Money is a precious commodity. Anyone who possesses it has access to multiple utilities and luxuries. In ancient times where there was no concept of money, people usually relied on barter. Well, trade is a concept of exchanging valuable things according to mutual needs. The deal was that comprehending the actual value of something as abstract and based on guesses. There was no way to check if the exchange was on equal amounts or not.
So, we started having money made of valuable metals like gold and silver. The usage of coins somehow rationalized wealth and tied it to some measurable items. However, humans soon realized that we could never have enough gold and silver to provide to everyone, and it was also costly to make them.
Eventually, we reached what we now know as paper money and started having the concept of banks. We should understand that in every age, humans have reacted to their changing requirements. Paper money has been becoming a bit obsolete now as the world has now moved on to credit-based transactions. It happened until some people realized the centralized banking system’s flaws that usually monopolize everything.
One such person was someone we know as Satoshi Nakamoto, the founder of Bitcoin. If you often read about money matters, it is not possible that you haven’t heard this name or at least read about Bitcoin. Though for information purposes, Satoshi Nakamoto is a pseudonym, not a real name, and the world still wonders who the person can be. Everyone wants to invest in this cryptocurrency. Making a bitcoin price prediction is a tricky business and requires expertise. In this article, we will discuss which cryptocurrencies are best to invest in the year 2020.
Factors to consider while choosing crypto to invest
Cryptocurrencies have been devaluating since 2019. They are still quite volatile, can go up any time. There are still some factors that, if considered, can contribute to some significant chunks of profit in cryptocurrencies. One factor is market capitalization that refers to the higher the value of the coins in crypto, the more benefits it will contribute to the currency. A significant volume of active coins are in the market, making transactions every day, so you can always have an opportunity in such a scenario.
Liquidity level is another factor that means that you can trade a huge quantity of something at a low cost. Some of the cryptocurrencies discussed in this article have a considerable demand, and you can trade them without much hassle. This quality makes these cryptocurrencies very promising, and getting profit even out of the small fluctuations in value is possible.
However, you must follow some rules while trading, such as diversifying your investment. As they say, never put all your eggs in the same basket; well, the same is the case with cryptocurrencies. You should never invest in only one cryptocurrency and expect to make a profit out of it. Investing in multiple cryptocurrencies will ensure that you can quickly maximize your benefit if at least even one of them does better than others. Also, as it happens with money, never blindly trust any single person and instead do some research before delving into this thing. The best way is to observe others, listening to what they are saying, and gradually learn as you go along.
After discussing the factors and guidelines, let’s talk about the top cryptocurrencies you can invest in, in 2020.
Any conversation about cryptocurrency would remain incomplete with bitcoin discussion, which alone is much bigger than all the currencies combined. Since its introduction in a paper by Satoshi Nakamoto, it remains the benchmark against which all other cryptocurrencies get compared. Bitcoin never loses its value because its maker limited the total number of Bitcoin that will ever exist, 18 million only. The scarce supply means that owning even a fraction of one bitcoin will give you massive value. It has the most significant daily trading volume, as every day, around $40 billion gets traded on various platforms. In the future, many cryptocurrencies will come and go, but the reputation that bitcoin managed to maintain will never diminish. If it weren’t for Bitcoin, the world would be far behind in usage and understanding of cryptocurrencies right now. All these factors contribute to the fact that it is very safe to invest in Bitcoin, which promises a good return.
Most of you probably haven’t even heard about this one, but it emerged as one of the survivors from the COVID-19 crash. By the end of March, Dash had gained over 60% on its value and continues to rise as we speak. Most of the cryptocurrency websites now view Dash as the next significant emerging currency, and it attracts massive interest from the people. If you are unsure about it, you can invest small in a few coins and see where it takes you. However, cryptocurrency enthusiasts are now investing big in it and are expecting massive returns soon.
Ripple has been around for a few years, but it is trading on a huge discount right now. It has not been at such a low price since 2017, which gives it the potential of making huge profits shortly. Ripple works with many big banks, and any bank adoption translates into Ripple gaining its value. Today we have phones in which we can transfer information to the other end of the world in a matter of seconds. Ripple was designed to work in the same currency, and you can transfer it within 4 seconds. The best thing about it is that the transfer fee is minimal, much smaller than what you pay your banks for transactions. On the contrary, if we consider Bitcoin, its operations can take up to 1 hour to confirm because Ripple manages 1500 transactions per second while Bitcoin manages only 5.
Monero is emerging and showing outstanding potential this year for various reasons. First, it has the best privacy features. If you are looking to make transactions anonymously, Monero is your best bet. The deals are non-traceable. Much like Bitcoin, Monera also has a limited supply of 17 million coins, making it very attractive.
Ethereum is the second biggest cryptocurrency after Bitcoin, and it had the most potential in 2020. Many experts predict that Ethereum will emerge as the biggest winner from the coronavirus crash. People prefer Ethereum because it has more applications than Bitcoin and is backed by many Fortune 500 companies such as JP Morgan and Microsoft. Ethereum also has a limited circulating supply.
The world of cryptocurrency is emerging as an alternative option to our current banks and currencies. As more people develop interests in it, we can be sure that it will only grow bigger with time. Bitcoin being the most known one will always remain the pick, but today we see many more cryptocurrencies. Currencies such as Ethereum, Dash, Ripple, and Monero all have their features, and people opt for them depending upon their requirements. Once this pandemic is behind us, cryptocurrency will surge, making it a perfect option to invest.