Nowadays, many people believe that cryptocurrencies are the future of finance, since they offer multiple advantages over traditional fiat currency (low commissions, transaction speed and transparency).
In the cryptocurrency market, Bitcoin certainly remains at the top of the digital currency market, not only because of its popularity and the great confidence created around this digital asset.
However, there are alternatives to the bitcoin, i.e. digital currencies called ‘altcoin‘ (precisely because they constitute an alternative to the first and most famous crypto in history: the bitcoin) which exist to offer different types of advantages from those offered by the bitcoin.
If you are reading this article you are surely among those who are looking for advice not only on which cryptocurrency to invest but also and above all why it is convenient to invest in digital currencies.
So, if you are wondering if and why it is convenient to invest in cryptocurrencies, we suggest you first of all to consider a number of reasons:
In this time of uncertainty in which we are witnessing an incredible fall in the financial markets (largely due to the Coronavirus pandemic), more and more people are looking for alternatives to their investments and savings accounts and this is why we are witnessing a growing interest in digital currencies that are finally considered as an alternative to traditional financial systems and fiat currency.
That is why in the next paragraph we will show you a list of what we consider today the most promising cryptocurrencies of 2020.
Please note: what you will read below is only an opinion and certainly not financial advice. When you want to make an investment, we advise you to investigate on your own and consult an expert in case you do not think you have enough knowledge about the subject.
Every day in the crypto market new altcoins are created through ICO (Initial Coin Offering). Currently there are about 3,300 altcoins in the crypto market, with a market capitalization of $322,927,392,810.
Bitcoin continues to be the first choice among crypto-investors. However, there are many other crypto-investors that have risen to the forefront and become fierce competitors of Bitcoin in terms of returns and utility.
It is by no means easy to predict what the most promising cryptocurrencies in 2020 will be, as this will depend very much on the ups and downs of the market but also on the community and technology on which both the platforms and their tokens are based.
Therefore, although the question “what are the most promising cryptocurrencies in 2020?” or “which cryptocurrency to invest in today” cannot be categorically resolved, we can still rely on some clues to predict whether or not it is worth investing in a particular crypto.
To do this, we have taken the following characteristics into account:
Ethereum is described as a decentralized “supercomputer”. Ethereum performs intelligent contracts, a computer protocol designed to facilitate, verify and strengthen what is “the negotiation or execution of a contract”, without the need to go through a third party. The cryptocurrency used within Ethereum is known as “Ether”.
It went from being a single-digit currency at the beginning of the year to one with a value greater than $1,200 in the first days of the following year.
It has also proven to have a higher cap than Bitcoin in terms of transaction management. Ethereum’s transactions have happened much faster than Bitcoin and also transaction costs are much lower.
Ethereum is worth around $300 at the moment, but some analysts predict that it could be worth over $10,000 per currency and gain 25% market share in the future.
Litecoin is born from another bitcoin fork. Created by Charlie Lee, LTC is an established altcoin with great name recognition and is one of the fastest and most convenient cryptocurrency when it comes to payments.
The crypto is described as a faster alternative to processing bitcoin blocks, while being cheaper. This is because it uses scripts for its proof of work algorithm instead of SHA-256. However, Litecoin has nothing to do with the bitcoin value and is considered silver compared to bitcoin gold.
Although there is no guarantee that one day Litecoin will reach a peak in its market value, its relatively low price at the time of writing (about $45) makes it a popular investment choice.
Compared to Bitcoin, Litecoin is preferable for regular transactions, with a 75% faster blocking time than Bitcoin and transaction fees at a fraction of a dollar. That is why, for many, this is the best alternative to Bitcoin.
Although Ripple is considered a fairly centralized cryptocurrency in a notoriously decentralized space, there is no denying that Ripple has real potential due to its growing value and the support of the industry.
The value of Ripple increased at the end of 2017, from around $0.20 in October to over $2.50 at the end of the year. It often differs from some of the other large market value cryptocurrencies in that it tends to rise when they fall and vice versa.
Ripple and its transactional protocol, XRP, show great potential for those seeking to earn from their investments. Given the support of major banking organizations, Ripple maintains a unique place at the top of the myriad of existing cryptocurrencies.
Supported by banks such as Santander, American Express and other financial institutions, Ripple technology is already being exploited by some groups for international wealth transfers.
MoneyGram announced a partnership with Ripple Labs in 2018 to use XRP for some of its payment streams.
Originally called Xcoin and then Darkcoin, Dash has been around longer than most other altcoins, having been officially launched in 2014. It has quickly gained popularity for its defense of the owner’s privacy, through its PrivateSend feature which, by acting effectively as an official tumblr, further tarnishes Dash’s transactions and thus provides an additional level of anonymous privacy for owners.
Compared to Bitcoin, Dash is also much faster and cheaper when it comes to making transactions. Commissions at the time of writing are low and, thanks to its InstantSend feature, even transaction times can be virtually instantaneous.
Although it is considered an altcoin, Monero is based on a different hash algorithm than Bitcoin. This difference ultimately means that Monero has more privacy for owners as a fundamental component of its technology.
Monero achieves advanced privacy by hiding specific elements of a transaction, such as the receiving address and the amount transmitted.
This system differs from Bitcoin, which has a completely public ledger that makes tracking Bitcoin through the network quite easy, even if it takes time.
Ontology is a public multi-chain platform. Its goal is to increase the adoption of blockchain technology in the business community. Ontology allows companies to implement blockchain solutions without having any prior knowledge on the subject.
Through the multiple tools developed by Ontology, companies of all sizes can initiate trust mechanisms and adapt them to their needs.
The Ontology blockchain protocol significantly reduces the learning curve for blockchain business applications, especially when it comes to identity verification and data exchange. The network works on the ONT token, which has a maximum supply of 1 billion tokens.
Founded in October 2016, ZCash is the youngest cryptocurrency on this list, but has shown impressive growth in adoption in such a short time. Supported by ZCash Company, this gives the configuration some similarities with Ripple, but its nodes are not privately owned.
As a transactional medium, ZCash is much faster and cheaper than Bitcoin, with a blocking time equal to a quarter of that of the better-known cryptocurrency. With the default transaction fee set to 0.0001 of ZEC, negotiations cost only a fraction of a cent.
Just like Monero, ZCash is a cryptocurrency based on privacy and owner security as a fundamental principle. It allows obfuscation of transaction details such as sender, recipient and amount of money. This focus on privacy and the general growth in interest in cryptocurrency in 2017 saw ZEC rise from about $50 at the beginning of the year to nearly $900 at the end of the year.
Since then it has stood at about $55 at the moment, but some analysts predict it could rise to $135 by the end of the year.
Since Zcash uses zero knowledge evidence to validate transactions, its blockchain finds greater practical utility and adoption among small and large companies.
So, if you are looking for new investment opportunities, as you have seen, there are new alternative options to bitcoin that come to the crypto market every year and on which you can bet.
Therefore, before choosing which new currency to invest in, we recommend that you stay informed about the crypto world and regularly consult the main sources of information, first of all the coinmarketcap web and, of course, the fresh and updated news from the Bitnovo blog 😉.
The future is not written… so stay connected to see what will become of the bitcoin and its dynamic competitors.