By AsianMarketCap Official on The Capital
Are you planning to include cryptocurrencies in your portfolio this year? While the number of cryptocurrencies is constantly growing and more cryptocurrencies are rising by the minute, choosing which are the best to invest in is no easy decision. Worry no more, we’ve narrowed down the list and we’ll give you the top 5 best cryptocurrencies to invest in 2020.
But first, why should you invest in cryptocurrencies? Crypto enthusiasts firmly believe that cryptocurrencies are the future of finance. Digital currencies like Bitcoin offer several advantages compared to traditional fiat money such as lower fees, transparency, and ease of transactions.
From an investors’ perspectives on why you should invest in cryptocurrencies, there are mainly five reasons to consider:
Ø AMOUNT. Any enthusiast can invest in cryptocurrencies in any amount comfortable to them, making the cryptocurrency market affordable to nearly everyone.
Ø LIQUIDITY. Cryptocurrency exchanges are open 24/7. Anyone can trade, buy, and cash out at any time.
Ø TRANSPARENCY. Through the power of blockchain technology, all transactions are being recorded and they are available for everyone to see anywhere in the world. This provides an ultimate level of transparency for investors.
Ø DIVERSIFICATION. A large number of cryptocurrencies out there enables you to easily diversify your portfolio in order to mitigate risks.
Ø FEES. Cryptocurrencies offer lower fees compared to traditional investment assets.
WHICH CRYPTOCURRENCY TO INVEST IN?
The following list is based on the potential of these cryptocurrencies that show sustainable growth in the months ahead.
1. BITCOIN (BTC). Of course, Bitcoin must be on top of the list being the world’s most popular cryptocurrency. In fact, its popularity is one of the biggest advantages against the other players in the crypto sphere. As long as Bitcoin continues to dominate the crypto market, investors will always benefit from high liquidity levels even during market uncertainty. Bitcoin has been the best performing cryptocurrency in the space for a straight decade now, and even in 2020, no other cryptocurrency seems to be coming close.
2. RIPPLE (XRP). Founded in 2012, Ripple is the third cryptocurrency based on market capitalization and is one of the most promising cryptocurrencies on the list. It’s solid technology and network are rapidly opening new opportunities in the field of international commerce, banking, and payment networks. Ripple has an intentional focus and has been created as a solution to making international transactions as fast and easy as possible. Experts believe 2020 will result in higher adoption of XRP and therefore its price will increase significantly.
3. ETHEREUM (ETH). Created in 2015 by the brilliant Vitalik Buterin and a team of others, Ethereum has been the closest cryptocurrency to being a competitor for BTC. Bitcoin might be the most popular cryptocurrency, but no one can deny Ethereum is by far the most influential one. The reason is simple: the Ethereum blockchain enables thousands of projects to develop on top of it. Ethereum remains a very accessible investment for those starting off in the cryptocurrency space. The strength of this currency is closely related to the strength of its network. The more decentralized applications and ecosystems relying on the Ethereum network, the more powerful ETH tokens will become. While it’s unlikely that Ethereum matches Bitcoin’s price, analysts still see huge potential for this cryptocurrency in the months ahead. Ethereum is a decentralized software platform, that has made Smart Contracts and Decentralized Applications (DApps) a common feature of the more mainstream space, introducing alternative solutions to fraud control, interference, cryptographic agreements, etc.
4. NEO. The cryptocurrency world remains a pretty small one. There are only a few names that truly ring a bell, and Da Hongei is certainly among them. He is the mind behind NEO — an open-source, community-driven platform that leverages blockchain technology to optimize the digital economy. The Genesis Block resulted in 100 million NEO tokens. Investors received half of the tokens, and the rest remains locked into a smart contract. Every year, a total of 15 million tokens are released to fund long-term goals of the NEO development team. Since January 2019, the NEO Token has nearly doubled from $7.50 to the current $11.00. While this remains a rather risky investment, its low price makes it easy to accommodate on any portfolio. The market cap of this “Chinese Ethereum” is about $790 million.
5. LITECOIN (LTC). Litecoin is another cryptocurrency that you shouldn’t ignore in 2020. LTC is one of the fastest and most affordable cryptocurrencies when it comes to payments. Its technology-forward profile has put this cryptocurrency on the third place by market capitalization. Compared to Bitcoin and Ethereum, the only currencies above Litecoin, this cryptocurrency offers huge potential at a much more affordable price level. Each LTC unit currently trades for less than $100, which gives a wider number of investors the opportunity to jump in. In a similar way than Ripple, the price of Litecoin also largely depends on adoption.
CLOSING THOUGHTS
The cryptocurrency market has already started the year on a positive note and it is expected to stay that way for a while. The upcoming halving of Bitcoin mining reward is causing excitement within the cryptocurrency space. The fact that there are over 2,000 cryptocurrencies currently available to traders and investors makes it even harder to know the best ones to bet your money on. We do hope this article might somehow help you make a decision should you wish to start your cryptocurrency journey this 2020.
To learn more about ASIAN MARKET CAP, visit our website at https://asianmarketcap.com.
Email us at .
Like and Follow us in our social media sites:
https://twitter.com/thecapital_io
https://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/href
Best Cryptocurrencies to be Added to your Portfolio in 2020 was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
Post fetched from this article
