We have gone through our detailed critical criteria. Now, here there is a shortlist of cryptocurrencies you can invest in during 2020. Also the reasons why they are on our list. Remember, it’s up to you to do your research. In the end, your list may look completely different from ours! (So this is not hard-and-fast investment advice!) The best cryptocurrencies for 2020 on cryptocurrency exchanges are:
It is still the most popular cryptocurrency. It has the lion’s share of the market. Also, the price of most other cryptocurrencies depends on the price of bitcoins and their movement. Bitcoin is also the most-thoroughly researched cryptocurrency with the most extensive history and statistical data. Many computational models assume that its price will increase in the coming years. Even decades.
This cryptocurrency has great potential. Many decentralized applications and cryptocurrencies are built on Ethereum. Their success is linked to the long-term award. Also to the success of Etherea. Ethereum is a leader in decentralized finance (DeFi). Most DeFi projects are built around Etherea. Such as MakerDAO or Compound.
Thanks to its efficiency and partnership with large money processors such as Moneygram, XRP has considerable institutional support. Although XRP is not well-known in the cryptocurrency community, its technology can process payments much faster than most blockchains. This makes it the best candidate for the “ideal” currency for fast funds transfers worldwide at low costs. And lets not forget that this was the primary reason why Bitcoin was invented.
This cryptocurrency has been well-adopted. Brendan Eich created the Basic Attention Token. It rewards users for viewing ads in the Brave browser (which is otherwise designed as an ad-free browser). The Brave browser has seen a significant portion of adoption in recent years. This mainly due to its high-quality characteristics, speed of development, and tens of thousands of partnerships.
We admire Cardano because of its vision. Charles Hoskinson used his experience and knowledge years ago as a co-founder of Etherea to create the Cardano blockchain. It sets the highest goals. Cardano wants to become a social and financial operating system for people who do not currently have one. In the future, this smart contract platform is expected to have a 100x higher degree of decentralization than Bitcoin itself. Mainly because it is based on a consensus proof-of-stake algorithm. It also has significantly better scalability and throughput of transactions than either Bitcoin or the current Ethereum 1.0.
In a word: technology. Cosmos’ vision is to become the so-called internet of blockchains. Just as the internet is made up of various websites, Cosmos is built on several autonomous blockchains. They are zones connected to the HUB, as it is called the central blockchain. Cosmos provides all connected blockchains with a previously unthinkable degree of scalability and interoperability.
Long-term trade in cryptocurrencies vs. short-term trading
Once you have chosen which cryptocurrencies you want to invest in, you need to decide the time you will trade. There is a big difference between short-term trading and long-term trading. Previously, the rules we presented relate more to long-term investments that plan their cryptocurrencies. They are the so-called “WATCHING”. They hold for a very long time.
Many traders use both types of trading. For example, part of the portfolio is for short- and medium-term trading. Another part is the so-called HODL. Many claim that their profits from short-term trades are similar to profits from long-term trading. This, of course, can vary from cryptocurrency to cryptocurrency and from your trading experience and information resources.
If you decide not to follow these rules, you can immediately jump on lesser-known and less capitalized cryptocurrencies. They often have higher volatility and price jumps. Also lower liquidity. This because they are traded on a limited number of exchanges. In this case, however, you should keep in mind that just as there is more room for a profit with these coins, there is only as much room for loss.
It is widely known among experienced cryptocurrency traders that it is with these less-capitalized projects that huge profits can be achieved. But also massive losses. It depends on what cryptocurrency you are experiencing and at what stage of your cycle it is. However, the more open these stores you have, the higher the chance that some will turn out badly. These projects cannot confirm with certainty that their price will be the same or higher in a year or two.
Finally, it is necessary to ensure that the funds you have invested are safe. No matter what style of cryptocurrency trading you prefer. Your cryptocurrencies should be safely stored in your private wallet. These cryptocurrency wallets can be digital or hardware. The hardware version is one of the safest you will find on the market. TREZOR is the best hardware wallet you can buy to store your cryptocurrencies.
You can currently use hundreds of cryptocurrency wallets. Among the most recognized are the Atomic Wallet (digital multi-crypto wallet) and the Safe (hardware multi-crypto wallet). If you already have some experience with cryptocurrency trading, for example from videos or seminars, you have probably heard terms like “hot wallet” and “cold wallet” in them. A hot wallet is a place where you store the cryptocurrency you want to trade shortly. On the other hand, a cold wallet is a wallet where you store your cryptocurrencies which you will not move soon. Examples of the cold wallet are hardware wallets such as Vault or Ledger. A hot wallet is a designation for digital/electronic wallets that you have stored on your computer or mobile phone. Always remember to keep your funds safe.