Top 5 cryptocurrency of 2020 – Potentially Profitable Cryptocurrencies in 2020
2020 is the year of the corona virus, with almost all financial markets jumping in all directions. More and more people are looking for alternatives to their savings accounts and are quickly turning to stocks, cryptocurrency or index funds. In this article, we will tell which cryptocurrency we think will perform well in 2020 and why. We will show this in a top 5.
Note: this is our opinion and certainly not financial advice. Always do good research when investing in crypto and never invest more than you can afford.
Bitcoin is the largest and oldest cryptocurrency in the world. Virtually the entire market follows the Bitcoin’s price. If the price goes down, the altcoins often follow as well. Hundreds of miners are daily mining new Bitcoin and hundreds of transactions are processed every day. Bitcoin is always a base currency on exchanges and will remain so for the time being. Crypto cannot do without Bitcoin at the moment and is therefore ranked number 1 in our top 5 of 2020.
When people think of crypto, they often think of Bitcoin. So, it is a popular coin with a high demand. So, chances are that a lot of crypto investors have some Bitcoin in their portfolio, and certainly the bigger investors.
You pay a hefty price for an entire Bitcoin, but you can also buy part of a Bitcoin. This allows you to invest as little as 1 euro in Bitcoin.
Ethereum became especially popular in 2017 when the ETH price rose from $10 to almost $900. Especially for the early investors this was a nice return of investment. Nowadays the Ether price fluctuates around $200 and is at position 2 based on market capitalization.
Ethereum is a second-generation currency which introduced special new features. The introduction of the platform allowed people to create ERC-20 tokens on the platform and execute smart contracts. Especially when ICO’s were very popular, this was widely used.
2020 was going to be the year of Ethereum 2.0, but the project is delayed and postponed until 2021. Ethereum 2.0 ensures that the network can handle more transactions and that you no longer have to mine new coins, but you can stake them. Besides this, more technical solutions are being implemented. This will be rolled out in phases and can take up to 2022. One certain thing is that the team behind the coin is developing a lot. This is a good sign for a project.
Chainlink is another project that is doing great. Not only did Chainlink achieve new all-time-high several times in 2020, but Chainlink’s solutions are also being implemented by other blockchains. For example, they are working on so-called Oracles that make it possible to integrate external data into blockchains. As a result, they collaborate with many other projects such as ICON and Ontology.
In addition, the technology is also used for DeFi platforms and they are entering the Pharmaceutical sector. The sharp price increases in 2020, the new Oracle technique and many collaborations make this a very interesting project.
VeChain has been a household name in the crypto world for quite some time and has a large community behind it. After the rebrand in 2018, the VeChain price went down considerably. Nevertheless, the team is still working hard on the project and have many practical examples for their solutions.
What they mainly do is make the entire process of products or services transparent on the blockchain. For example, you can check if your Nike’s are real by using their solutions. The solutions are so good that they work together with several large companies, including H&M, Mastercard and AliPay.
The project is also highly appreciated by Deloitte and was the crypto of the week on The Street.
The last currency in our top 5 is the Binance Coin, this is the native currency of the crypto exchange Binance. This platform is developing new features so fast that holders of Binance Coin can benefit greatly from them. Binance is the market leader in the field of crypto exchanges and offers many other services.
In addition to normal trading, you can also trade in futures. You can stake, lend, save and much more. The CEO of Binance Changpeng Zhao communicates a lot with the community. This gives investors a good feeling and it is partly thanks to this that Binance owes its success.
By having Binance Coin you can grow along with the exchange. Binance was the first to release a native currency after that many other exchanges followed. No other token is as popular as Binance Coin.
Don’t have an account at Binance yet? We share 20% commission with our readers for life, that’s the maximum.