their crypto. Here are a few that I recommend, complete with signup links and ways to earn free crypto:
Coinbase: Pros: The most secure platform in the world. Easy to use and great technology. Cons: High transaction fees. Small selection of crypto to purchase. Cons: Not many!
Kraken: Pros: Great security and staking opportunities. Great technology, great platform. Cons: Limited selection of cryptocurrencies.
Bittrex: Pros: The largest selection of crypto in the world. Cons: Has been hacked before.
Do you live in New York? Click here to view your buying options.
Ok, you've bought your crypto, now what?
You have a few options here:
Keep your crypto on the exchange where you bought it. Many exchanges nowadays are very secure and financially stable and it's fine if you leave your investment there. Do your due-diligence and ensure that your decision is best.
Move your crypto to safe, cold storage wallet. What is this? Cold storage wallets are essentially USB sticks where you can keep your crypto. This is the most secure method of holding your crypto.
Here are the two best wallets you can buy:
Wallet Type: Cold
Cost: $119 + tax
USB Drive: Yes
Interface: App-based
Great For: Alt coin holders
The Ledger Nano X is an improvement over the first generation Nano S. It supports over 1,500 cryptocurrencies giving you the ability to store just about anything. Important: In December of 2020 Ledger suffered a data hack which exposed names, phone numbers, and home addresses of many customers. This did not result in the loss of any holdings or the exposure of private keys, but it did lead to phishing attempts.
Pros:
Ledger Live has a fantastic user interface
Connects to various wallets and exchanges
Stores up to 100 different apps
Very good support
Bluetooth connectivity
Cons:
Bluetooth has flaws
Data hack in 2020 exposed email and home addresses of ledger users resulting in phishing attempts. NEVER give anyone your private keys. Only input them into the actually Ledger Nano X device.
Wallet Type: Cold
Cost: $190
USB Drive: Yes
Interface: Website-based
Great For: Advanced users
The Trezor Model T is also the second generation of Trezor cold wallet storage. It's website interface gives users access to exchanges such as Changelly, a great way to swap tokens for a small fee. The Model T supports more than 1,600 cryptocurrencies. It also has a MicroSD card slot which lets you encrypt the PIN for further security.
Pros:
Unlimited Wallet Storage
Web-based interface with built-in exchanges
Lengthy list of cryptocurrencies
Cons:
Touchscreen is small for typing
Confusing for newbies
Hard to justify the cost
Wallet Type: Cold
Cost: $59
USB Drive: Yes
Interface: App-based
Great For: New users with low diversification
The Ledger Nano S is Ledger's first generation hardware wallet. It is very introductory and is still relevant for those who are new to crypto. It's biggest weakness is the lack of storage.
Pros:
Ledger Live has a fantastic user interface
Connects to various wallets and exchanges
Bang for your buck!
Very good support
Cons:
Max space for 18 wallets
No Bluetooth feature like it's successor
OR, you can:
Move your crypto to an interest-earning account! This is new and exciting. While your USD banks are paying out 0.5% interest on the money in your savings accounts (at best), you can earn up to 10% interest on your crypto. I recommend the platforms below, each of which has $100m in custody insurance:
Pros:
The best reputation of the savings-strict platforms available
They have their own native cryptocurrency CEL
Outspoken and visible leader
The highest Bitcoin (BTC) interest rate on the market @ 6.2%
Interest is compounded weekly
Cons:
No ability to access your account from a browser, yet. Functionality should be coming soon.
Rating: 9/10
Pros:
The most secure and financially-backed exchange in the industry
Interest is compounded every second.
Cons:
It's primary usage is as an exchange. Their savings model is very limited, but expect growth.
USDC has a very low APY
Rating: 9/10
Nexo
Pros:
They have their own native cryptocurrency NEXO
The highest Ethereum (ETH) interest rate on the market @ 6.0%
Interest is compounded daily
Cons:
No negative experiences yet on my end, but I've heard their customer service could use improvement
Rating: 8/10
Pros:
No account minimums
Ability to choose how your interest is paid out (each specific coin or one coin for your entire portfolio)
Cons:
Most withdrawals are not free!
Interest is compounded monthly
Rating: 7/10
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