What is now with cryptocurrency, is it worth to invest there

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

Contents

Find the Best Cryptocurrency to Invest 2020

Cryptocurrencies have performed debatably in 2020, yet are continuing to attract new investors in 2020.

However, most beginners have difficulties finding the best cryptocurrency to invest in 2020. We’ve all been there, so don’t worry! I understand how confusing it is when you first begin looking for new cryptocurrency investments. And that’s why I’m here to help.

So, are you also looking for the next cryptocurrencies to invest in 2020? Do you find yourself wondering “Should I be investing in Bitcoin?” or “Should I be in investing in Ethereum?”

Well, wonder no longer! I’m here to answer all your questions. By the end of this guide, you’ll know how to find cryptocurrencies to invest in 2020.

But first, let’s talk you through the recent growth of cryptocurrencies.

Table of Contents

Cryptocurrency Market So Far

The first cryptocurrency, Bitcoin, was invented back in 2009. That was just the beginning though, and nobody really knew about Bitcoin until 2020. Additionally, no one even thought that it might become the best cryptocurrency to invest. However, since 2020 the cryptocurrency market has seen huge growth — growth that has been hard to ignore. Such growth and market size can be compared to some of the very traditional retail markets, for example, multibillion mattress market (you didn’t think of it, did you?). This market has experienced a vast growth of such skyrocketing mattress companies as Casper or Nectar, very similar to Bitcoin and Ethereum rising in the digital world. There are now more than 1500 different cryptocurrencies, all created in less than 5 years.

It’s clear that 2020 was the year crypto really blew up. The market cap of cryptocurrencies grew by 4000%! The market cap of all cryptocurrencies was around $21 billion in March 2020, whereas it is now over $454 billion. That’s huge!

Market cap: The total price of all coins added together.

The cryptocurrency market isn’t just about Bitcoin anymore. There are other cryptocurrencies that have entered the space, such as Ethereum, Litecoin, and Ripple. All of these have performed incredibly well over the last year and are the best cryptocurrency to invest in.

The following chart from CoinMarketCap shows the growth of cryptocurrencies over the years.

There are a lot of things being said about the future of cryptocurrencies. Some people believe that the cryptocurrency phase won’t last long, while others think they’re going to be around forever.

It is difficult to predict the future of cryptocurrencies, but what I do know is that the popularity of cryptocurrencies is only increasing. One of the reasons why cryptocurrencies are becoming more popular is because of blockchain technology, which is the main technology behind all cryptocurrencies.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

Blockchain technology is the next big thing – it is secure, trustless technology that was first used by Bitcoin. You can’t learn how to invest in blockchain, though. Instead, you can learn how to invest in the cryptocurrencies that use blockchain (which is all of them!)

Are you ready to find out about the next cryptocurrency to invest in 2020? Well, let’s get started.

So, what are the Best Cryptocurrencies to Invest in 2020

Best Cryptocurrency to Invest 2020: Bitcoin (BTC)

If somehow, you’ve only heard of one cryptocurrency, it’s probably Bitcoin. It is the biggest cryptocurrency — it currently has a 40% i share in the total cryptocurrency market cap! It is the oldest cryptocurrency and it still dominates in the market. So, if Bitcoin continues to increase as it did in 2020, then investing in Bitcoin might be a good idea for 2020.

The price of Bitcoin changes a lot every day and has seen many highs and lows over the last few years. Take a look at the following chart and you will see just how much the price changes.

The price of 1 Bitcoin has gone from around $76 (07.09.13) to as high as $20,000 in December 2020. But then after Bitcoin reached its highest point in December, the price of Bitcoin dropped to around $6000 in February 2020 and has been dropping even further ever since. It’s crazy!

With the price changing so much in such a short space of time, how do you decide what the best time is for investing in Bitcoin?

Well, we can try to find the answers by looking at some important past events — when the price went up or down by a large amount.

  • One major event was when Bitcoin split into two cryptocurrencies — Bitcoin and Bitcoin Cash. This happened August 1 st Investors who knew about this invested their money before the split and made huge profits, almost doubling their investment!
  • The price of Bitcoin dropped to around $10,000 in January 2020, almost half of the $20,000 it was worth in December 2020. Many investors became worried at this point and started selling their Bitcoin. This caused the price to fall to around $6,000 in February 2020.

Bitcoin Investing

If you want to invest in Bitcoin then you need to stay up to date with the latest news and trends around Bitcoin. When news is released about a new technical improvement, you might want to think about buying Bitcoin. If there is a huge fall in price of Bitcoin, then that too might be a good time to buy Bitcoin because you can buy it a low price.

If you have already decided to invest in cryptocurrencies, then it might be a good idea to start by investing in Bitcoin. Even though you have missed the first major opportunity to invest, investing in Bitcoin could still be a good idea.

It all depends on whether you believe in the future of Bitcoin. If you believe in it, you should think about investing in it. If you don’t, then I recommend that you stay away from it. It’s the same with any investment!

Best Cryptocurrency to Invest 2020: Ethereum (ETH)

Towards the end of last year, the price of Ethereum was slightly higher than $720, with a total market cap of around $70 billion. At the beginning of 2020, Ethereum climbed and reached its highest price of $1423 on January 4. At this time, the total market cap for Ethereum was at $138 billion!

Ethereum grew by about 3000% in the year 2020 and became the second largest cryptocurrency, placing second behind Bitcoin.

Are you asking yourself, “Should I invest in Ethereum?” or “Is the price of Ethereum already at its peak?”. Well, the truth is, nobody knows! However, the following information should help you decide whether investing in Ethereum is a good option for you.

The chart below shows how Ethereum has grown over the last few years.

Below are the key events that have most affected the price of Ethereum in the past:

  • Ethereum received an investment of around $150 million in May 2020. As a result, its price went up from $1 in January 2020 to around $14.80 in May 2020.
  • However, On June 18 th , 2020, members of the Ethereum community found out that Ethereum had been hacked. Around $60 million worth of Ether (Ethereum’s currency) was stolen due to a flaw in a wallet. This caused the Ethereum price to drop from the high of $21.52 on 17 th June 2020, to $9.96 on the 18 th June 2020.

Unlike Bitcoin, Ethereum is not just a digital currency. It is a more advanced blockchain project. This is because Ethereum offers something special — by using Ethereum’s platform, developers can build their own cryptocurrencies.

Imagine that you would like to build a blockchain-based solution for managing the supply chain of your business. Well, thanks to Ethereum, you don’t need to start from the beginning. Instead, you can just build an application on Ethereum’s blockchain. Ethereum makes it much easier for new blockchain projects to launch.

So, is Ethereum your next cryptocurrency to invest in 2020?

I recommend that you think about adding Ethereum to your list, as I think it could be one of the best cryptocurrency to invest 2020.

Julian Hosp, a blockchain expert, said that the market cap of Ethereum could rise to $200 billion by the end of 2020. If Hosp’s prediction is correct, the price of Ethereum will reach up to $2000. Hosp’s reason behind the prediction is based mostly on the ICOs (Initial Coin Offerings) that decided to use the Ethereum blockchain in 2020 & 2020.

Ethereum also plans to improve their technology a lot this year, with new protocols almost ready to go. So, watch out for Ethereum!

To learn more about Ethereum, read our Ethereum vs Bitcoin guide.

Best Cryptocurrency to Invest 2020: Ripple (XRP)

Ripple, also known as XRP, was one of the best performing cryptocurrencies in 2020 with growth of around 36,000%! Yes, you read that right. It grew from almost $0 at the beginning of 2020 and reached $2.4 in December 2020 — as you can see in the following chart.

Like all other cryptocurrencies, the price of Ripple has also decreased in 2020 — it is currently set at $0.36.

I know what you’re thinking — you missed a great opportunity by not investing Ripple in early 2020. While that’s true, Ripple could still be a good option to consider as your next cryptocurrency to invest in 2020.

Even though the price of one XRP is a lot lower than the price of one Bitcoin, XRP is still the third largest cryptocurrency by market cap. In May 2020, it had a total market cap of around $35 billion.

So, what is it about Ripple that has made it so popular for investors?

The main reason for Ripple’s popularity is that it is not just a digital currency, but also a payment system. Ripple uses blockchain technology to make international payments securer and faster.

If you tried to make an international bank payment today, it would take around 2-10 days for the transaction to process. The same payment, when done using Ripple, takes a few seconds. How awesome is that!

But there’s more good news – many large financial institutions like American Express, JP Morgan and Santander are already using Ripple’s technology. Also, Ripple has been working with the Saudi Arabia Central Bank, China’s LianLian International and other banks from around the world.

So, if you’re wondering how to invest in blockchain, then Ripple might be the best answer.

Based on what I just explained, Ripple’s future in financial industry could be a good one. You should watch out for Ripple and learn more about their partnerships. Look out for new partnerships too — if Ripple signs a contract with another large bank, then it could increase the price of XRP.

The investors, who understood the services that are offered by Ripple, have made a lot of money. After a fantastic 2020, Ripple could just be the best cryptocurrency to invest in 2020.

Note: Now might be a good time to invest in Ripple, as its price has dropped 70% lower than it’s an all-time high of $3.4 in January 2020.

Best Cryptocurrency to Invest 2020: Litecoin (LTC)

Our list of what is the best cryptocurrency to invest in 2020 cannot be complete without Litecoin. Just like Ripple, Litecoin showed great performance in 2020 with a growth of almost 8000%.

The price of Litecoin grew from around $4 at the beginning of 2020 to a high of $358 in December 2020. However, just like most cryptocurrencies, Litecoin also followed the price trend and dropped to $110 in February 2020.

Take a look at Litecoin’s price chart below — you can see the quick rise in the price of Litecoin at the beginning of 2020. The price of both Litecoin and Bitcoin has followed a similar trend over the last year.

Litecoin is the 5 th largest cryptocurrency with a market cap of around $11 billion. Litecoin continues to interest investors because of its close connection to Bitcoin. Providing a good reason for Litecoin to be on our list for the next cryptocurrency to invest in 2020.

Litecoin was created in 2020 to improve upon Bitcoin’s technology. Litecoin completes a transaction 4 times faster than Bitcoin. However, unlike Bitcoin, the maximum number of Litecoin is capped at 84 million — 4 times more than the coin supply of Bitcoin (21 million).

Litecoin was the first cryptocurrency to perform a Lightning Network transaction in May 2020. Using the Lightning Network, 0.00000001 Litecoin was transferred from Zurich to San Francisco in under one second! Once Litecoin starts using the Lightning Network, it could increase the price of the Litecoin!

Lightning Network: A new technology that increases the speed of transactions on the blockchain network.

Investment Strategies: Let’s Make Something Clear

How do investors make decisions they want to invest in real estate or stocks? Do they start making investments the moment they think about it? My guess is that the answer to that question is – no!

Before you invest in anything, you need a clear understanding of what your investment goals are and how you will achieve them. You want a good idea of how long you are prepared to keep your investment open, and what amount of profit you are happy to take.

You should have the same mindset with cryptocurrency investments. Before you decide what the next cryptocurrency to invest in 2020 is for you, let’s discuss the two main types of investment strategies for cryptocurrencies.

Long-term Cryptocurrency Investment

A long-term investment is one where you expect a cryptocurrency to perform better over a longer period of time. Simple! Normally, the minimum time for long-term investment is 6 months to 1 year. Although, some people plan to hold onto their investments for 5-10+ years. It’s up to you how you choose to invest; you can either make your full investment in one go, or you can invest at different times.

Long-term Investment Strategy

Once again, before investing any amount, you must have a clear idea of what your investment goals are:

  • Will you sell the cryptocurrency after a certain amount of time or will you sell it when it reaches a certain price?
  • Will you sell off your investment at once or will you sell parts of it at different times?
  • On what occasion would you sell the long-term investment in the short term? For example, if new laws come into place that could affect the long-term price of your investment, you might consider selling it sooner.

Next, you should do some research to decide which cryptocurrencies are best as long-term investments. I recommend that you check for the following:

  • Is their technology better than their competitors?
  • Do they have a strong team of founders and developers?
  • How good is their roadmap/plan?
  • Are they solving any real-world problems?

If you really believe in the cryptocurrency you invest in, you should learn to hold on to your investment even when the prices drop. If you ‘panic sell’, then you could lose money and regret selling.

Reasons For Making Long-Term Investments

  • Long-term investing makes your life easier as you don’t need to watch the market all the time
  • You believe that some cryptocurrencies will give a better return in the long-term
  • You truly believe in the future of the cryptocurrency

Short-Term Cryptocurrency Investment

Short-term investments are made over shorter time periods in the hope of making quick profits. So, just how short is a short-term investment?

Short-term investments can take seconds, minutes, days or even a few months.

How Do Short-Term Investments Work?

Just like long-term investing, you need to have clear goals for your investment. You need to be asking yourself:

  • What profit are you expecting to make from this investment? This will give you an idea of the price at which you should buy/sell the cryptocurrency.
  • How much of a loss will you accept? This will help you control your losses if the price of cryptocurrency suddenly drops.
  • Do you have time to study and follow the crypto market and the news?
  • Can you make technical analyses of the crypto market? If not, then you should learn before investing.
  • Will your short-term strategy give you higher returns than a long-term strategy?

You need to find out which is the best cryptocurrency to invest in 2020 for the short-term. Cryptocurrencies that have the following are good options for short-term investments:

  • Low market cap
  • High trading volume — lots of people are buying and selling it every minute
  • Are currently trending on the news and on social media
  • Have an ICO or have just finished their ICO — try to get them at a low price

While cryptocurrencies like Bitcoin and Ethereum can also be traded in the short-term, you should think about investing in the newer cryptocurrencies. Investors have made huge profits in the past with short-term investments – including some of the major, but newest cryptocurrency investments like NEO, Stellar, IOTA, and NEM.

The main advantage of short-term investments is that you can make a lot of money in a short amount of time — they have made a lot of people rich quickly. However, they still have their disadvantages.

So, what are they?

  • They take up a lot of time and effort as you need to watch the market prices constantly
  • It is a riskier investment and can result in greater losses because of how much the price changes in a short time
  • It can be very stressful and emotional

It’s difficult to say which is the better option of the two investment strategies. It all depends on your goals and experience in the cryptocurrency market.

If you really believe in a project, then I recommend that you invest in the long term. However, if a project is new and is generating a lot of attention, then short-term trading could be the better option.

Final Words

While cryptocurrencies can give you huge profits, you must be prepared for one more thing — to lose money. Remember, your predictions won’t always be right! Nobody truly knows what is going to happen to the price of a cryptocurrency or any other investment.

Do you know what most of the expert cryptocurrency investors say? You should only invest money that you are not afraid to lose. It’s great advice, so always remember it!

So, this is the end of our Best Cryptocurrency to Invest 2020 guide. I hope that you now know which investment strategy will work best for you and that you have a good understanding of what makes a good investment.

Which of the cryptocurrencies I mentioned is your favorite? Do you have a pick for the best cryptocurrency to invest in 2020?

*Note: this article is a personal opinion. Before making any investment decisions you should consult with a professional.

You may also like

How to Use BitDegree Tokens?

How to Apply for BitDegree’s Small Scholarships?

How to Accept BitDegree Tokens on Your Website?

28 Comments

Cancel reply

Thanks for putting up this great list of cryptocurrencies. EOS and wanchain from a personal perspective are cryptocurencies to invest in right now

Truly helpful……thanks a lot

Google Anonutopia if you want the next big thing.

It has been great for me to read such great information about. I bookmarked this post for future reading and must share with my fellow. Thanks for a bunch for sharing.

nice article but the best cryptos in my eyes are not these mentioned . the best technical advance has zilliqa and this is my personal longterminvestment. when you see the pricechart you can also expect a lot from this crypto. and for shorttermtrading you did not mention any crypto. at the moment moeda loyalty points is a good shorttermcrypto. and there are some nez listed cryptos on binance which are great for shorttermtrading.

Wow, these are NOT going to moon. The coins that are low and worth investing in NOW are: XLM (stellar lumens) which is currently at 23 cents, is going to be 50 cents by December, and is easily going to be over 4 dollars by 2020.

Another coin to invest in would be Electroneum, but only if it falls below $0.01 again. Right now, it’s too high, but keep an eye on it.

The only coin on this list I agree with is XRP, as it has potential, but is more of a gamble than a sure thing.

Hi, I must say that it is a very valuable blog.. kudos to you. I have always been keen into knowing more about cryptocurrencies. I have written blog on the same topic as well.
Hope it helpful. Have a great day!

You should do a study on karatcoin by Karatbars International, CEO Harald Seiz. I believe this is a great investment.

Thanks for sharing useful Information. I appreciate your Content. i love your Blog. Keep Sharing!

Great! Your article has given answers for many of my doubts. Hope this article would be very useful for all the crypto investors. Keep up the good work!

thanks for this information,I really appreciate it.

I real want to invest in either currency. But how do I do it. I mean how to join? Otherwise thank you for your information.

g8 mind, keep up

GREAT BUT YOU DIDINT TALK ABOUT THOSE SCAMMER INVESTMENT ONLINE THEY START WITH BCT OF $ 10 AND RUN WITH MONEY OF MANY PEOPLE WHO IS NEW ON CRYPTO….

Sounds great. There is no doubt about it, market that dips and crashes like this are difficult to deal with. No matter what happens with this market, this is the best time to invest in cryptocurrencies because these coins you see going down now will go crazy higher in no time. The prices of these cryptocoins are volatile, it goes up and down all the time. They act like it’s falling apart. The market is still much higher than it was some years ago. If you ever thought about cryptocurrency as an investment, then you’re on your way to greatness. I urge you to listen to what I have to say. Because if you make the right pick you could find your self jumping for joy on top of an enormous pile of cash. Ready or not , a growing number of economies, banks, billionaires are backing this new forms of tender. And once you understand how easy it is to make profit from cryptocurrencies it’s easy to see why the cryptocurrency market is preparing to take off. Anything you’ve seen up to this point is going to be shadowed by the amount of money that is about to come pouring . And for investors who get in before the end of the year , they are going to make it big and earn an unbelievable amount of profit as far as you make the right pick of coin to invest or apply a currency prediction software to help know and select the right coins with value and potential to rise in no time to invest in as digital currencies are going to be once-in a life time opportunity. The only caveat is that you must act quickly and smart then invest with a good and trusted platform to help make the right pick or choice of coins with value and to invest in. Investors who wait idly on the sidelines until the media tells them to ‘buy now’ are going to lose out on millions and potentially billions of dollars . And if you wait for the media to tell you when cryptocurrencies are safe you’ll be losing out a great deal. I am not talking about buying bitcoin alone. I am not here to double or triple my money when I can potentially create 10times, 100times or even 1000times my money investing in ethereum and other new coins which have potentials. In just few months I’ve made nothing less than $100,000 investing in ethereum and other coins . My rules for buying cryptocurrencies if I want to keep my 98% win rate are thus; The asset must have intrinsic value, The asset must be new, but not too new. The digital currency boom that’s happening right now is a once-in-a-life time opportunity. You may never have the chance to make this kind of money this easily, ever again. There are lots of tiny digital currencies that can generate higher gains more than bitcoin and the rest which people can invest in and cash out big.

I really need to be guided on how to invest on crytocurrency which one to invest one..

How to Invest in Cryptocurrency

Are you thinking about investing in crypto and feel confused because the purchase process seems to be complicated to you? Hold on for a moment and read our guide to understand the main aspects of dealing with cryptocurrency. Once you are done with this all-in-our directory, you will already know what is the best cryptocurrency to invest in and how to buy digital money. Let’s build a winning trading strategy together!

Best Cryptocurrency to Invest 2020

A couple of years ago, there were only a few cryptocurrency types on the market – people were choosing between the three options, with Bitcoin being the most popular one. The situation has changed dramatically – it now is extremely difficult to figure out what crypto is the best among all this variety of newest cryptocurrency types. And it is not about getting confused but knowing what kind of crypto investment will be profitable and which one will lead to a loss of funds. That’s why “best cryptocurrency to invest 2020” is one of the most popular search requests submitted to search engines.

The digital currency market has changed considerably over the last 2-3 years. Apart from tech-savvy fans, big investors and businessmen are searching for a way to predict best cryptocurrency to invest in 2020 and arrange a deal at the right time. Along with this fact, the number of crypto types has increased as well. On the one hand, such a variety of new cryptocurrency 2020 helps to diversify the investment portfolio and open even more opportunities for traders. On the other hand, the large crypto map may seriously confuse the user in choosing the right digital currency.

This is especially a big issue for novice traders who have just decided to invest in cryptographic products and do not know how to invest in blockchain technology. Everybody knows such crypto veterans as Bitcoin, Litecoin, Ripple, and Ethereum. However, there are also some relatively new players on the crypto market: such as Dash, NEO, Zcash, and many more. Read further to know the list of the most highly performing cryptographic assets to trade with. And knowing best cryptocurrency to invest in now is a difficult-to-complete mission. So what is best cryptocurrency to invest? What factors should you take into consideration when selecting the best new cryptocurrency to invest in?

Best Cryptocurrency to Invest 2020: Bitcoin (BTC)

Investing in Bitcoin is expected to bring money in 2020. Is it worth investing in Bitcoin and why? The thing that makes Bitcoin a good option for investors is its huge popularity. Since its release, this cryptic currency has always been handy for traders. But it is a recent run-up in crypto rates what has raised interest to Bitcoin among major investors. Sixteen million of digital assets out of the projected twenty-one million is already in circulation. That’s why Bitcoin is one of the best cryptocurrency to invest in – it is a well-functioning crypto unit supported by major broker exchange platforms.

At present, the market capitalization of Bitcoin amounts to $115 billion, with the cost of a single unit being approximately $6,807. Bitcoin not only became the first cryptocurrency; it has also set large-scale records in terms of its rate raise/ fall. Therefore, investing bitcoin is a profitable business.

If you do not know how to start investing in Bitcoin, we have prepared several options for you:

  • Broker exchange platforms – Bitcoin investing can be done on a cryptocurrency exchange, which practically serves as a platform to buy Bitcoin, exchange, or sell digital assets;
  • Bitcoin ATM’s – you can also purchase Bitcoin with cash. For this, you will need to use a special Bitcoin ATM, which accepts cash, exchanges fiat to crypto, and sends it to your online wallet;
  • Peer-to-peer exchange – it is also possible to buy Bitcoin directly from a merchant. A good thing about this method is that it doesn’t involve third parties and have no transfer fee. You can also buy crypto with cash, if you wish. Is investing in Bitcoin worth it? It is definitely so if it comes to p2p cryptocurrency exchange.

If you are still wondering is bitcoin worth investing in, the answer is definitely yes. But there is only one condition for your successful trading. We recommend you to be careful when selecting a cryptocurrency exchange. Pay attention to accepted payment methods, bitcoin price investing, security level, and transaction fees. Having properly chosen a platform, you will know an answer to the question “is investing in bitcoin a good idea.”

Best Cryptocurrency to Invest 2020: Ethereum (ETH)

Is Ethereum worth investing in? Yes, it definitely is. Ethereum is the second most important cryptocurrency in terms of capitalization and popularity. Investing in Ethereum can be a great financial asset for many years to come. Taking into account the current rate of the crypto and its financial scale, Ethereum is the next cryptocurrency to invest in 2020, just after Bitcoin.

A great thing about Ethereum is that its transactions are carried out faster and transfer fees are lower compared to Bitcoin. What is more, no superpowered equipment is necessary to mine Ethereum; you can use a home computer for that purpose. It is the newest cryptocurrency to mine.

Best Cryptocurrency to Invest 2020: Ripple (XRP)

Ripple is one of top 5 cryptocurrencies to invest in 2020. Its rate is now actively growing, which is difficult to explain by objective reasons. Being the best cheap cryptocurrency to invest 2020, Ripple is expected to go up in price. Apart from having an active growing rate, Ripple has many other great features. All transactions in the system can be reverted, which distinguishes Ripple from other cryptocurrencies. On top of that, trading operations are made on a contractual basis, so there is no need to involve third parties in the process.

Best Cryptocurrency to Invest 2020: Litecoin (LTC)

Litecoin is widely known in the crypto community as the best new cryptocurrency to invest. LTC implies significantly shorter confirmation times and higher transaction efficiency when compared to Bitcoin. Thanks to its army of supporters for crypto growing volumes and liquidity, Litecoin has already demonstrated that it is a real alternative to Bitcoin. It can be worthily called the best cheap cryptocurrency to invest.

Cryptocurrency Investment Strategies

We have already discussed what are the best cryptocurrencies to invest in 2020, so it’s time to talk about cryptocurrency investment strategies. The best way to invest in cryptocurrency is to do everything step-by-step.

  1. Select a wallet to store your digital money – there are 3 different types of crypto wallets – online, software, and hardware – each providing some benefits in terms of funds security, transaction speed, and ease of use;
  2. Decide on a crypto type – before registering on any exchange platform, decide what cryptocurrency you want to buy, in what amount, and what you are going to do with it;
  3. Select an exchange platform – pay close attention to supported payment options, platform security, transaction fees, and cryptocurrencies it works with;
  4. Check the rate – before purchasing any crypto unit, it is extremely important to check the rate since it can determine the success of your trade. Then a real financial game starts. Your mission is to keep a close eye on the crypto market and predict any falls or raises of the currency rate

Beginning investors need to be aware that it’s not enough just to buy a few crypto units and wait for the rate to raise. Everything is a bit more complicated with how to invest in Blockchain stocks. The most relevant, safe, and effective strategies for earning money on cryptocurrency market today are the following ones:

  • Cryptocurrency purchase with the subsequent trading;
  • Long-term investment (Buy & Hold principle);
  • Short-term investment;
  • Transfer of funds for crypto trust management on cryptocurrency market.

Some traders prefer short-term investment to generate a quick income, similar to HYIPs. It is especially true about those investors who do not have the knowledge of technical market analysis and are not familiar with the structure and principles of trading. There are also some who do not like taking risks and give preference to long-term and deliberate trading. If you know how to invest in Blockchain, decide on a trading strategy you are going to employ.

Long-term Cryptocurrency Investment

Long-term investments will bring a high profit in case the strategic development and marketing plan is well thought out. When making a long-term investment, you can generate income not only on the growth of the crypto price but also on attracting partners, taking stock in, etc.

A well thought-out and balanced marketing plan can serve as a motivation for investors, thereby expanding the scope of users of a cryptocurrency. In addition, the long-term development plan allows for a smooth and confident increase in the price of the crypto. So if you think that any new cryptocurrency is developing fast and has a great potential, consider purchasing it.

Reasons For Making Long-Term Investments

New digital technologies create great prospects for the modern financial world and traders. A lot of specialists work on their solution, making new cryptocurrencies even more sophisticated. So if you understand all the processes happening on a crypto market, you will most likely succeed with long-term investments.

When is it a time to make a long-term investment:

  • The crypto just started to raise;
  • A newly released cryptocurrency is unique, has great features, and just started getting more and more customers;
  • You see that professional traders are starting buying a particular crypto.

An alternative way of a long-term investment in cryptocurrency is purchasing several crypto units with their further mining. It is a very time-consuming process that requires special equipment, but it does work!

Short-Term Cryptocurrency Investment

Short-term cryptocurrency investment implies a buy-and-flip strategy. Just like any type of business, it involves some risks. So you should be ready to experience loses; they may happen. The thing here is that you should predict jumps/ falls of currency rates and act accordingly – buy cheap and sell expensive. This strategy works well for dynamic crypto types, such as Bitcoin, Litecoin, Ripple, etc. So take it into account when purchasing any crypto units for trading.

How Do Short-Term Investments Work?

For a short-term investment to work well, you need to do constant market research and closely follow all crypto trends that are near to happen. Only in this way, you can predict financial jumps that can generate profits for you. Doing ordinary selling-buying operations will never make you rich if you are not researching potential trends and occurrences.

Our Verdict

Dealing with cryptocurrency is fun, but it can also make you rich if you treat it not as a hobby but as a job you love. Understanding processes and how the crypto market works is also a good thing. So if you decide to buy cryptocurrency, it is important to know where to start investing:

  • Decide what cryptocurrency to work with – it will determine the amount of income and the payback period;
  • Allocate a sufficient amount for initial investment with the further support of investment activities;
  • Create a wallet for the selected cryptocurrency to conduct sales transactions.
  • Register on the exchange;
  • At a certain time, buy digital money at a minimum rate;
  • Transfer the purchased currency to an offline purse.

Trading success depends on the investor’s foresight and his ability not to make decisions.

5 Best Cryptocurrencies to Buy for 2020

Share

Many investors who know that I am deeply involved in the cryptocurrency space always ask me: “what are the next best cryptocurrencies to buy?”

The truth of the matter is this: there is no single best cryptocurrency to buy in 2020. Many of the top cryptocurrencies today are attractive opportunities for investment.

So if you are looking for the next big cryptocurrency, or which altcoins to buy, read on.

In this article, I will share the top 10 best cryptocurrencies to invest in for 2020.

The first 5 are the best cryptocurrencies to invest in for beginners, and the last 5 are the best cryptocurrencies for more advanced crypto investors.

Many investors who know that I am deeply involved in the cryptocurrency space always ask me: “what are the next best cryptocurrencies to buy?”

The truth of the matter is this: there is no single best cryptocurrency to buy in 2020. Many of the top cryptocurrencies today are attractive opportunities for investment.

So if you are looking for the next big cryptocurrency, or which altcoins to buy, read on.

In this article, I will share the top 10 best cryptocurrencies to invest in for 2020.

The first 5 are the best cryptocurrencies to invest in for beginners, and the last 5 are the best cryptocurrencies for more advanced crypto investors.

Investing in cryptocurrency is risky, but investing in only one is way more dangerous. There is more than one best cryptocurrency to buy.

The 5 Best Cryptocurrencies to Buy For Beginners

There is not one best cryptocurrency to buy; investing in cryptocurrency is risky, but investing in only one is way riskier.

Lots of cryptocurrencies have various use cases and promise to disrupt various industries. This is a great way to hedge your risk and increase your chances of being involved in the next outperforming cryptocurrencies.

Make sure to diversify your portfolio.

This list of the hottest cryptocurrencies to invest in for beginners includes coins that:

  • Land in different categories of coins that exist
  • Are some of the less volatile coins in each category
  • Are relatively easy to store and trade

Which make them a right combination of coins for a beginner to start with.

Going forward, I will describe each coin, its purpose, team, liquidity , price volatility, and other metrics.

In the end, you will have a solid understanding, so you can decide for yourself which is the best cryptocurrency to buy.

#1. Bitcoin

Bitcoin is the most widely used cryptocurrency to date. It is often referred to as the king of cryptocurrencies, and its primary goal is to act as global, peer to peer , digital cash.

  • Team: Bitcoin is the only cryptocurrency that I recommend with an anonymous founder. The creator of Bitcoin is known as Satoshi Nakamoto . There is a lot of speculation about who he or she is, but ultimately, no one knows. On the other hand, the team actively updating Bitcoin’s open-sourced codebase is ran by top cryptographers in the space, such as Adam Back.
  • Liquidity: Bitcoin has the highest liquidity in the space, making it the best cryptocurrency to buy for beginners. You will have no trouble buying or selling Bitcoin – there will always be someone on the other end to match your order.
  • Price Volatility: Despite its volatility, Bitcoin is known to be one of the most stable cryptocurrencies. It would require a lot of capital for someone to manipulate the price.
  • Crypto Economics: Bitcoin runs on a PoW ( Proof-of-Work ) system, which means miners receive block rewards in Bitcoin. Initially, the block reward was 50 BTC per block, but every 210,000 blocks the reward halves. This means over time inflation decreases. Also, the supply is limited: only 21 million coins will ever be mined. As demand increases, the price should rise substantially.

Simply put, Bitcoin is still the best cryptocurrency to buy today, if not the best. I would not recommend anyone investing in cryptocurrencies without investing in Bitcoin.

#2. Litecoin

Litecoin is one of the first cryptocurrencies to come after Bitcoin, and one of the hottest cryptocurrencies of the decade.

Using Bitcoin’s source-code, it is a fork of Bitcoin with some technical changes to the code, making it one of the fastest cryptocurrencies. Its mission is also to be a global, peer to peer currency.

Source: imgur.com

  • Team: The creator is Charlie Lee. He is an experienced computer scientist, who also works at Coinbase as the Director of Engineer. His brother is Bobby Lee, founded BTC China, a large exchange . So, Charlie is both experienced and well connected.
  • Liquidity: Litecoin is very liquid. It has had high liquidity and a large market cap since its creation.
  • Price Volatility: Litecoin is more reliable of a hold compared to higher risk coins with smaller market caps and communities.
  • Crypto Economics: Litecoin started with a 50 LTC block reward , now it is 25 LTC. There is a limited supply of 84 million as compared to Bitcoin’s 21 million. Still, this is with a higher block reward and faster block time.

Despite its competition, Litecoin is still one of the most trusted and used cryptocurrency projects in 2020.

#3. Ethereum

Ethereum was the first major project to introduce smart contracts , which allow developers to launch mobile and desktop decentralized applications (dApps) on top of the blockchain.

1,000s of tokens run on the Ethereum network, and these tokens were what spurred the initial coin offering (ICO) movement.

  • Team: Ethereum is founded by Vitalik Buterin. Although he’s young, he has proved himself to be a dedicated cryptocurrency expert. Joseph Lubin is also known as a co-founder of Ethereum as well as Consensys, which is a software-production studio in NY dedicated to creating decentralized Ethereum applications.
  • Liquidity: Ethereum is also highly liquid, generally ranked #2 or #3 right below Bitcoin. You will have no problems buying or selling Ethereum.
  • Price Volatility: Ethereum has a loyal community and team, which means the price has a better chance of staying stable and increasing in the long run.
  • Crypto Economics: There are much more Ether that can exist as opposed to Bitcoin and Litecoin. But keep in mind that Ethereum fuels the dApp ecosystem. This means millions of developers and companies may need Ether to fuel their smart contracts and launch their applications.

Ethereum is the current leader of smart contract platforms and is still one of the hottest cryptocurrencies to buy in 2020 for the innovations it brought to the world and its potential applications worldwide.

#4. Binance Coin (BNB)

Unlike Bitcoin and Litecoin which aim to be used as currencies, the Binance coin is a utility token .

This means its value comes from how useful it is (and how much demand there is for its utility) within the Binance ecosystem.

Source: binance.com

  • Team: Changpen Zhao is the CEO of Binance. Given the success he and his team are achieving with Binance, it’s safe to say they have the skills and resources to make this coin a success.
  • Liquidity: Binance Coin is one of the most liquid cryptocurrencies right now. It is ranked within the top 10 on Coinmarketcap, with growing volume.
  • Price Volatility: It’s pretty volatile, but has consistent growth. Its price was multiplied by x3 in early 2020, during the bear market. It may continue to go up or come back down, but volatility is high.
  • Crypto Economics: 200,000,000 BNB were issued via an ICO at $0.10 per coin. BNB offers trading fee discounts to users holding BNB. The first year holding BNB, users get 50% discounts, then 25% the second year, 12.5% third, 6.75% fourth, and zero the fifth or later. Binance will also use 20% of its profits each quarter to buy back BNB tokens and burn them until the amount of BNB has reduced to 100,000,000 – by half. Binance is also launching a decentralized exchange, Binance DEX which should further increase the utility of BNB.

Binance is one of the world’s fastest growing exchanges, and because Binance Coin is used to pay for transactions on the exchange, BNB is one of the fastest growing cryptocurrencies in 2020 in terms of trade volume.

If you’re looking to diversify your cryptocurrency portfolio by adding a utility token issued by a company with a solid business history and an experienced team, think Binance coin.

It’s one of the best cryptocurrencies to buy to consolidate your portfolio if you already own major coins like BTC and ETH .

#5. Basic Attention Token (BAT)

Basic Attention Token is another utility token most commonly utilized in the Brave Browser.

The BAT token is used to tip content creators or virtually anyone that you find helpful on the internet. You can tip content creators monthly, or choose to send one time payments to specific people.

Additionally, users who watch ads can get rewarded in BAT. Using smart contracts, advertisers can lock up BAT, and as their ad is viewed, their funds are released to both the Brave Browser and the end viewer.

  • Team: The founder is Brendan Eich. He helped create Javascript and is a co-founder of Mozilla Firefox. With these wild credentials, you can bet he understands the browser business and technology.
  • Liquidity: Liquidity always fluctuates, but BAT is generally well within the top 40 most traded coins according to Coinmarketcap.
  • Price Volatility: Surprisingly consistent. In 2020 and 2020, the price has remained within the same region while most other coins were collapsing. This may be a good sign of healthy accumulation.
  • Crypto Economics: A total of 1.5 billion tokens exist and is planned to stay this way. If demand grows, then so should the price valuation of the token.

BAT will be hot cryptocurrency in 2020. It has outperformed most other cryptocurrencies during this timeframe, and the potential of the internet browsers’ industry is enormous.

Try BRAVE, the browser by BAT which competes with Google chrome and offers more privacy and security.

All in all, I consider these 5 coins to be safe investments, with solid teams behind them, that should serve beginners well.

This makes them the best cryptocurrencies to invest in, whether you’re a beginner looking to start investing or if you want to diversify your existing portfolio with some of the top cryptocurrencies.

Let’s move on to some more advanced coins. They may generate more potential profits, but with higher risk.

The 5 Best Cryptocurrencies to Buy for Advanced Investors

You probably understand this already: there are currency-focused projects such as Bitcoin or Litecoin, platform projects such as Ethereum, and many more.

If you’ve already invested in some of the top cryptocurrencies offered on platforms like Coinbase and want to expand your portfolio, then the following 5 coins might be the best altcoins to invest in for you.

My top 5 picks for advanced investors will introduce some of their competitors, as well as one new category: privacy coins.

#1. Monero (XMR)

Monero is a privacy-focused project. The coin utilizes fancy cryptography and privacy logics to hide the participants’ identities.

It is used widely on the dark web for this reason and is the most popular privacy coin today.

Source: bauer-power.net

  • Team: Monero had a somewhat anonymous start by a user on the Bitcointalk forum. The team is known to be led by Riccardo “fluffypony” Spagni, an experienced developer and cryptocurrency expert.
  • Liquidity: Monero is a highly liquid coin, always sitting at the top of Coinmarketcap. No matter how much you wish to buy or sell, the market should be large enough to fit your needs.
  • Price Volatility: Due to Monero’s user base and market cap, it’s a bit more stable and less risky than smaller market cap coins – and it has proven so during the bear market of 2020/2020.
  • Crypto Economics: A maximum of 18.4 million XMR coins will exist in circulation until May 2022. After that, 0.3 XMR will be put in circulation every minute forever. This is a pretty small limit, making the coins very valuable in times of demand. Much of the dark web uses Monero for its privacy features, which is continuously pushing demand up.

Despite Monero’s popularity and liquidity, XMR is more difficult to store securely than major coins like BTC and ETH or than ERC-20 tokens like BNB and BAT.

This is why I made it the best cryptocurrency to buy for advanced investors and the top cryptocurrency for those interested in privacy-focused projects.

#2. NEO

NEO is often known as the China-based Ethereum. Founded in China, NEO is another smart contract platform, enabling developers to launch decentralized applications on the blockchain.

They are slightly more centralized than Ethereum: instead of relying on hundreds of nodes like on Ethereum, there are only a few (less than 10) that make up NEOs decision making.

Source: cryptocurrencyaus.com

  • Team: The founders are Da Hongfei and Erik Zhang, who also lead a company called Onchain. They are experienced and trusted.
  • Liquidity: NEO is generally sitting in the top 20 at Coinmarketcap, making for a highly liquid asset.
  • Price Volatility: Due to the high liquidity to price relationship, you can bet that your investment will be safer and more stable than most other cryptocurrencies out there.
  • Crypto Economics: 200 million NEO will exist. 100 million NEO were created at the genesis block, 50 million were sold to early investors, and 15 million are unlocked for funding development. This means NEO’s supply is really already distributed to users, and now demand just needs to keep rising.

Smart contract platforms are targeting a vast market. Although Ethereum is currently the worldwide leader, China is a huge market, and NEO has significant chances of leading out there. As a result, NEO is one of the best cryptocurrencies to buy if you believe in smart contract platforms and want to hedge against Ethereum.

#3. Beam

Beam is another privacy-focused cryptocurrency making waves in the industry. Unlike Monero, which is a more traditional blockchain project, Beam uses a new blockchain protocol called Mimblewimble.

Without getting into detail, Mimblewimble is known to help significantly with scaling the blockchain and transaction speed, all while maintaining a high level of privacy and anonymity.

Source: beam.mw

  • Team: Alexander Zaidelson is the CEO of Beam and has vast experience with P2P technology. He co-founded Nareos (a P2P file-sharing company) and has served as an advisor to several other startups.
  • Liquidity: Beam has high liquidity for its relatively low market cap size, but this is good. It means investors are active and speculation is high.
  • Price Volatility: Beam has been overall consistent, with $1 or so of its average. But, since it’s relatively new, the price can shoot up or down at any time.
  • Crypto Economics: Beam is a PoW cryptocurrency, much like Bitcoin or Litecoin. This means that people are investing in physical mining hardware, creating a foundation price for each coin to be created. Or in other words, a rough wholesale price to produce coins. There is a max supply of 262,800,000 BEAM that can ever exist, and you can always check the circulating supply here. The inflation depends on block rewards ; This first year, the block reward is 80 coins per block, then years 2-5 it reduces to 40 coins, and lastly, year 6 will decrease the reward to 25 coins per block. After that, there will be a halving every 4 years until the 129th year. To sum it up, inflation goes down over time. If Beam’s demand increases over time, then it can make for a nice possible price increase.

With Mimblewimble, Beam should be more scalable than other privacy-focused coins. And with well-thought crypto economics, Beam may very well be the next hot cryptocurrency to buy!

#4. NEXO

Nexo has been gaining some attention recently. Nexo as a software is a wallet which allows users to borrow money using their coins as collateral.

On the other hand, users can also easily and instantly loan crypto and gain interest from lending.

Nexo also offers a free credit card for users and have a unique business model. The NEXO token is one of the first security tokens to be offered (STO) in the industry.

Source: cryptopotato.com

  • Team: Kosta Kantchev is one of the leading figureheads behind Nexo. He is a co-founder of Credissimo, a leading European fintech group focused on retail lending, which is the business powering Nexo. He is a fintech veteran and early user of Bitcoin.
  • Liquidity: Nexo has enough liquidity for the average trader to enter or exit positions, but large investors may struggle to load their bags.
  • Price Volatility: So far, very steady. It also has organic growth which means that the price isn’t increasing or decreasing drastically.
  • Crypto Economics: Currently, there are less than 600,000,000 NEXO circulating with a max supply of 1,000,000,000. Since NEXO is a security token, it is also SEC-compliant and pays dividends to holders. This is a big deal for many.

Nexo is a new cryptocurrency to invest in for investors willing to diversify their crypto assets.

Unlike the other cryptocurrencies of my top 5, it is a fully regulated token that offers dividends to its holders.

They already have a functional product – which most cryptocurrency projects out there don’t, and the founders are very experienced in the credit industry.

#5. Cardano (ADA)

Cardano, which is competing with Ethereum and NEO, is touted to be more scalable and easier for developers to use.

It aims to be more scalable by introducing two layers of technology: one responsible for tracking balances of the ledger, and the other for transferring value.

Additionally, Cardano uses two programming languages called Haskell and Plutus.

Haskell has been around since the 1980s, and is Cardano’s attempt at making it easier for developers to create decentralized applications. Plutus is the functional language built in-house by Cardano’s development team.

  • Team: Charles Hoskinson is the co-founder of Cardano, and was a co-founder of Ethereum as well. He also leads IOHK, a leading research and development facility for blockchain technology. Charles is well equipped to make Cardano a successful venture.
  • Liquidity: Cardano regularly has high trading volumes, so you should have no worries actively trading in this market.
  • Price Volatility: Cardano has had its ups and downs. I would say it is moderately volatile.
  • Crypto Economics: Cardano has a max supply of 45,000,000,000 and a current supply of

31,000,000,000. It uses a Proof-of-Stake (PoS) consensus algorithm.

All in all, Cardano is also one of the best cryptocurrencies to buy if you are looking to hedge against Ethereum.

Are You Looking for More Great Cryptocurrencies to Buy?

You made it to the end! I hope you enjoyed my top 5 cryptocurrencies for beginners and advanced users to buy for 2020, and that you found useful the information I provided.

Combined together, this list represents the top 10 best cryptocurrencies to invest in for 2020.

If you’re looking for more great cryptocurrencies to invest in, or to find out which coin is going to be the next big cryptocurrency, here is what you can do:

1. Join crypto communities

An excellent community to explore new cryptocurrencies is the BitcoinTalk forum, specifically the altcoin threads.

You can interact with people deeply involved in this niche, explore opinions, and search for the announcement threads (“ANN”).

This forum is also helpful to discover projects early on, before they become the next big cryptocurrency.

More great communities can be found on Facebook — and one of them is our own Facebook group. Feel free to join and ask other members about their favorite cryptocurrencies.

2. Check out trustworthy crypto exchanges

The best crypto exchanges perform a significant number of checks before listing new coins for trading.

You can use these verifications as some kind of quality label to find some of the best cryptocurrencies to invest in which aren’t listed on this page.

Binance is the biggest crypto exchange and offers 100+ of the best cryptocurrencies for trading — I definitely recommend you check it out.

Remember to stay safe

Buying the best cryptocurrencies is not enough to be a successful crypto investor.

Countless promising investors saw their crypto journey end brutally because they did not pay attention to security.

If you’re serious about investing in cryptocurrencies, put some effort into reinforcing your security.

  • Read the ultimate cryptocurrency investment strategy guide I wrote about the 50 mistakes cryptocurrency investors make — many of them are related to security.
  • Purchase a hardware wallet (recommended if you own $500 or more worth of cryptocurrencies). Our favorite hardware wallets are the ledger nano s and ledger nano x.

$70

I hope you enjoyed this article.

Let me know in the comments which coins you invest in, and which top cryptocurrencies you think are missing in this my top 10!

More Useful Resources:

Understanding Cryptocurrency: How It Works, What Drives It, Should You Buy It?

You should do a significant amount of investigation into what cryptocurrency you want to invest in, just like any stock, before you buy.

Cryptocurrencies have caught on in the mainstream and have made thousands of people millions of dollars. The most recent boom of Bitcoin now means that if you had invested just $500 8 years ago, you would now be a multi-millionaire. This meteoric rise in the biggest cryptocurrency by market cap has drawn a lot of attention. However, to the everyday man who is used to dealing with hard cash and actual value, cryptocurrencies can seem like an unknown and often unintelligible world. With terms like hash rates, data mining, market capitalization, and ultimately the fear of instability, there’s a little bit of a harsh learning curve to the technology.

In this article, I’m going to try to give a beginner’s guide to cryptocurrencies, explain how they work, what moves the prices, and whether you should invest.

What are cryptocurrencies?

Cryptocurrencies are essentially digital mediums that can be exchanged, just like government currencies, that use cryptography, or digital security measures, to secure the exchange of digital information and control the creation of new units. Explained even more simply, cryptocurrencies are digital coins that fluctuate in value similar to stocks with their exchange being backed by digital security measures.

This Game Is Perfect for Those Who Love Cats and Cryptocurrencies

Cryptocurrencies are digital currencies or money that is then exchangeable for physical money, like dollars. They’re comparable to how most apps have some form of digital money, like “orbs” in a mobile game that cost some amount like ” $10 for 1000 orbs.” In this instance, each in-game “orb” would be worth 1/1000th of a dollar. Even though these orbs are just data on your mobile device or on some server, they have some inherent worth equatable to dollars. In an extremely general context, this is what a cryptocurrency is.

So, how do they work?

In essence, cryptocurrencies provide a viable method of owning a unique digital currency which presents some ever-fluctuating value. Each coin or currency, like Bitcoin, Ethereum, or Litecoin, are fully self-contained digital systems that both track and control each unit of cryptocurrency.

Each individual coin of a cryptocurrency acts like data moving through a network. Some cryptocurrencies can be valued as small as just 1 cent and others as big as 1 billion dollars. Some currencies are controlled by one entity, which is referred to as a centralized currency, and others are controlled by the public, which is decentralized. There are positives and benefits to each variation, but the stress should be placed on the fact that no cryptocurrency is identical to the next.

Today, certain countries in the world are slowly making it legal to use cryptocurrencies (for example, Russia). They might even become a real method of payment regulated by the central bank. If that happens, we need to see how will it affect existing financial system. Will this lead to a power struggle? How will leaders of the world address this issue? We have to wait and see.

When it comes to decentralized trade, it is performed through blockchains. These blockchains represent a list of records (also called blocks). Every block is connected to another block, has timestamp and transaction data.

What drives them?

One of the most prominent aspects of cryptocurrencies is the fact that there isn’t a third party that verifies the transaction of crypto coins. To avoid this, cryptocurrencies use timestamping methods to verify each transaction. Bitcoin, which is the most popular crypto and largest by market cap, uses a proof-of-work scheme, which is commonly referred to as mining. In essence, mining Bitcoin means tasking a computer with solving some complex problem. When the problem is solved, the computer account is rewarded with a portion of Bitcoin relative to the amount of work it put in to solve the problem. This verification network gives Bitcoin value and backs up transactions. By having this in place, someone couldn’t just write code and give themselves x amount of bitcoins.

In many ways, cryptocurrencies are like stocks and some other financial assets. Positive news about a certain coin’s security or general acceptance can drive the price up. The same is inversely true if coins are deemed unuseful in certain applications. Given that this is a relatively new type of an investment, there are lots of miners who are unaware of basic mathematical concepts as well as supply and demand. This might be an issue going forward as it may create a bubble effect driving the whole market down eventually.

Part of what has played into Bitcoin’s rise is that many retailers accept Bitcoin as currency. This makes the cryptocurrency easily translatable to physical value, thus influencing the price per Bitcoin accordingly. Bitcoin can work in future as long as there is no big change to how companies and banks perceive it. At the same time, we also have to consider that as the number of miners increases, it may cause an inflation.

The true answer to what drives cryptocurrencies is obviously much more complex due to the number of factors that go into the “value” of a currency.

Should you invest?

The answer to this question is likely the same for whether you should invest in stocks. While cryptocurrencies have experienced astronomic growth in recent years, these gains aren’t necessarily guaranteed to continue. You should only invest in cryptocurrency if you are willing to take on some risk. While lots of people think that this is a smart and simple way to put some money in their wallet (seeing bitcoin and cryptocurrency as the future of investing), please remember that similar thinking created the previous financial crisis. We still don’t know what kind of problems we might encounter in future given that the whole system is relatively new. As the number of cryptocurrencies mined continues to increase and the whole process becomes more mainstream, there is a good chance that various technical and financial issues will start appearing.

With that said, there are currencies that are more stable than others.

Litecoin, which is often regarded as the silver to Bitcoin, has been found to be a very stable currency of growth in recent months. Whereas Bitcoin, currently trading at all-time highs, is known to make corrections of 30%, represents a large loss if you were to invest now.

The volatility of cryptocurrencies presents opportunities for day traders, and the significant long-term growth of cryptos present great opportunities for long-term investors. So, users can choose between high gains with high risk and low gains with low risk.

You should do a significant amount of investigation into what cryptocurrency you want to invest in, just like any stock, before you buy. Buying can be done on many secure mobile apps or other online platforms. A quick Google search of where and how to buy cryptocurrencies can yield you with this information with ease.

To summarize, cryptocurrencies are often decentralized digital currencies that draw value from security, anonymity, and authentication measures that fluctuate much like stocks that can be traded and exchanged for “true value” currencies. While it may still sound hard to understand, a little bit of research into crypto is key to making better profits. Cryptocurrencies are here to stay, and while awareness of them is growing with the general public (including governments of the world), people with actual knowledge about how they work is still very small. By taking the time to research and understand, you present yourself with an opportunity to excel in a technologically growing industry.

Would you use cryptocurrencies for running a company? What is the best case scenario for cryptocurrencies?

Join in the conversation; share your opinion in the comments below!

If you wish to read more content about cryptocurrencies, computers, and software, check our site regularly!

Also, feel free to follow us on social media – Facebook and Twitter!

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Broker For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading: Brokers Reviews
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!:

Supported Cryptos Benefits Price
1000+
  • Cheaper than most
  • Easy to use
Get a Ledger Nano S
1000+
  • Store 100+ cryptos together
  • Manage from mobile