15 Sep 2020 | Crypto Market
Currently, thousands of cryptocurrency projects exist in the market, catering to different industries as well as use-cases. Some of these digital assets have the potential of yielding high returns to an investor.
But with thousands of different digital currencies, how does an investor make a decision on which cryptocurrency to invest in 2020. Which cryptocurrency projects should an investor be on the outlook for?
Analyzing each of these cryptocurrency projects can be a bit overwhelming for any investor. Hence, in this guide, we have explored some of the best cryptocurrency projects that an investor can consider for trading and investment in 2020.
Even after a decade, bitcoin continues to dominate the cryptocurrency market. Last year, as per a report, bitcoin was awarded the best investment asset of the decade. Moreover, bitcoin has attained more than 27% growth in the first half of 2020 leaving behind other popular investments like gold and stocks. Because of the bitcoin lightning network, this cryptocurrency is likely to have additional use cases within its ecosystem. With a market capitalization of more than $180 billion, bitcoin certainly is a valuable cryptocurrency to invest in 2020.
Ethereum is one of the widely used projects for developers to build smart contracts and decentralized applications. Following bitcoin, ethereum is one of the cryptocurrencies with a large community. Moreover, the inherent value of this cryptocurrency project lies in its functionality of serving as a platform to build blockchain applications. Ether, with a market cap of nearly $34 billion, is the cryptocurrency that fuels the Ethereum network.
Ripple is certainly on the list of one of the top cryptocurrency projects of 2020. The cryptocurrency is designed so as to enable instant transactions between any two parties across the globe. Ripple works with major banking institutions to provide a solution for cross border cryptocurrency transactions in a regulated environment. Ripple’s collaboration with a number of financial institutions is one of the factors that makes it a prominent cryptocurrency to invest in 2020. The price of XRP token at its inception was $0.006 and it went as high as $3 during its peak in 2018.
Chainlink is a platform that facilitates external feeds in the form of oracles to the blockchain-enabled smart contracts. The increasing trends within the DeFi landscape have further driven a rise in Chainlink’s price oracles for Decentralized Finance (DeFi). Chainlink’s digital token- Link, is breaking records with each passing day. The digital token currently stands at the 11th position in the cryptocurrency market with the price of one token at $7.45. In January 2020, the Link token traded at the price of $1.87. In the year 2020, Link token attained a growth of nearly 400%. This is one of the cryptocurrency projects that an investor should outlook.
Similar to ethereum, NEO is a China-based platform to develop smart contracts and build blockchain applications. It’s an open-source blockchain platform with the functionality to issue and manage real-world assets. The inherent use case of NEO further boosts its demand and thereby the price of its token. It certainly makes in our list of the top 10 cryptocurrency projects to invest in 2020.
With a substantial trading volume and huge liquidity, Litecoin has a faithful community and is one of the favorable cryptocurrencies among traders. Its peer to peer network is designed to be similar to bitcoin but relatively scalable and cheaper in comparison to bitcoin. With a market cap of nearly $3 billion, Litecoin ranks at the 8th position in the cryptocurrency market. Moreover, the cryptocurrency is also set for its MiimbleWimble upgrade this year which will further boost the scalability and privacy of Litecoin.
In this digitized era, content is the king. Basic Attention Token (BAT) is a token developed on the Ethereum blockchain and can be used on the Brave browser. The BAT ecosystem enables a streamlined process for users and advertisers such that the interests of both the parties are aligned. Consumers are rewarded with BAT tokens to watch the content while advertisers gain maximum brand awareness. This model of the Basic Attention Token (BAT) with the content being financially incentivized makes it one of the best cryptocurrency projects of 2020.
Launched n 2017, EOS is the native cryptocurrency of a platform that enables the development of smart contracts and decentralized applications. Currently, it stands on the 12th position in the cryptocurrency market. Although EOS crypto token has been deemed a bit controversial, it still remains a top performer owing to its inherent functionality. It is better programmed to address the scalability, functionality, and speed in cryptocurrency projects as compared to bitcoin and ethereum.
Denoted by ZEC, Zcash is a cryptocurrency token with the same functionality of providing peer to peer transactions. However, unlike bitcoin or litecoin, Zcash transactions offer complete privacy to its users. With cryptocurrency gaining mainstream momentum, privacy focussed coins like Zcash are likely to trend. This makes Zcash one of cryptocurrency to invest in 2020.
Cardano is a cryptocurrency project with potentially long term returns owing to the functionality that it offers. It is also an open-source blockchain platform that is used for building smart contracts and decentralized applications but with the promise of better scalability and governance to cater to the decentralized future. With a market cap of more than $3 billion, Cardano stands at the 6th position in the cryptocurrency market.
The cryptocurrency market is certainly trending in terms of regulations, investments, and adoption. Moreover, at this stage, an individual can invest in a cryptocurrency that has the potential to become the next ‘Apple’ or ‘Google’ within the next 20 years.