Best Cryptocurrencies to Invest in 2020
By Anton Kovačić
Cryptocurrencies are a complex subject and one that has taken the world by storm over the last few years. When first learning about them, it can be a very overwhelming process. With a little bit of persistence and consistent research, anyone can master the ins and outs of the digital market.
Of course, even seasoned vets in the cryptocurrency space are always gathering new information as new events and coins pop up. For this reason, we decided to split this list of the best cryptos into two distinct halves. The first list of five will discuss the currencies that beginners should first explore and trade. The final five will discuss lesser-known cryptos that hardcore investors will want to take note of in 2020.
The Best Five Cryptocurrencies for Beginners
1. Bitcoin (BTC)
Along with being the most well-known crypto in mainstream circles, it is also the easiest coin to acquire using traditional fiat currencies. Many exchanges offer the ability to purchase BTC directly using dollars, euros, etc and Bitcoin can then be used to trade almost every other crypto in existence. That alone makes it the most important crypto to start out within your digital investment journey.
The market cap has already surpassed $100 billion and only seems to be rising in the foreseeable future. This makes BTC the most liquid of all digital coins as pretty much everyone is vying to get in on the action. There are also very stable compared to the average altcoin floating around online. If you decide that cryptos aren't for you, you will be able to cash out very easily and move on without incurring much if any losses.
There is also massive potential for growth as the next halving will take place in 2020. Essentially, the supply will be reduced in half after a certain threshold of coins has been mined. This will cause the demand and price to skyrocket during and after the event occurs. Getting into BTC as early as possible is how anyone can take the most advantage of the upcoming price increase.
2. Litecoin (LTC)
LTC is very similar to Bitcoin and was even created using the original source code. However, Litecoins solve an inherent flaw in BTC's blockchain that makes it very exciting to investors and business owners alike. Litecoin processes transactions much faster than BTC and thus people can conduct business much more freely since they don't have to wait for the excruciatingly long BTC processing times.
LTC has remained in the top 10 cryptocurrencies in terms of market cap and volume traded. This makes it incredibly easy to cash out at many exchanges and online businesses while also providing a stable price. As Bitcoin's value skyrockets, expect LTC to also go up in value throughout 2020.
3. Ethereum (ETH)
ETH has the second-largest market cap of any crypto and has remained just below the insurmountable Bitcoin for several years now. It uses a technology called smart contracts to help web developers create various blockchain-enabled desktop and mobile applications.
These apps use ETH to fuel their own economies which often have their own tokens created as well. This is where the process of Initial Coin Offerings was first introduced. Many new cryptos that rely on the ETH framework are still being released to this day. This keeps Etheruem very liquid as many new companies are always looking to trade. 2020 will most likely see a steady increase in ETH's price as more applications launch.
4. Binance Coin (BNB)
Binance is one of the largest crypto exchanges in the world and the titular coin is used to handle processing and transaction fees on the site. BNB has a unique economy because all 100 million tokens were released into the wild during the ICO. This is in stark contrast to standard cryptos that slowly dole out new coins via mining or staking.
Binance uses some of its earnings each quarter to buy back BNB from the populace in order to drive up the value. As the supply continues to dry up and Binance becomes a more popular platform, the price of BNB should steadily rise resulting in nice returns for anyone who invested in the tokens.
5. Basic Attention Token (BAT)
Basic Attention Tokens are a currency used by the Brave Browser to promote safe and ethical online advertisements. Users are rewarded with the tokens each time they browse the web with Brave and pay attention to the curated ads. Advertisers release some of their BATs to each person who views their commercials in order to incentivize the growth of the platform.
BATs have gone up in value steadily as more people learn about Brave and start gathering tokens just for doing what they already would online. It is easy to earn BATs as no expensive mining rigs are required to start generating them in your wallet. 2020 will no doubt mark another increase in the value of BATs as traditional online ads continue to become more intrusive.
The Best Five Cryptocurrencies for Expert Investors
If you have spent a good deal of time on crypto exchanges and already have tons of experience trading digital coins, then these are the next cryptos you should look into. Many of these are emerging in 2020 and beyond with innovative technologies and a huge potential for massive gains.
Monero's strong emphasis on privacy has driven up the price significantly over the last few years. XMR features transactions that leave virtually no paper trail since both participants have no way of learning who is on the other side of each trade.
This is easily the most popular currency among dark web users and anyone who has concerns over the increased surveillance from big tech companies. As the online experience continues to become more Orwellian, the price of Monero will surely increase as more people strive to protect their data from unwanted attention.
NEO is another smart contracts based platform that caters to a very specific market. It was created in China and allows investors to tap into the seemingly infinite profit potential lying dormant in that country. It is very similar to Ethereum but is far more centralized. ETH features dozens of decision making nodes while NEO has fewer than 10.
While ETH is far more popular, NEO has still held its ground in the top 20 coin market caps. Not only does it make the crypto fairly liquid, but the room for massive growth is much more expansive. If Neo continues to take off, it could lead to some huge gains for early investors.
Much like Litecoin was created to solve a huge issue with Bitcoin, Beam was created to solve the main issue currently troubling Monero. Since Monero is all about privacy, the transaction can be unbearably slow as the blockchain works tirelessly to ensure transaction can't be traced. Beam uses a technology called MimbleWimble to boost transaction speeds without sacrificing the layer of anonymity.
Beam has a pretty small market cap but can still be traded without much fuss. As more people get fed up with Monero's slow processing times, Beam has great potential to replace it as the leading privacy-based crypto.
Nexo offers a unique utility to coin holders that has been leveraged to boost its popularity recently. Users can borrow funds by putting up their tokens as collateral. Larger investors can loan out their cryptocurrencies and collect a steady passive income stream by earning interest on those loans.
The fact that Nexo offers a functional product makes it a great way for investors to diversify their portfolio with a coin that offers tangible benefits to the end-user. This makes the growth of the platform easy to track and a relatively stable investment as more crypto enthusiasts learn of the service.
ADA is another smart contracts platform with the goal of simplifying the entire app creation process. There are two layers of infrastructure that make the blockchain easier to keep track of. One layer focuses on the ledger that keeps track of each user's balance. The other is tasked with transferring value between users who transact with one another.
The result is a platform that is easier to use and maintain than the like of ETH or NEO. As more fledgling developers arrive on the scene, many will choose to create on the ADA network to get their own apps off the ground much quicker. This should lead to healthy growth for anyone who invests on the ground floor of this new crypto.