Today, there are a lot of cryptocurrencies for every taste and budget. Coinmarketcap lists all relevant cryptocurrencies and sorts them depending on their market cap. For years, the list has of course been headed by Bitcoin, which is still by far the most popular one of all cryptocurrencies.
Bitcoin has developed into a kind of leading index for a crypto market. If its rate falls, other cryptocurrency rates usually fall with it. If, on the other hand, it rises, other prices will rise as well.
Anyone who wants to invest in cryptocurrency should become familiar with the strongest cryptocurrencies on the market before investing. What are the best cryptocurrencies in 2020? Which ones are worth investing in? Let’s try to find out!
Bitcoin is the very first and major cryptocurrency. Bitcoin’s market cap has been a little over 190 billion dollars for a long time.
Bitcoin’s impressive market capitalization promises that Bitcoin will be a relevant cryptocurrency in the future. An investment in Bitcoin is therefore relatively safe.
The Bitcoin price is considered to be highly volatile, sharp ups and downs are possible at any time and difficult to predict. Investments in Bitcoin are now possible with many well-known financial instruments.
Ethereum is the second-largest cryptocurrency on the market invented by Vitalik Buterin. Ethereum has established itself primarily as a platform on which other cryptocurrencies can be created.
So-called ERC20 tokens are the most common investment options on the market. In addition, Ethereum introduced so-called Smart Contracts. With their help, certain processes can be individually specified and carried out fully automatically. Also, investment in Ethereum cryptocurrency is considered relatively safe.
Although IOTA only ranks 27th among the world’s largest cryptocurrencies by market cap, we should mention it in our list. According to forecasts, it will soon be possible to regulate useful small devices using decentralized applications.
This already exists on a small scale. A radiator is automatically activated or switched off again, a light comes on when you enter a kitchen. All of this is controlled via smartphone or tablet.
This is where an investment in IOTA comes into play. One day, microtransactions will play a major role in IoT. Then, for example, a car automatically pays for a parking space. IOTA could be the network that supplies a technology that would be used here.
Ripple has been around since 2012. The payment network specializes in international transfers. Thanks to Ripple, they should be faster and cheaper than the usual ones. Ripple has a large number of important partnerships.
Because Ripple primarily addresses the needs of financial institutions, it’s often harshly criticized. But that is precisely what makes the coin an exciting investment.
Ripple investors have been happy about substantial profits in recent years. Ripple has a market cap of around 24 billion dollars. The crypto continues to be very popular with investors.
The ninth-largest cryptocurrency on the market is called Litecoin. Litecoin is very similar to Bitcoin. Both cryptocurrencies are based on the same code. However, Litecoin is considered to be more innovative. Here, new technologies are implemented much faster. SegWit or the Lightning Network are good examples.
Just like Bitcoin, Litecoin is primarily aimed at establishing itself as an available digital means of payment. The market capitalization of Litecoin is now around 3 billion dollars.
However, Litecoin investment can also be considered a relatively safe one thanks to its good ranking and comparatively large market cap.
What cryptocurrency are you about to invest in? Just share your plans in the comments!