Since Bitcoin appeared in 2009 it’s been argued that cryptocurrencies will become the currency of the future. The bad image that crypto had a few years ago has dissipated and every day new investors want to get their hands on it. And just as there are some pretty weak coins out there, there’s also a group of coins that can be considered top digital currencies.
In the last years, we’ve seen market fluctuations and prices that have raised way beyond what even experts could have expected. Some currencies like XRP have low prices and offer stability, while others like Bitcoin have gone up all the way to $20,000 per coin to prices as low as $3,000.
With the myriad of cryptocurrencies available, it’s hard to make the right choice, some investments are riskier but can potentially yield massive gains. Others are not. Some cryptocurrencies are decentralized (unregulated) while others are not.
Top 10 Cryptocurrencies To Look Out For In 2020
From completely decentralized cryptos to virtual coins that are used by financial institutions to make their monetary transactions, there’s a currency for everyone.
The following cryptocurrency list is based on current trends and expectations for this 2020.
- Ripple XRP
Bitcoin is sometimes referred to as the “digital gold”. Although the coronavirus induced market crash caused Bitcoin’s price to drop to less than $3,500, the price is going up again, proving to be a good investment opportunity. And as Bitcoin grows its way through the economic crisis, there’s another factor that will most certainly have a beneficial effect in re-establish its dominance.
The Bitcoin Halving. Coming up in May, this scheduled halving occurs approximately every four years. This means that the number of bitcoins generated every ten minutes will be cut in half, so instead of 12.5 bitcoin per block, the generation will fall to 6.25. Historically, the previous two halvings led to significant appreciations of this asset.
The market price of DASH is not to be compared with that of Bitcoin (Trading roughly at $84 in April 2020). However, it remains one of the best options for instant payments around the world. The number of merchants that accept this coin as a payment method is increasing every year because transactions are fast and inexpensive.
Since the safety measures taken to control the spread of the COVID19 are focused on social distancing and the use of contactless technology when available, paper cash is being rapidly replaced by virtual cash. And DASH is considered the top cryptocurrency for this purpose.
With an ever-growing number of financial institutions adopting XRP for faster and easier cross-border transactions, this crypto is one of the most promising assets for this year. Thanks to its solid technology and network, Ripple is quickly becoming adopted by some well-known institutions such as MoneyGram, WireBarley, and Azimo.
Although XRP price is not very volatile (a turn off for some investors) the opportunities brought by their technology are big. As more giant institutions begin to adopt this coin and the overall market need of digital currencies spike, 2020 looks like a very promising year for Ripple.
Ethereum 2.0 (ETH)
One of the most expected cryptocurrency trends for this year is Ethereum’s transition to Ethereum 2.0, codenamed Berlin. Since its launch in 2016 Ethereum has evolved and implemented new strategies for scalability and transaction efficiency.
The Ethereum 2.0 network upgrade is meant to be the final upgrade and will shift the block validation function from miners to specialized network validators. As the second biggest cryptocurrency, its current market cap is $21,010,016,421 and their new implementations will surely have a great impact on the market.
Libra (Facebook’s Coin)
Formally announced in June 2019, the Libra Project is projected to be released in 2020. Proposed by the giant Facebook, this currency has managed to attract a lot of attention from many governments around the world.
In an attempt to minimize volatility, the Libra token was originally planned to be backed by a basket of currencies and US Treasury Securities. This is extremely good news for many investors and especially for anyone performing cross-border transactions. However, although the project is developing rapidly, the release date has not been announced officially.
It’s reliable technology has helped Litecoin (LTC) earn its place as the third biggest cryptocurrency by market cap. When it comes to payments this is one of the most affordable and fastest platforms.
Each Litecoin tends to trade for less than $100, which makes this pretty affordable if you compare it to Bitcoin and Ethereum. When you combine the affordability with the recent news of integration with regular ATMs it definitely seems like a good option for this 2020.
There is a difference between the vast majority of cryptos and EOS. Launched in 2017, EOS was designed to be used within the EOS system, and not for peer-to-peer transactions. Their smart platform is allowed to conduct millions of transactions per second.
Their ecosystem features can potentially attract some big companies like Amazon, if they ever move to blockchain. Readily scalable and free of some of the problems that other blockchains suffer, EOS is an excellent investment opportunity even if you are a new investor.
Founded by the TRON foundation in 2017, the TRON ecosystem has quickly gained a place in the crypto world. Their goal is to allow anyone to host digital content in the blockchain-based system, thus reducing costs. Their currency TRX will be seeing some good benefits as content hosting grows during the next couple of years.
A good example of the kind of industry that can benefit from this cost reduction are movie streaming. Movie streaming services like Netflix cost millions of dollars to run, however, by using the Tron ecosystems this costs can be greatly reduced.
When it comes to privacy there aren’t many cryptocurrencies like ZCash. Although BItcoin is famous for its privacy features they can still be tracked down, on the other hand, ZCash offers outstanding privacy for its users.
Just like other cryptos, ZEC was designed for peer-to-peer transactions and has a total fixed supply of Million Coins (Same as Bitcoin). Its performance has been aligned with that of Bitcoin and the overall market, so as we see the altcoin market grow it’s very likely that ZCash will grow as well.
Neo has been able to maintain its price and place as one of the top 20 cryptos based on market capitalization. The “Chinese-based Ethereum”, as many people call it is a smart contract platform founded in China. Its main difference with Ethereum is that the NEO Ecosystem is not so decentralized because blockchain decisions are made by less than 10 Nodes.
Thanks to its low volatility this is a very stable coin, and as investment it can yield high rewards in the long run. Some people state that it can potentially be hedged against Ethereum although right now it’s mainly providing in China.
The Cryptocurrency Trends for 2020
From an investor’s perspective, cryptocurrencies are a good investment opportunity.
Transactions are completely transparent and with so much diversity out there, diversifying a portfolio is as easy as it can get. However, its high volatility makes it a risky move if you’re not sure what you’re doing.
As the world is rapidly changing and adopting new ways of doing things remotely, cryptocurrency will more than likely become widely accepted. This 2020 is a turning point for everyone and the greatest benefits will be perceived by those who jump early on the train.