More than just a trendsetting cryptocurrency, Bitcoin has evolved to be a default standard in the industry. Though there is nothing like a single best cryptocurrency to invest in 2020, many of the top altcoins today are great opportunities for investment.
So, if you are looking to invest in cryptocurrencies in 2020,
Here Are The 5 Altcoins To Diversify Your Portfolio In 2020:
1. ETHEREUM (ETH)
You might have already heard about Ethereum as the introducers of smart contracts. Smart contracts enable developers to launch dApps atop the blockchain. Presently over thousands of tokens run on the Ethereum network. What’s more, these were exactly the same tokens that caused the Initial Coin Offering movement.
Team: Found by Vitalik Buterin and Joseph Lubin.
Liquidity: Ethereum features high liquidity and is typically ranked either #2 or #3 below Bitcoin.
Price Volatility: As Ethereum possesses a stable community, the chances are the prices will remain more stable and will keep increasing in the long run.
Crypto Economics: Unlike Bitcoin and Litecoin, much more Ether can be brought into existence. Nevertheless, as dApps are fuelled by Ethereum, developers and companies will require a lot many Ether to execute their smart contracts and launch applications.
Learn about the Difference Between Blockchain & Cryptocurrency.
2. LITECOIN (LTC)
One of the popular cryptocurrencies, Litecoin (Digital Silver) was launched in 2011 as an alternative to Bitcoin. Simply put, Litecoin was built by making some technical changes to a fork of Bitcoin. This makes it one of the fastest cryptocurrencies in the world. Litecoin works with the mission to go global and evolve as a peer to peer currency.
Team: Created by Charlie Lee, an experienced computer scientist.
Liquidity: Litecoin features both high liquidity and a large market cap.
Price Volatility: Litecoin is reliable than coins with smaller market caps and communities.
Crypto Economics: During its advent, Litecoin offered a 50 LTC block reward which has now been reduced to 25 LTC. Unlike Bitcoin’s limited supply of 21 million, Litecoin has a limited supply of 84 million. However, it highlights a higher block reward and faster block time.
3. BASIC ATTENTION TOKEN (BAT)
Basic Attention Token is a utility token that is commonly used for Brave Browser. BAT tokens can be used to tip anyone on the internet. Moreover, users who watch ads can also be rewarded BAT.
Team: Brendan Eich, the founder of BAT is also the co-founder of Mozilla Firefox.
Liquidity: Though liquidity is bound to fluctuations, Coinmarketcap has generally placed BAT in the top 40 most traded coins.
Price Volatility: From 2018 through 2019, the price has rarely fluctuated when other coins were almost collapsing. This can be thought of as a good sign.
Crypto Economics: There are nearly 1.5 billion tokens in the market presently and it is thought to remain so. Thus, if BAT’s demand grows, so will the price valuation of the token.
4. MONERO (XMR)
Primarily a privacy-focused project, Monero leverage privacy logics and fancy cryptography to hide users’ identities. As it is used more in the dark web, its popularity as a privacy coin has increased today.
Team: Though Monero’s advent happens to be a bit anonymous, it is thought to have been started by a user on the Bitcointalk forum. Presently, the team is led by Riccardo.
Liquidity: Monero has always held the top position on Coinmarketcap and is thus a highly liquid coin.
Price Volatility: Thanks to its market caps and user base, Monero is a bit more stable, unlike smaller market cap coins. Monero’s stability was proven during the bear market of 2018/2019.
Crypto Economics: By May 2022, a maximum of around 18.4 million XMR coins will be in circulation. From then on 0.3 XMR will be put in circulation every minute. This will make Monero valuable during times of demand.
Find out the Best Trading Strategies For Novice Traders.
5. BEAM (BEAM)
Another privacy-focused cryptocurrency, Beam is much popular in the crypto industry. Beams works on Mimblewimble – a blockchain protocol that works well in maintaining privacy as well as anonymity.
Team: Alexander Zaidelson is the CEO of Beam as well as the founder of Nareos, a P2P file sharing-company.
Liquidity: Beam has a low market cap size and high liquidity. This is especially good for active investors.
Price Volatility: Presently, Beam has always seen an average rate of $1. However, the cryptocurrency is relatively new to the market. So, the chances of the price going up or down are always high.
Crypto Economics: Akin to bitcoin, Beam is a PoW cryptocurrency. The maximum supply of Beam is around 262,800,000 BEAM. The inflation mainly depends on the block reward which was 80 coins per block in the first year.
We hope you enjoyed going through this article.
Which cryptocurrencies do you think are the best to invest in 2020? It would be great to read your feedback and your choice of top 5 in the comments!