These days, people ask themselves a common question, what is the best cryptocurrency to invest? We are experiencing a massive boom in this market. Even some years ago cryptocurrencies were mainly for people with knowledge of technology.
Back then, the only people who invested were people who loved cryptocurrencies. There were also a few hundred cryptocurrencies, unlike today.
But now the demographic market has changed a lot. Instead of amateurs, serious investors are flooding the market with big ones. In addition, the number of cryptocurrencies has also increased. Instead of a few hundred, the number has increased to around 1650.
Having a large number of cryptocurrencies can help you diversify your portfolio and give you options, but sometimes it can be very confusing to choose the best cryptocurrency to invest.
Best Cryptocurrency To Invest
Like stocks, real estate and gold, the decision for best cryptocurrency to invest is a well-calculated decision that cannot be coerced, induced or rushed. It is important that you come to a conclusion yourself. You are solely responsible for the losses incurred.
Does this mean that you do not need help to identify the best cryptocurrency to invest? Absolutely not! In fact, this is where you should trust others most. Before investing, you must understand your investment objectives, delineate them and then start working to achieve it.
You will have to answer questions like, “How soon do I want to enjoy the gains?” “How much money do I have to invest?”, Etc. The answers to these questions are what will give you courage and will push you forward when things get tough.
The Current State Of The Cryptocurrency Markets
It all started with Bitcoin in 2009. Litecoin and Ethereum quickly joined and compete fiercely with Bitcoin for a part of the market population. In approximately nine years, several cryptocurrencies have appeared which makes it difficult to choose the best cryptocurrency to invest, but none have enjoyed the wave that Bitcoin enjoyed in 2017. The price increased by almost 4,000 percent, bringing its market capitalization to around 450 billion dollars.
There were also about 3,000 new cryptocurrencies on the market, and each of them claims that they are the best after Bitcoin. Unfortunately, many of these coins are extinguished before they are even released. In fact, 92 percent of the Blockchain projects that were launched since 2015 have failed. This makes it important to carefully consider whats the best cryptocurrency to invest in before putting your money into it.
Introduced for the first time in 2009, Bitcoin is the first implementation of a cryptocurrency network and one of the best cryptocurrency to invest in 2020. Satoshi Nakamoto, an anonymous individual or group of people, sent Bitcoin’s technical document to prominent cryptographers and programmers in 2008. Bitcoin was born.
The document entitled “Bitcoin: a peer-to-peer electronic cash system” described all the details and Bitcoin plans. In January 2009, Satoshi extracted the first block of Bitcoin, often called Genesis Block, for a reward of 50 coins. The extraction of the Genesis Block caused the Bitcoin network to be activated.
Unlike traditional currencies that rely on government and corporate bodies to create currencies, Bitcoin is different. Bitcoin is a decentralized peer-to-peer protocol that relies on its users to create more units. But by no means is it the first.
Nick Szabo reflected on the idea of a decentralized digital currency called Bit Gold. And Bitcoin can be seen as a direct implementation of the Bit Gold system. Instead of a private ledger held by an organism in a centralized system, the Bitcoin ledger is public. The public book is called Blockchain.
Tokens are created and transactions are verified by a working test algorithm and a process called mining. The miners verify the transactions by solving a computational puzzle and add a transaction block to the chain of blocks.
There will be only 21 million Bitcoins, this is the limit, and of these Satoshi has 1 million. The Bitcoin Foundation is currently developing and maintaining the Bitcoin network.
What Makes Bitcoin Feasible In 2020?
What makes Bitcoin a good option for investors is its great popularity. Since its inception, Bitcoin has always been a favorite among fans. But the recent increases in the price also interest veteran investors.
Currently, Bitcoin has a market capitalization of $ 127 billion with a unit price of $ 7500. Of the 21 million Bitcoins that will exist, 17 million are already circulating.
Problems With Bitcoin
Bitcoin, being a cryptocurrency that developed around 2009, is much slower than other altcoins. Bitcoin also faces some scalability problems. That’s why the Bitcoin Foundation incorporated the “Segregated Witness” system, or “Segwit” to solve some of the problems.
The mainstream media, many cryptocurrency enthusiasts and also environmentalists have talked a lot about energy consumption due to Bitcoin. Bitcoin mining wastes a lot of energy. We talk about about 23 terawatt hours, which is enough to supply the entire Ecuador with energy.
Charlie Lee, a previous Google representative made Litecoin in 2011. Litecoin is one of the principal digital forms of money delivered after Bitcoin. While regardless it resembles an altcoin, it’s not by any means equivalent to Bitcoin. Litecoin is likewise a shared open source digital currency venture and is under permit X11.
The principle contrasts among Litecoin and Bitcoin are:
• Litecoin has a square age time of 2.5 minutes, much lower than the 10 minutes of Bitcoin and utilizations an alternate hash calculation.
• Instead of Bitcoin’s SHA256 calculation, Litecoin utilizes scrypt as a working test calculation. The principle explanation behind utilizing scrypt is that it is significantly harder to make FPGA and ASIC stages for scrypt.
• Litecoin has a more prominent number of coins coursing in the market, 84 million to be correct. Like Bitcoin, the rate of age of tokens per square is diminished considerably at regular intervals.
The Litecoin improvement group rushed to take care of issues identified with adaptability. Litecoin was one of the primary digital forms of money to embrace an isolated control framework.
Litecoin is good with the lighting system that enables you to process exchanges around multiple times quicker than Bitcoin.
What Makes Litecoin Best Cryptocurrency To Invest?
Litecoin right now has a market capitalization of $ 5 billion and an absolute number of 57 million coins at present coursing. Litecoin additionally indicates reliable advancement throughout the years and has never stopped to flabbergast the crypto network.
What’s more, Litecoin has an expense for each generally barjo token of just 85 dollars. Both expansive and little financial specialists can put resources into this digital money.
Problems With Litecoin
The Litecoin foundation has been very active with respect to the improvement of the cryptocurrency. There are no major setbacks with Litecoin but like Bitcoin, Litecoin’s generation also wastes a lot of resources.
Ethereum is the pioneer in the field of “smart contracts” or intelligent contracts and the development of decentralized applications. It is an original idea of the adolescent genius of coding Vitalik Buterin. The father of Vitalik, a computer scientist by profession, made the boy interested in Bitcoin and the concept of cryptocurrencies. Years later, Vitalik himself created a cryptocurrency with the support of some enthusiasts.
According to Vitalik, the main reason behind the creation of Ethereum was the fact that Bitcoin does not have its own programming language. So, Vitalik wanted to have a cryptocurrency network that was much smarter than Bitcoin. Ethereum has its own virtual machine called EVM.
This virtual machine allows the creation of intelligent contracts and decentralized applications. These contracts are created using special programming languages such as Solidity, Serpent, LLL and Mutan.
This cryptocurrency platform is the largest distributed computing system in the world which makes it one of the best cryptocurrency to invest in 2020. Ethereum is also the most used platform to create ICO projects, with approximately 50% market share. This gives an idea of the popularity of Ethereum.
Why Invest In Ethereum?
Currently, each Ethereum token, or “Ether”, has a price of $ 463. Ethereum has a market capitalization of $ 46 billion. Although the platform has seen many ups and downs, it has never stopped progressing.
What makes Ethereum a great option to invest is its popularity and quick updates.
Problems With Ethereum
Like Bitcoin and many other altcoins, Ethereum also uses the work proof system, “Proof-of-Work” to verify transactions and create new tokens. But Vitalik realized the threat that this means to the environment. Then, the development team made the decision to slowly change the platform to be backed by proof of participation, “Proof-of-Stake”.
They made great bifurcation efforts to prepare the network towards a “Proof-of-Stake” configuration.
There are no real problems with Ethereum since the development team is always updating it to follow and anticipate the new industry standards. But as always, bifurcation in large quantities can cause discrepancies and can introduce some errors or gaps.
Ethereum Classic (ETC)
Ethereum Classic and Ethereum are the same in their great majority but they differ in some aspects. In May 2016, DAO, a decentralized autonomous organization, created a venture capital fund on the Ethereum platform. They raised about $ 168 million very quickly.
Unfortunately, there were some loopholes in the system. Some security experts and blockchain activists rushed to point out the flaws but these were not resolved in any way.
This 3.6 million Ether was valued at around $ 50 million at that time.
This divided the entire Ethereum user base into two. Some people wanted the Ethereum Foundation to make a big bifurcation to restore the lost tokens.
But the most orthodox users demanded that it not be done as they considered that blockchain is immutable. Anyway, the original foundation made a bifurcation to restore the Ethers.
A different entity decided to separate from Ethereum to support the cause of the more orthodox. This is how Ethereum Classic was born. Since then Ethereum Classic has undergone massive changes and bifurcates quite often to further separate itself from the Ethereum.
Is Ethereum Classic Still Relevant For Investment In 2020?
Yes, of course it is still relevant. Although separated from Ethereum, it still follows its basic concepts. It has the ability to create intelligent contracts, as well as decentralized applications. Ethereum Classic is also updating its network to be supported by participation test system.
At this time, it has a price of around $ 17 per token with a market capitalization of $ 1.7 billion. Ethereum Classic is a very promising project and so far, shows great figures.
Ripple is an open source internet protocol that supports real-time gross settlements, fast remittances and currency exchanges. The developers created Ripple with a system of debt transfer between pairs. Ripple is structural and extremely different from the other cryptocurrencies.
The Ripple network supports a wide variety of fiduciary currencies and even digital tokens. Ripple is practically a hundred times faster than Bitcoin. You can process transactions with your advanced consensus system in 4 seconds, while Bitcoin requires at least one hour.
According to its founders Ripple is not in the market to compete with other cryptocurrencies. Instead, they are developing a next-generation transaction system to counter the traditional, which is extremely slow.
Why Invest In Ripple?
The RippleNet Project is supported by several large banks and corporate entities such as Santander, UniCredit, UBS, Axis Bank, etc. In fact, network validators include MIT.
Many people do not pay enough attention to Ripple because their currency, XRP, has a very low price. But they do not realize that Ripple is not exploitable like most other currencies. Then the market already has the total of XRP that it will have in the future. That is why it is valued at $ 0.45 despite having a market limit of 17 billion dollars.
XRP is also the third most popular and most commercialized cryptocurrency. Its faster transactions and its extremely scalable platform are helping RippleNet grow continuously.
There are no real problems with Ripple. But some consider that Ripple will be centralized, since the big companies support it. So, if you consider yourself a blockchain purist, then Ripple may not be the right currency for you.
Dash is an open-source cryptocurrency among peers that has been operating since early 2014. Initially, it was called XCoin, but in 2015 it changed its name to DarkCoin. Finally, it was renamed Dash, which is an abbreviation in English of “digital cash”, digital cash.
Dash aims to be an easy-to-use, self-financed and self-managed cryptocurrency network. As a matter of fact, it is the first autonomous decentralized Sybil-tested organization.
Unlike Bitcoin, which has a single level network, Dash operates on two levels. The first level consists of miners who extract new tokens, while the second level consists of “Masternodes”, master nodes that perform various tasks. These tasks include managing the platform and performing critical tasks such as InstaSend and PrivateSend.
Should I Invest In Dash In 2020?
If I should. Dash is a promising cryptocurrency project that has an amazing business structure. It is also extremely safe. Transactions are fast and the platform offers unique scalability features.
At the time of writing, Dash has a market limit of $ 2 billion and a token price of $ 245. According to Coinmarketcap, Dash’s daily trading volume is around $ 174 million, which is proof of its growing popularity.
The creation of Zooko Wilcox-O’Hearn, Zcash, is a new version of the Zerocoin project. It is basically the same as Bitcoin, but it provides an additional layer of security and anonymity. According to its development team, it is not to support illegal activities.
Zcash also allows users to disclose information about transactions and account balance selectively. This characteristic allows the tax regulation authorities to perform audits.
What Makes Zcash Attractive In 2020?
Zcash is a prominent project and is ranked among the 20 main cryptocurrency to invest in 2020. The privacy feature is a unique advantage.
At this moment Zcash has a price of $ 184 with 4.3 million “ZEC” in circulation. Zcash has a market capitalization of $ 800 million and has a commercial volume per day of $ 52 million.
Yes, you can invest in Zcash. The project continues to be relevant in 2020.
Fully developed with Java, NEM is a peer-to-peer cryptocurrency with revolutionary features. Instead of a generic work test algorithm that is used in most other best cryptocurrency to invest in 2020, NEM uses a “proof of importance” test system.
NEM also has several new features, such as multiple signature accounts, EigenTrust ++ reputation system and encrypted messaging.
NEM runs on a commercial blockchain called MIJIN. Currently, MIJIN is undergoing stress tests in financial institutions in Japan and around the world. Japan surpassed the United States becoming the number one place for the best cryptocurrency to invest in trade. NEM has a bright future, to say the least.
Invest In NEM: Should I Do It?
At this time, NEM has a market capitalization of $ 1.5 billion and is ranked No. 16. XEM, the native token of NEM, has a relatively low price of only $ 0.17. This is a good option for people who want to invest small amounts.
Launched in 2014, Monero has become one of the most commercialized cryptocurrencies at the moment. It is based on the CryptoNote protocol and focuses mainly on providing a decentralized and scalable cryptocurrency oriented towards privacy.
Why should I invest in Monero?
Monero currently has a market capitalization of $ 2.1 billion, which is more than many popular cryptocurrencies such as ETC and Zcash. And this market capitalization is constantly growing. Currently, XMR, Monero’s native token, has a value of $ 131, which is ideal for new investors.
Problems With Monero
Monero focuses too much on privacy. So a lot of information is encrypted to hide it even from the system itself and this feature is very mistreated.
Monero experienced rapid growth in market capitalization in 2016 when it joined AlphaBay. AlphaBay was a deep web market that specialized in the sale of illegal and contraband items. It was tracked and closed by the police in July 2017.
Monero is also relatively easy to mine. It can be easily extracted using CPU and GPU for homes. Monero’s development is against ASIC mining, so they completely blocked it. The easy mining feature of XMR has great popularity.
Often called “Chinese Ethereum”, NEO is an open-source cryptocurrency between pairs that is fundamentally similar to Ethereum. But that does not mean that NEO is a complete clone of Ethereum.
NEO incorporated the characteristics of Ethereum as decentralized applications and smart contracts, but the development team also improved it and makes it to the list of best cryptocurrency to invest in 2020.
Unlike Ethereum, where smart contracts can only be generated using specialized programming languages, in NEO, intelligent contracts can be generated using popular languages such as C, C ++, Java, etc.
The NEO development team’s only plan is to create a smart economy. And according to them, it can be achieved through the combination of digital assets, smart contracts and digital identities. NEO is extremely scalable and hypothetically it is also safe for quantum computing. So yes, NEO is quite futuristic and can be seen as a competitor of Ethereum.
Invest In NEO
Currently, NEO ranks # 12 in Coinmarketcap with a market capitalization of $ 2.2 billion. Currently it costs around $ 34 with a supply of 65 million NEO.
NEO can not be extracted as XRP. Instead, the platform has another cryptocurrency called GAS, which is exploitable and is one of the best cryptocurrency to invest in 2020. GAS is mined while maintaining NEO. Currently, this feature is only available on a popular exchange platform called Binance.
Problems With NEO
NEO has great potential and the development team is quite focused on its objective. The only problem with NEO is that the development team lacks a marketing department.
Unlike other cryptocurrencies that can be purchased without much fuss, buying NEO can be a big headache. Currently, the only way to buy NEO is through exchange platforms such as Bittrex, Binance, etc.
Best Cryptocurrency To Invest With Intelligent Way
It is not a secret in finding out the best cryptocurrency to invest as it is associated with a serious risk of losing money due to the high volatility of this market. For example, when you buy Bitcoin at the end of April 2018 with the hope that it would start growing again, you would now have losses of 20%. Not very encouraging, right?
In addition, the link of best cryptocurrency to invest in is directly related to other difficulties, for example, the complicated process of registration in the stock exchanges, the possible risks of piracy of the bags and “wallets”, etc.
But there is a solution that allows you to win even in the worst moments of the cryptocurrency: we talk about CFDs, or contracts for the difference in prices. The main advantages of CFDs are the possibility of opening long and short positions, and the availability of leverage that allows you to invest significantly larger amounts than you actually have.