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.
April was a crazy month in the world of crypto where we saw lots of new highs and some downswings. Bitcoin hit an all-time high of $64.9k and then retreated down to $47k. Ethereum soared to all-time highs as well and pushed over the $2,700 mark. Most alt-coins increased during the month of April, but a few large names lagged and either went south or sideways. May will be an interesting month as we close in on the date of the Bitcoin Conference in June!
Here are the best cryptocurrencies to invest in during May 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: $56,755)
The world's first digitally engineered safe-haven and the world’s first 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.
SAFEMOON (current price at time of post: $0.00000511)
Safemoon trended heavily on Twitter and TikTok in April and it lead to a huge increase in value. During the month of April, it increased 2,000%. I wrote an article on Safemoon here with tips on how to buy it and how it works!
SHIBA INU (current price at time of post: $0.00000190)
Have you heard of Dogecoin? Shiba Inu (SHIB) isn't much different. It serves no purpose or useful functionality, yet it has value and is making people money. To buy SHIB, you need to use one of the exchanges listed on CoinMarketCap. It's very cheap, and May is looking like a solid opportunity for growth. Oh, and you can safely store it on your Ledger. Keep reading for more info on how to get one!
ALGORAND (current price at time of post: $1.38)
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 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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