“The worst investments go to impatient investors.”
Bitcoin, the main asset of the cryptocurrency market, has almost doubled this year. This fact inspires hope for investors looking for highly profitable investments..
- 1 TOP cryptocurrencies for investment
- 2 Conclusion
TOP cryptocurrencies for investment
So, what are the most promising cryptocurrency assets in 2020??
As stated, a potential 2019 close around the current $ 7,000 per bitcoin levels would mean an increase of more than 100%, but that’s not the subject of headlines and isn’t causing the buying furore we’ve seen in the past..
The average investor is too emotional to handle Bitcoin’s strong ups and downs. Nevertheless, there is a constant interest in the asset, which is secured by the following facts:
- The current price level is far from the all-time high (20,000 USD).
- The launch of Bitcoin ETFs and deliverable futures, at least, is getting the attention of institutional investors. On December 2, the SEC approved the launch of an investment fund that will invest in bitcoin futures. Thus, investors will be able to access cryptocurrency through its most important representative – Bitcoin.
- Significant expectations for Bitcoin growth after halving in 2020. Until now, there have been two halvings in the short history of the cue ball, and both led to an increase in the value of the crypto asset.
- One of the most professional development teams including the world’s leading cryptographers like Adam Back.
- Liquidity. Bitcoin has the highest liquidity in the cryptocurrency market.
- Price volatility. Despite its volatility, BTC is known as one of the most stable cryptocurrencies. Someone would need a lot of capital to manipulate the price.
- Limited issue of 21 million coins. As demand grows, the price will rise significantly.
Unlike Bitcoin or Litecoin, Ethereum does not have hard emission restrictions. New coins are created by the blockchain to reward miners, which poured about 10% of newly created coins into the market on an annual basis. Currently there are more than 104,980,163 coins in circulation.
Fundamental drivers of growth in the value of ETH:
- Team. Ethereum was founded by Vitalik Buterin. Despite the fact that he is young, Vitalik has proven himself to be a true expert in cryptocurrency. Enthusiasm and dedication to their work has attracted thousands of developers from all over the world to the team. Ethereum Foundation is the largest association of developers and cryptographers in the world.
- Ethereum 2.0. The team plans to launch a network update in 2020, which, on a par with PoW consensus, will allow miners to participate in staking thanks to the advent of PoS mining in the protocol. At the same time, the reward for PoW will decrease from 3 ETH to 0.6. This update together will reduce emissions to 2.5% and will stimulate the withdrawal of ether from free circulation for long-term storage..
- Liquidity. Ethereum is also highly liquid, usually ranked 2nd or 3rd under Bitcoin. You will have no problem buying or selling Ethereum.
- Price volatility. Ethereum has a loyal community and a professional team, which means the price is more likely to remain stable and grow in the long term..
- Crypto Economics. Be aware that Ethereum powers the DApp ecosystem. This means that millions of developers and companies need ETH to issue their smart contracts, run their own decentralized applications and pay commission..
Binance Coin (BNB)
Unlike Bitcoin, which is intended to be used as a means of calculating and storing funds, Binance coin is a utility token. This means that its value depends on how good and confident Binance’s business is in the coming year..
Binance Coin is, in fact, one of the few tokens to reach its highest price since the 2017 bull market..
Since then, its price has risen slowly and in the past year has updated its own price record several times..
Fundamental drivers of BNB growth:
- Team. Changpeng Zhao, or as he is fondly called by Binance users – CZ – is the founder and CEO of Binance Exchange. Given the successes that he and his team are achieving, it is safe to say that they have the skills and resources to make this coin a success..
- Liquidity. Binance Coin is one of the most liquid cryptocurrencies at the moment. It is in the top 10 on Coinmarketcap with an ever-growing trading volume.
- Volatility. It is quite volatile, but it is constantly growing. Its price was multiplied by x3 at the beginning of 2019, during the bear market.
- Crypto Economics. 200,000,000 BNB was issued through ICO at $ 0.10 per coin. Binance is offering 50% discount on trading fees for users who own BNB for the first year of trading. Binance also uses 20% of its profits each quarter to buy back tokens and burn them until the BNB amount is reduced to 100,000,000. Another innovation that is driving the growth of BNB is the launch of Lending and Staking. This functionality allows you to freeze part of the deposit to receive a percentage of profit for a predetermined period.
Since its inception, TRON has generated high hopes for the operation of its digital content network. In addition, his tech team is one of the most complete in the cryptosphere, led by the great Justin Sun, one of the most popular characters in the industry..
The main task of the Tron coin is to form an ecosystem of entertainment content based on the Blockchain, whose storage is distributed. Any user can distribute any content on the Tron network: videos, images, music, etc. And most importantly, this content will be distributed and stored across the entire network in a decentralized manner and does not depend on a single server.
The goal of the project is to make it so that content authors can distribute it without sharing revenues with the network. Tron (TRX) is a cryptocurrency that will become a bargaining chip on the network for consumers to pay direct to content creators.
Fundamental drivers of TRX growth:
- Team. Tron’s development team is one of the most active in the crypto space. Justin is a regular at every major conference and event that is dedicated to cryptocurrency. His twitter is updated and pleases investors with ambitious plans every day. Justin does not miss a single opportunity to promote and give extra advertising to his brainchild – the Tron cryptocurrency.
- Liquidity. TRX cryptocurrency is active for purchase on the most popular exchanges such as Binance, Huobi, OKEx and HitBTC. Moreover, in November there was news that Justin plans to acquire the famous cryptocurrency exchange Polonex and integrate it into the overall TRON ecosystem.
- Volatility. TRON is renowned for its high volatility. TRX is now close to its historic lows. Thanks to the energetic and eccentric Justin, chances are high that we will see more than one rise and fall of the coin. It makes sense to buy TRON into a portfolio at least in order to sell on the next impulse growth in the future..
- Crypto Economics. The story of the Throne is just beginning. It hasn’t been a long time since the launch of its own network (a stage known as “Odyssey”), there is still a lot to be done in terms of development and implementation. In the future, Tron will still have 4 phases, which are schematized in the long term. Its development will extend into the stabilization and mass deployment stage known as Eternity, which is scheduled for completion in 2037. In 2020, the stage will begin where TRON can become an ecosystem capable of launching an ICO.
Stellar Lumens (XLM)
Stellar Lumens (XLM) is dedicated to solving the problem of improving the global financial infrastructure. He strives to make all payments fast, easy and inexpensive. The goal of the developers was to create a decentralized consent platform that would provide both ordinary people and large companies with the ability to conduct transactions without any intermediary ties..
Jed McCaleb, the renowned creator of the Ripple network, who left the company due to a conflict with management, became the founder of the Stellar network. The new coin came about as a result of a hard fork of Ripple, but a year later it switched to its own open source protocol. Thus, XLM is an improved version of the old protocol.
Fundamental growth factors for XLM:
- Team. The Stellar team announced partnerships with money transfer agencies Tempo and ZED, ICOs Smartlands and Mobius, as well as at least 30 major projects and banks, including Stronghold, Novatti, Hyperledger, Mobius, Hashcash and SatoshiPay.
- Volatility. XLM is quite volatile in the market and is now close to its lows. Buying a coin is advisable at least for speculative purposes for selling on the next pump.
- Crypto Economics. Stellar has all the advantages of Ripple, but is devoid of disadvantages, the first of which is the centralization of the coin. Excellent blockchain throughput, retail and small business focus, decentralization, no additional emission and only 5% of all issued coins managed by the Stellar Foundation. All this speaks for good growth potential in the case of the new altzison.
Not all projects managed to survive the cryptocurrency winter, and many top coins went “under the plinth”. An example of such failures is NEM, Bytecoin, STEEM, Stratis. In fact, the list can be enumerated for a very long time..
Despite the fact that there are about 5,000 different coins in the cryptocurrency market. It’s really difficult to choose worthy ones..
For long-term investment, first of all, development prospects with a real-life road map, a professional development team, a large and active community are important.
All the projects discussed above have these features. At the same time, BTC, ETH, BNB, TRX, XLM are still in the TOP list in terms of trading volumes, which provides liquidity and makes it possible for large investors to buy.