Revolution Best Cryptocurrencies
to Invest in 2020
2020 is set to be another banner year for the crypto markets. There are plenty of old standbys and a vast array of newer projects that all have some massive growth potential this year. There are tons of riskier projects and flat out scams too. This guide will help both new and veteran investors alike when determining which digital assets should be added to their portfolios.
Top 5 Cryptocurrencies for Beginners
When first starting out in the world of crypto, it is best to stick to the basics until more familiarity is gained with digital currencies in general. There is a learning curve when first dealing with crypto exchanges and digital wallets. These five currencies are some of the easiest to understand and start investing in right away.
1. Bitcoin (BTC)
The granddaddy of all cryptocurrencies is the perfect place for any budding investor to start. Not only is BTC the most liquid of all cryptos, but many other currencies can only be purchased by exchanging Bitcoins for them. The liquidity refers to how easily they can be traded for other types of currencies. There is no shortage of buyers and sellers so transaction orders are almost always immediately filled.
The price of Bitcoin is also quite stable compared to many other digital assets. While the value can still fluctuate wildly, it is the most likely crypto to not have a sudden crash. There is over 100 billion dollars worth of BTC floating around so manipulation by wealthy investors is almost impossible. It also has the most notoriety of all digital coins and is used by a variety of businesses worldwide.
2. Litecoin (LTC)
Litecoins are one of the most popular cryptocurrencies and for good reason. It was one of the first alternatives to BTC and even runs on the same basic source code. However, the code was modified to offer a huge advantage. The processing time for each transaction is far quicker than with Bitcoin. This makes it way more suitable for everyday retail transactions where money needs to flow swiftly.
Litecoin has the sixth largest market cap which makes it incredibly liquid. It uses the same halving process as Bitcoin where it produces reduced mining rewards at various thresholds in order to simulate the scarcity of gold. This helps preserve its value over time. Once every last coin has been mined there will be a total of 84 million of them. It is worth keeping in mind that BTC will only have 21 million in total.
3. Ethereum (ETH)
This runner up to Bitcoin has paved the way for several innovations in blockchain technology which are responsible for its high market cap. It allowed developers to start their own projects and create desktop and mobile apps based on their own crypto tokens. This is what spawned the wave of ICOs that gave birth to hundreds if not thousands of different tokens.
Much like BTC, EEthereum is extremely liquid and buying or selling them is no issue at any time day or night. ETH is what fuels the smart contracts that are the basis of all the other apps that have their own tokens on the Ethereum network. This keeps the price relatively high and gives the whole project tons of stability in the long term.
4. Binance Coin (BNB)
Binance is one of the largest crypto exchanges in the world. BNB is the token used to pay for transaction fees on that particular exchange. As Binance became more popular, the price of BNB climbed as it became more valuable to the average crypto investor. The price is known to fluctuate and tripled in 2019 alone. It is currently the eighth largest market cap and thus very liquid.
BNB used a unique method to start up its economy. During the ICO, all 100 million tokens were sold for ten cents each. In order to create scarcity, it uses a process called coin burn every three months. Binance takes 20% of their earnings and buys back BNB from other holders. Eventually, there will only be 50 million total tokens in circulation. This should keep the price rising steadily as the supply dries up.
5. Basic Attention Token (BAT)
BAT is known as a utility token that fuels the Brave Browser. Utility tokens are created specifically for one app's economy. The Brave Browser was created by Brendan Eich, one of the heads behind Mozilla Firefox. Brave lets users pay content creators and other service providers with BAT tokens. This helps both creators and clients have smooth transactions and ensure nobody gets scammed.
One cool thing about BAT tokens is that they can be earned just by watching ads in the Brave Browser. Brave attempts to block out malicious ads from general websites by implementing the curated ads that reward users for paying attention to them. Advertisers hold BAT then release them to users once it has been verified that the ads were watched. BAT tokens are fairly liquid and usually reside in the top 40 cryptos being traded at any given time.
Top 5 Cryptocurrencies For Veteran Traders
Seasoned crypto traders who have spent plenty of time on exchanges with all the most popular coins have come to the right place. It is always wise to keep diversifying the portfolio while searching for the next big thing. These five currencies are great places to start looking in 2020.
1. Monero (XMR)
Monero's main focus from day one has been privacy. It is often touted as the most private way to exchange money and has become a dark web staple because of it. Participants on each side of a transaction remain completely hidden and thus no paper trail is left behind. XMR is extremely liquid as anyone demanding privacy will no doubt seek it.
By 2022, there will be 18.4 million Monero in circulation. After that, only 0.3 coins will be produced every minute until the end of time. This scarcity will surely catapult the price to new heights in the years to come.
NEO is best described as a Chinese version of Ethereum. It is by no means a cheap knockoff, however. The main difference is that the network is far more centralized. There are fewer than ten nodes that dictate the way the NEO platform evolves over time.
NEO is quite liquid and often remains in the top 20 market caps. This means it will always be easy to transact and the price is fairly stable. There will be a total of 200 Neo when all is said and done and large chunks get released as various project milestones are hit. NEO is worth a look as it taps into the Chinese market which has tons of potential for investors.
Beam focuses on privacy very similarly to how Monero does. However, it uses a new blockchain protocol known as MimbleWimble to increase transaction speeds. Think of it like Litecoin but with an emphasis on anonymity. The market cap is rather low but Beam manages to stay fairly liquid regardless.
Beam coins are mined just like BTC and the total amount in circulation will eventually reach 262.8 million. It also gets halved every four years so the common consensus is that the price will slowly rise as it becomes more scarce.
NEXO is another crypto that offers a unique service that has gained traction recently. It allows holders to borrow money by putting their tokens up as collateral. Users can also loan out their NEXO and make steady returns much like any other money lender. Any user can also request a free credit card which has certainly drawn the attention of curious investors.
NEXO is not very liquid at the moment and only small transactions usually go through. Large investors would disrupt the whole market if they made too big a move all at once. The lower price is created y the fact that there are currently 600 million coins in circulation and the total will eventually reach one billion. This is an incredibly large volume which makes NEXO less scarce than most other cryptos.
5. Cardano (ADA)
Cardano is yet another currency that facilitates various smart contracts. The main draw is the ease of use that developers have access to. To improve scalability, the platform looks to introduce two different areas of focus. One tracks the balances of each individual's ledger and the other one concerns itself with transferring value between clients.
Cardano is traded at a substantial volume and is very liquid at the moment. There are over 31 billion Cardano currently in circulation and the cap is 45 billion. It is rather volatile though so investors who try to mitigate risk may not enjoy the roller coaster of different valuations this asset regularly entertains.