We have 5 months until 2020 ends. This year has been quite challenging so far. First, the COVID-19 crisis threatened human life to a great extent. Afterward, the downward spiral of the global economy brought market crashes around the world. In this scenario, people are reluctant to make any investment decisions. However, the cryptocurrency market has still shown great potential for ROI. Therefore if you want to squeeze some passive income then right now is the best time. Below we have distilled out the top 8 cryptocurrencies for investment in 2020.
But before we delve into the types of crypto, let’s have a look at what makes a coin worth investing in.
How to choose the best cryptocurrency?
Crypto market is way too volatile than the traditional market. Coins prices go up and down with massive differences. For instance, Bitcoin was worth pennies in 2012. But today it is standing at $9000. So, it is a risky but rewarding place to invest. The reason for investing in more than one cryptocurrency is the minimization of risk. It will provide you some cushioning when one coin is going down. Invest in a diverse range of currencies. Nevertheless, you have to watch out for the following two qualities of coins before investing.
- Get the data on the collective value of all issued coins of a particular currency. It is also known as market capitalization. Higher the market cap, more the interest of investors.
- Liquidity is also a crucial factor to consider. Currency with higher liquidity will be easier to sell. Popular coins like bitcoin get easily transacted due to this feature.
Bitcoin is the most popular and in-demand cryptocurrency. It is the pioneer f the crypto world. The founder of bitcoin is som unknown person with the pseudo name Satoshi Nakamoto. Bitcoins have a limited supply. The mining of this currency will end at 21 million. However, the investment in bitcoin is increasing day in and day out.
Investing in bitcoin in 2020 strikes as a wise decision. It has been a relatively stable coin in the volatile crypto market. Looking at the data of the past nine years, it is safe to say that bitcoin price has substantially risen. Additionally, Bitcoin has very high liquidity. With a multitude of investors, you will always find buyers for your assets.
Another reason for the increased value of bitcoin is the halving of currency in 2020. It happens every four years. The previous halving event occurred in 2012 and 2016. Halving essentially means that the creation of coins will drop from 12.5 BTC to 6.25 BTC. Prices will surge as a result of diminished supply. Hence Bitcoin should be your topmost priority for investment in 2020.
According to market capitalization, ethereum is the second biggest platform behind only bitcoin. It creates decentralized applications to help businesses with smart contract functionality. Ethereum has its own blockchain which is very popular among investors. Ethereum miners generate ether cryptocurrency.
Ethere is a highly liquid crypto coin. On the price chart, it is usually on the second number below only bitcoin. Therefore you can easily find buyers and sellers of ether on the market. Additionally, ether’s price has stayed stable or shown an upward trend in recent years.
In 2020, Etehreum will find more appeal amongst developers and investors. Mainly because of its decentralized applications. The ETH2 update is also awaited by many to see which way this ecosystem goes. Hence as an investor, Ethereum should be the best cryptocurrency to invest in 2020.
Litecoin came right after bitcoin. It is one of the in-demand currencies from the last decade. As the name suggests litecoin is a fast, peer-to-peer transferable coin. It is a bitcoin fork with only a few changes in code.
Litecoin will have a limited supply of 84 million. It has gained popularity among crypto community with high market cap and reliability. Furthermore, litecoin has a very high liquidity factor. So, It is easy for holders of litecoin to sell their assets.
If bitcoin is Gold then litecoin is the silver. It is the best altcoin out there. You can consider it the cheap and speedy version of bitcoin. Therefore Litecoin should be on the list of investment options for crypto enthusiasts. It will be a rewarding fleet in 2020.
This coin comes third in place with regard to market capitalization. Ripple or XRP provides the infrastructure for allowing banking transactions beyond borders. It has a partnership with major financial players. This has made ripple a breakthrough ecosystem in crypto world.
Ripple has institutional support. It recently integrated with Western Union (WU) for large money transfer facilitation. Some experts believe that ripple has the potential of replacing SWIFT (Society for Worldwide Interbank Financial Telecommunication). Moreover, ripple is safe from U.S Securities and Exchange Commission Regulations (SEC).
Ripple currency is excellent for long term hold in 2020. Its orientation towards large financial players makes it reliable and liquid. It is likely to explode in 2020. That’s why it is a good investment for the ‘hold and wait for surge’ option.
EOS.IO is another promising blockchain protocol. Some of the problems that users face on Ethereum are absent on EOS. The platform attracts developers with its efficient account management and database creation services. In addition, it is much faster and scalable than bitcoin and ethereum blockchain. Hence EOS has all the features for making it a good competition in the market.
EOS is expected to develop to the full potential this year. It has successfully sold tokens. The capital earned from the sale will finance new updates and features.
The community of investors is confident that EOS will be quite profitable this year. Furthermore, in case ethereum fails you, EOS will have your back. So, don’t hesitate to invest in this resilient currency.
NEO is a copy of Ethereum platform. In certain communities, it is referred to as China-based Ethereum. The features of NEO include the provision of launching pad to coders for decentralized app development. NEO is also a smart contract platform.
However, NEO is not as decentralized as Ethereum. The former uses a few nodes while the latter relies on hundreds of nodes. It issues token for giving ownership of assets to individuals. The value of NEO token is increasing gradually.
NEO is more than just a crypto coin. It is among the leaders in blockchain technology. Big investors trust NEO that’s why it is among the highly liquid crypto coin. As a result, investing in NEO is a safe step in 2020.
Binance Coin or BNB is a highly useful token for trading in crypto community. The creator of BNB is the world’s best cryptocurrency exchange AKA Binance. The success of the exchange itself makes us confident that this coin will be a biggie as well. Right now, BNB is sticking to the top ten positions on Coinmarketcap.
The trade volume of BNB has surged since the introduction in the market. Subsequently, its liquidity is very high. Moreover, the price has shown stability and an upward trend as well. Therefore investments in BNB are swelling with time.
BNB is a good bet in 2020. Especially, the users of Binance exchange must acquire it for additional benefits like a decrease in trading fees.
Cardano or ADA is a competitor to NEO and Ethereum. The platform has a similar function letting developers launch decentralized applications. It takes pride in being an easier and more scalable place for developers’ use.
So far, ADA has had a high trading volume. This leads to high liquidity. However, it is more volatile than other major cryptocurrencies.
ADA proves to be a hedge against ethereum. That’s why investors should pick it up in 2020.
We have succinctly described the top 8 cryptocurrencies in which you should invest this year. Additionally, we have also provided reasons for why you should pick a particular currency. Choose the best cryptocurrency according to your needs and understanding.
Investing in crypto is an in-thing in 2020. Furthermore, with COVID-19 pandemic upon us, we all are staying at home 24/7. This scenario is a great opportunity for sitting in front of the computer and doing some trade business. We will help you gain a grasp of things. Provide your information on this page. Our team will get in touch shortly afterward. Many of the efficient up to date resources on our site are available free of cost. So, don’t worry about money. Just get started and keep the side hustle going!