If you are planning to invest in cryptocurrency this year, then choosing the best cryptocurrency to invest in is not an easy task. So which is the top cryptocurrency to invest in now? Here we will provide the most promising cryptocurrencies of 2020 and about the factors that influence the price fluctuations of those cryptocurrencies. So read this article till the end.
Most Promising Cryptocurrencies of 2020
Here is the list of the most potential cryptocurrencies of 2020. Check it out before investing.
After plenty of analysis and studies, it found that one of the best cryptocurrency to invest in 2020 is bitcoin. It is the world’s most popular cryptocurrency and this is one of its biggest advantage against other players in the market. The mid-term outlook of the bitcoin remains positive for investors. Even though the corona crisis had driven many investors from stocks and bonds, crypto markets and bitcoin trading are live even now. The king of cryptocurrency has even hit $20,000 at some point in the year. This made bitcoin the number one in this list.
If bitcoin is the king in the crypto world, then Ethereum is the queen. The most awaited bitcoin halving came out this year and went without much effect. This made Ethereum one of the most promising cryptocurrency of this year. Another most important advantage of Ethereum that attracts investors is that it won’t be a live Proof-of-Stake network yet, but rather a multi-client test network.
Ripple coins (XRP)
The technology involved in the ripple network and new opportunities in this field attracts investors and made ripple coins third in this list. Commerce, banking, payment networks are technically evolving day by day and are an advantage for ripple coins. Along with that MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities.
Even though Litecoin is the fourth one on the list, it is the fastest and most affordable cryptocurrency than the three mentions above. It gives wider opportunities for investors. So that each LTC unit currently trades for less than $100. The price of Litecoin largely depends on the adoption.
Factors to determine the best cryptocurrency
- The first and most important one is to study the whitepaper. They are designed to explain the purpose and utility of the coin. So before investing in a cryptocurrency, it is important to study its whitepaper.
- Next is to check the supply of the coins circulating in the market. That is the market capitalization. Its good to invest in the coin that has at least 80% of its coins in circulation.
- Liquidity is a factor that determines whether the coin is established or not. Most popular or highly established crypto coins have high trading volume. So choose such cryptocurrencies while you invest.
Cryptocurrency is becoming more popular today and more people are now investing in crypto. So before investing in crypto find some time to take a look at this article. We hope that the information provided in this article is useful and convincing for you.