How To Find The Best Cryptocurrency to Invest In 2020
Within the rising popularity of paperless funds, the world of cryptocurrency may seem so confusing to newcomers. This is especially true when seeking to find the best cryptocurrency to invest in now. As many experienced crypto-earners know, the answer is transient. Crypto has a refined way of changing, and sometimes these changes can come out of nowhere. But hopefully, this article will shed a little more light on the subject. Below is a basic guide to finding the best cheap cryptocurrency to buy now.
How To Choose The Best Cryptocurrency?
The answer depends on a number of factors. These should be the main reasons for investing in any type. Keep in mind, this is not financial advice. We are simply pointing out things we look for when researching a a coin and mentioning a few coins that fall within that category.
When it comes to choosing the right cryptocurrency to invest in, volatility is extremely important. The term “volatility” is used in finance to represent the way stocks can fall at the drop of a hat. Often, they can rapidly drop and take a turn for the worse. Implied volatility can be utilized to predict when stocks will take a plummet. When applying this concept to cryptocurrency, it is important to invest in one that will hold on to your money while mining or performing exchanges.
Although cryptocurrency is well known for being “unhackable” and “unbreakable,” this is not always true. When deciding which cryptocurrencies to invest in, it is always better to choose the safest client, even if it means investing a bit more coin to do so. Because cryptocurrency is almost completely online, your assets and account information cannot be recovered if they get lost. Secure, safe cryptocurrency systems, such as Bitcoin, are backed by blockchain technologies that make it almost impossible to hack into.
Volume and Reputation
In the business world, reputation speaks volumes. For example, if you logged into your Amazon account in hopes of finding a new camera, is the one-stars (those with only bad reviews) going to catch your eye? Perhaps only for satirical purposes. Cryptocurrency operates in a parallel fashion to this metaphor. Although cryptocurrencies aren’t typically rated with stars, the reputation it holds is just as important as a five-star review.
If no one wants to trade a certain cryptocurrency, there is probably a good reason why they aren’t interested. This directly correlates to volume — if persons aren’t interested in investing in a strand of cryptocurrency, there will be a low volume. Cryptocurrencies with low volumes and bad reputations are definitely the ones you want to stay away from.
If you haven’t already, it is important to ask yourself the following questions:
- What do you want to do with your financial investments?
- Why are you investing in the first place?
- What do you want to get out of this?
The answer to these questions will help you decide which cryptocurrency is right for you, investment-wise. Because many of the cryptocurrencies have different features and capabilities, it is ultimately up to you to decide which one works best for your financial goals.
Best Cryptocurrency to Consider Investing in 2021
The year 2020 will be remembered by many because of the uncertainties it came with. However, amidst all these uncertainties witnessed in 2020, the cryptocurrency market recorded positive growth.
For instance, in 2020, the value of Bitcoin went up. It was also the same year that Bitcoin went mainstream, with institutional investors getting the chance to dip their hands in crypto gold. 2020 saw Ethereum (ETH) record more than 4.5 returns
But what does the future hold for the cryptocurrency market? This year, seasoned traders and investors advise that we should consider investing in cryptocurrencies other than Bitcoin.
Let’s discuss some of the most valuable crypto coins that should consider in 2021.
Ready? Let’s get started.
After Bitcoin, Ethereum is the second most popular digital currency with a solid market capitalization of $138.3 billion and a token value of $1218.59 as of January 2021.
Ethereum’s main objective is to decentralize the digital currency servers by replacing them with a worldwide system of nodes. Recently, its value has increased steadily, and it now costs $1579 per token value. The steady rise can be attributed to the success of the Ethereum 2.0 upgrade and the introduction of decentralized finance within its system.
Why you should consider investing in Ethereum
- The platform supports smart contracts
- It allows decentralized dApp (decentralized mobile applications)
- An incredibly strong market value indicating that it is valuable
Chainlink is a decentralized oracle network that connects smart contracts such as those on the Ethereum network. It also provides “real world data” to blockchain on the blockchain network.
By definition, smart contracts are agreements between two or more parties on a blockchain that analyzes information and automatically executes it after certain conditions are met. Blockchains cannot connect with other coins outside; therefore, decentralized chainlinks oracles provide a platform where smart contracts can communicate with outside data so that an agreement is accomplished based on data Ethereum itself cannot connect to.
At the beginning of the year, Chainlink had a market capitalization of $ 8.6 billion, and its LINK is valued at $21.53
Why you should consider investing in Chainlink
- The network tracks all valuable data and feeds them directly into smart contracts for execution
- It is a safe and secure platform
- It provides the users of the platform with “real world data.”
Binance Coin (BNB)
Initially, Binance Coin was hosted on the Ethereum network until 2017 when DEX or decentralized Binance exchange, went online. Binance Coin network operates much like the Ethereum platform, though with a different mission.
Binance Coin has features such as
- It allows traders on the platform to buy and sell coins
- Users on the network can easily convert BNB with other cryptocurrencies
Binance has gained popularity among traders because of these features, making it the biggest crypto exchange site by volume. As of January 2021, Binance had a market capitalization of $ 6.8 billion, and a single BNB is valued at $ 44.26
Why you should invest in Binance Coin
- The BNB uses proof of stake consensus model on its network
- The exchange site offers discounts to traders who pay transactions fees while using services
Since the beginning of the year, the Tron network has steadily gained popularity among traders because of its unique features such as the platform allowing traders to create and share content with other people. Also, you are compensated as a trader for the content and data you create. These features have attracted many traders and investors, making it popular in the crypto market.
Why you should consider investing in Tron
- User-friendly website
- Contented created on the platform can easily be shared
- As a trader, you will be compensated for creating content
As of February 2021, Stellar had a market cap of $ 6.1 billion, and each stellar was valued at $0.27.
XLM is an open blockchain platform developed to connect financial institutions to reduce the time taken to process the long transactions. Even though it is positioned as an enterprise blockchain for institutional transactions, the network is open and can be used by any trader.
Why you should invest in Stellar
- The network allows cross border transactions with other currencies
- Affordable cost of transactions on the platform
- Instant money transfer between institutions
It is the sixth-largest cryptocurrency in the world, with a market cap of $ 10 billion as of Jan 2021. Its token value is approximated to be$ 153.88
Why you should invest in Litecoin
- Faster in processing transactions
- Many merchants worldwide are now accepting Litecoin as a mode of payment.
- The network has lower system requirements, which means coins can be even be mined using PCs.
As a new trader, before you consider investing in digital currency is advisable to carry out proper research and be updated with the current flows in the market. The information gathered will help you in choosing the best cryptocurrency with the highest market value.
Proof of Stake Coins
A \’proof of stake\’ is the idea that you have more mining access based on how many crypto coins you have invested in. The more coins you have/are invested in, the more you can mine, exchange, etc. It can easily be confused with Proof of Work, which allows the investor to unlock new blocks based on the number of coins invested. With both of these ideas, more investment inevitably reaps more rewards.
These are popular proof of stake coins to invest in right now:
- Tezox (XTZ)
- Tron (TRX)
- Dash (DASH)
These three have made multiple cryptocurrency recommendation lists, and are well known as some of the best “proof of stake” coins to invest in right now. Each currency allows for flexible and profitable exchanges and investments. Dash and Tezox help you earn money with little to no effort. Tron also offers a cool feature that allows the user free access to secure protection from cyber-attacks.
Investing in “proof of stake” coins makes it super easy to earn money without too much worry over any technical knowledge that may be required to upkeep your investment. This also makes “proof of stake” coins good for first-time investors, since there isn’t much work involved with earning money.
Best Altcoins Under $1.00
Altcoins are cryptocurrencies other than Bitcoin (the original cryptocurrency). For those who are new to the world of investing in digital coins, (or for more experienced investors hoping to branch out), many reputable altcoins cost less than $1.00! In fact, within the 5000 or so different altcoins, many of which fall under an affordable price range.
A few altcoins that cost less than $1.00 include:
- IOTA (MIOTA)
- Siacoin (SC)
Each of these altcoins offers unique features for less than a buck. Although Altcoin Fantasy is more of a game, it can give newbies a chance to learn and experience what the world of cryptocurrency is like. Because of its priceless value and educational mechanics, I couldn’t help but include it in this list. As for IOTA and Siacoin, both of them really stand out when placed beside their altcoin competitors.
How to invest?
Most of these coins can be found on Binance, a reputable and trusted exchange that is now available in the US markets. Register free with Binance here.
When investing in something that has the potential to be risky, like stocks or cryptocurrency, it is always good to stay informed and up-to-date with the flow of the “market.” With the proper strategies, information, and online resources, you can pave your way to having a profitable crypto-investment.
Although the planet of cryptocurrency can seem confusing at first glance, it becomes easier to understand once you start your digital journey. By investing in the cryptocurrencies listed above and applying them to your overarching goals, it doesn’t have to be a challenge. Investing is as easy as 1, 2, 3 — picking your coin, creating your account, and watching the magic happen.
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