Forex / Cryptos
Best Cryptocurrency to Invest in 2020July 22, 2020
The Year of the Cryptocurrency?
2020 has been one hell of a financial year so far, has it not?
Not to say that the years preceding it were just afternoon tea, but when everything is taken into account, 2020 seems to have been the worst year in at least a decade, if not more; and it’s all because of one “little” bug that caused a complete disruption of the global economic chain.
Multiple countries, industries and companies have been forced to furlough employees; many have shut down temporarily, with others trying to hang on, only to go belly up a short while later.
People have been sacked left & right, as COVID-19 has taken a human toll unlike any other (that’s long before we count the sick and the dead during the pandemic); and 6 months into 2020, the end is still not in sight.
Taking all of that into consideration, it should hardly be a shock that many are looking into alternative forms of obtaining some money, ANY kind of money, as people look for the rainbow in their cloudy day – all of which has quite a few people asking a simple question: Which is the best cryptocurrency?
In this article, we will look at a few options and hopefully provide some answers.
But we feel compelled to remind you of a caveat – The cryptocurrency market is highly volatile and fluid, and whatever we write today may no longer hold true in a few weeks.
A Truly Global Currency
Any list about cryptocurrencies has to begin with the undisputed champion – Bitcoin.
The oldest and most popular cryptocurrency of the batch has been around for just over a decade and has grown by leaps and bounds. Granted, 2020 has seen it, like pretty much all other financial assets, taking its lumps; and it has yet to even come close to the heights it reached in the late parts of 2017. But it is still valued at around $9000 as of this writing, with 2020 showing heights exceeding $10k and several “touches” of that threshold.
Any bitcoin trader or person truly interested in cryptocurrencies is aware of its volatility and the issue of its supply being far inferior to the demand for it, making its cost nearly always overvalued.
That being said, Bitcoin is beginning to show early signs of becoming a true currency alternative, which is a positive sign, indeed.
First of all, many financial bodies are coming around to using it, offering trades for it, and more & more options for payment with bitcoin are popping up across the globe.
Secondly, while it remains volatile when compared to traditional “paper” currencies, Bitcoin’s swings are becoming more tempered when taken in a historical context.
Lastly, Bitcoin, more so than any other cryptocurrency, has made it into the public eye and knowledge, making its adoption by many more a matter of time.
Which Cryptocurrency Has the Best Technology?
Any article about Cryptocurrencies is likely to have some names you have not heard, and we are pleased to present the first one: Compound.
Do not be alarmed if that name does not ring any bells – it has not even celebrated its 3rd birthday; but there is a good reason why we have chosen to put it on our list.
Compound has one distinct feature that most other cryptocurrencies do not come even close to emulating – it can grow and adapt with ease.
Most cryptocurrencies come with a certain set of doctrines that govern their security, trade, mining, and the overall spread of the currency; but those definitions cannot be changed beyond a certain point. Thus, the ability of those currencies to adapt to an ever-changing marketplace is limited at best.
But Compound works in a different way by allowing its community of users to debate its various uses, protocols and overall purpose. It also allows for community upgrades and changes to its protocol, meaning that, at least in that sense, Compound is future-proof, as is the technology behind it.
The Best Long-Term Cryptocurrency Investment
If you have done any digging into Cryptocurrencies, you have likely run into the name Ripple XRP, and with good reason, as the currency is one of the most popular ones on the market. Its market value is currently around $0.17, but it has shown peaks reaching around $3 and it has a rather large circulation.
The reason we believe it may be the best long term investment is its very purpose, which is to disrupt the current system banks use to transfer funds from one end of the earth to the other or just from one bank to the other.
It is a daunting task, as most banks loath change. But many of them are coming around to the fact that the current system in global use titled “SWIFT” is quickly becoming obsolete and Ripple is beginning to make headway and tightening connection with many banks.
There is little doubt that Ripple has a long way to go before we can claim they are even remotely close to being “adopted” by the banks or the public. But if successful, we can pretty much guarantee that the price for Ripple will NOT stay at $0.17 for much longer.
Summary – The Best Cryptocurrency
These are just 3 examples of some standout cryptocurrencies, all of which are just as likely to be a breakout success in 2020 and beyond, as they are to crumble under the pressure to succeed while satisfying market needs.
And that is one of the most important things to keep in mind: even the best cryptocurrencies are extremely volatile when compared to more traditional investment avenues, so before you trade, learn about cryptos. Check out the Queensway Academy lesson about Cryptos.
Cryptocurrencies may currently work best as a small part of your portfolio – one that you can risk to lose but would be very pleased to reap its rewards.
The fact of the matter is that “the best cryptocurrency” does not exist, because the statement is incomplete and should be “Which is the best Cryptocurrency FOR YOU”, just like any other form of investment. Cryptocurrencies work in different ways under wildly differing restrictions, so any gain from them cannot be looked at under the goggles of standardisation.
Keep that in mind, when you are planning your next Cryptocurrency investment: study the market, look at the options and try to figure out any similarities to your current investing forte. If you can do this – the best cryptocurrency will be the one you end up investing in.