As a cryptocurrency investor marching into 2020 it is important to know which crypto assets can be considered safe investments and which are best avoided. While there is no one cryptocurrency that can guarantee you exceptional profits for this year, there is quite a few that can offer promising returns for the newcomer. So, whether you are a novice crypto investor or an experienced one, you can hope to receive good returns when you invest in these three crypto coins:
- Bitcoin (BTC): The Bitcoin has always been the go-to-investment for most investors, whether new or old. It was the first cryptocurrency to be introduced by Satoshi Nakamoto in 2008 and has continued to hold its sway over the crypto world. There may be speculations about the true identity of the Bitcoin but this crypto asset has been most important as far as liquidity is concerned. It has a market cap of more than $100 million and accounts for almost 60% of the total valuation of the crypto market. Crypto investors are not likely to face much trouble trading Bitcoins because there is always a seller and buyer available. Another factor working in its favor is that although prices of the Bitcoin may be volatile, the BTC has remained relatively stable over the years, with minor hiccups. Since it is primarily stable, it would need a huge amount of money for the prices to get manipulated. Bitcoin can be earned through trading using automated trading bots like bitcoin revolution which saves the manual efforts or mining. In mining, specialized computers solve complex cryptographic problems to earn rewards in the form of new Bitcoins. Mining rewards get halved every 4 years; and this ensures that inflation comes down. Bitcoin has a finite supply and beyond 21 million BTC, there can be no more. So, with mining levels becoming more and more difficult, demands will go up and, with it, the prices of Bitcoin will also escalate.
- Ethereum: Ethereum has been a close second to the Bitcoin over the years. The Ethereum is popular for having launched “Smart Contracts”; developers can build dApps or decentralized apps on the blockchain. The Ethereum blockchain is home to many tokens and it had started the ICO or initial coin offering process. Buterin was Ethereum founder and a young crypto expert. He co-founded the ConsenSys together with Joseph Lubin and started dApps development. Ethereum is one of the leading crypto assets as far as market cap goes, right after the BTC. Buying and selling Ether is easy and most large crypto exchanges support Ethereum trading. Prices are also relatively less volatile thanks to the community support and team experts. So, Ethereum is likely to remain stable over the next few years.
- Litecoin: Litecoin is considered to be Bitcoin’s sibling and one of its first alternatives. Litecoin is unarguably one of the safest crypto assets that you can invest in 2020. Litecoin had originated using Bitcoin’s source code and emerged as a Bitcoin fork. But, it guarantees better processing speeds, lesser transaction times, and therefore best-suited for retail payment purposes. Litecoin also strives to become a decentralized peer-to-peer payment system. Charlie Lee created the Litecoin and his brother Bobby Lee introduced the BTC China that has grown into one of the leading crypto exchanges today. Litecoin is the sixth-largest crypto asset in terms of market capitalization and this makes it highly liquid. Besides, it is comparatively less volatile than the others. It also makes use of the Proof of Work algorithm that was popularized by the Bitcoin. Miners could get 50 LTC rewards initially, and this became halved at regular intervals. Litecoin has a total supply of 84 million compared to Bitcoin’s 21 million.