Are you having doubts about whether cryptocurrency is still a profitable investment in 2020 and whether it can stay afloat the challenges posed by the COVID-19 pandemic?
It’s true that the pandemic has hit the stock market and cryptos were no exception. However, investing in cryptocurrency has helped investors diversify their portfolios, minimize their losses, and take market turbulence in their stride.
Today, we’ll take a look at the most promising cryptocurrency in which to invest in 2020, their highlights and obstacles, and their target purpose and audience in order to help you make an informed investment decision. CoinIRA always has your back!
The Most Promising Cryptocurrency for 2020
Bitcoin
When people think of cryptocurrency, Bitcoin (BTC) is the first digital asset that comes to their mind. That’s because it was the world’s first cryptocurrency and continues to be the most popular and most profitable among them.
In 2008, a developer known as Satoshi Nakamoto published a whitepaper in which he introduced the world to Bitcoin, its peer-to-peer payment network, and underlying blockchain technology. In early 2009, Bitcoin’s blockchain was open-sourced to the public.
Bitcoin managed to maintain a steady price growth, despite occasional setbacks. Right now, it has over $195 billion in market cap, owning 40% of all crypto market cap shares. At the start of the pandemic, Bitcoin had a small downturn but went on to outperform the majority of global assets.
In a recent report, the researchers over at Kraken Intelligence went so far as to predict that by 2035 Bitcoin’s price will reach $350,000 mainly due to its fixed supply and high demand! Whether or not this happens to be the case, there’s no doubt that Bitcoin remains a profitable investment for 2020.
Ethereum
Ethereum is the creation of Russian-Canadian developer Vitalik Buterin. This genius mind launched his crypto project in 2015 when he was only 21 years old. The native token of the Ethereum blockchain is actually called Ether (ETH) but most people simply use Ethereum to refer to both the coin and network.
Ethereum is more affordable than Bitcoin because 1 ETH is now worth around $300. That might make it a less attractive investment if you’re looking for quick enrichment but Ethereum is more than just a form of digital money. Its blockchain was the first to introduce smart contracts to the digital world, self-executable contracts that act on predetermined conditions between the involved parties.
The main reason why Ethereum will remain an attractive investment is its leading position in the fintech industry. The Ethereum network is a place for developers to experiment with and build new decentralized financial services at a low-cost.
Litecoin
Litecoin (LTC) is one of the earliest cryptocurrencies and a close relative to Bitcoin. It was designed by Charlie Lee, a former Google employee, who became attracted to Bitcoin as soon as he found out about the project. As he started learning more about how cryptocurrency works, Lee began to notice some of Bitcoin’s shortcomings.
For example, Bitcoin’s blockchain needs 10 minutes to generate one block and it can only process seven transactions per second. Lee thought that Bitcoin’s popularity grows over time, so will its scalability problems.
To avoid such scenarios with his crypto project, he made Litecoin more scalable. Litecoin’s blockchain generates a new block every 2.5 minutes and is able to process up to 56 transactions per second!
Moreover, Litecoin was created for smaller purchases so that consumers can spend their LTC on a daily basis. For instance, in September 2020, the number of Litecoin transactions exceeded 130,000 after the launch of a decentralized fantasy game called LiteBringer where users have to make micro-payments with LTC.
Ripple
Even though Ripple (XRP) is worth barely $0.25, it’s still the third-largest cryptocurrency by market capitalization. What makes this coin so attractive?
Ripple was launched in 2012 by a group of entrepreneur and fintech experts whose main vision was to transform the cross-border payment system and the speed at which we exchange money around the world.
In times when it takes less than a few seconds to exchange all kinds of information regardless of your location, it seems absurd having to use outdated money services like SWIFT and wait up to one week to complete an international transfer.
Thanks to Ripple, you can now make cheap, quick, and secure cross-border payments. It’s no surprise why these services have caught the attention of leading institutional investors and central banks such as Yes Bank, Union Credit, UBS, NBAD, Santander, Axis Bank, Westpac, etc.
Zcash
ZCash (ZE) beginnings go back to 2013 when a group of crypto enthusiasts proposed that Bitcoin should include a privacy extension called Zerocoin at the time. The proposal was rejected by the main developers with an explanation that it was too costly and impractical.
However, the group of researchers didn’t back down and hired the developer Zooko Wilcox from the Zcash Company to design an independent currency, Zerocash/ Zcash, launched in 2016.
What sets Zcash apart from other cryptocurrency is the extra privacy made possible with anonymous “shielded” transactions implemented via the “Zero-Knowledge Proof” protocol that hides both the identity of the sender and the receiver on the blockchain. With this protocol, Zcash doesn’t need to show the encrypted addresses (public keys) to verify transactions.
Why Invest in Cryptocurrency?
Cryptocurrency changed our monetary system forever because it showed us that we can have a speedier, more transparent, and more reliable way of making money transactions.
Most cryptocurrencies have high liquidity and it’s really easy to purchase them, unlike some investments with notoriously high thresholds. You simply need to find a trustworthy online platform and register an account.
Bitcoin and other crypto-assets allow investors to turn their money into currencies that defy manipulation not only from central banks but global financial institutions as well. It’s no wonder that the number of people storing their crypto holdings in crypto interest or retirement accounts is on the rise.
There are also investors who decide to invest in cryptocurrency because they’ve seen the importance of portfolio diversification. It’s a far better idea to invest in a couple of asset classes to minimize the risk of loss.
You can argue that cryptocurrencies are risky assets but that can be said of any investment. If you do thorough research of the market and pay attention to its movements and trends, there’s nothing to be afraid of.
Final Thoughts
The information in this article aims to incite crypto investing novices and inform experienced traders of the current and future cryptocurrency trends. If you want to learn more about cryptocurrency IRA offers and how to invest your crypto into your retirement savings, contact Coin IRA today. All the cryptocurrencies mentioned above can be found on our platform. Our experienced support team will answer all your questions and help you decide on the strategy that works for you.
This article was originally posted on Coin IRA.
