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What is the Best Cryptocurrency to Invest in During 2020?

There are more than 40 million cryptocurrency users around the world. The blockchain market is expected to grow to $23.3 billion by 2023.
Cryptocurrency has become a popular choice for investors, but it can be challenging to decide which cryptocurrency to invest in.

What is the best cryptocurrency to invest in this year?

Things to Consider When Investing in a Cryptocurrency

There are a few things to consider when choosing the best cryptocurrency to invest in, including:

Liquidity: The higher the liquidity level, the quicker it can be sold and converted to cash. When, or if, you decide to sell or trade your cypto, you want the process to move as quickly as possible. Bitcoin, Ethereum and Ripple all have high liquidity rates, which means there is a high demand for these cryptocurrencies. If you choose to invest in a cryptocurrency with low liquidity, it would be more difficult and time-consuming to trade or sell your coins.

Market Capitalization: The value issued to the coins is, of course, important. A high market cap means that there are a large number of crypto coins being used in active transactions. This suggests that there is interest from investors.

One other thing: Make sure that you’re diversifying. Don’t invest all of your money into one cryptocurrency. Diversify your investments to minimize losses and maximize profits.

Bitcoin

One of the most popular cryptos to invest in is Bitcoin. Of all the cryptocurrencies, Bitcoin has been around the longest, so it’s naturally the top cryptocurrency to invest in. The digital currency has had more time to drum up interest and attract investors.

Bitcoin easily tops any list for cryptos to invest in this year.

But there is one thing that you should consider before making an investment. In May 2020, miner rewards for Bitcoin were reduced to half – down to 6.25 BTC.
With that said, the cryptocurrency is still expected to dominate the market and maintain a 65%-70% market share in 2020.

Ethereum

Another top cryptocurrency to invest in is Ethereum, or ETH. Ethereum is different from other cryptocurrencies because it’s technically a platform. It’s used to create smart contracts and apps. ETH is the currency used to perform different activities on the platform. In this way, Ethereum is more than just an alt coin.

Ethereum differs from Bitcoin in that the demand and value aren’t driven purely by monetary gains. Investors are interested in ETH because of its blockchain technology, and the ability to build decentralized apps and smart contracts.

NEO

One crypto that has seen rapid growth is NEO. It’s the first open-source cryptocurrency to originate in China, and it claims to combine both digital and real assets.

NEO also has a Superconduct trading mechanism that allows you to trust funds using a decentralized platform. There are rumors of an ICO, but that has yet to materialize.

Ripple

When choosing what cryptocurrency to invest in, Ripple is a popular choice. In fact, this crypto is still one of the most widely used coins for making international payments by financial institutions, including banks.

Like other cryptos, Ripple can also be used for transactions on the Ripple network. Hundreds of financial institutions use this network to find new customers, new markets and to expand their services.
Ripple is viewed as a long-term investment. Don’t expect significant gains in 2020 or over the next few years. But over the long term, Ripple is viewed as a favorable investment by crypto investors.

EOS

EOS aims to follow in Ethereum’s footsteps, choosing to focus on the programmable side of blockchain. Through the EOS platform, developers gain access to tools they can use to develop DApps with smart contracts and a speedy blockchain.

EOS claims to offer the ease of programming Ethereum provides coupled with the security level of Bitcoin. It also eliminates the scaling issues found with Ethereum.
Investors favor EOS for its potential to outgrow Ethereum.

Tips for Profitable Investing

Now that you know what cryptocurrency to invest in, you may want to know how to make your investment more profitable.

One tool that traders use for profitable investing is margin trading. With margin trading, investors can make money if the market is going up and down. If done properly, investors can still make a profit even during times of market volatility.

Another important tip is to set a target for your profits and to use stop losses.

Don’t get too emotionally attached to your investments. Make decisions based on logic – not fear, anger or excitement.

Conclusion

There are several cryptocurrencies available to investors in 2020, but these five have shown to be the most promising in terms of potential, liquidity and market cap. It’s important to do your research and to keep a close eye on the market when deciding which altcoins to invest in. It’s also important to remember volatility is common with cryptocurrencies, so be prepared to see big dips and gains.

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