Even those who know nothing about blockchain technology have most certainly heard a thing or two about cryptocurrencies. Virtual money sparked major interest when the price of bitcoin, the most well-known cryptocurrency to date, unexpectedly increased twentyfold.
In 2020, the most conservative traders, and even regular people are thinking about buying digital assets to not let lucrative opportunities slip through their fingers.
If you have decided to purchase virtual tokens, make sure to pick the most promising cryptocurrencies.
The content of the article:
1. Key Criteria for Choosing Cryptocurrency
Key Criteria for Choosing Cryptocurrency
Before we get to the list of promising cryptocurrencies, let’s first do a brief run-through of the criteria which are going to help determine the reliability and economic feasibility of a digital token.
First of all, it is the high liquidity. The traders and those who wish to get their hands on cryptocurrency need to know that the acquired digital assets can be sold at any time you want.
Second of all, the exchange rate of digital tokens should be relatively stable. Volatility in the cryptocurrency market has significantly decreased over the past 2.5-3 years, and the exchange rate dynamics can already be predicted with the help of technical analysis and through other methods.
Third of all, developers of digital coins should have a proven track record.
Fourth of all, you need to make sure that the cryptocurrency you are thinking of buying has good development prospects.
Cryptocurrency analysts have different opinions on the first five promising cryptocurrencies. Some place Gram token issued by Telegram Open Network, Facebook’s Libra and the like first. That being said, these digital currencies are only underway, and the companies engaged in their development are tackling a lot of regulatory matters. This is why our TOP 5 includes the tokens that are already known and used. Using the trading platform offered by the broker, you can make money off of them today.
Look cryptocurrency trading terms and conditions
Bitcoin is often referred to as the first or key cryptocurrency which started the era of digital currencies. According to analysts, its growth prospects are explained by the fact that the cryptocurrency market dominance index will reach 70% in the days to come. Essentially, this means that bitcoin will remain the first, main, and most popular cryptocurrency with the highest market capitalization.
Fundamental factors are another reason mentioned by the experts. Last year, it was said that investors chose bitcoin as a safe asset, like gold or yen. During crisis and market uncertainty, traders opt for so-called safe-haven assets, thereby stimulating their growth. There are indeed plenty of uncertainty factors in the market at the moment. The trade war between the United States and China, the coronavirus outbreak and the slowdown in the global economy are being the major ones.
Ethereum is one of the most popular altcoins i.e. alternative cryptocurrencies to bitcoin. Its growth is evidenced by market expectations which, as we know, drive the market. Traders have high hopes for Ethereum and expect its value to reach up to $1,000 per token. Now the cryptocurrency exchange rate is below $300.
Ethereum’s blockchain technology is slightly different from that of bitcoin. Experts note that the demand for services that lie at the heart of Ethereum will contribute to the growth of this cryptocurrency.
Ethereum is also at the brink of the series of new updates and the introduction of a brand-new algorithm. The price prospects of this altcoin will depend on how successful the above-mentioned updates will be. Financial regulators are still not sure how to classify it. If it is recognized by regulators and loses its altcoin status, this will once again encourage the growth of Ethereum.
A lot of analysts have included this cryptocurrency in their ratings of the most promising token. It is based on open-source code, which makes NEO so appealing in terms of its practical applicability.
The purpose of NEO is to change the traditional financial system by bringing together real assets and cryptocurrency. There is already a mechanism called Superconduct designed for exchanging money.
NEO price is currently around $10 per coin. However, if its creators launch an ICO, the quotes will go up.
This is another Asian cryptocurrency like NEO that has the prospects of practical application. Its current value is about $4. However, analysts claim that it holds a lot of promise. This is due to the fact that EOS can become the cryptocurrency that big companies will accept as the means of payment.
It was rumored that giants like UBER and Amazon may introduce blockchain technologies, accepting EOS payments, in which case its price would skyrocket up to $100 per token.
Ripple cryptocurrency owes its success to the fact that it is being used in the banking system infrastructure. Major players in the banking and financial sectors have already signed contracts to use the algorithm lying at the heart of Ripple. Integration with Western Union was also implemented which opened a new conversation about replacement of the SWIFT payments with Ripple.
Today, this token is believed to be pretty reliable. However, considerable growth is not expected. The cryptocurrency exchange rate has been in the range of $0.2–0.3 for quite some time now, while a twofold increase - up to about $0.7 - is still possible.
That said, despite the low price, XRP/USD quotes are traded quite nicely, which makes Ripple a handy instrument for speculative trading.
What to know:
Do you wish to sell or buy digital tokens profitably?
Read, how to trade cryptocurrency profitably!