- Creating the Groundwork to Know the Best
- Identify the Reliable Ones
- Pick One and Monitor It Closely
- You Want Safety
- You Want Big Returns
- You Want Liquidity
- Final Thoughts
Do you think you can make some money from cryptocurrencies? Are you someone who is looking for a way to increase their money without waiting for too long? Of course, the cryptocurrency market is the best place for you to direct your investment and earn huge gains on it. However, the fact that there are so many crypto coins out there begs you to pick the ones that will benefit you the most. If you are having a hard time figuring out the one that you will invest your money in, then keep reading on to know the answer to the commonly asked question, “What is the best cryptocurrency to invest in 2020?”
Before Investing in the Best Cryptocurrency
Creating the Groundwork to Know the Best
Before you start investing your money in a particular cryptocurrency, you have to know what you expect from your investment. There are many different types of cryptocurrencies. If you look closely, you will find out that many of them are tokens, not just digital coins in their truest sense. In simple words, tokens are more like a currency that you can use on a particular platform. The platform is created by developers to solve a particular problem. On that platform, only the chosen digital coin from the developers can be used for exchanging value.
For example, you could create an online game and then create a token to be used inside that game. So, that particular token might not have any value outside the game, but it definitely matters inside the game. So, what do you expect from a cryptocurrency? Are you looking for something that solves a genuine problem and aligns with your vision of things as well? Or are you just looking for a way to increase the money that has been resting in your bank account for a long time?
Identify the Reliable Ones
Once you have figured out what you want from a digital currency, you can start narrowing down the ones that come closest to your requirements. So, if you just want to make more money from your money, you should leave the scope of the cryptocurrency out. You should look for a cryptocurrency that can produce the best results in very little time. That’s probably where you will have to decide whether you want to invest in the market on short-term or long-term basis. If you hold the coins for a long time, you can expect the best or the worst.
On the other hand, short-term investment requires you to be very quick with your decisions. Of course, you need some good understanding of the market as well in order to make your predictions in the right direction.
Pick One and Monitor It Closely
Once you have identified the right one, you can start monitoring it. Just because you have identified a cryptocurrency that you think will be the best for your investment does not mean you should invest in it blindly. You will have to monitor the cryptocurrency for some time to know what factors cause it to move up or down. You will also be able to know from the community what real struggles the developers of that particular cryptocurrency are having. In some cases, you have a perfect cryptocurrency at hand with a great idea, but the team behind it is so weak that you do not feel like investing in it.
Investing in the Best Cryptocurrency of 2020 – Bitcoin
As clichéd as it might seem, Bitcoin is still the best cryptocurrency out there no matter what angle or perspective you take at the cryptocurrency market. Let’s see how it meets most of the requirements that an investor has from his/her investment.
· You Want Safety
So, the first thing you want to know is that you are investing in something safe. You just do not want to wake up the next day of your investment and find out that the asset you put your money in is gone forever. That’s something that can happen in the cryptocurrency market unfortunately. Many cryptocurrencies disappeared right after their initial coin offering. You can be sure that Bitcoin will not deceive you in this manner. It is the first digital currency and has been around for more years than any other cryptocurrency out there.
· You Want Big Returns
Is there any other cryptocurrency that can produce returns that are as big as the ones produced by Bitcoin? You will not be able to find one because none exists. Bitcoin is the most valuable cryptocurrency out there, one that has a value of thousands of dollars for just one coin on any given day. You will notice that even the smallest movement in its price affects your investments and returns in a huge way. Yes, the volatility of this cryptocurrency can be scary, but that’s what gives you the opportunity to get huge gains from your investment as well.
· You Want Liquidity
So, you have got a bunch of crypto coins in your possession, now what? Are there any people who are willing to buy the digital coins you have? In fact, do you even see any markets or exchanges where they accept the digital coin you have in your possession? Well, that’s where a lot of digital currencies are going to disappoint you. The one currency that will never disappoint you in this particular area is Bitcoin. This is the most prevalent digital currency out there, one that you will find on any cryptocurrency exchange that exists today.
It is also acceptable on various online platforms with different services. You can use it to trade on various trading platforms. Some retailers have also started to accept Bitcoin. You will not have this level of liquidity and freedom with any other cryptocurrency out there.
You must have noticed that the biggest always gets the most criticism in the world. Whether you are talking about movies, music, digital currencies, or something else, you will see people spewing bad words about the biggest and the most famous. That’s the same going to happen when you talk about Bitcoin. People might say a lot of bad stuff about this digital coin, but in their hearts of heart, they believe it to be the biggest and the greatest.