Have you ever thought about purchasing a cryptocurrency? If not, now is the right time since you can find a variety of stable and promising crypto coins online.
The crypto market has a total market capitalization of over $155 billion, so taking only a small portion of it could make you a seriously profitable investor. But how do you choose the right digital currency to invest in?
There are more than five thousand cryptocurrencies currently available across many different crypto markets and it’s not really easy to distinguish top-performers from less attractive virtual coins. Our job is to help you learn more about prosperous cryptocurrencies, so keep reading to see the top eight picks.
Why Do You Want to Invest in Cryptocurrencies?
According to the report, only 10% of people claim they fully understand what cryptocurrency is. The world of digital money is relatively new and it’s natural to be suspicious, but there are a few very practical reasons to turn to this type of investing. Here they are:
- Investment potential: Cryptocurrencies are on the rise and you should seize the opportunity to engage early and earn money before the thing becomes too popular.
- Portfolio diversification: Digital coins represent a fresh alternative that you can use to diversify a portfolio and reduce financial risks.
- Security: Blockchain-powered transactions are known to be safe and sound.
- Convenience: Lastly, crypto trading is very convenient as you can do everything from the comfort of your home.
Top 8 Digital Coins for Investors in 2020
You’ve seen a brief introduction, but now it’s time to focus on the key segment of our post. Let’s take a look at the top eight cryptocurrencies investors should think about in 2020.
Although being an obvious choice, Bitcoin is the Holy Grail of cryptocurrency investing and we have to give the first position on our list. As the oldest and by far the most expensive virtual coin, Bitcoin makes an excellent solution for serious investors who want to play the game safely and engage long-term.
Jake Gardner, a business analyst at NSBroker, explains that Bitcoin requires substantial investments at first: “But the truth is you can never lose money with Bitcoin from the long-term perspective.”
Contrary to Bitcoin, Libra is still in the early stages of development and projected to launch sometime during 2020. The thing that makes this cryptocurrency so special is the developer – none other than Facebook. Bearing in mind the network’s global reach, it is natural to assume that the price of Libra could skyrocket upon launching.
Ethereum is powered by one of the most versatile technologies and used by millions of developers worldwide. As such, it is the second-largest cryptocurrency and a precious alternative for investors who cannot afford to buy Bitcoin. Ethereum is essentially a program for creating smart contracts and decentralized apps, so it’s fair to say that it will remain extremely popular among traders and developers from all over the globe.
Basic Attention Token
Basic Attention Token (also known as BAT) is a new form of cryptocurrency that focuses on PPC advertising as the means of completing financial transactions. According to developers, BAT radically improves the efficiency of digital advertising by creating a new token that can be exchanged between publishers, advertisers, and users. BAT used to be highly volatile in the past, but it always managed to come back and grow.
Unlike any other coin, Ripple is not being generated through mining. It is actually a consensus ledger that serves as a reliable channel of international payments. Ripple enables near-instant cross-border transactions at a very low cost, which makes it a precious addition to the global financial market. This is exactly the reason why you can invest in Ripple without the fear of losing your money.
A Chinese version of Ethereum, NEO is a trustworthy platform for building decentralized applications and smart contracts. NEO is highly liquid and stable, so it’s wouldn’t be a big risk to invest in this cryptocurrency. As a matter of fact, the technology behind NEO is highly authoritative and we expect the price of this coin to grow substantially in the months to come.
NEXO is a cryptocurrency wallet that enables you to borrow money and take advantage of your digital assets as collateral. The second option is to loan your cryptocurrency to other users and collect interest from it. What we like about NEXO is stability as it seems like the cryptocurrency is growing organically rather than artificially.
If you are looking for a totally decentralized crypto coin, then Monero must be your number one pick. The coin relies on heavy cryptographic solutions to protect traders’ anonymity, a feature loved by millions of investors globally. This is also why Monero is a very stable and worthwhile asset.
The Bottom Line
Crypto trading is getting increasingly popular among investors who want to test new things and diversify their portfolios. In this post, we showed you the top eight digital coins to invest in this year. Think about our suggestions and feel free to write a comment if you have any questions or ideas – we would be glad to see it!
Picutres: Donna James
Author: Donna James
Statements of the author and the interviewee do not necessarily represent the editors and the publisher opinion again.