Cryptocurrencies for 2020
Digital currencies are poised to have an amazing 2020 and there is no time like the present to add some crypto-based assets to your portfolio. Of course, there are tons of different digital coins and more pop up each day. Since many of these altcoins are going nowhere fast it makes it difficult to pick which ones to buy.
This list focuses on the top 10 cryptocurrencies that seem to have the best chance at astronomical growth. While all crypto relies on speculation, there are still ways to formulate an educated guess as to which ones are set to moon in 2020.
1. Bitcoin [BTC]
Surprising no one, Bitcoin is still the most surefire bet in the digital market space. 2020 marks the third ever "halving" of the currency. Halving is a process by which the number of coins mined at each reward interval is cut down by 50%. At some point this year, the amount of BTC gained every ten minutes will fall from 12.5 to 6.25. Much like the scarcity of gold, this reduction is total supply will inevitably drive up the demand. The price will surely see a massive increase as seen in both 2012 and 2016 when the first two halving instances occurred.
Unfortunately, nobody knows for sure the exact date this monumental event will take place. The conventional wisdom would be to buy as early as possible in this case. As the halving becomes more likely, people will naturally hold more BTC and the price will steadily rise before the occasion. Once the event happens, the price will grow incredibly quickly. Getting in before the hysteria kicks in is the best way to see the most return on investment.
2. Ethereum [ETH]
Ethereum is one of the most popular digital assets and for good reason. It has sparked plenty of innovation since it's launch and 2019 was quite the year for it. Decentralized Finance (Defi) was introduced and brought about tons of projects that take advantage of ETH. These assets represent $650M total and have been enjoying growth in the double digits since being unveiled.
There are also ETH2 upgrades in the works that will further strengthen the solid foundation Ethereum was founded on. Once complete, these updates will no doubt bring in even more financial institutions which will drive up the price. Right now, ETH is nowhere near Bitcoin in terms of cost but that means it is easier to stock up on and the potential returns can e that much greater.
3. Tezos [XTZ]
Tezos is a french coin that has taken the crypto world by storm. It focuses on enhanced security by allowing anyone who holds XTZ to decide on what improvements are made and in what order. This builds a sense of community among users and heightens their loyalty to the asset. The protocol uses a proof of stake system that ensures these changes only come from verified owners.
It is worth noting that the coin is a direct competitor to ETH in terms of how the network is set up. Even though it may be difficult to emerge from ETH's shadow, there is still good evidence that XTZ will eke out its own corner of the market. Many eager developers are looking to build up their own projects using newer coins that haven't already taken off the same way Ethereum and Bitcoin have.
4. MakerDAO [MKR, DAI]
MKR was built upon the Ethereum network and has proven over the last two years to be one of the most reliable stablecoins around. There is a decentralized system that awards credit in the form of DAI tokens. These are backed by the dollar and automatically distributed to holders of MKR.
In 2020, many owners of MKR are looking forward to the creation of even more tokens that are backed by other currencies. The main one on the docket is DAI-EUR that will be backed by the value of the Euro. THere is currently $320M worth of MRK in the wild and that number will surely grow in the months and years ahead.
5. Cosmos [ATOM]
Cosmos is an innovative new coin that is a potential solution to one of the most common challenges faced by crypto enthusiasts. Namely, the exchanging of different currencies that are on separate blockchains. The goal is to create a network of many blockchains and link them all together. Each individual chain is known as a zone of the larger network.
Of course, this is a very lofty ambition from a project that only just got underway. It presents an incredible series of technical hurdles to overcome. If the developers manage to pull it off, the value of the coin will no doubt skyrocket in tandem with the good news. Each coin is just a few dollars at the time of writing so it may be worth adding to a portfolio in anticipation of this project's success.
6. Polkadot [DOT]
Polkadot is another coin that hopes to improve stability among different networks and solve the issues with current exchanging methods. They market themselves as complementary to the big boys like BTC and ETH instead of trying to compete with them. This is a smart move and there is a great chance they can position their coin to be an essential part of anyone's crypto portfolio that is already heavily invested into those juggernauts.
One key component to consider os that the actual coins are currently not for sale. Exchanges are currently offering promises of future tokens once released. This means that the current valuation is extremely low. While it is a bit of a gamble purchasing futures of DOT, it's one that has a solid chance of paying off handsomely once the official launch occurs.
7. Synthetix Exchange [SNX]
SNX has a unique digital asset generation system in place. It uses what they call the Oracle to give valuation to digital assets like gold, Euro, Dollar, and Tesla. These synthetic versions of each asset will then be generated natively on the platform. It's a bold plan and one that will require flawless security. If this Oracle were to be attacked by outside sources, the whole project could come crashing down.
This may seem too risky to some investors ut Synthetix has come up with a pretty good solution thus far. In order to generate synthetic tokens, the Oracle must put up 750% of the total value as collateral. This has proved a solid defense so far and SNX has enjoyed a steady growth of 2400% since its inception.
8. Aave [LEND]
ETHLend has been around the block for some time. It has a unique peer to peer lending system that allows users to securely trade their coins. However, it failed to gain much traction from the crypto world at large. That was until Defi rose to prominence in 2018. This led to a resurgence of LEND in 2019 as the infrastructure was now in place to offer a much greater lending platform.
A good amount of the revenue generated by this project goes back to the holders of LEND tokens and thus the value nearly doubled last year. As Defi continues to grow, it makes logical sense that LEND will continue to bloom as well.
9. Kleros [PNK]
This incredibly unique project sees token holders become jurors in legal disputes. The decentralized platform rewards each juror for their input with legal fees collected from the disputing parties. In 2019 alone more than 140 disputes have been settled. The total value of these cases neared half a million bucks. In 2020, the project hopes to bring even more initiatives to further push PNK into the mainstream.
Plans for social media integrations and freelancing platforms have already started to take shape. This will provide deeper content moderation and raise the current valuation of $16M if all goes well. This is one to watch as it provides a service that no other digital coin is currently offering. The first project in a new space is usually the one that makes the most profit even when competitors start to pop up.
10. Stake Capital DAO [SCT]
SCT is taking the staking world by storm by offering a way for investors to place their money into a handful of staking tokens all at once. 2020 marks the launch of the Decentralized Autonomous Organization that will redistribute all staking profits as SCT tokens to raise additional revenue.
Although it is not currently possible to invest in the token, it is one that has great potential once launched. Anyone who wants to dabble in a variety of staking platforms at once will enjoy the automated process by which SCT hopes to achieve. Stakeable coins are on the rise so there is a bright future ahead for Stake Capital if enough people kickstart their project off the ground.