People are always attracted to a good investment opportunity especially if it is a win-win situation for all parties. The digital currency, also known as the cryptocurrency, has become extremely famous these past years. Many have invested in it and have become profitable beyond imagination. However, many are still weighing their options. Many people invest in stock exchange or equity. But let me tell you! Investing in digital currencies is just as same as investing in equity or stock. In fact, it is even more profitable. So, if you are thinking about investing in digital currencies, visit www.soup.io to get all the information you need.
You would be amazed at the number of digital currencies available in the market. You might be wondering; which currency is the best to invest in 2020? Well, worry, not! We have got it covered for you. Here are the seven best digital currencies of 2020 that will be worth your every penny!
1. Bitcoin (BTC)
Even if you have no knowledge about digital currency whatsoever, you would have heard the term “bitcoin.” It is probably the most popular cryptocurrency of all and undoubtedly is the more widely used. That’s why it is also called the “king of cryptocurrencies.”
If you are wondering why the hype? Let me tell you that if you are a first-time investor, you should invest in BTC with your eyes closed. Why? Because it has the highest liquidity among all digital currencies. And because it is widely used worldwide, there will always be someone willing to buy it from you. Simply put, you’ve got nothing to lose with Bitcoin!
2. Ethereum (ETH)
If you are not investing in BTC, you should invest in ETH. Both these digital currencies go side by side. Where BTC ranks number 1 in terms of liquidity, ETH isn’t far behind. Therefore, you will always find someone interested in buying ETH from you.
But that is not all. ETH was the first digital currency to announce smart contracts system. These smart contracts allow the developers to launch decentralized mobile and desktop applications on the blockchain technology. Thanks to the smart contract applications, you can now perform peer-to-peer transactions in a decentralized and highly secure manner.
3. Litecoin (LTC)
Launched way back in 2011, Litecoin is among the first alternatives of bitcoin. Using block technology, LTC works at the same principles as BTC, but the only thing that sets them apart is that BTC is more resource-intensive than LTC. In other words, you can maintain an LTC network relatively easily and cheaply.
Another reason you should think about investing in LTC in 2020 is the fact that it has lower risks because of high liquidity and market capitalization. Now that sounds like a window of opportunity for new investors.
4. Ripple (XRP)
Where most people use the cryptocurrencies as mentioned above, Ripple is a bit different. Having a high market capitalization, this digital currency is widely used by financial institutions and banks to make cross-border payments as well. Thus, Ripple is a source for large financial institutions and banks to easily make quick payments, and that’s why more institutions are turning towards it. In addition, Ripple has also launched several products under its umbrella-like xRapid, xCurrent, and RippleNET that serve to search and connect with different service providers and customers.
NEO is a China-based cryptocurrency that is very similar to Ethereum. It also works on smart contract principles. However, some minor differences distinguish NEO from Ethereum. For one, the technology behind this cryptocurrency is a bit sophisticated. NEO is open-source and is managed by a group of investors, NEO users, and developers.
Furthermore, the smart contract system supports multiple languages and allows users to manage their assets efficiently and ease in a decentralized environment.
Another highlight of NEO is that instead of distributing assets, the platform distributes token to verify assets’ ownership. Thus, NEO is a more straightforward way of transferring shares, assets, and equity.
EOS is the next step and has already got popularity and users from all over the world. The reason for its sudden preference is the fact that it addresses the few shortcomings of Bitcoin and Ethereum. For one, it offers a faster network as compares to both BTC and ETH.
Secondly, it has also overcome a major barrier of ETH, i.e., the obligation to know about coding in Solidity for the application’s development. Moreover, EOS is also getting famous for providing services like account management and database creation to developers. It also features a centralized system was 21 gatekeepers approve of the transactions, therefore eliminating the need to pay fees for using the network. All these points ensure that the ball is going to be in EOS’s court for the year 2020.
NEM is not just a cryptocurrency, but it has a lot more to it than any other digital currency out there. It offers the fastest transaction as compared to any other cryptocurrency i.e., within six seconds for transaction appearance and 20 seconds for confirmation. It is not just a cryptocurrency, but it is also a platform where you can build applications. Apart from making its place in the world of digital currencies, its team is also planning to work on new areas like game data, loans, smart contracts, royalties, and records ownership.
A word of Caution
Digital currencies provide an amazing opportunity for new investors, and the year 2020 seems to be a good year. However, it would be best if you keep in mind that every investment has some risk factors involved. Therefore, no matter which digital currency seems to be popular or trending, always take some time to do your research before investing.