The Best Cryptocurrency to Invest in 2020
Table of Contents
What is a Cryptocurrency
Before going into the details about the best Cryptocurrency to invest in 2020, let’s quickly discuss what Cryptocurrency is? Cryptocurrency is a modern-day digital currency that is experiencing rapid acceptance and expansion. The word “Crypto” refers to the advanced techniques of Cryptography. Cryptography generates coins and tokens that are used as a digital currency for online trade and transactions. It also ensures that all transactions are secure and safe.
Bitcoin was the first Cryptocurrency that came into existence, but now multiple identical projects exist. One attribute that is common to all Cryptos is the ideology to decentralize the distribution network with the help of a highly secure protocol.
Calling a single cryptocurrency, the best is a very vague statement that might not even be true for the long term due to the advancing and innovative nature of the industry. However, some characteristics make certain Cryptos better than others. Bitcoin has the lead in this regard since it was the first Cryptocurrency and has thus been able to gain a lot of support right from the start.
However, multiple Cryptocurrencies are viable options for future or current investments.
As mentioned, Bitcoin is the leader in the crypto market. Furthermore, it was Bitcoin that revolutionized the Cryptocurrency industry. Bitcoin’s intelligent and advanced technology, along with its secure transaction, has granted it the ability to gain high customer satisfaction rates. Most investors prefer to begin their crypto trading journey from Bitcoin, considering it the best Cryptocurrency to invest.
The above graph shows Bitcoin’s performance during the past five years. It is visible that the currency has seen a massive surge since 2017 and continues to trade at higher levels after hitting new lows.
Features of Bitcoin
- Bitcoin has the advantage of being the benchmark that all other Cryptocurrencies have to compete against if they want to develop standing in the market.
- Companies adopting Bitcoin such as MAST, Schnorr signatures, Segwit, MimbleWimble, Confidential transactions, and Bulletproofs has made Bitcoin a tough competitor for other players in the segment.
- Many web wallets provide access to store Bitcoin, and it is supported by all crypto trading platforms.
- The sophisticated and advanced architecture ensures enhanced security, and investors can easily rely on it.
- Due to the extensive popularity of Bitcoin, it is always high in demand, and people don’t face any difficulties in selling their assets whenever they want.
Experts say that if any digital currency can be considered a Bitcoin alternative, it is Ethereum. Ethereum came into existence back in 2015 and has gained fame in a short time. The cryptographic currency that Ethereum offers is known as Ether and can be used for online purchases and transactions. Ethereum, therefore, is probably the best Cryptocurrency to invest in 2020.
The below graph shows the performance of Ether during the last five years. It is evident that since inception, Ether has seen a considerable increase in its worth. The Cryptocurrency saw a high value of more than $1300 in 2018 and has dropped since then but is still one of the better-performing currencies.
The following chart shows the distribution of Ethreum DApp’s activity across various categories. As evident from the bar chart, the highest number of users was seen during January in 2018. Although the number has seen a decrease since then, it is still high, which makes it an overall stable platform among competitors.
Features of Ethereum
- Application development without any downtime or fraud is possible due to the decentralized network.
- This decentralized system assists in building smart contracts.
- Developers from around the world are developing apps for its system, and companies like Chase, Intel, Microsoft, and J.P. Morgan intend to expand the business that makes use of Ethereum.
- As the above chart shows, the price is currently in consolidation and is likely to rise in the next year, making it one of the best cryptocurrencies to invest in for the coming days.
ZCash offers high privacy to its users and is thus considered to be a strong contender in the list of best cryptocurrencies. The security protocols used by ZCash are even more advanced than Bitcoin, which makes it a very safe investment. It is an open-source platform with a hard limit of 21 million coins.
Features of Zcash
- Because of its advanced security architecture, Zcash is among the most secure cryptocurrency platform present in the market.
- It ensures high-end privacy for users. All personal details like the name of senders and recipients remain private while the transactions are recorded in the blockchain.
- All content in each transaction is shielded by the zk-SNARK and cryptography techniques.
Cardano is similar to Ethereum and offers a sophisticated blockchain through which decentralized applications and smart contacts can be developed. Security is the highest priority for Cardano, ensuring the privacy of users. The advanced technology developers and cryptographic techniques regulate the system making the platform secure and scalable. Also, the price prediction for Cardano depicts a bright future for investors.
Features of Cardano
- The currency suits long term investors since it is still a new currency.
- To enable self-circulating techniques and to increase adoption, developers are working hard for the introduction of a smart contract system.
- The high transaction speeds of Cardano give it an edge over others.
- It addresses matters like interoperability, scalability, and reliability
- It is an upgradeable platform with constant development.
- The Ada cryptocurrency requires lesser computing power, which gives Cardano additional benefits.
- Bitcoin generates only one block at a time, whereas Cardano generates several blocks simultaneously.
Monero is better for investors who are more concerned about their privacy. Individuals who want to complete their crypto transactions without exposing their identities can make use of Monero. This currency has gained fame and has become a significant player in the crypto market.
Monero is also being used on the dark web because it is complicated to trace. The platform offers high standard top-notch security for the traders.
Features of Monero
- State of the art technologies like RingCT, Kovri, Ring signatures, and Stealth addresses make it a very safe currency for investors.
- It offers a relatively lower inflation rate as compared to competitors. Hence, it is a good option for portfolio enhancement.
- The transaction performed on Monero are secure and hard to trace because of its privacy feature.
The best Cryptocurrency to invest in 2020 varies from one investor to another. For people concerned in keeping the transactions private, Monero and Cardano are good options. Whereas ZCash offers a great opportunity of investment for individuals looking for a secure option. Bitcoin and Ethereum are already big players in the segment, and thus people looking for safer assets might be more interested in these two digital currencies.
Disclaimer: This article by no means offers any trading recommendations. Therefore, we suggest investors of the frequent and drastic price fluctuations in the cryptocurrency market and invest only after research from multiple sources while acting under their local regulations.