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Best Cryptocurrencies to Invest In

The investment sector has been significantly impacted by the introduction of cryptocurrency. Cryptocurrency has provided investors with an additional choice. The number of investors throughout the world is continually increasing.

The individuals trading with cryptocurrency remains at three percent. A good investment requires analyzing trends and careful consideration. I recommend reviewing numerous sources to enable investors to find the best opportunity.

There are many different types of cryptocurrency currently available on the market. Each has both advantages and disadvantages. This being said, I have seen numerous investors make a significant profit

Understanding Cryptocurrency is the Best Way to Invest

Prior to making an investment in cryptocurrency, I believe the investor should understand all of the basics. I have found one of the best compliments for traditional funds is cryptocurrency.best cryptocurrencies

Cryptocurrency offers the advantage of making certain all online financial transactions are 100 percent secure. There are numerous additional reasons cryptocurrency is an excellent investment.

Cryptocurrency provides numerous advantages in comparison to traditional currency, money transfers and standard banking methods. The benefits are defined below.

Accessibility: Cryptocurrency offers exceptional accessibility. Trades can be made by anyone and at any time.

​​​Decentralization: Cryptocurrency wallets enable the owners to access their cryptocurrency, receive funds and send funds. According to CCSI, a secret key is required for accessing the wallet.​​​

​I have also found numerous exchanges for storing cryptocurrency. I feel investors should be aware that going through any exchange increase the risk. The blockchain is used for storing the record of all cryptocurrency exchanges.

Each full node stores an additional copy. A node is essentially a computer locally storing a ledger. All nodes remain in sync with the other online computers. I like the idea cryptocurrency is not stored in a bank.

Cryptocurrency ledgers are decentralized. This means they are far less vulnerable to either local risks or seizure. Cryptocurrency is also not vulnerable to hardware failure or fire. Every full node stores a full copy of the data.

Portfolio Diversification: Cryptocurrency is an effective option for portfolio diversification.

Smart Contracts: I have found the majority of cryptocurrencies offer a unique feature not available with traditional currencies. One of the prime examples of a smart contract is found with Ethereum.

The contract is used for managing numerous transactions within the blockchain. I believe all of the potential uses have not yet been discovered. Smart contracts are capable of replacing both escrow services and arbiters.

Quicker Transactions: Transactions can be conducted almost immediately with cryptocurrency. Wasted time is simply eliminated.

Security: According to Yahoo Finance, cryptocurrency investments are not subject to fraud or identity theft.

Lower Transaction Fees: I have found the transaction fees for cryptocurrency are substantially lower than with a standard exchange.

Privacy: One of the reasons for the creation of cryptocurrency is privacy. The identity of the receiver and the sender remain private. The same anonymity can only be found through the use of cash.

Transfer Cost: There are both advantages and disadvantages regarding the cost of a cryptocurrency transfer. The cost is dependent on the speed and type of transfer. Bitcoin can become extremely expensive when the user needs a transaction cleared fast.

Transaction costs for typical transactions are much more reasonable. One of the quickest and least expensive cryptocurrencies to transfer is Ripple due to the technology adoption by numerous financial institutions.

Scarcity: Ripple is one of the top cryptocurrency investments because the supply is fixed. Of the 21 million Bitcoin possible, approximately 17 million currently exist. The total amount is ensured through the code used to create Bitcoin.

Any cryptocurrency with a fixed supply has a similar investment potential as any precious metal used as money during the past such as silver or gold. Once any fiat currency from any government is in circulation, it will never increase.

The purchasing power of everything from British Pounds to the United States dollar will eventually decrease once in circulation.

Transaction details can be effectively managed because the contract will not allow any payment to be released until the predetermined conditions have been met.

The Best Cryptocurrencies Last 5 Years

Investors should choose a cryptocurrency based on the potential for monetary trade.

cryptocurrency investing

Many experts believe investments should not be made until the market for the specific cryptocurrency has been fully established. Every cryptocurrency has a rating partially based on the factors below.

Adoption Rate: Cryptocurrency is an extremely speculative investment. I have seen many of the most substantial profits made when either new technology or cryptocurrency becomes available such as Ripple.

The most cautious investors consider numerous factors including the portfolio potential and adoption rate prior to investing. Data regarding real-world transactions is often critical for a successful investment.

Anonymity and Security: Numerous cryptocurrencies such as Etherium are considered more secure due to smart contracts. The contracts ensure every transaction has predetermined rules. Other cryptocurrencies are focused on anonymity.

Monero is one of several cryptocurrencies going to great lengths to ensure the identity of the receiver and the sender are completely obscured.

Redundant Technology: An open-source code has been used for the creation of numerous cryptocurrencies. Unfortunately, this means these cryptocurrencies can be cloned easily with just a few minor changes to either the features or the code.

When this occurs, I have found the cloned cryptocurrency does not provide the uniqueness required for a good investment. In most instances, the new cryptocurrency will never reach wide adoption.

Limited Exchange Support: When a cryptocurrency is hard to trade, the exchanges will not provide adequate support. In some cases, numerous conversions and steps are necessary to conduct just one trade.

When the most popular exchanges support a cryptocurrency, it becomes much easier to trade, exit or build a position.

Market Cap: The liquidity and market cap for a specific cryptocurrency are generally linked. A new cryptocurrency may never establish a place in the market. This means the investor will be unable to exit with a profit.

Industry Utility: Many experts believe the best cryptocurrencies last 5 years are Ripple and Etherium. Both offer more than a means of exchange. Ripple significantly increased in popularity during 2017 with a 36,000 percent price increase.

The increase occurred due to the acceptance of the financial sector of Ripple as a tool. Ripple enabled faster and less inexpensive money transfers across the globe as opposed to traditional methods.

Potential New Technology: Both Ripple and Etherium significantly surged in 2017 due to the innovation of the technology used for the creation of both platforms. The cryptocurrencies were simply able to stand out from similar market offerings.

The Risks Every Investor Should be Aware of Regarding Cryptocurrency

According to Money Mongers, there are two specific risks every investor should take into account. The first is a low market cap. The market cap enables investors to distinguish a penny stock from a Dow Jones stock.

cryptocurrency investing risks

I have found when the market cap is higher, the liquidity is much better and the market more vibrant. Cryptocurriencies rarely traded or with a low market cap may not allow the investor to exit profitably when necessary.

The second factor is limited interest in the market. I have witnessed a lot of investors earning an excellent profit through cryptocurrency investments, but I have also seen niche cryptocurrencies and those without much support.

When a cryptocurrency does not take off properly, it becomes more of a hobby than an investment. I recommend investing in cryptocurrencies with a continual market interest.

Bitcoin (BTC)

The best cryptocurrency investment for the long-term in 2020 is Bitcoin. The price has become much more reasonable. There is also fewer bitcoin remaining for purchase. Investing in Bitcoin has remained one of the most secure and safest cryptocurrencies for investors.

bitcoin

As one of the top cryptocurrency investments, Bitcoin has continued to move parallel to the market. According to Coin Switch, Bitcoin is the cryptocurrency of the future.

Bitcoin also offers the technical competence necessary for Schnorr signatures, Bulletproofs, Sidechains, Segwit, MAST, Confidential Transactions, MimbleWimble and Drivechains.

The daily growth of Lightning Network has made it difficult for any of the other cryptocurrencies currently available to catch up with Bitcoin. The cryptocurrency can be purchased easily from the majority of exchange platforms.

Bitcoin can be stored safely and easily through a wide selection of hardware and online-based wallets. I believe every portfolio should include Bitcoin. It’s so noteworthy in 2020 that the Bitcoin IRA is actually a thing.  Serious investors often make Bitcoin 40 to 50 percent of their portfolios.

Litecoin (LTC)

Litecoin is a decentralized branch of Bitcoin. The open-source cryptocurrency was established by Charlie Lee. According to Benzinga, after Bitcoin, Litecoin is the next best investment.

litecoin

Litecoin was originally designed as a complement to Bitcoin. I find this similar to the way silver works as an effective complement to gold. Ever since 2012, Etherium has been successful regarding this purpose.

Litecoin has helped Bitcoin by acting as a type of test. Litecoin pioneered the creation of lightning, atomic swaps and segwit through its main net. The cryptocurrency also enables users to initiate sole payments.

The result is a good trading volume. Despite the relative slowness of the current market, the average number of transactions processed daily is worth 25k. The Litecoin Foundation is still working on both the privacy and scaling of the cryptocurrency.

Ethereum (ETH)

I have always been aware Etherium was somewhat bullish. More recently, the world has become aware Etherium is experiencing scaling issues. I believe the extremely ambitious goal of Etherium must also be taken into consideration.

The claim of Etherium to become the world’s computer was certain to result in some glitches. It is also important to understand the world is currently building on Etherium. The most notable pool for developers in the world is Etherium.

ethereum

Etherium has been a pioneer for both smart contracts and decentralized applications in the world of cryptocurrency. Unfortunately, Etherium is currently well behind the set schedule.

Despite the governance issues and severe scaling problems, I believe Etherium is going to bounce back. The prices of Etherium are currently at the very bottom. This is one of the reasons Etherium may be one of the best possible cryptocurrency investments.

Etherium is an attractive option for long-term trading and filling out an investor portfolio. The majority of experts have classified Etherium as one of the best five cryptocurrency investments for the future.

A wide selection of online Etherium wallets is available to provide investors with a safe place for storing the cryptocurrency.

EOS (EOS)

The development of EOS is directly linked with the ability of the cryptocurrency to raise millions. The price has skyrocketed time and time again. The result is a greater degree of volatility.

According to Coin Switch, the volatility is a distinct advantage for day traders. The belief is investors can make a tremendous profit.

Due to the active support of the team, EOS has remained one of the best investments in cryptocurrency. The majority of exchanges all over the world have made EOS readily available. I believe EOS should be a strong consideration for all day traders.

Ripple (XRP)

Ripple is different than all of the other cryptocurrencies in several important ways. Ripple Labs is the creator of Ripple. The Ripple token is being effectively used all over the world for inexpensive and high-speed money transfers.

An announcement was made by Ripple Labs that several partnerships have been established with the leaders in the money transfer industry. Additional partnerships are expected within the financial market in the future.

Binance Coin (BNB)

Binance is frequently referred to as the Binance coin. The cryptocurrency is native to the Binance exchange. The cryptocurrency based coin was launched by Binance in August of 2017.

The idea was to provide users of the Binance exchange with a coin to decrease transaction fees and improve trading transactions. Binance has since expanded, resulting in the not too distant launch of the Binance Chain.

Additional utility is expected to result once Binance DEX is released. Users also receive indirect benefits from the Binance coin. Each quarter, the users are able to buy back the BNB coins with 20 percent of the profits.

The coins are then destroyed as a reward to the holders of Binance to help ensure digital scarcity. This is expected to continue until half of all BNB coins have been bought back.

I find this an exceptional reward for the holders of the Binance coins. Once Binance DEX and the Binance Chain have been furthered, the coins will offer more liquidity and utility. I believe the result will be a significant increase in value in the future.

Cardano (ADA)

The blockchain platform for Cardano has now reached the third generation for the development of smart contracts and decentralized applications. Cardano offers the same decentralized and open-source platform as Etherium with notable differences.

Cardano was created with the promise of being inter-operable and governable with more scalability. Prior to the development of Cardino, a peer-review assessment of the paper was performed. The basis of Cardani is high-quality research.

I recommend Cardano coin for any investors interested in something for the long-term. Cardano coin is also a good match for the majority of cryptocurrency portfolios. The final path of Cardano has not yet reached completion.

Despite this, the Cardano blockchain is live. The developers will require time to become accustomed to the new language being used for smart contracts. Cardano is an investment for the long-term, but may become a fierce competitor in the market.

The platform may give other smart contract platforms including Etherium intense competition. There are also numerous wallets created to keep Cardano coin safe.

Tezos (XTZ)

One of the competitors of Etherium is Tezos. Despite raising $232 million, the cryptocurrency experienced a shaky start. The launch of the Tezos main net may result in this cryptocurrency becoming the next big platform.

The platform encompasses both smart contracts and decentralized applications. The Tezos blockchain upgraded itself in order to evolve. All amendments to the procedure for digital voting must be voted on by the stockholders.

A social consensus is mandatory for all proposals. Teznos has built decentralized digital applications and the smart contracts are supported by the platform. The addition of Tezos to Winklevoss Captial was performed quietly.

Tyler and Cameron Winklevoss added Teznos to the portfolio companies in July of 2018. I find this an extremely bullish signal. As with the majority of cryptocurrency, there is a selection of wallets for Tezos.

Bitcoin Cash (BCH)

One of the forks originating from Bitcoin is called Bitcoin Cash. I believe Bitcoin Cash warrants close monitoring because according to the market cap, this has become the fourth biggest cryptocurrency.

The biggest disadvantages of Bitcoin Cash are the slow speeds for transactions and the current form. Modified code was taken from Bitcoin for the development of Bitcoin Cash. The result was improved scalability, quicker transactions and bigger blocks.

Even though Bitcoin Cash has not yet received the wide acceptance or recognition of Bitcoin, the cryptocurrency offers a good option for Bitcoin. The following in the market has been enthusiastic.

The reason for the creation of Bitcoin may make this cryptocurrency an excellent investment for the future. The belief is the rate of adoption will increase as Bitcoin Cash receives additional recognition in the market.

Monero (XRM)

I recommend Monero for any investor interested in an anonymous and private option for a cryptocurrency portfolio. Monero is a popular decentralized and open-source cryptocurrency for investors looking for both security and digital privacy.

Due to the extreme privacy of Monero, popularity has started to increase. The reason Monero is both hard to trace and private is that it is generally used for conducting transactions on the deep web.

It is important to understand this high of a degree of privacy requires time. Certain transaction information was leaked by Monero towards the beginning of the year. The lead developer admitted finding a solution would be difficult.

The most exciting aspect of Monero is the new techniques currently being created. These techniques are called RingCT, Stealth, Ring signatures and Kovri. The expected result is an improvement in privacy mandates and transactions.

For this reason, I believe Monero is a better investment than Zcash. The inflation rate of Monero is also a lot lower than with Zcash. I believe a good percentage of Monero in the average cryptocurrency portfolio is between three and five percent.

Considering Monero is not yet as well known as Bitcoin or Etherium, there is a surprisingly large range of wallets currently available.

Bancor (BNT)

I believe Bancor is a fairly good investment due to the liquidity network. With security tokens excluded, market capitalization has become extremely illiquid. The first network offering decentralized liquidity is Bancor.

The way value has been created and shared is different from Bancor. Constant liquidity is practically guaranteed through the assets based on the blockchain. The best benefit for Bancor is the protocol received for the majority of tokens in the crypto sphere.

According to Cryptomania at Your text to link…, there is a reserve for native BNT tokens. The liquidity offered makes Bancor a good addition to any cryptocurrency portfolio.

NEXO (NEXO)

Credissimo is the power behind the first loans backed by cryptocurrency. Credissimo is a leading Fintech group based out of Europe with a 10-year history. Nexo is great for any investor interested in holding onto cryptocurrency during the bearish market.

A Nexo loan can be issued immediately simply by collateralizing cryptocurrencies. Nexo is currently supporting more than 40 of the most popular coins in addition to over 200 separate jurisdictions.

The holders of Nexo tokens are issued real dividends in excess of what is provided by the S&P500 companies. Any investors interested in a blockchain project working for its stakeholders and generating profits should give Nexo serious consideration.

True USD (TUSD)

One of the stablest cryptocurrency coins is True USD. When the coins are purchased and sold within the same day, there will be a fluctuation of a few cents. To help eliminate losses, True USD can be purchased as a trade for different cryptocurrencies.

Investors are now paying a lot more attention to True USD because it has become one of the best possible options for day traders.

VeChain (VET)

Vechain is a new solution provider for enterprise-level blockchain. VeChain was created with the purpose of leveraging blockchain technology. The business ecosystem is trust-free, scalable and self-circulating.

Towards the beginning of 2017, the focus of VeChain was a blockchain intended for the management of the supply chain. The technology initially based on IoT (Internet of Things) was eventually expanded.

Solutions for blockchain technology have been implemented successfully for numerous different sectors including agriculture, liquor and luxury items. These examples have already moved past the concept phase and into the global market.

VeChain Thor has been rebranded fairly recently using the new vision of VeChain as the foundation. VeChain now has a blockchain using scalability as the vision of the future.

Tron (TRX)

An extremely active community is backing Tron. Even the co-founder of Tron is active throughout both crypto pages and the media. Tron has been featured in the news frequently for both positive developments and news.

When I include the high volatility, I have to consider Tron as one of the best cryptocurrencies available for both day traders and investment portfolios. Tron has also received the support of the most popular cryptocurrency exchanges.

The Final Word Regarding the Top Cryptocurrency Investments

I do not believe cryptocurrencies have reached their final potential. The best option for any new cryptocurrency investor is using risk capital for investments to create a portfolio of the most frequently traded cryptocurrencies.

Although there is a lot of temptation for initial coin offerings such as the increases frequently occurring with ICOs, I do not believe this is the best option. After the increase, there is generally a significant decline.

Investing in established cryptocurrencies will help eliminate some of the volatility while offering more liquidity as opposed to the newer cryptocurrencies. I recommend having a full understanding of where cryptocurrency is traded prior to proceeding.

The size of the market for the specific cryptocurrency is just as important. Making an investment too early can easily result in no profitable means of exiting the position. I do not believe cryptocurrency is going in any direction other than forward.

I also believe as time passes, more and more excellent opportunities for cryptocurrency investments will become available.

Investors should take action immediately on one or more of the cryptocurrencies described in this article. Investing in all of them is not necessary. I recommend choosing one or two that stand out the most.

Determine which cryptocurrency suits your needs the best, then make an investment. There is still more than enough time left to make a significant profit in the future. If you do not invest now, you may be missing out on something extraordinary.

Tim Schmidt

A Florida-based Entrepreneur, Author, and Life Hacker, Tim Schmidt decided to take control of his retirement portfolio several years ago by setting up a self-directed IRA. This blog shares his thoughts and opinions on the top of retirement and investments. You can follow his career and travels on his Official Website as well as on his Instagram page.