Best Cryptocurrencies to buy for 2020
- Crypto In A Nutshell
- Nov 1, 2020
- 4 min read
There are over 5,000 cryptocurrencies listed on Coinmarketcap as of now, and potentially twice as many as you'll ever recognize.
That's a bunch. So, in 2020, what is the best cryptocurrency to purchase?
In this post, for a solid, diversified portfolio, I will share my 3 best cryptocurrencies to invest in.
Going forward, each coin, its intent, team, liquidity, price volatility, and other metrics will be described.
In the end, you will have a solid understanding so that you can determine which is the best cryptocurrency to purchase in 2020 for yourself.
1. Bitcoin
"The most commonly used cryptocurrency to date is Bitcoin. It is also referred to as the king of cryptocurrencies, and its primary objective is to act as digital currency, global, peer to peer."
Team: The only cryptocurrency I suggest with an anonymous creator is Bitcoin. The Bitcoin developer is known as Satoshi Nakamoto. There's a lot of talk about who he or she is, but nobody knows, in the end. On the other hand, the team that actively updates the open-source codebase of Bitcoin is run by top space cryptographers, such as Adam Back.
Liquidity: In space, Bitcoin has the highest liquidity, making it the best cryptocurrency for beginners to purchase. You'll have no trouble buying or selling Bitcoin-to fit your order, there will always be someone on the other end.
Price Volatility: Bitcoin is considered to be one of the most secure crypto-currencies despite its volatility. For anyone to manipulate the price, it would take a great deal of money.
Crypto Economics: Bitcoin operates on a scheme of PoW (Proof-of - Work), which implies that in Bitcoin, miners earn block rewards. The block reward was originally 50 BTC per block, but the reward halves were every 210,000 blocks. This means inflation declines over time. The supply is also limited: there will be only 21 million coins ever mined. The price should rise significantly as demand rises.
What makes a good investment out of Bitcoin? Proportion of the market. Did you know that over 60 percent of the entire cryptocurrency market cap is accounted for by Bitcoin? This supremacy implies that it has immense traction, making it the best cryptocurrency to invest in 2020 whether you're a novice, or if you just don't trade a ton.
Simply put, if not the best, Bitcoin is still the best crypto currency to buy today. Without investing in Bitcoin, I would not encourage anyone to invest in cryptocurrencies.
2. Lite Coin
Litecoin is one of the first cryptocurrencies to come after Bitcoin, and one of the last decade's hottest cryptocurrencies.
Using the source-code of Bitcoin, Litecoin is a Bitcoin fork with some technical code improvements, making it even quicker than Bitcoin. Its job is also to be a global currency, peer to peer.
Team: Charlie Lee is the Creator. He is an accomplished computer scientist who has also served as the Director of Engineering at Coinbase. His brother is Bobby Lee, a large exchange developed by BTC China. Charlie is experienced and well connected at the same time.
Liquidity: It is very liquid with Litecoin. Ever since its establishment, it has had high liquidity and a large market cap.
Price Volatility: Compared to higher risk coins with smaller market caps and cultures, Litecoin is more secure than a hold.
Crypto Economics: Litecoin began with a reward of 50 LTC blocks, now it's 12.5 LTC. As compared to Bitcoin's 21 million, there is a small supply of 84 million. Even, this is with a higher incentive for blocks and quicker time for blocks.
What makes a good investment out of Litecoin? Litecoin is the silver to the gold of Bitcoin. It is one of the original altcoins and, hence, relative to other altcoins, it also has a large market cap. Plus, it's useful; it's quicker and less costly than Bitcoin. Its serviceability and longevity placed it at the top of the best cryptocurrencies to purchase in 2020.
Litecoin is still one of the most trusted and used cryptocurrencies these days, considering its rivalry.
3. Ethereum
The first major project to incorporate intelligent contracts was Ethereum.
Smart contracts enable developers on top of the blockchain to launch mobile and desktop decentralized applications (dApps).
The Ethereum network has thousands of tokens, and these tokens is what spurred the initial coin offering (ICO) campaign.
Team: Vitalik Buterin is the founder of Ethereum. He has shown himself to be a committed cryptocurrency expert, even though he's young. Joseph Lubin is also regarded as the co-founder of Ethereum and Consensys, a software production studio in NY dedicated to the development of decentralized applications for Ethereum.
Liquidity: Ethereum is also extremely liquid, right below Bitcoin, usually ranked # 2 or # 3. You won't have any trouble purchasing or selling Ethereum.
Price Volatility: Ethereum has a loyal community and team, which ensures that the price is more likely to remain stable and rise in the long run.
Crypto Economics: Unlike Bitcoin and Litecoin, there are far other ethers that can exist. However, keep in mind that Ethereum fuels the ecosystem of dApp. This means that Ether will be required by millions of developers and businesses to fuel their intelligent contracts and launch their apps.
What makes a good investment for Ethereum? Ethereum is the current pioneer of smart contract platforms and for the advances it introduced to the world and its future implementations worldwide, it is already one of the hottest cryptocurrencies to purchase in 2020.
REFERENCES
Connor Freitas, 2020. “The best cryptocurrencies to invest in during autumn 2020”, https://currency.com/the-best-cryptocurrencies-to-invest-in-during-autumn-2020
Aaron S, 2020. “Best cryptocurrency to invest 2020, and all you need to know about it.”, https://www.bitdegree.org/crypto/best-cryptocurrency
2020. “What Top 10 Cryptocurrencies Will Explode in 2020?”, https://trading-education.com/what-top-10-cryptocurrencies-will-explode-in-2020
Capital.com Research Team, 2020. “The best cryptocurrencies to invest in fall 2020: our 5 go-to picks”, https://capital.com/best-crypto-to-invest-in-fall-2020
Michael R, 2020. “11 Best Cryptocurrencies to Buy for 2020”, https://cryptomaniaks.com/best-cryptocurrencies-to-buy?fbclid=IwAR0b4Ih2iPHjXYMxhd7fSWXaA8N1XZB_X1PmkHREjsTwKL3LojTmIpBVDa8
Great insights on the top cryptocurrencies to watch this year! I appreciate the detailed analysis and market predictions. It’s interesting how trends keep shifting, especially with the fluctuating bitcoin price influencing investor sentiment. This post offers valuable guidance for anyone planning to diversify their crypto portfolio in 2020.