“Cryptocurrency is such a powerful concept that it can almost overturn governments.”
Many people who know about my deep involvement in the cryptocurrency sector and market usually have one question to ask me: “Which cryptocurrencies are the best to buy now?”
To be sincere, there is no single, best cryptocurrency to buy for 2020. Most of the leading cryptocurrencies, right now, present great investment opportunities for investors, both new and advanced. If you are one of those people looking to get in on the next prominent cryptocurrency, then read on. Here, I will talk about the top 10 cryptocurrencies to invest in for the coming year.
To make it interesting, and to ensure I am catering to both pro traders and to those who are just starting out, I have divided my choices into 2 sections. The first batch of 5 are the best cryptos for beginners to invest in, while the second batch of 5 are the leading cryptocurrencies for more advanced investors.
Here is how this review will be structured:
- The Top 5 Cryptocurrencies to Invest for Beginners
- The Top 5 Cryptocurrencies to Invest for Advanced Investors
- Do You Want to Invest in More Great Cryptocurrencies?
- How to Stay Safe in the Crypto World
- Understanding Cryptocurrency CFDs
So, let us get started as we explore the top cryptocurrencies to invest in 2020.
The Top 5 Cryptocurrencies to Invest for Beginners
You should keep in mind that there is a wide choice of attractive cryptocurrencies you can buy. While investing in cryptocurrencies is risky, some would say that investing in only one is riskier.
The fact is, most of the cryptocurrencies have numerous use cases and are looking to bring changes to several industries. Their promise is an excellent way to weigh your risk and boost your chances of participating in the next best cryptocurrencies. So, let’s start with the basics
Diversify Your Trading Portfolio
For beginners, it is recommended that you diversify your trading portfolio by investing in more than one cryptocurrency. Here is how to spot significant cryptocurrencies to include in your portfolio:
- Cryptos that are can be found in different categories
- Coins that are less volatile than their competitors in each category
- Coins that are easy to trade and store
Cryptocurrencies that fulfill these criteria are perfect for beginners. To make it easier for you, I will discuss each coin, the team behind the coin, its purpose, liquidity, price volatility, and a few other crucial metrics. This is to ensure that you get a good grasp of the coins and make an informed decision on which ones to buy.
Recommended Cryptos for Beginners
Here are the recommended cryptocurrencies for beginners.
1. Bitcoin (BTC)
Bitcoin was the first crypto and remains the most widely used in the world. It is the leading cryptocurrency and aims to serve as a global, peer to peer, digital money.
Now, let’s move on to the team behind Bitcoin. Bitcoin remains the cryptocurrency with an anonymous founder. Satoshi Nakamoto is said to have created the cryptocurrency. While there continues to be speculation regarding the true identity of Satoshi, no one knows who he/she/they are. However, leading cryptographers, such as Adam Back, regularly update Bitcoin’s open-sourced codebase.
Bitcoin is the most significant cryptocurrency in terms of liquidity. With a market cap of over $100 billion, Bitcoin accounts for over 60% of the cryptocurrency market’s total valuation. Investors have no trouble buying or selling Bitcoin as there is no shortage of interested parties. For those who don’t know, when we talk about liquidity, this describes the degree to which an asset can be quickly sold or bought in the market at a price reflecting its intrinsic value. Here the focus is on the ease of converting it to cash.
In terms of price volatility, while the Bitcoin price is volatile, it is one of the most stable cryptocurrencies. This means that a lot of money would be needed for anyone to manipulate the BTC price.
In terms of the economics of this cryptocurrency, Bitcoin uses the Proof of Work (PoW) system. In this system, miners are rewarded with Bitcoin when they mine and approve transactions. The mining reward is halved every 210,000 blocks, a process that occurs every four years. This helps to reduce inflation over time. BTC has a total coin supply of 21 million, after which no new BTC will be mined. In terms of trading, as demand surges, so would the price.
Overall, Bitcoin remains the best cryptocurrency to invest in today. I would advise anyone coming into the crypto space to start by investing in Bitcoin.
Regarded as Bitcoin’s sister, Litecoin is one of the first Bitcoin alternatives. It remains one of the best cryptocurrencies to buy for 2020. It was created with Bitcoin’s source-code, as a fork of BTC, and has a faster processing time, making it ideal for retail payments. Similar to Bitcoin, Litecoin seeks to be a global, peer to peer currency.
In terms of the team behind this cryptocurrency, Litecoin was created by Charlie Lee, an experienced computer scientist, and crypto enthusiast. His brother, Bobby Lee, created BTC China, one of the largest cryptocurrency exchanges. Charlie Lee is well-respected within the crypto community and he is well connected, working as the Director of Engineer at Coinbase.
In terms of liquidity, Litecoin is currently the 6th largest cryptocurrency in terms of market cap, making it highly liquid. In addition, in terms of price volatility, Litecoin is less volatile compared to the smaller market cap cryptocurrencies.
Similar to Bitcoin, Litecoin uses the PoW system. Miners were initially rewarded with 50 LTC block rewards when this crypto was introduced but the mining reward is halved at regular intervals. The total coin supply of Litecoin is 84 million. Remember, that Bitcoin only has a supply of 21 million coins.
Despite the large number of cryptocurrencies available, Litecoin remains one of the best crypto projects for beginners to invest in for 2020.
Ethereum has been Bitcoin’s second for years now. It is the first major project to launch smart contracts and is regarded as the blockchain web. Developers are able to create mobile and desktop decentralized applications (dApps) on top of the blockchain, thanks to Ethereum. The Ethereum blockchain houses thousands of tokens and it gave birth to the initial coin offering (ICO) process.
In terms of the team behind this digital coin, Vitalik Buterin is the founder of Ethereum. He is a young but experienced crypto expert. Alongside Joseph Lubin, Buterin also founded ConsenSys, a New York based studio committed to dApp development.
In terms of liquidity, Ethereum is the second or third most valuable cryptocurrency in terms of market cap, behind BTC. It is easy to buy and sell Ethereum coins at all times. Similar to the other leading cryptos, Ethereum’s price is less volatile. This is as a result of the loyal team and community. It also has the potential to remain stable and move higher over the coming months and years.
The crypto economics of Ethereum is interesting. Ethereum has more coins than Bitcoin and Litecoin, however, this is because the Ether coins are crucial in fueling the dApp ecosystem. That is, there are millions of developers and companies that use the coin to execute smart contracts and to launch dApps.
Ethereum is the leading smart contract platform and remains a great cryptocurrency to buy in 2020. It has brought many innovations into the world and the potential for its applications to be adopted worldwide is impressive.
4. Binance Coin (BNB)
Binance coin is the token for the crypto exchange Binance. It is a utility token that is used to pay for fees and other services on Binance. The value of the BNB token comes from how useful the coin is within the Binance space.
The team behind the Binance coin is Changpeng Zhao heads up Binance. He has had incredible success with his crypto exchange and Binance Coin has benefited from that over the years.
In relation to liquidity, the Binance Coin is currently the eighth largest cryptocurrency in terms of market cap. Its high valuation means that it is highly liquid. In addition, in terms of price volatility, the BNB price has been volatile over the past few years, multiplying three times in value in 2019 alone. The price could go up or down according to market conditions, but the volatility remains high.
In understanding the economics of Binance coin, Binance issued 200 million BNB coins during the ICO, selling at $0.10 per coin. However, the amount in circulation has been reducing as Binance carries out coin burn every quarter, using 20% of its earnings to buy back the BNB tokens from holders. By burning these coins, the goal is to reduce the number of coins to half of the existing 100,000,000. BNB holders get trading fee discounts when they trade on Binance. In the first year, the discount is 50%, 25% for the second year, 12.5% for the third year, 6.75% the following year, and zero from the fifth year and above. BNB is also used on Binance DEX, the decentralized exchange of Binance.
Binance is arguably one of the largest digital coin exchanges in the world. Thus, the use of BNB coin for transactions makes it one of the fastest-growing cryptos by trading volume. New investors must diversify their portfolio, and Binance Coin is an excellent addition. It has the potential to surge higher due to Binance’s solid business history and backing of an experienced team.
If you already have popular coins such as BTC and ETH, then BNB is another durable option to boost your cryptocurrency investments in 2020.
5. Basic Attention Token (BAT)
Basic Attention Token is a utility token that is mostly used in the Brave Browser. As a utility token, BAT is used to pay content creators or service providers that users find on the Internet. You can pay content creators according to your arrangements without having issues. It could be a one-time payment or a regular content creation gig.
Furthermore, Brave Browser users who watch ads are rewarded with the BAT token. With the help of smart contracts, advertisers lock up the BAT tokens, and the funds are only released when the users view the ads.
In terms of liquidity, while its value fluctuates, BAT is usually one of the top 40 most active cryptocurrencies in the world. In addition, despite the fluctuations in value, the price of BAT token has been consistent for a while, staying consistent over the past two years. It is expected that it could surge higher in the future.
In terms of the economics, BAT tokens are 1.5 billion in number and it is expected to stay that way. However, if there is an increase in demand, then the price could rise higher as a result.
BAT is one of the best cryptocurrencies to buy in 2020. It has outperformed a large basket of other cryptos over the past few years. The immense potential of the Brave Browser could be essential to BAT recording further gains. As a new investor, you should try out Brave Browser by BAT as it sets to compete with Google Chrome. It offers users additional privacy and security.
Summary of Cryptos For New Investors
Generally, I believe the five cryptocurrencies reviewed above are safe investments. Each has a reliable team behind them and could be an excellent investment for beginners. They are great for portfolio diversification and have the potential to grow even more significantly over the coming years. As a result, this makes them perfect for both beginners and experienced investors.
After looking at the best cryptocurrencies for beginners to invest in for 2020, it is now time to look at the more advanced coins. They have the potential to generate more profits but have a higher risk.
The Top 5 Cryptocurrencies to Invest for Advanced Investors
If you are not new to the crypto world, then you already understand that we have currency-focused projects like Litecoin, Bitcoin, and Dash, and we have platform-focused projects like Ethereum, EOS, and Tron.
If you are a pro in the crypto space and have invested in platforms like Coinbase and wish to expand your portfolio, then you should consider the following 5 cryptocurrencies.
While I analyze the top five cryptocurrencies for advanced investors, I will discuss their competitors and also a new group; privacy coins. Here are my top five picks:
1. Monero (XMR)
Monero is the leading privacy-focused cryptocurrency project. The coin uses fancy cryptography and privacy tech that enables it to shield the identities of participants in a transactions Monero has gained extensive usage within the dark web for its privacy features.
In terms of the team behind this cryptocurrency, Monero started as an anonymous discussion on the Bitcointalk forum. The team is currently headed by a developer named Riccardo “fluffypony” Spagni, one of the best crypto developers in the world.
As the leading privacy coin, Monero is highly liquid. It is always one of the leading cryptocurrencies by market value, making it easy to buy and sell whenever you need to. With regards to its price volatility, the large user base and market cap have seen Monero’s market cap remain stable. It is less volatile than the smaller market cap tokens.
Reviewing the economics of Monero, until May 2022, we will have 18.4 million XMR coins in circulation. Afterwards, 0.3 XMR coins will be released every minute, until eternity. The total coin supply is small, which means that enormous demand could push the price higher in times of need. As the dark web uses Monero even more, the demand could continue to increase, and so will the price.
Although Monero is highly liquid and popular, storing the XMR coins is a tough job. It is easier to buy and saves coins like Bitcoin and Ethereum or the BAT and BNB tokens compared to XMR. It is because of this that I recommend only advanced investors to buy XMR coins in 2020. However, it is one of the best privacy-focused projects currently available.
NEO is popularly called the Chinese- based Ethereum. It is a smart contract platform founded in China that allows developers to create and deploy dApps on its blockchain. In comparison to Ethereum, NEO is more centralized. This is because less than 10 nodes make decisions on the NEO ecosystem, unlike Ethereum, where hundreds of nodes are tasked with the job.
The crypto NEO was created by Da Hongfei and Erik Zhang, who are also the heads of another platform called Onchain. Hongfei and Zhang are some of the most experienced developers in the crypto space.
With reference to liquidity, NEO has maintained its place as one of the top 20 cryptos on Coinmarketcap, making it a valuable cryptocurrency. As a result, buying and selling NEO won’t be a problem. In terms of price volatility, the large market cap and high liquidity make the price less volatile. As a result, you can be sure that your investment will be stable and could surge higher in the long run.
Focusing on the economics of this digital coin, we will have a total of 200 million NEO tokens in existence. 100 million were first created at the genesis block, another 50 million coins were sold to the early investors, and 15 million NEO tokens are unlocked for funding the project development. This implies that NEO’s coin supply has already being distributed to the users. As the demand increases, so will the price.
The smart contract sector is a vast market. Despite Ethereum’s lead in the industry, NEO supplying the Chinese market makes it a very significant cryptocurrency project. Based on this, this makes NEO a top investment for cryptocurrency enthusiasts in the long run. It can also be used as a hedge against Ethereum.
Similar to Monero, Beam is a privacy-focused digital currency that has been making waves in the sector. However, it differs from Monero in the fact that it utilizes a new blockchain protocol called Mimblewimble.
Mimblewimble is a blockchain protocol that is deployed to help scale the blockchain and TO boost transaction speed. It achieves this while maintaining a high level of anonymity and privacy to the participants.
The CEO of Bean is Alexander Zaidelson, a vastly experienced individual in the P2P technology. He is the co-founder of Nareos, a P2P file-sharing company, and has worked as an advisor in several tech startups.
When looking at the liquidity of Beam, this cryptocurrency has a small market cap, but it is highly liquid. This makes it easier for investors to buy and sell the cryptocurrency. In addition, the price of this cryptocurrency has been consistent for a while now. It has been trading around the $1 mark for some time but has the potential to surge or plunge at any time.
Similar to Bitcoin as well as Litecoin, Beam uses the PoW protocol. Thus, people purchase hardware to mine the cryptocurrency and earn a reward in the process. The maximum supply for this crypto is 262,800,000 BEAM. However, you can always keep track of the circulating amount here. Similar to Litecoin and Bitcoin, the inflation of BEAM depends on the block rewards. The reward of 80 coins per block is halved after 4 years and it would continue to decline as the years go by. The halving will continue to occur every 4 years for the next 129 years. This will ensure that inflation drops over time. As demand increases, then the price could move higher as well.
The use of Mimblewimble has made Beam more scalable. As a privacy-focused cryptocurrency with fast transaction speeds, it is easy to see why it has become an attractive crypto to investors. For advanced investors, Beam is one of the best to have.
Nexo is another cryptocurrency that has been gaining widespread attention. It is a software wallet that enables users to borrow funds using their tokens as collateral. Furthermore, users can easily loan out their cryptocurrencies and earn interest in the process.
At the moment, Nexo gives out a free credit cards to users. The unique business model makes it an exciting option for investors. Nexo is one of the first security tokens to carry out an STO (security tokens to be offered).
The team behind Nexo is Kosta Kantchev who currently heads up Nexo. He is popular within the fintech world having co-founded Credissimo, a leading European fintech firm focused on retail lending. Credissimo is the business presently behind Nexo. Kantchev is a fintech legend and one of the first users of Bitcoin.
Nexo is liquid enough for the small investor but it cannot currently handle orders from large investors. In terms of price volatility, the price growth of Nexo has been organic. Thus, the increase and decrease in price haven’t been drastic up to this point.
In understanding the economics of Nexo, the maximum coin supply is 1 billion. However, we have less than 600 million NEXO coins currently in circulation. As a security token, NEXO is SEC-compliant and regularly pays dividends to investors. Based on this, this makes Nexo an interesting cryptocurrency for investors.
Nexo is a new cryptocurrency but has become an excellent option for those willing to diversify their crypto investment portfolio. It is a unique coin as it is fully regulated by the SEC (US Securities and Exchange Commission) and pays dividends to investors. The project also has a functional product, which makes it stand out amount several other cryptocurrency projects.
5. Cardano (ADA)
Cardano is another smart contract platform like Ethereum and NEO. It is expected to be more scalable and have easier development tools. Cardano wants to achieve scalability by introducing two layers of tech; the first one would be responsible for tracking balances on the ledger, while the second one would transfer value.
Cardano works with two programming languages, the Haskell and Plutus. Haskell is one of the older programming languages, and Cardano is using it to make it easier for developers to create dApps. Plutus, on the other hand, is the functional language that was designed by Cardano’s development team.
Cardano was co-founded by Charles Hoskinson, who is also a co-founder of Ethereum. He currently leads the IOHK, a blockchain research and development company. Charles is committed to making Cardano the leading smart contract platform in the world. With his experience in several projects, it is not surprising that Cardano makes our list of the top cryptos to invest in 2020.
Cardano has maintained its status as one of the leading cryptocurrencies in terms of market volume. It has a high trading activity, making it easy to buy and sell ADA. Also, similar to the other cryptocurrencies, ADA has had its ups and downs, however, it remains a moderately volatile cryptocurrency.
In terms of the economics of this cryptocurrency, the maximum coin supply of Cardano is 45,000,000,000. However, the circulating amount at the moment is just above 31,000,000,000. Cardano uses the Proof-of-Stake (PoS) consensus algorithm, which is different from the PoW used by Bitcoin.
Overall, Cardano remains one of the top cryptocurrencies to buy for 2020 as it has an excellent team and a great vision.
Do You Want to Invest in More Great Cryptocurrencies?
Finally, you have almost reached the end of this review. I hope readers picked up a thing or two by reading about the best cryptocurrencies for beginners and advanced investors to buy in 2020. Use the two lists and you have the top 10 cryptocurrencies to boost your portfolio in the upcoming year.
For those looking to get more information on essential cryptocurrencies to buy or to know more about the next coin to hit it big, here is what you need to do:
- Be a Part of Crypto Communities
You can join communities like the Bitcointalk forum, where crypto enthusiasts talk about different altcoins. You can discuss with people vastly experienced in the sector and explore some of their opinions. You can also lookout for the announcement threads on Bitcointalk.
The forum is useful in finding new projects and learning more about those that could become the next significant digital currency.
You can also join other great communities on Facebook and interact with other members regarding their top cryptocurrencies.
- Check Out Trustworthy Crypto Exchanges
The leading Crypto exchanges vet new coins before listing them on their platforms. As an investor, you can use the verification process to find the quality projects from the scams and know which ones the best are to buy and hold.
Binance is currently the largest crypto exchange and has over 100 top cryptocurrencies. I suggest that you check it out and the coin it lists.
How to Stay Safe in the Crypto World
If you wish to become a successful cryptocurrency investor, buying the coins is not enough. Several investors has lost their coin supply because they were not mindful of security. If you wish to invest in cryptos, then you need to pay proper attention to the security of your wallet.
Understanding Cryptocurrency CFDs
If you are looking for an easier way to invest in cryptocurrencies, you could consider CFDs or contracts for differences. With this form of online trading, you are not actually buying and selling actual digital coins Instead, you are simply making a prediction of the direction that the price of a crypto will move. If you predict correctly, you will make a profit and if not, you will lose your investment. One of the main attractions of CFDs is that you can make money even if the markets are rising or falling.
The many benefits of trading cryptocurrency CFDs is the ease of trading and also the ability to trade with leverage. Trading using leverage means that you are able to trade on credit. That is, you need to simply deposit a small amount of cash and then borrow a more substantial amount from the broker. Also, the industry has many reputable brokers which will provide you with access to a trading platform as well as a host of other effective tools and features such as secure banking processes, educational trading resources, professional customer service and more.
It is clearly evident that the world of cryptocurrencies is offering global investors a wealth of trading opportunities. Take the time to learn more about the available cryptos in this space and then step into the crypto trading arena, ready to make yourself some profits.