update 18 August 2021

Top 5 Promising Cryptocurrencies to Invest in 2020

Cryptocurrency has grown from a few million market capitalization in 2013 to almost $830 billion in 2017, becoming one of the most promising investments to make in today’s economy. With over 2 000 crypto coins available in the market today, choosing an ideal coin to invest in can be quite daunting, especially for beginners with no background in crypto trading.

Bitcoin is still the leading crypto to invest in 2020. Still, bitcoin trading’s intense volatility means that traders should look at innovative ways of spreading risks by balancing their digital asset portfolios according to the prevailing market conditions.

Several tools assist crypto traders in trading cryptos, such as trading bots and data analytics. Crypto-trading bots, most notably Shrimpy, help traders automatically balance their portfolios by buying low and selling high to earn a substantial profit.

Top 5 Best Crypto Coin to Invest

1. Bitcoin (BTC)

Bitcoin still commands a higher market value, making it lucrative to invest in this year. Following a bearish run in the better parts of 2017 and some parts of 2018, Bitcoin’s price finally stabilized in 2019 and currently accounts for more than 60% of the global crypto market share.

Most analysts still believe investing in Bitcoin is a good idea attributed to a significant decrease in its volatility. Investing in the currency is also perfect for traders that are looking for small, long-term returns. Bitcoin is also predicted to undergo several dips this year, making it an ideal investment for traders looking to sell the cryptocurrency shortly.

There are numerous reasons to buy Bitcoin and HODL this year. One major event set to happen this year that will significantly affect Bitcoin’s price is the Bitcoin halving that will take place in May 2020. The event will see Bitcoin mining reward reduce by 50%-from 12.5 BTC to 6.25 BTC for each verified block.

Also, Bitcoin is likely to increase the dominance index capitalization from 65% to 70%-an event that will make it attain the most significant market cryptocurrency capitalization share and consequently have a ripple effect on other altcoins. These two events are likely to influence bitcoin’s price action providing investors an opportunity to make substantial profits. Buying Bitcoin in 2020 should be an ideal long-term investment choice.

2. Ethereum (ETH)

In every aspect of the crypto world, Ethereum seems to come second to Bitcoin. Ethereum is built on practical smart contracts and provides a platform for distributed apps (Dapps). Despite losing a significant market share to its competitors EOS and NEO, Ethereum is still a favorite among many developers leveraging smart contracts. Additionally, market sentiments still favor Ethereum, thus making it a worthwhile investment in 2020.

Investors should note that the increasing demand for Ethereum’s smart contract platforms and functions may increase the coin’s price in 2020. Ethereum’s price could also be influenced by the pending fork updates and implementing the Proof-of-Stake (PoS) algorithm. Moreover, ETH’s price may substantially grow if the regulatory organizations and the community decide to de-list ETH from the list of altcoins. 2020 seems a good year for Ethereum, thus warrants investments, especially for long-term investors.

3. VeChain (VET)

VeChain is another coin that promises enormous returns this year thanks to increasing partnerships. VeChain leverages blockchain technology to offer a trust-free, highly scalable, and distributed business ecosystem ideal for the supply chain industry. It provides businesses with supply chain management blockchain harnessing IoT based technology areas of inventory tracking and quality control. VeChain supply chain solution based on blockchain technology has played an instrumental role in the increased adoption of blockchain technology in various industries.

VeChain has made a ground-breaking partnership with various companies across various industries, including liquor, agriculture, and luxury goods, making it a great purpose in the world economy. With an increase in its use cases signaled by increasing partnerships, VeChain’s integral token VET would likely increase in value this year, making it perfect for investment. Additionally, the company recently rebranded to VeChain Thor, and it’s set to expand its outreach with its own blockchain currently under development.

4. Ripple (XRP)

Ripple (XRP) has grown exponentially since its launch in 2012 to become among the top cryptos, promising lucrative returns on investment. Ripple offers its users three main products: RippleNET, XRapid, and xCurrent. These three make it a comprehensive private financial service platform that enables banks and other financial institutions to settle cross-border payments in real-time with end-to-end transparency and lower costs.

Ripple’s platforms have been used by hundreds of banks and other institutions globally with the possibility of an increase in XRP’s value in 2020 as Ripple continues to expand its banking services to institutions worldwide. XRP is currently ranked as the world’s third-largest cryptocurrency market cap; thus, it is still profitable to invest in 2020.

5. Binance Coin (BNB)

BNB is owned by Binance exchange and appears to be the most successful crypto exchange coin in the world today. BNB launched in August 2017 to facilitate trading transaction fee waivers for Binance exchange users. The token quickly picked up and reached its peak after the 2017 bull market. BNB flourished in 2019 despite the bearish trends of 2019. The coin is expected to increase in value as the Binance exchange is set to continue doing well in the coming days. Additionally, BNB is set to find new use cases with Binance looking to launch its own Binance Chain and Binance DEX.

BNB will continue commanding a high value since users use 20% of the profits every quarter to buy back BNB coins and destroy them to create digital scarcity to reward BNB crypto holders. BNB will gain more utility, and liquidity will result in a surge in price in 2020 and beyond makes BNB a lucrative investment this year.

How Shrimpy Can Help in Crypto Trading

As earlier mentioned, Shrimpy comes in handy to assist traders in crypto trading. Essentially, Shrimpy is a crypto trading bot that combines portfolio automation and management under a single platform. Shrimpy works by determining your set allocations and automatically rebalances your digital asset portfolio periodically based on your own crypto trading strategy.

Through Shrimpy, users can configure their own cryptocurrency portfolio by selecting their preferred coins and selecting their allocations, which are then rebalanced automatically. Shrimpy simplifies crypto trading, making it possible for new crypto traders to manage their portfolio with ease. It’s a must-have crypto trading tool for any avid crypto trader looking to make significant money moves in crypto trading.

Bottom Line

While almost all crypto coins promise enormous profits, it’s crucial to trade currencies that are well-positioned to increase value in the future. Trading cryptocurrencies comes with high risk; therefore, you should exercise caution when choosing your preferred coins to invest in. Tools, such as Shrimpy, will enable you to spread the risk and automatically rebalance your portfolio based on the prevailing market condition. In the long run, you will be able to accrue substantial profits both from your short-term and long-term crypto investment.

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Featured image courtesy of Shutterstock.

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