Overview of the Crypto Market
Cryptocurrency has enticed the casual investor perhaps more than any other financial asset. In fact, the very nature of cryptocurrency has made it hugely accessible to the man on the street and many people who may never have considered serious investment are now wondering ‘should I buy crypto?’ for fear of missing out. In fact, long before you thought of investing yourself, you had probably seen numerous posts shared on social media advertising the newest coin claiming to be the best cryptocurrency to invest in.
At the same time, the crypto market is also famously volatile, with frequent highs and lows. As such, investing in crypto requires a slightly different mindset than investing in, say, property or the stock market. Simply put, the best cryptocurrency to invest in changes often. However, one thing that is universally true for investment of any kind is the more knowledge you have the better. Thankfully, websites such as ours at TradersBest.com provide a single place in which you can learn everything you need to know about the cryptocurrency market.
Whilst the initial impression of the cryptocurrency might be one of confusion, especially when trying to decide which is the best crypto to invest in, it should be remembered that the market is also rife with opportunity. In fact, the total market capitalisation of crypto – which currently stands at around $200bn – is predicted to reach into the trillions by 2024, according to several industry experts.
It is an interesting time for cryptocurrency markets, as economic uncertainty in the wake of the COVID-19 pandemic combined with changing attitudes towards blockchain technology in general has led to renewed interest in the potential of digital currency. As such, now could be the ideal time to start considering cryptocurrency as a serious investment opportunity.
What to Consider When Choosing the Best Crypto to Invest in
First thing’s first – if you are new to the cryptocurrency scene then its important to understand how it differs from other forms of investment and how some coins utilise different technology. It’s also a good idea to identify your goals as an investor – are you looking for the best crypto to buy now with a short term ROI in mind, or are you prepared to make a more long term investment? Once these questions have been answered, then you can form a better idea of which coins are likely to be the most suitable for your own investment goals.
As with any investment, there are several factors to making a decision on which is the best crypto to buy right now. For example:
The market capitalization of an individual currency will tell you the value of all issued digital coins, with a higher figure meaning a larger volume of coins being actively traded, which usually means more interest from investors, which in turn gives a good idea of what other traders see as the a good investment opportunity.
The liquidity level relates to the speed at which the currency can be sold at the market price. The more popular cryptocurrencies have a high liquidity rate and this is a key factor when determining which coins are a good investment at any given time.
The more stable cryptocurrencies are the most reliable for long term investors and usually make up the bulk of any sensible investment portfolio. It goes without saying that a more stable coin will normally be a safer investment.
There are numerous ways in which government regulation can affect crypto prices. Savvy investors will stay up to date with different countries’ position on cryptocurrency. This is an all to often overlooked factor taken when choosing which cryptocurrencies to buy and sell.
Of course, the usual rules of investment also apply. Wherever possible, it’s advisable to diversify your investments to mitigate risk – investing in one asset is a common mistake for new traders. With this in mind, the question of which is the best cryptocurrency to invest in 2020 is one that potentially has multiple answers.
The Contenders for the Best Cryptocurrency to Invest in 2020
It seems that everybody wants to invest in cryptocurrency at the moment, but it’s important to remember that people will have different expectations when it comes to a return on their investment. This means that there is no one-size-fits-all option and the best cryptocurrency to invest in for person A may not be the same for person B.
There are also a lot of cryptocurrencies out there – almost 3,000 in fact and the home pages of many of them take great efforts in presenting them as the best cryptocurrency to invest in. The exact number will vary depending on who you ask, but most crypto trading platforms and industry sites will list anywhere between 2,500 and 3,000 different currencies. Whilst this certainly means investors have plenty of choice, it also means that choosing the best cryptocurrency to invest in is no small task.
The world’s most famous cryptocurrency. Bitcoin is the most widespread cryptocurrency in circulation by a considerable margin and offers a certain degree of stability when compared with newer coins. This popularity makes Bitcoin arguably the best cryptocurrency to invest in for those who are new to the market.
Ethereum is another well known currency that has been tipped to one day overtake Bitcoin as the biggest coin on the market. However, Ethereum offers a broader range of blockchain services. On the surface, Ethereum may sound somewhat complex, but its resident cryptocurrency can be traded in the same manner as any other. It’s ongoing popularity means that Etherum is likely to be amongst the best cryptocurrency to invest in now and in the near future.
XRP is the cryptocurrency used by the Ripple payment network. XRP also differs from Bitcoin in that it uses a consensus mechanism through a group of servers to confirm transactions, as opposed to mining.
XRP may not be the best choice for newcomers looking to invest in crypto, but it’s certainly one to keep an eye on.
Litecoin was launched back in 2011 and is based on the model of Bitcoins, intended to improve on what the developers saw as the latter’s weaknesses. A well-established and popular cryptocurrency, Litecoin is consistently among the largest coins in terms of market capitalization and is certainly a contender for one of the best cryptocurrencies to invest in 2020 and beyond.
Bitcoin Cash emerged in 2017, from a fork of Bitcoin. The spin-off coin was created by bitcoin miners and developers who became concerned with the future of Bitcoin and its ability to scale effectively. Bitcoin Cash transactions have a bigger block size and so fit more transactions into a single block. Bitcoin Cash has established itself as one of the best crypto to invest in on the market.
Bitcoin SV – also known as Bitcoin Cash SV – was created in 2018 when Bitcoin Cash experienced a hard fork. The ‘SV’ stands for ‘Satoshi Vision’ reflecting the coin’s intention to restore the original Bitcoin protocol as defined by version 0.1 of Bitcoin. Since its inception, Bitcoin SV has established itself as a distinct cryptocurrency, entirely separate from the original Bitcoin and often ranked as one of amongst the best cryptocurrency to invest in according to market capitalization.
EOS is the cryptocurrency of the EOS blockchain platform, which is often referred to as the chief rival of Ethereum. The intention of EOS was to marry all the best features of the existing cryptocurrencies and create a new, simple platform that would enable high speed transactions. Again, this differs from other established coins and potential investors are advised to thoroughly research the technology before proceeding with any transactions.
Tether is a part of a new wave of blockchain-based cryptocurrencies which are backed by a traditional fiat currency, such as the dollar or the pound. Often referred to as stablecoins, this new breed of coin promises investors a more stable option, as opposed to the wide fluctuations seen in other currencies. Naturall, the increased stability means Tether is often touted as a good investment for those new to the crypto market.
Finally, no discussion of cryptocurrency tokens would be complete without Binance Coin – the currency issued by the Binance exchange. Whilst it may not be as well known outside of crypto circles as Bitcoin or Ethereum, Binance is one of the largest cryptocurrency exchanges by trading volume and, as such, is certainly a contender for the best cryptocurrency to invest in in 2020. exchange in Binance Coin is possible only through crypto coins like bitcoin or ether tokens.
Making Your Decision
The above list is intended as an overview of some of the most popular cryptocurrencies currently on the market. Choosing the best crypto to invest in now, however, will come down to numerous factors relating to the individual investor. Before making any decisions with regards to cryptocurrency investments, you should take steps to educate yourself as thoroughly as possible on the pros and cons on each coin. At TradersBest.com, we have numerous resources for learning more about each cryptocurrency in depth, as well as the crypto market in general. Simply put, the more you learn about what is available, the stronger a position you will be in to confidently choose the best cryptocurrency to invest in in 2020 and in all your transactions moving forward.
Best Cryptocurrency To Invest In 2020: Conclusion
The cryptocurrency sector presents plenty of opportunity for investment and there are numerous brokers and exchanges on the market that allow you to start trading within minutes. The market’s accessibility is one of the things that has made it so appealing and as new uses for blockchain technology continue to be developed, cryptocurrencies are becoming increasingly popular with mainstream investors. Similarly, as the years go by, more and more cryptocurrencies are building up a solid track record when it comes to price performance, which inevitably reduces some of the uncertainty surrounding this new technology.
Aside from the currencies themselves, choosing which the best crypto to invest in will depend on various other factors, such as how long you are planning to invest for, how much risk you are willing to take on and which other currencies you may have already invested in. It’s also worth bearing in mind that the best cryptocurrency to invest in 2020 will change regularly – so it is good practice to regularly monitor developments within the cryptomarkets and the wider financial world and see which coins present a good investment opportunity when you are ready to make a trade.