Top 7 Potentially Profitable Cryptocurrencies in 2020
It’s no secret that more and more people are opting to invest in cryptocurrencies. This has become a very lucrative business for many around the world. In addition to gold trading, cryptocurrency trading has proven to be a very lucrative business. Although the coronavirus pandemic has shaken this market, it is important to say that things are slowly returning to their own and that cryptocurrencies are slowly reaching the value they had before February this year.
What is a cryptocurrency?
Cryptocurrencies are money that exists only in digital form, but despite that, it has its value. The great advantage of this money is that it is decentralized and based on blockchain technology. Another advantage is that is there is no central authority. Currencies are secured by cryptography which makes it very difficult for double-spending or falsifying.
It is very difficult to say the exact number of cryptocurrencies, but we can freely say there are thousands of them. Yet in a sea of unknowns, a few recognizable ones were found, a few in which people saw the potential and chance for good earnings.
What are the best cryptocurrencies to invest in?
1. Bitcoin (BTC)
This cryptocurrency has been at number 1 since it was created by a group of people known under the pseudonym Satoshi Nakamoto more than 10 years ago. From then until today, this currency has recorded constant growth. Let’s just remember the beginning of 2009 when the value of 1 BTC was $ 0.003, and today it’s $ 10,856.00! On australiantimes.co.uk you can learn more about this valuable currency. There are many advantages of this currency over others, because, with it, almost anything is possible, just like with real money. By this, we mean not only investments, but also the payment of tuition, bills, and even vacations. For those who prefer mining, Bitcoin is a great choice.
2. Ethereum (ETC)
The next currency that is worth mentioning and paying attention to is Ethereum which is in many ways similar to Bitcoin. By this we mean it is decentralized, and not controlled bathe government. At the moment its value is $ 377,78. We will not make a mistake if we say Ethereum is a platform and new kinds of applications can be developed from it. Same like Bitcoin, this currency is suitable for mining, too.
3. Litecoin (LTC)
Many people say Litecoin is silver to bitcoin’s gold. What makes these two currencies similar is the fact that they are designed with the same idea, although they have different specifications and values. Still, one thing is for sure – even though its current value is $ 49.95, that doesn’t detract from the respect it enjoys in the world of cryptocurrencies. Moreover, many people choose to invest in currencies of lesser value because they see a future in them.
4. Ripple (XRP)
Created and released in 2012, this currency was referred to as the third largest in April 2020. Ripple is a distributed database and keeps the information about all Ripple accounts. If you are in search of smart investment below $ 1 (its value is $ 0,2470), you will not go wrong by this choice. Ripple is a currency and a platform as well. it is used very frequently and when it was created, the idea was to use it for cheap and simple transactions. You may hear some people calling it a “joker” due to the possibility to convert EUR to USD for a small commission.
5. Binance Coin (BNB)
Binance coin is designed as a currency that will contribute to the use of cryptocurrencies in all segments of life. Today, it is possible to buy real estate with this currency. This currency is relatively new – it was released in 2017, and although Binance is an official token, but also a platform, it quickly became the largest when we talk about terms of trading. At the moment, its value is $ 29,97.
6. Bitcoin Cash (BCH)
The currency that became popular for a very short period was created in 2017. That was the year when blockchain was divided on Bitcoin and Bitcoin Cash. Since it was released, it is the most successful part of the Bitcoin company. Although it does not record constant growth, it is still worth mentioning, but also investing in it. The current market value is $ 237.89.
7. Maker (MKR)
The last, but not least is Maker. It is a governance token that belongs to the Ethereum chain and platform. The owners of this currency are considered shareholders, although there is no joint-stock company. What makes this currency different from the others is that it has its personal token through which it finances all project activities. At the moment, the value of 1 MKR is $492,63.
What factors should be considered before choosing a currency
The current value of a coin should not be the main factor that will tell you whether you need to invest or not, because that index is easily variable and can rise or fall dramatically. What is more important to consider are two factors – the level of liquidity and market capitalization. When we talk about the level of liquidity, we will say the following – the higher it is, the faster cryptocurrencies can be sold at the market price. On the other hand, market capitalization is the value of all coins of a particular currency. A high market cap means a large number of coins, and therefore investors.
It is very important to invest wisely. That is why many investors decide to invest in several different currencies so that if there is a drop in value, they do not lose all their money. The key is to invest wisely, not blindly verify one data source, but you should always check several and then compare before taking the next step.
If you are new to this, hire an experienced broker, or buy software that will do all the work for you. Consider this a smart investment that can bring you the earnings you have been dreaming of!