Which Cryptocurrency Will Grow the Most in 2020?
The advent of cryptocurrencies changed the economy forever, providing the world with yet another valuable asset to invest in. However, nowadays there are more factors that influence profitability. The development of the industry has provoked the emergence of a huge number of new projects. Many seemingly successful coins fell into oblivion, and newbies, on which no one had bet, showed unexpectedly high performance. Given this fact, let’s figure out which cryptocurrencies are worth investing in in 2020.
Things to Consider Before Buying Any Cryptocurrency
1) Do your own research
When you invest in cryptocurrency or any asset, you need to carefully study them, especially when you find a new project on the market. You must study as much information as possible and understand the idea of cryptocurrency, then you can invest with confidence.
2) Invest as much as you can afford to lose
When you make any investment, there is always a risk of losing money. In this case, you must invest money that you can afford to lose.
3) Diversify your cryptocurrency portfolio
In this case, you should invest in various crypto projects (more than two cryptocurrencies). The more projects in your portfolio, the lower the likelihood of failure associated with a sudden fall or ban on any cryptocurrency project.
It’s no secret that the forefather of the market had many difficult periods. However, even after a decade has passed, there are many reasons to invest in Bitcoin.
First, Bitcoin continues to dominate the market with the highest value, capitalization, and relative stability. The second good reason is halving.
Bitcoin was developed by Satoshi Nakamoto and first introduced to the world in 2009. It contains a special mechanism to prevent inflation, according to which the amount of generated torque is constantly decreasing by reducing the reward for miners. Over the entire period of its existence, Bitcoin halving has already been carried out twice, and the next one will be tentatively held in May 2020.
The first two halvings were accompanied by an increase in coin volatility. After the first, the price of Bitcoin increased 407 times from $ 2.25 to $ 1037. Then the price fell, then rose again, and only by November 2015 reached a more stable level around $ 200. During the next halving, the value of the coin increased to $ 20,000, and after settling down, it was fixed at $ 8,000.
On the third halving, expert opinions differ. Some believe that this will have little effect on the cost, others predict that the cost of Bitcoin will increase to $ 60,500 per unit and these are not empty words, but assumptions based on the analysis of the behavior of the BTC price during previous halvings.
Ethereum is based on a more advanced blockchain than Bitcoin. This is not just a means of payment, but a large demanded platform for creating decentralized applications on the blockchain.
The idea was formed by Vitalik Buterin in 2013, and a year later the official launch of the platform took place. Today, Ethereum is ranked second after Bitcoin. And the secret of its success lies in the demand for smart contracts implemented on its basis – software codes that work as legal contracts and regulate compliance with transactions without the participation of a third party.
- Today, Ethereum smart contracts are actively used for corporate purposes in many industries, and the coin itself holds a solid brand and is gradually increasing in value. The following facts and patterns also indicate the further growth of ETH in price:
- Today, over 1000 tokens of various projects in the ERC20 format have been launched on the basis of Ethereum. As the demand for these tokens grows, so does the dependence on the underlying platform.
- Ethereum is applicable in all areas of the economy. It has already been adopted by such large companies as JPMorgan Chase, BBVA, Accenture, Microsoft and Intel.
- The Ethereum community is made up of bright and talented people. It is not prone to hype and the value of a coin rarely fluctuates due to gossip, despite the fact that the technology is constantly being adjusted to meet the needs of the market. Many analysts are confident that in 2020 the value of Ether will also grow inexorably. Some even claim that it can reach Bitcoin.
Ripple is backed by high technology and thousands of partners around the world. The company has built a huge network consisting of large banks, payment systems, liquidity providers who use coins to ensure fast transactions within their systems.
Every year, the creators of Ripple are increasing the number of partners, which ultimately leads to an increase in the value of XRP. Plus, XRP is virtually immune to the typical cryptocurrency market turmoil. All coins, and this is 100 billion, were issued immediately, but only a part of them was launched on the market. The creators independently regulate the inflation of the coin, adding a certain number of new ones to the market annually.
Ripple may well become an alternative to SWIFT transfers, which has been around for over 45 years and is used by all major banks in the world. And if this happens, then the price for it will probably jump incredibly.
The EOS coin was launched on the market in 2017. In its White Paper, the coin network is characterized as a highly scalable blockchain architecture capable of processing thousands of transactions per second. EOS creator Brendan Blumer describes his brainchild simply as “Ethereum killer”.
Smart contracts and blockchain architectures can be created on the basis of the EOS platform, similar to how it happens on Ethereum. But EOS is capable of processing thousands of transactions per second, which is in stark contrast to Ethereum’s 20-transaction throughput. EOS is more technologically advanced and many experts are ready to agree that maybe Brendan was not unfounded in his statements. Well, if this is true, and while there is no good reason to believe otherwise, then soon EOS, at least, should approach the cost of Ethereum, which means almost 100 times the price increase.
Currently, the cost of NEO is about $ 10, but many experts claim that in 2020 the value of the coin will increase significantly. The infrastructure of the NEO network is full of potential, which has not gone unnoticed by the Chinese government, which is seriously considering introducing the network into the economy.
If this happens, then NEO will become one of the most profitable coins to invest in. But even if not, NEO has other good reasons to grow as well. The developer, who initially set as their goal the creation of a cryptocurrency network for implementation in all sectors of the economy, are actively promoting their project and have already managed to conclude a cooperation agreement with many large corporations such as Microsoft and Alibaba.
The IOTA Foundation was developed by Norwegian entrepreneur David Sonstebo in 2015. It has a way of verifying transactions that is different from other blockchains, designed specifically to be implemented in the so-called Internet of Things.
The project is still quite young and it still has a lot to do on the way to its goal, but IOTA already has a distinctive concept and adherents of its idea. If you believe the experts, the peak in the development of this network will come in the 2020s, which will be accompanied by an active increase in value. Of course, IOTA is unlikely to outshine Bitcoin, but it is quite competitive.
For practical and political reasons, anonymous cryptocurrencies are gaining in popularity. Transactions in them are not verified by government agencies and private corporations, which in the era of total control and surveillance for many people is a key priority in the use of finance. And the growth of cryptocurrencies, as you know, largely depends on their demand in the market.
Given this fact, many analysts expect that one of these cryptocurrencies will soon become the market leader, which has managed to offer the best conditions for maintaining confidentiality.
It is for this reason that in 2020 it is recommended to take a closer look at the already existing anonymous cryptocurrencies:
- Monero. This coin was launched in 2014 based on the new CryptoNote algorithm. Today, XMR is one of the leaders among anonymous coins and is able to ensure complete privacy of users, hiding even the amount of transactions from prying eyes.
- PIVX. It has existed for a long time and has a strong position in the market. The coin operates on the Zercoin algorithm and, in addition to complete anonymity, is also characterized by incredible transaction speed and low fees.
- DASH. It is definitely the most popular anonymous cryptocurrency and has long been the official means of payment on the Darknet. The peculiarity of the coin is that it operates on a two-tier blockchain structure, so that its users can send both anonymous transactions, which are verified only by masternodes, and ordinary ones.
Summing up, we would like to note that in 2020, cryptocurrencies will roughly grow, behind which there are useful, demanded and carefully thought out projects. In the cryptocurrency environment, the time has long passed when the creators of coins could leave due to dubious hype. Now only cryptocurrencies are in price that can change the world for the better.