Top 5 cryptocurrencies to invest in 2020
Cryptocurrency is a digital currency that is created and managed using superior encryption techniques known as cryptography. Many economists predict that a big change in cryptocurrency is forthcoming as there is a possibility cryptocurrency will be floated to Nasdaq. Before we list the top cryptocurrencies, we need to mention a few key reasons to invest in cryptocurrencies in 2020:
- Security: When you invest in cryptocurrency, you don’t have to share your personal information and that prevents your data from being stolen.
- Lower cost: The value of cryptocurrencies is much lower than traditional exchanges.
- Portfolio diversification: Cryptocurrencies can also be used to diversify your portfolio investment and maximize your return on investment potential.
- Volatility: Cryptocurrencies are highly volatile and this principle can work for you or against you. Studying the chart, graphs, and bars of past trends can help you get good traction.
The five best cryptocurrencies to invest in 2020 are:
On May 20th, 2020, the third Bitcoin halving is scheduled to happen and cryptocurrency developers will offer around 50% reduced reward- which is instead of 12.5 BTC, each verified block will get 6.25 BTC. This is known as “Halving” and it has happened twice before and each time the price of bitcoins was boosted by 10x.
Also, the active use of lightning network may enable the implementation of Bitcoin in micro-payments and eCommerce websites.
Ripple is partnered with many major financial market players and is popularly known as the “king of banking and financial infrastructure”. Ripple recently partnered with Western Union to replace SWIFT with its infrastructure to reduce the cost incurred when transferring money between counterparties.
Unlike Bitcoin, Ethereum is fundamentally based on a practical smart contract system that is used by several projects for the digitalization of transactions.
The currency value may increase due to the continuous demand for its blockchain and functions, as Ethereum uses blockchain technology that allows the creation of applications that can be executed in the cloud and hence can be protected from manipulation and other fraudulent methods.
Binance coin was formulated in 2017, by major financial entity Binance Exchange and within three years it has shown tremendous performance and has grown in stock. Its quick growth is because of its size and reputation as being one of the most significant exchanges in the world.
BNB has generally been on an uptrend in 2019 rising at $38.50 but closed with a little above $20. Economist predicts that by 2020, the price for Binance coin will increase and is one of the most promising cryptocurrency to look out for in 2020.
Neo currently can be purchased at around $15, but it has grown significantly in the past few years. Neo describes its Smart Economy Policy as (Digital Identity+Digital Assets+Smart Contracts=Smart Economy). Smart contracts allow the execution and transparency of a transaction and subsequent agreement with different parties without any governance or the legal system. NEO’s centralized concept looks promising and can be an attractive option for many investors.