Cryptocurrencies appeared out of nowhere, and their growing popularity took many by surprise. The early believers made and lost fortunes then made and lost them again due to the extreme volatility governing the industry.
Lately, the cryptocurrency market has calmed a bit, signaling a more mature approach by both investors and traders. Every cryptocurrency trader keeps thinking about the late 2017 rally when virtually all cryptocurrencies advanced in parabolic moves. Bitcoin, the leading cryptocurrency, almost reached $20000, making a lot of traders wealthy beyond their wild imagination.
Obviously, the parabolic advance brought attention to the media, and the FOMO (Fear of Missing Out) made people buying right before the peak. The market has corrected ever since, but investors still invest in cryptocurrency believing it is the future of money.
One can’t trade them all. It’s impossible to spread an investment having so many options. However, picking the right ones to build a crypto portfolio might just be the appropriate way to invest.
Reasons to Invest in Cryptocurrencies
One may conclude that Bitcoin and other popular online currencies have already reached their peak. However, this is not the case at all. If we consider that this market is only at the initial stage of its development, and many large companies are looking at investing in cryptos, we can conclude that the biggest rise in value is still expected. This kind of attention shows that the crypto market is extremely promising today, maybe even more promising than before.
Here’s a guide for choosing the best crypto to invest in right now, by the end of 2020.
Best Cryptocurrency to Invest in 2020 – 2021
The following ten cryptocurrencies provide the best opportunities to invest based on the performance so far during the year and on the fundamentals provided by the crypto market.
Please note that all price values in this article are valid as of November 5, 2020.
Bitcoin – The Best Crypto Out There
The “father of all cryptocurrencies”, Bitcoin held the financial headlines when it reached over $15000. Created over a decade ago by the anonymous Satoshi Nakamoto, it is a digital currency used in transactions verified by network nodes using cartography and recorded on blockchain (a public distributed ledger).
It grew in popularity so much that nowadays we talk about Bitcoin wallets, plenty of Bitcoin transactions, and it is a widely accepted method of payment on both physical and online stores.
It currently trades at $15300. Bitcoin bulls held firmly to the support recently established at $14,500 after trading, new yearly highs close to $16,000. The upsurge was attributed to the tension created by the United States presidential elections in the stock market. Investors are said to have turned to Bitcoin and other selected digital assets seeking hedging options.
By far, the most popular and well-known cryptocurrency, Bitcoin is one of the main reasons why investors and traders alike diversify their financial portfolio with digital assets. It is only normal if you think of the huge market capitalization of almost $284 billion and an immense daily trading volume of about $26 billion.
Out of a maximum supply of twenty-one million Bitcoins, there are already over eighteen million in circulation, mined in the last years. As the mining industry bottoms, or it finds it more and more difficult to earn a Bitcoin, the focus sits now with the increasing use of Bitcoin in the international financial system.
There’s literally no investor that doesn’t have exposure to Bitcoin, making it one of the best cryptocurrencies to add to your portfolio.
Recently, financial media focuses on another interesting aspect of Bitcoin. It moves and trades as a store of value.
Few assets have such a characteristic in the financial world, and if that’s the case, having exposure to Bitcoin makes sense from all points of view. So, if there is an unambiguous answer to the question ” Which cryptocurrency to buy to ensure undisturbed sleep”, it is bitcoin.
Ethereum – A Cryptocurrency to Invest in Now
Developed by Vitalik Buterin six years ago, Ethereum is a decentralized virtual machine executing scripts on a public notes network. Its currency, the Ether, rose to fame after exploding in value in the crypto rally ended in 2017.
Currently trading at a little below $450, it offers a great alternative to diversify a crypto portfolio with one of the best cryptocurrencies in the world.
With $50 billion in market capitalization and daily liquidity rivaling with any asset, Ether is one of the most interesting cryptocurrencies to invest in now.
In early September, the price of Ethereum hit $480 — its highest price of 2020. There are two key factors behind this surge in value. One is the growth of decentralized finance (also known as DeFi). The second factor is the launch of Ethereum 2.0. This eagerly awaited upgrade is due to be complete by the end of 2020 and will make Ethereum far more efficient. Once it’s able to process more transactions more quickly, we could see its price explode.
Ripple – Future of Payments
Developed by Ripple Labs in 2012, this coin aims at changing financial transactions around the world. A real-time gross settlement system, Ripple supports tokens of fiat currencies, commodities, and even mobile minutes or frequent flier miles.
Currently trading at above the $0.25 level, it followed the general crypto trend in 2020.
XRP is the cryptocurrency used in the Ripple network, and it has a strong future potential. Recently Ripple CEO claimed that the company is expanding rapidly throughout the financial institutions’ network, signing around thirty new contracts each month. Hence, having Ripple in your portfolio makes sense from an investment point of view, considering the potential adoption rate.
Litecoin – One of the Best Cryptocurrencies Ever Created
An early Bitcoin spinoff, Litecoin has a supply limit of 84 million coins and operates on its own blockchain. A peer-to-peer cryptocurrency, Litecoin is almost identical to Bitcoin. It is no wonder it performed in an almost similar fashion in 2019 – tripled in value in the course of a few months.
Litecoin price has come a long way since its first launch many years ago. It started at about $3 per coin and went through several bubble cycles or “alt seasons” that helped push the price up significantly before a small correction occurred. Despite the corrections, Litecoin has a strong long-term price trajectory and outlook. If you want to buy cryptocurrency with high potential, Litecoin is worth giving a shot.
EOS – The Smart Contract Platform
A blockchain protocol, EOS operates as a smart contract platform claiming to conduct millions of transactions per second and to eliminate the transaction fees. One can create decentralized apps on the blockchain, in a similar way like on Ethereum. It has over 6000 active users on the block.one created EOS in 2017, and one of the best cryptocurrencies with potential out there.
Monero (XRM) – Your Privacy Matters
Focused on privacy, transactions on the Monero blockchain can’t be tracked. It issues new coins and approves transactions only with a proof of work consensus algorithm. No one else can see people’s balances or transactions, as Monero ensures 100% privacy protection.
With almost a billion dollars in market capitalization and more than $800 million daily traded volume, Monero is one of the best cryptocurrency to invest in 2020.
It currently trades around $124, up in the recent months as the entire crypto market. Therefore, Monero is a must-have in any digital portfolio due to its privacy features and security of transactions.
TRON was founded by Chinese entrepreneur Justin Sun in 2017. His aim was to create a protocol that could “decentralize the internet” and support decentralized applications. Beginning on Ethereum, it migrated onto its own blockchain in 2018. TRON has a total supply of just over 100 billion tokens — and at the time of writing, about 71.6 billion of these are in circulation.
This crypto is definitely one of the cryptocurrencies to watch out for in the future. Its current rate is affordable at $0.0262. Its partnership with some big players like BitTorrent, Tether, Samsung has put it on the right track. The expectations are bullish for TRON in the years to come as it competes with bigshots like Ethereum.
This crypto script was the first to include the proven secure Ouroboros protocol using the proof-of-stake algorithm. Stacking on this protocol is considered the most attractive because it takes into account not only the number of coins and the number of days, they are held but also the chain of followers down to the hundredth knee. This has led to increased interest in Cardano coin, and its capitalization has reached more than $3 billion.
Analytics believe this coin will make a real breakthrough towards the end of the first quarter of next year. Many investors have already started buying Cardano: the trading volume of this coin is growing at exchanges like StormGain, and the coin value is gradually increasing. It easily may be the next cryptocurrency to explode in 2021.
NEO – The Dual-Token Ecosystem
An open-source blockchain application, NEO was born in 2014 and rebranded in 2017 under the current name. It aims at managing digitalized assets using smart contracts.
Currently trading at $15.36 at the time this article is written, NEO has an impressive ROI rate of 8,513.36% since inception. It means that, if purchased at the time of the launch, the investor would have gained an ROI above 8,500%.
NEO has a market capitalization of 1,102,648,009 dollars and a daily trading volume of almost six-hundred million dollars, making it one of the best crypto assets in terms of liquidity. It reached an all-time high of $196.85 in January 2018, highlighting only some of its potential.
Dash – The Digital Cash
Creators of Dash claim you can move Dash in a second for less than a cent. They’re right, and it makes the current fees and transactions charged by traditional banks, outrageously expensive. Is Dash the future of cash and the next cryptocurrency to catch the hype train in 2021?
Judging by the market capitalization, it has many followers. With a circulating supply of 9.8 million coins at the time this article is written and a maximum supply of 18.9 million coins, it trades around $78.64, following the same pattern for the year as the other cryptocurrencies presented earlier.
Finding a broker to offer fair spreads and market execution for digital currencies is not an easy task. FXOpen, as a regulated entity, makes sure traders get a chance to build a digital portfolio with one of the most reliable brokerage houses in the world.
Please note that all price values in this article are valid as of November 5, 2020.