Which cryptocurrency is better to invest in? How to invest money in cryptocurrency and what projects are interesting for investing? Problems with Ripple
The analytical service Coinmarketcap is extremely popular among crypto enthusiasts around the world. This is evidenced by the dynamics of growth in traffic to this resource, growing from month to month.
The Coinmarketcap service collects all cryptocurrencies that are listed on at least one exchange and that have a blockchain and open source code.
At the time of writing this review, the service offers over 800 digital assets, sorted by capitalization. The latter is the product of the current price of a cryptocurrency and the volume of its supply on the market.
The most trusted digital currencies among traders and crypto investors are those represented in the top ten of the Coinmarketcap rating. This is due to various factors, the most important among them:
- high liquidity,
- stable rate growth,
- prospects for further development of the ecosystem,
- developer reputation.
It is also worth noting that in the world of cryptocurrencies everything is changing very rapidly. However, at the time of writing this review, the total capitalization of the first ten cryptocurrencies in the Coinmarketcap rating is $122.4 billion. If this number is compared with the total value of all cryptocurrencies ($138.8 billion) presented on this service, it turns out that the market share of the ten most popular digital currencies will account for 88%.
List of cryptocurrencies worth investing in in 2017
We will look at the most reliable and promising cryptocurrencies today.
Bitcoin (stock ticker - BTC)
Bitcoin is the first ever and most popular cryptocurrency in the world. Created at the turn of 2008-2009. Despite such a “venerable age”, the cryptocurrency is actively developing; developments are being carried out on the basis of the Bitcoin blockchain and various solutions are being implemented to improve it. It was the emergence of Bitcoin that was the reason for such a rapid development of the cryptocurrency market and the regular appearance of a variety of digital assets. Bitcoin is based on the revolutionary blockchain technology, which has been actively researched and developed by the world’s largest companies for several years now, and is also used in many industries.
The current capitalization of Bitcoin is $71 billion, which exceeds the value of many large world-famous companies. The supply of the first digital currency is strictly limited to 21 million BTC. On the Coinmarketcap website you can see the current volume of Bitcoin supply on the market - 16,506,412 BTC, the daily exchange trading volume, as well as various useful links to official sources of information, social media, block explorers, exchanges where this cryptocurrency is presented, etc.
Ethereum (ETH)
It is a digital currency platform for creating decentralized blockchain-based online services (Dapps) powered by smart contracts. If Bitcoin is often called “digital gold” (due to the complexity of its production, limited supply and excellent investment qualities), then Ethereum is sometimes called the “digital analogue of oil”. This is because the ETH cryptocurrency is a kind of “fuel” for smart contracts and Dapps created on their basis.
There is ongoing debate in the crypto community about which investment object is more attractive - Bitcoin or Ethereum. Despite the relatively young age of the latter (the Ethereum network was launched on July 30, 2015), “ether” is preferred by fairly well-known personalities in the world of cryptocurrencies. They are convinced that the popularity of Ethereum will soon eclipse Bitcoin.
The rapid growth in popularity of Ethereum is evidenced by the following graph, which reflects the share of the most popular cryptocurrencies on the market:
So far, the market capitalization of “digital oil” ($28 billion) is approximately two and a half times less than the corresponding figure for Bitcoin.
At the same time, Ethereum's potential is high and attracts the attention of major software developers such as Microsoft and IBM. There are many ICOs (Initial Coin Offerings) conducted on the Ethereum platform, and many crypto tokens are created based on the underlying ERC-20 standard.
Ripple (XRP)
This cryptocurrency is used in the real-time gross settlement system, as well as for currency exchange and money transfers. The Ripple protocol launched in 2012. Its goal is to provide "secure, instant and nearly free global financial transactions of any size with no chargebacks." According to some crypto enthusiasts, the Ripple payment system may in the future become an “alternative to SWIFT”.
The largest companies and banks in the world cooperate with Ripple, including BBVA, Mizuho, Mitsubishi UFJ, UniCredit, UBS and Santander. Ripple investors include names such as Accenture, Andreessen Horowitz, Google Ventures and Seagate.
The rapid rise in the price of Ripple (XRP) occurred in the first half of this year and allowed the cryptocurrency to confidently gain a foothold in the top three of the Coinmarketcap rating. Currently, the capitalization of the XRP cryptocurrency is approaching 7 billion. There have been times when the capitalization of Ripple exceeded the total market value of the digital currency Ethereum.
Bitcoin Cash (BCH)
This is an “alternative to Bitcoin” that emerged as a result of a hard fork. So, on August 1, the Bitcoin blockchain split into two chains and a new digital asset appeared - Bitcoin Cash (sometimes - Bcash), which has a common history with Bitcoin, but is traded under a different ticker - BCC (less often - BCH).
After the hard fork, many exchanges and wallets gave holders of “digital gold” an excellent opportunity - to receive a certain amount of Bitcoin Cash tokens, which should correspond to the Bitcoin balance in a 1:1 ratio. For example, if a user has 1 BTC in his wallet, then he receives 1 BCC after the hard fork.
Immediately after its appearance on the exchanges, the new cryptocurrency found itself in third place in terms of capitalization, leaving behind such market “veterans” as Litecoin and Ripple. However, shortly after exchanges made Bitcoin Cash deposits and withdrawals available, the “alternative to Bitcoin” began to plummet in price. So, if on August 2 the BCC price reached 0.485 BTC (approximately $1300) on the Bittrex exchange, then two days later its weighted average price slightly exceeded $250.
Not everything is going well with the new cryptocurrency. Bitcoin Cash is not as attractive for mining as “regular” Bitcoin, and its network experiences various problems every now and then. Apparently, the new cryptocurrency so far owes its capitalization of $4.8 billion only to the popularity of Bitcoin, nothing more.
IOTA
Cryptocurrency exchange network project for the Internet of Things. It is based on the unique Tangle consensus method. The main feature of the latter is the absence of miners. In addition, there are no transaction fees on the network - the latter are mutually confirmed by network nodes.
IOTA is also unique in that network participants are not divided into users and transaction validators. Each node both sends and confirms transactions that are not packaged into blocks (which distinguishes IOTA tokens from the vast majority of other digital currencies). The throughput of the IOTA network is proportional to the number of nodes and their activity.
IOTA tokens are traded primarily on the popular Hong Kong exchange Bitfinex. It is noteworthy that other trading platforms are not yet in a hurry to list this innovative cryptocurrency. On the other hand, IOTA is gradually gaining universal recognition. Thus, last month, the SatoshiPay service specializing in micropayments announced its intention to abandon the use of Bitcoin in favor of the IOTA cryptocurrency.
If we consider the global prospects of the new cryptocurrency, they seem quite interesting. Thus, according to research by TechNavio, from 2017 to 2021. the cumulative average annual growth rate of the global Internet of Things (IoT) market will be 4%. This means that the global IoT market will reach $1.37 billion by 2021, with 81% of the market growth coming from a variety of electronic gadgets.
Recently, the IOTA cryptocurrency has been showing strong growth and the price of one token has reached $0.88. IOTA market capitalization has crossed the $2 billion mark.
Litecoin (LTC)
A popular fork of Bitcoin, often referred to as “digital silver.” Litecoin was one of the first to activate support for the SegWit protocol. However, even before the activation of Segregated Witness, Litecoin had a significantly faster transaction confirmation time than the same Bitcoin. Currently, the project continues to actively develop under the leadership of its famous creator Charlie Lee.
For several years, Litecoin was “in the shadow” of Bitcoin and other cryptocurrencies, trading around $3-4 per coin. In March of this year, on the eve of the implementation of SegWit, the price of “digital gold” began to rise rapidly. Now the price of Litecoin is approaching $50 per coin and, according to many analysts, this is far from the limit. Cryptocurrency is available on most exchanges and exchange platforms, and is also accepted by many companies as a means of payment.
The maximum supply of Litecoin is limited to 84 million tokens and there are currently 52.4 million LTC in circulation on the market.
NEO
The NEO digital asset platform (formerly known as Antshares) is often referred to as the “Chinese Ethereum.” Recently, project representatives completed the complete rebranding. In particular, the Chinese startup announced an upgrade of blockchain nodes, an update of technical documentation, social media, the official website, a change in the stock ticker, as well as a successful transition to the NEO 2.0 smart contract system.
The NEO coin has been demonstrating impressive growth for a long time, which allowed the cryptocurrency to take 7th place in the Coinmarketcap rating in a short period of time. In just the last three months, the price of the cryptocurrency has increased approximately 20 times and NEO is now trading around $45. The supply volume of NEO is fixed and limited to one hundred million tokens, of which 50 million coins are in circulation on the market. The market capitalization of “Chinese Ethereum” exceeds $2 billion.
It is also worth noting that the project is developing very actively and has already established cooperation with well-known blockchain startups, including Bancor, Coindash and Agrello. Chinese blockchain startup Red Pulse announced the creation of a platform for financial research, which will be built on the NEO 2.0 smart contract system. Also, in collaboration with the NEO project, a blockchain operating system called Elastos is being developed. According to the developers, it is intended to “explore the technological value of using blockchain applications in new Internet operating systems and further develop Smart Economy.”
NEM (XEM)
This digital currency gained popularity in early 2015. It is distinguished from many other digital currencies by its original open source code and a number of interesting innovations. For example, the XEM cryptocurrency is based on the POI (Proof Of Importance) algorithm, a “proof-of-stake” modification. However, unlike PoS, in POI, in addition to proof of storage of a certain amount of funds, the user’s activity is also taken into account - the number of transactions he has made. Receiving a block reward on the NEM network is called “harvesting”.
A major update called Catapult is expected this year, during which NEM will switch from Java to C++. The new version of the private network has been tested for stable operation at speeds of up to 3000 transactions per second. The update will take place first on the private Mijin blockchain and then on the public NEM chain.
Also based on NEM, a new platform, COMSA, is being developed, which is designed to support projects in conducting transparent and orderly ICOs. According to project representatives, the new solution will significantly optimize the process of attracting investments in digital currency.
XEM's capitalization exceeds $2 billion. The coin is popular not only in its native Japan, but is also actively traded on a number of major exchanges, including Poloniex and Bittrex.
Dash
- transactions anonymized thanks to the Darksend mechanism;
- a combination of several cryptographic algorithms is used;
- Mining Dash requires less energy than Bitcoin;
- decisions on the development of the system are made not by individual programmers, but by all members of the Dash network through a decentralized control mechanism.
The DASH network operates so-called masternodes - special nodes that ensure the operation of the PrivateSend transaction mixing mechanism. To stimulate the work of masternodes, a reward is provided, which is 50% of the miner’s reward for the found block. The DASH system also implements the InstantSend instant transaction service. Another feature of the DASH cryptocurrency is the use of the X11 hashing algorithm.
The DASH cryptocurrency has many supporters. Since its inception, the price of the cryptocurrency has increased several hundred times and Digital Cash is currently trading around $200.
Ethereum Classic (ETC)
Appeared in 2016 as a result of the “twin brother” hard fork of Ethereum (ETH). In other words, this cryptocurrency is the same Ethereum before the hard fork. The goal of the project is to keep the original Ethereum decentralized, immutable, and uncensorable.
A year ago, many considered Ethereum Classic to be “stillborn,” but this turned out to be far from the case. ETC is still in the list of top 10 cryptocurrencies by market capitalization. An ardent supporter of Ethereum Classic is world-famous crypto enthusiast and head of the Digital Currency Group, Barry Silbert. Largely thanks to his efforts, the ETC cryptocurrency appeared in the professional computer system Bloomberg Terminal.
In general, the growth of Ethereum Classic greatly intensified in the spring of 2017, after the launch of the Ethereum Classic Investment Trust. The further growth of Ethereum Classic expects to be stable, at least thanks to the project’s balanced monetary policy, which provides for limiting emissions and reducing the block reward. In particular, the total number of coins will be approximately 210 million, but not more than 230 million; As for the reward for the mined block, it will be reduced by 20% after block number 5,000,000 and will be reduced by 20% in the future after each subsequent 5 million blocks.
Monero (XMR)
Monero is an anonymous Bitcoin. “Isn’t Bitcoin anonymous?” - you ask; and the answer will be - “Unfortunately, not at all.” Highlighting the wallet address in BTC will allow anyone to see all incoming and outgoing transactions for the entire period.
First, services appeared in Bitcoin that mixed black and white cash together (mixers), thanks to which the money that came from “it is unclear where” fell into the wallet. Simply put, you sent Bitcoin to the site, it mixed it with other Bitcoins and sent one of the other people’s Bitcoins to the final address.
This site has become popular among the black market: drug and weapons sellers. However, the Bitcoin-based implementation relies on the fact that you trust the owner of the mixing service - and that he will not turn you in to the police.
Which is unacceptable when life and freedom are in the balance. This mixing is built into Monero - transactions are usually mixed with each other, and in many cases it is not possible to track them. This increases the potential of the currency for the black market - which is why it received its first growth.
It also seems to me that the anonymity of transactions, also known as bank secrecy, is a necessity for the acceptance of any cryptocurrency as a popular means of payment. Monero market capitalization is now 1/100 of Bitcoin, that is, the growth potential is great. Monero is the project where I invested the most money.
How and where to invest in cryptocurrencies?
Easy way- buy Bitcoin for real money on a cryptocurrency exchange, and then buy one of the selected coins for it. Or through an exchanger, but there the commission is usually a little higher, but in this case you can receive coins directly to a cold wallet (it is more reliable), without additional transfers.
Second way- extract cryptocurrency by mining on your own equipment, and after transferring it to the exchange, you can exchange it for any other. You can assemble a “farm” for mining at home. The minimum amount required to purchase equipment is several thousand dollars.
Third way- cloud mining. There are quite a large number of services that are ready to provide computing power for rent. They can be used to mine cryptocurrency. Investment will require a smaller amount of funds, but experts, in turn, warn that against the backdrop of the growing popularity of digital currency and mining, a large number of scammers have appeared. If you are going to do cloud mining, we recommend this service:
After investing any significant amount, it is better to transfer everything to a separate wallet - otherwise you risk losing your savings if the exchange is hacked. Make sure that your storage does not have access to the Internet - it is safer this way.
Be prepared not to dump your investments during the next market panic. The biggest jackpots are those who are prepared for prolonged discomfort due to negative exchange rate fluctuations.
Advantages and disadvantages of investing in cryptocurrency
Investing in any financial instrument has both positive and negative sides, and cryptocurrency is no exception. Before investing real money in cryptocurrencies, it is better to familiarize yourself with all the advantages and disadvantages. Let's start with the pros:
- State authorities cannot freeze an investor’s account or restrict his actions; it is impossible to track payments, which means that the level of income is hidden from the tax authorities;
- good prospects for further growth;
- several investment options (mining or speculation);
- a large number of cryptocurrencies worth investing in.
However, there are also disadvantages to investing in cryptocurrencies. Among the disadvantages it is worth noting:
- the inability to cancel a transaction, even if it did not occur at the will of the wallet owner; a large number of hackers who are trying to gain access to other people’s wallets;
- high exchange rate fluctuations, which makes it difficult to predict the real income from mining.
Pros and cons of investing in bitcoins
To decide whether to invest your own money in cryptocurrency or not, you need to understand what financial benefits it will bring and what risks you will have to face. Here I will try to describe everything in as much detail as possible, but you will need to make a decision about investing in Bitcoin yourself.
Pros of investing in Bitcoin
- Quite stable growth. Throughout the history of Bitcoin, there have, of course, been big drops, but this happened infrequently: on average, once every 2-3 years. The four-fold increase in 2016 significantly outweighs the decline: a successful investor can, having invested in the most popular cryptocurrency, not experience a drop in its value over the course of a year.
- User trust. Bitcoin managed to become popular: even while declining, it subsequently grew sharply. Today, a huge number of Bitcoin users act as a kind of “guarantor” of its stability: several million literate people cannot trust an unreliable asset, right?
- High liquidity. Selling Bitcoin today is not a problem: Bitcoin ATMs are opening all over the world, the number of Bitcoin exchanges is increasing every year, even some retail outlets accept the most popular cryptocurrency.
- Independence from external events. Probably only failures in computer systems can have a negative impact on Bitcoin. Political, economic, social “squabbles” - Bitcoin doesn’t care about all this: it is completely decentralized, and events in any country or region, in fact, do not affect it in any way.
- Low control. Bitcoin today is one of two means of payment (the second is cash), the circulation of which is almost impossible to control. This is very convenient: supervisory authorities do not know how much money you have, where you keep it and what you spend it on.
- Low commissions. Maybe not the most important advantage of Bitcoin, but I decided to talk about it. Today, although commissions are charged for storage, exchange and other operations with the most popular cryptocurrency, they are small, which distinguishes them favorably from money stored in banks. As financial institutions charge more and more for their services, this advantage of Bitcoin will come to the fore.
Risks and Disadvantages
1 Scaling problem. The Bitcoin network grows over time as the number of Bitcoins increases. However, the throughput of the cryptocurrency network does not change, which is why problems with transfers are already arising today.
The most important negative consequence is the increase in the time it takes to transfer bitcoins from the sender to the recipient. Often they simply get stuck in the network. In addition, limited bandwidth made small-scale bitcoin transactions unprofitable.
The problem is being addressed by both Segregated Witness and Bitcoin Unlimited today, but they have still not been able to completely eliminate it. This means that if the protocol remains old, the system will pass through less and less bitcoins, which will lead to a decrease in the attractiveness of bitcoin for investors. Those bitcoin owners who suffer the most from the problem are those who prefer to store their funds not on exchanges, but on local wallets: in order for their bitcoins to get into the system, they need to be transferred from their own storage, and today this takes a lot of time and takes a lot of nerves.
2 Possibility of a “bubble” formation. Many investors have serious doubts about whether to invest in Bitcoin in 2017. The thing is that in less than five months the exchange rate has almost doubled (January - $1,000, mid-May - $2,050).
Of course, there are also objective reasons for Bitcoin, of which there are also many, so the current growth does not necessarily need to be viewed as a “bubble” that will definitely burst. Of course, the volatility of Bitcoin is very high (however, one should not expect anything else from an asset with such profitability), however, many analysts predict its rapid decrease due to the stabilization of the development of the most popular cryptocurrency.
Pros and cons of investing in altcoins
Altcoins are all digital currencies other than Bitcoin. Investments in them today are also profitable, but there are plenty of risks here.
Let's look at the main features of altcoins.
Growth prospects
Altcoins are young cryptocurrencies: most of them are not even five years old. As I said at the beginning, DASH and ETH saw 12x and 8x increases in value in 2016 (Bitcoin “only” increased 4x in value in comparison). Other digital currencies also have the potential for almost unlimited growth: very few people know about them yet.
"Low Base"
The “low base” effect is something that can ruin inexperienced altcoin investors: knowledgeable players take it into account, but those who began investing in an alternative cryptocurrency after it has risen many times over may face great disappointment.
What is the “low base effect”? I won’t bog you down with theory, but will go straight to an example.
So, imagine a situation in which some cryptocurrency costs $2. Its popularity is not yet very high - investors do not consider such a digital currency a highly profitable asset and do not pay attention to it.
“Boost” players take advantage of this, starting to massively increase the rate of the cryptocurrency, and after a month its rate is already $32.
An increase of 5 times is huge, but it was not supported by any fundamental reasons, but only by the activities of the players, which tomorrow could turn completely in the opposite direction.
In addition, although in relative terms the increase was 5 times, in absolute terms the price of the altcoin increased by only $30. If the price of such a currency increases by 30 dollars again, then its price will be 62 dollars. Not to mention that it will be much more difficult to “warm up” such growth; the relative increase will be much smaller: 62:32 ≈ 2.
A twofold increase, of course, is also not bad, but inexperienced investors are counting on a fivefold increase!
That is why the “low base” effect should definitely be taken into account when paying attention to the positions from which the altcoin began to grow.
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Good afternoon, our dear visitors and readers! Today we will continue to consider the topic of cryptocurrencies and talk about which cryptocurrency to invest in in 2018. 2017 is already history, and 2018 is ahead of us. Naturally, people are quite rationally interested in the topic of cryptocurrencies and its future for the coming year.
Best broker
In addition, an important point is: what cryptocurrency should you invest in in the coming 2018? Accordingly, I decided to tell you which cryptocurrencies it would be most advisable to invest in in 2018. I want to say right away that my words are subjectivity.
I'm not going to impose anything on you, I'm just reflecting my own opinion, that's all! Many people argue about whether mining will die in 2018? Here, of course, it is worth understanding that mining today is not what it was a couple of years ago - everything has become much more complicated. The fact is that industrial miners, who have enormous capacities and resources, have entered the arena en masse. Naturally, ordinary miners will not be able to compete with such giants. Many people are wondering if mining will die in 2018? Personally, I think not, but here you need to understand that the share and influence of so-called garage mining is gradually being lost.
What cryptocurrency to mine in 2018?
It would seem that the answer to this question is very simple and logical. In theory, it is necessary to mine those cryptocurrencies that are most popular. However, not everything is so simple in our world and there are a number of nuances that must be taken into account. Let’s say, if we talk about Bitcoin, it requires the introduction of ever greater power.
And here I’m not even talking about the quality and high cost of the equipment that you will use, I’m mostly talking about the volume of electricity that this equipment will consume. Accordingly, if we talk specifically about Bitcoin mining in 2018, then the cost of electricity is of particular importance. Roughly speaking, the less you pay for electricity, the more profitable it will be for you to mine Bitcoin.
In general, you should understand that if you are wondering which cryptocurrency to invest in in 2018, then the world is not a wedge on Bitcoin alone. There are a lot of calculators where you can quickly and for free calculate how much income you can get from a particular cryptocurrency through mining. In general, the most popular cryptocurrencies for mining now are Bitcoin and .
In general, the profitability of mining these particular cryptocurrencies will be high if their exchange rate is high, but this is a big question.
Which cryptocurrencies to invest in in 2018
If we talk about Bitcoin, then in the context of this issue the world is divided into two opposing camps. Some say that Bitcoin’s collapse is imminent, while others give extremely optimistic forecasts, which include simply sky-high figures for the value of this crypt.
You know, the forecast of the former does not look like something fantastic. You need to understand that the higher the value of a currency, the lower the likelihood of its jump. In addition, a number of countries are still actively expressing their dissatisfaction due to the fact that Bitcoin is often used for payments by various criminal structures and corrupt officials. After all, his anonymity is simply a gift for these purposes.
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Yes, from the point of view of Bitcoin’s capitalization, this has a very positive effect on it. But, on the other hand, it won’t be all that rosy if he gets banned.
In addition, the tangible cost of Bitcoin further increases possible risks, which not everyone can afford. Let's be honest, Bitcoin is now very expensive and few people can easily invest significant money in this area. In general, many large investors still look at Bitcoin with general distrust; for many of them, it is a bubble. This is what the page is about: .
Therefore, it seems to me that Bitcoin is not yet the most profitable option from an investment point of view. Still, investing big money here is quite scary, no matter how you look at it. Well, here we come to the most interesting thing: what cryptocurrency should you invest in in 2018? Whose price is not yet too high, but whose tools have potential? In general, in this regard, I recommend taking a closer look at three cryptocurrencies:
But, of course, you must understand that in the context of this issue there are also disadvantages.
- Cost it. It is worth noting here that with some brokers the spread may be much higher than the commission when you trade on the exchange.
- No one can deny the fact that a broker may turn out to be a scammer. But here you need to understand that you need to choose a high-quality broker who has been working on the market for a long time. It’s good that now there really are such things!
- Some brokers may not be able to trade Bitcoin on weekends.
In addition, please note that cryptocurrency trading with brokers occurs within the framework of CFD contracts. That is, you work with contracts for difference, and are not a physical holder of the asset.
Successful people are not born, they are made. This vital axiom is also quite suitable for the digital world, where all new currencies are initially little-known and inexpensive, but gain popularity over time. Weak players in the crypto market are eliminated, promising ones develop, become influential, their capitalization increases and, accordingly, their value increases.
Those who from the very beginning made a bet on the desired inexpensive cryptocurrency and decided to invest in it, seeing its potential value in the future, end up with kings. As a rule, new digital coins start out very cheap, but then some of them show an increase in value that even the most optimistic forecasts did not predict.
The first cryptocurrency, Bitcoin, was initially not worth a penny, and only a couple of people knew about it, including its creator, Satoshi Nakamoto.
Let's look at 2009: 1 BTC costs $0.001. Let's look at what happened in 2017: the BTC rate exceeded $20,000!
$0.001 → $20,000 = incredible success of Bitcoin cryptocurrency
Classic story “slumdog millionaire”. Now it tops all cryptocurrency ratings, is on the first line of all kinds of tops, and is the most desirable investment object. And the best thing is that other cryptocurrencies, even the most inexpensive ones today, can go through a similar path. Success depends on many factors that need to be carefully studied, because in the field of virtual money a superficial approach and hasty decisions are not welcome.
Today we will take a detailed look at the list of cryptocurrencies at the same time the cheapest and most promising for investment in 2020.
Promising cheap cryptocurrencies
Inexpensive, but with growth prospects. This is said not only about virtual currency, but also about other investment objects. After all, aerobatics - find a promising and inexpensive coin at the moment of its inception before others had time to take a fancy to her, and turn it into an inexhaustible source of income.
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So, the top 5 cheap and promising cryptocurrencies 2020
Important! The risk associated with investing in cryptocurrency can be minimized if you invest not in one asset, but divide your capital into several of the most potential and attractive ones.
This promising newcomer to the cryptocurrency market is not so much a virtual means of payment as innovative cloud storage technology, capable of protecting all your assets even in the event of a force majeure system failure. This global decentralized storage, which provides users from all over the world with an unprecedented level of privacy and information security.
Sia cloud developers use local encryption, that is, they encrypt the entire file itself and each part of it separately. This way, no one is able to find out exactly what files you store on the platform.
Now Siacoins cost mere pennies, and the Sia network is constantly growing and in the future plans to become the main service for decentralized cloud storage on the Internet. Hurry up to study siacoin more deeply so as not to miss the moment and one fine day not stumble upon news about its unimaginable rise in price.
A decentralized protocol that allows users to satisfy their online entertainment needs, taking advantage of all the benefits of blockchain. The coin began trading only in September 2017, and already in January 2019 it entered the top 10 largest cryptocurrencies in terms of capitalization. This platform provides users high-quality entertainment content without restrictions: various applications, games, videos, graphic materials. Moreover, the service allows them to create and distribute content, even own internal currency.
The total capitalization of the TRON project is currently $7 billion, and the digital entertainment market is not oversaturated, to put it mildly. And now, while the TRX rate is still very low, it’s time to take a closer look at this promising young stock.
3. Verge (XVG)
One of the safest and most anonymous coins. Released back in 2014 and designed with privacy in mind. Verde uses Proof of Work and supports 5 algorithms for mining(Scrypt, X17, Groestl, Blake2s, Lyra2rev2). The currency is constantly evolving and is supported by a large number of wallets. Traded on many exchanges, but the main volume is on Bittrex.
No one can tell you about the coin better than its creators. Therefore, to get a complete picture, do not be lazy to watch a short but informative video from the authors of Verge.
4. Cardano (ADA)
An open cryptocurrency project, which is a decentralized public blockchain. Its authors have a goal improve the smart contract platform, allowing users to create applications and contracts inexpensively and securely. This will create a new decentralized economy, and the financial industry will become more democratized. A new highly secure Haskell programming language was developed for the project, which provides increased security for the entire system. It is currently the most secure programming language.
Really perfectly adapted to the conditions of the cryptocurrency economy. When coin activity begins, the price of coins will rise sharply, analysts are sure. And they characterize Cardano as a worthy option for long-term investment. A detailed overview of this currency, as well as the prospects for growth in its value, can be found at the link.
5. Stellar Lumens (XLM)
Stellar is called decentralized consent platform, which supports any type of cryptocurrency. Moreover, it is equipped with a built-in decentralized exchange. The service developers are confident that this simple and effective technology will help improve the world's financial infrastructure.
Through Stellar, users (people/companies/financial institutions) can make exchange transactions as easily and quickly as possible. So everyone gets Free access to financial transactions without the need for intermediaries, which significantly reduces costs and increases profitability. At the Sibos 2017 conference in Toronto, this platform was supported by large industry companies and leading banks. Staller's main promise is that it could become the main intermediate cryptocurrency to facilitate exchange between different cryptocurrencies, which will increase their liquidity.
Cheap cryptocurrencies that could rise in price in 2020
We cannot ignore other inexpensive cryptocurrencies that may rise in price in 2020. Analysts are confident that digital assets such as Ardor and aelf will show excellent positive dynamics and will significantly increase in price. There are also big bets on IOTA and Nxt currencies: they will grow and strengthen their position in the market.
Top 5 cheap cryptocurrencies that could rise significantly in price in 2020
1. Nxt/Nextcoin (NXT)
A completely decentralized, anonymous and secure electronic money exchange system, built on its own blockchain. The developers deliberately created the code from scratch in order to eliminate all the shortcomings of the first generation of crypto money. It is based on the Proof of Stake (proof of ownership, PoS) algorithm, which expands mining capabilities. Thanks to the transparent protocol, all transactions within the network are literally lightning fast (no other system is capable of providing such fast transfers).
A virtual ecosystem developed on the blockchain, offering users convenient network scaling options. Essentially, this is the second generation of Nxt, but more advanced: Ardor provides the ability to create your own child chains within the system. Ardor is also positioned as an easy-to-understand and reliable development for business.
Through this platform, any company can create your own coins and receive a commission for their transfer. Moreover, transactions within the network are almost lightning fast: it usually takes 60 seconds, or even less. This simple and affordable solution for business will undoubtedly find its wide audience in the form of various organizations and companies that use blockchain technology to scale and strengthen their business.
The main mission of this virtual currency is to make money transfers as simple as possible, which in turn will simplify interaction between banks, much will improve the quality of their services and will have a positive impact on the state of the entire financial market. Ripple has one of the highest levels of capitalization today, so the authority of this crypto coin is already very high.
Its creators have secured the support of more than 300 major financial organizations and well-known international banks. it's the same the only cryptocurrency through which you can pay for the purchase of gold and other valuable metals. Headquartered in Silicon Valley and nine other global financial centers, the digital currency clearly has serious plans for the future.
A self-developing platform that should become a real panacea for everyone who works with digital currency and needs different tools to perform a particular task. The aelf platform is characterized phenomenal multitasking and the ability to quickly and easily adapt to any user need.
Quite ambitious, but quite realistic, especially considering how strong the team is developing it. The creators of the aelf-ELF project have extensive experience working with blockchain technologies and several successfully implemented innovative projects. The ambition of the project lies in the fact that through partnerships with FBG and Decentraland, aelf developers plan to start construction the first digital city - Crypto Valley.“Blockchain markets are globalized, but it is not always easy to interact between teams, investors and communities. We wanted to find a way to reduce communication costs, increase efficiency, and put encrypted digital cities at the center of blockchain technology development. Crypto Valley is positioned to achieve this mission.” Zhulin Chen, co-founder of Aelf
5. IOTA (IOT or MIOTA)
Cryptocurrency without commissions and miners. Created as a means of payment for the sale Internet of Things concept(Internet of Things, IoT). Indeed, there are no commissions here, which allows you to use IOTA for micropayments (for example, 1 RUB). It is also completely self-sustaining network: There are no miners here, and users themselves confirm other users' transactions. Instead of the usual blockchain, Tangle technology is used here.
In addition to a convenient means of payment for the implementation of IoT, this platform can allow users to trade online: rent out their equipment, rent out hard drive space, sell free megabytes in electronic databases, and large companies can sell data about their products.
Cryptocurrency for social networks based on blockchain. It will gradually be introduced into all the most famous networks in order to monetize those same “likes”. You can’t put a like in your pocket, but you can’t put an RDD coin in your pocket. The project should be of particular interest to the most socially active users - bloggers, for whom the ReddCoin project will be an excellent opportunity to monetize their content. Given how rapidly social networks are developing now, there is no doubt that exchanging likes for real money will appeal to users.
A cryptocurrency created in Argentina, where 65% of the territory is unbanked. Its goal was to introduce alternative digital payments in this less economically developed region. The Ripio network is designed bring together borrowers, lenders and guarantors and make lending a simple and accessible process. The project's client base already includes more than 130 thousand users from Argentina and Brazil. The creators of Ripio continue to establish partnerships with companies from Mexico, South Korea and Vietnam.
“The core idea of the Ripio Credit Network is to expand financial inclusion by expanding lending on a global scale,” said Ripio CEO Sebastian Serrano. “The support for not only our platform, but also our mission is truly inspiring.”
It grew from 17 to 612 billion dollars, but in 2018 there was a collapse. Despite this, the blockchain industry is becoming more and more popular and attracts finance and the attention of both novice traders and large companies. There are more and more projects on the market and newcomers are increasingly interested in which cryptocurrency to invest in in 2020. Below we have compiled a list of cryptocurrencies with the most positive forecasts for this year. We will also discuss different approaches to investing, talk about ICOs and mining of promising coins.
| Name | Year and month of foundation | Idea | Prospects |
|---|---|---|---|
| 2012 | A decentralized platform for payment systems that focuses on currency exchange operations. | The cost of the coin can increase to 5-10 dollars due to an increase in the number of partner banks. | |
| April 2015 | It is a platform for real-time currency transactions. A fork from the Ripple project. | Experts predict a price of $30 per coin by the end of 2020 | |
| September 2017 | Blockchain platform, which is built on open source code and uses smart contracts. Its creation was carried out by a team that relied on numerous studies and a scientific approach to development. | The tentative forecast from analysts is $20 per coin by the end of the year. | |
| July 2017 | The developers sought to create a decentralized system that would be distinguished by amazing network throughput, the presence of smart contracts and extremely low commission costs. | According to experts, the price of EOS may reach $100 by the end of 2020. | |
| May 2016 | Lisk allows users to launch their own blockchains based on the project. The platform supports the development of custom applications and does not use conventional smart contracts. | In 2020, it is predicted to reach $150 per 1 LSK. | |
| June 2016 | The main goal of the platform is to provide users with the opportunity to issue their own tokens. | According to experts, the cost of WAVES will exceed $90 in 2020. | |
| June 2017 | This project was created with the aim of providing a convenient means of payment within the framework of the “Internet of Things” concept. It connects devices into a network and allows, for example, to rent out physical equipment or receive data from it. | The price predicted for this cryptocurrency this year will reach $40 per coin. | |
| April 2014 | This cryptocurrency is one of the main projects, which is focused on enhanced privacy and anonymous transactions using built-in “mixers”. | XMR, despite its uniqueness, has not shown good rate growth for a long time and in 2020 its value may exceed $800 per coin. | |
| July 2015 | Blockchain platform, which is designed for creating decentralized applications using smart contracts. | The cryptocurrency has shown stable growth, which could bring it to $3,000 per coin by the end of the year. | |
| June 2017 | This blockchain project combines the functionality of a messenger and a mobile browser for interaction with decentralized applications of the Ethereum platform. | Considering the uniqueness of the development and the increased interest in it, we can predict the cost of 3-5 dollars this year. | |
| 2014 | This project is the Chinese analogue of Ethereum. The Neo platform also uses smart contracts and tokens. | The potential value in 2020, according to experts, will exceed $300 per coin. | |
| 2015 | Decentralized platform for data storage. Users can lease hard disk space or rent it from other system participants. | Analysts believe that the value of SC could rise to 25 cents per coin this year. |
Little-known promising cryptocurrencies
Young cryptocurrencies, which currently cost a penny or have not yet entered any exchange at all, may become market leaders in the future. Once upon a time, Bitcoin was worth just a few cents, but now its capitalization reaches billions of dollars.
Cryptocurrency forecasts often do not provide a true picture of what will happen in the future. This market is still too new and unexplored, which does not always allow us to analyze what is happening using standard economic tools.
Many traders consider it a good idea to buy cryptocurrency while it is unknown to many people and the price is as low as possible. Of course, this method does not work with all projects, and here the investor must decide for himself which cryptocurrency to buy.
Another way to make money on developing blockchain projects is to invest in . Making a profit in this way is no longer a fantasy, and in 2017-2018 we could see many successful pre-sales of tokens. However, there are a lot of such proposals. You should always pay attention to the information provided by developers. Having a list of team members with experienced developers on it, documentation and a roadmap does not guarantee that the creators will not disappear with your funds after the end of the ICO, but it greatly minimizes the likelihood of such a development of events.
Promising cryptocurrencies for mining
If you have powerful computing equipment available, then you can start a cryptocurrency business. New coins often have low difficulty and few people know about them, which allows you to mine coins in reserve without any problems.
In total, there are two main approaches to mining. In the first case, you go to a site with a potential profit calculator, for example, whattomine. There you choose the most profitable coin for your hardware and start mining it. You sell everything you earn every week or even every day. In this case, you can always receive a stable income and, as a result, fiat money.
Another case is when you are trying to look into the future rather than based on the current state of the course. Then you have to independently analyze all the information and find out the most promising developments to direct your computing power to their extraction.
The difficulty of mining is constantly growing. As mining becomes more difficult, the coin itself becomes more expensive. Initially, DogeCoin, for example, could be mined using a simple home PC. Now, in order to get tangible profits, you need to use specialized devices called ASIC miners.
Promising cryptocurrencies for investment
You may think that investing in the most popular cryptocurrencies is a safe bet. They do often show good growth, but it is important to understand a few things. First, there is no need to buy a coin when it has reached its peak value. Wait until the coin is at its cheapest price in recent times and invest only then. In the case of large projects, it is also very important to follow news about development companies. It should be remembered that any events in the market can affect the rate.
Also, we must not forget the basic rules of safe investing. Try not to invest your last money that you cannot afford to lose. It is not recommended to invest the entire amount in one currency, as this increases the risk of losing funds. Fill your investment portfolio with more currencies to protect yourself and increase your potential income.
So, in this review we were able to find out the following:
- Experts are already highlighting a specific list of cryptocurrencies that should increase in price by the end of the year.
- Investing in ICOs or projects that have appeared recently can also bring good profits.
- You can mine coins with the expectation that they will grow in the future and keep what you mined.
- You should always analyze the situation and not invest based on recommendations from unknown sources. Also, you should not invest everything in one currency or use your last money for this.
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2017 showed a real breakthrough of cryptocurrencies into the ranking of the most profitable assets. The high level of profitability and increased confidence in many coins contributed to an increase in trade turnover. Seeing the rapidly growing popularity of Bitcoin, many exchanges have added the most popular digital currencies to the list of available assets. This opened up new opportunities for investors to acquire them and make money.
In addition, blockchain technology has just begun its journey and in the future will be integrated into most areas of our lives, which will ensure the further development of cryptocurrencies. Therefore, many investors are now thinking not about the advisability of investments, but about the right choice from the many available options for digital coins.
The potential of cryptocurrencies is just beginning to be realized
“The future of money is Digital Currencies,” Bill Gates.
Although Bitcoin has the greatest popularity, high exchange rate and turnover, this is largely due to its “first-born” status. Undoubtedly, he will always remain the first, which will provide him with additional advantages. However, many cryptocurrencies are much more than just a decentralized payment system. They are created with new capabilities that will be able to replace various existing systems in the future.
A gradual transition is already taking place in areas such as:
partnership, business, corporate applications;
governmental and international institutions;
state registers, databases, systems;
daily human life;
national cryptocurrencies.
Further strengthening of the situation is facilitated by:
legalization of digital currencies in Japan;
Venezuela’s announcement of the release of its own cryptocurrency called El Petro to overcome the financial crisis - other states are considering a similar option;
the emergence of additional opportunities on the platforms of dealing centers (futures, options, cryptocurrency indices);
increase in demand by various forks, collapse forecasts;
gradual increase in the amount of leverage on exchanges;
cooperation with many international corporations in the field of IT, software, innovative gadgets, trade.
Based on the facts described above, we can confidently predict the future success of many cryptocurrencies that offer the capabilities of blockchain technology.
However, in 2017 alone, more than 400 types of coins were created and about 150 disappeared. This indicates not only the wide choice, but also the existing risks. Therefore, below we will consider some promising investment options that have different statuses in terms of capitalization level.
Predictions for the top 3
After the level of Bitcoin Cash stabilized, its position in the top three rankings by capitalization did not change. This is due to the undisputed leadership of Bitcoin, the absence of limits on the emission of ether and the fairly high rate of BCH. These cryptocurrencies do not require a detailed description, but their forecasts should be considered separately.
Bitcoin
The undisputed leader. In the fall and winter of 2017, the BTC exchange rate set new price records almost every day, increasing in value by 5-20%. No other reliable asset can boast of such a rapid growth rate. Substantial support from large investors and a regularly increasing number of transactions ensure that the current momentum is strengthened. Some experts (Michael Novogratz, Ton Weiss, Mark Yusko) suggest that in 2018 the cost of one coin will exceed forty thousand US dollars.
Satoshi Nakamoto argued that the value of Bitcoin will increase through the growth of participants, and not because of economic security or value as a resource. These are the processes that can be observed now in the market, and they will continue. However, after a significant increase in the rate, a moderate phase or slight decline will certainly occur. This will not interfere with further overall positive dynamics, so BTC will certainly become a promising area of investment, such is the Bitcoin forecast for 2018. And the latest price increases force you to hurry up in making a decision.
Ethereum
ETN occupies the second position due to the quantitative indicator, since it has only fifth place in terms of the cost of one token. The platform has gained its popularity due to its good prospects for use in the business environment. Cooperation with large corporations such as Microsoft provides it with a stable position among the leaders. In the future, the number of partners and the number of applications will increase. This will provide stable support for the currency and a constant increase in demand.
Next year, experts predict an increase in the ETH rate to 1,000 US dollars. Due to the fairly large number of coins and the increasing complexity of the hash function of rivals, Ethereum also has a chance not only to maintain its position, but also to get closer to BTC in terms of capitalization. Thus, in 2018, ETN will continue its stable growth, which means it will bring significant profit to its owners. Moreover, the system independently proportionally increases the existing account from already added blocks, and the developers plan to switch to PoS.
Bitcoin Cash
BCH occupies its high position due to the high price and number of coins. Since it differs from Bitcoin only in some technical modifications to the block volume and the rate of change, it is unlikely that in the near future it will surpass its progenitor in terms of any value indicators. The original plan of the creators was not so successful due to the introduction of gradual changes to the original Bitcoin. An increased amount of data will only be required when using the network globally, so in the near future BCH will still be inferior to BTC in distribution.
Analysts say that under favorable conditions, competitors' rates could become equal by 2020. However, in 2018, the value will change at the level of the bulk of altcoins, which means it will gradually increase following the increase in the popularity of cryptocurrencies. There will most likely not be a rapid increase, since this is no longer the only hard fork. BCH is also the most susceptible to displacement from its closest new coin competitors.
Prospective pursuers
The leaderboard may be modified by other successful cryptocurrencies that offer unique opportunities for future integration. When considering investment options, it is advisable to take into account some promising projects from among the pursuers. They performed well in 2017 and have high potential for further growth. The price of their coins is affordable, which allows you to include them in the list of your assets without significant costs.
IOTA
The cryptocurrency is designed to protect the joint functioning of all kinds of smart devices, from phones to homes. Now they have data processing software, but operate separately. IOTA allows you to create a single, reliable network with all data verified using blockchain. The introduced technologies begin to independently perform some routine actions instead of us. Further, in this way, more and more significant processes with important information that requires absolute reliability will be delegated.
The network is based on Tangle technology, which is more complex and faster than classic blockchain. The uniqueness of the system attracted the interest of several large manufacturers, who entered into agreements for further cooperation. Due to the high potential and attention of companies, the coins quickly increased in rate, which in December raised MIOTA to 4th place in the ranking. Mining of this cryptocurrency is not provided, it can only be purchased. The price is slightly higher than $4, but already at the beginning of 2018, experts predict a doubling of the price with a subsequent increase.
Cardano
The platform was created by one of the Ethereum developers, so it has a number of similar principles. However, the organizers insist that their network is next-generation and significantly superior to Ethereum. The main idea is to create a new image of economic models for markets. It is planned that users will participate in the development of the project, and by 2020, the creation of an autonomous network that does not require regular outside intervention.
The creators recently announced the release of an ADA debit card that will be linked to the platform and can be topped up using the Daedalus wallet. This is a departure from the classic principle of Satoshi Nakamoto, but a significant step for further integration towards global financial transactions. In a short period of existence, the cryptocurrency has already jumped to 11th place in the ranking, which confirms the enormous potential and trust of investors. In 2018, the positive dynamics of the exchange rate are expected to continue and get closer to the leaders.
Monero
It is a cryptocurrency with one of the highest levels of confidentiality. The network does not allow us to detect any data about the history of the movement of coins. After Dash lost its anonymous status, many users who wanted to remain in the shadows chose Monero, which led to a rapid increase in the rate. Now there is a stabilization of value, but due to prospects in the shadow sector, coins in 2018 will increase their price a little faster than their closest competitors.
New coins and investing in ICOs
There is a good opportunity to invest in a new cryptocurrency in the first weeks of its existence. You can analyze the existing exchange rate dynamics. With a rapid rise, it is attractive to have time to purchase promising coins at a low price. This significantly reduces risks compared to investing in ICOs, but does not eliminate them. The market can quickly change its preferences, and the altcoin will depreciate.
In turn, ICO, despite possible risks, allows you to receive cryptocurrency at the original cost and, if the project is successful, increase the invested funds hundreds of times. The low price makes it possible to minimize the amount of finance required for the purchase. Many new systems are expected to launch in 2018. Some of them can become strong competitors, as technology is constantly being improved. Therefore, you should not write off the potential opportunity to get rich on fresh projects.
Group analysis
For those who select the most suitable cryptocurrencies for investment, it will be convenient to evaluate each group using a table with their comparative analysis.
To create an optimal set of assets, it would be rational to purchase several types of cryptocurrencies from different groups. This will not only spread the risks, but also significantly increase wealth in the long term when choosing several successful digital currencies.
This significantly reduces risks compared to ICOs, but does not eliminate them