Whether you plan on mining your coins or purchasing outright, here are the cryptocurrencies that are built to perform in 2020.
Investing in cryptocurrencies is a multifaceted opportunity. One has the ability to put their money into the tools they need to mine or validate. You can also purchase tokens and speculate on an open market. Or choose to invest in the usefulness of the underlying technologies themselves.
For any investor, old, new, or somewhere in between- you have to start with a trustworthy exchange. Even if you just plan on mining or validating, you’ll need a reliable place to trade those coins and tokens around, as well as up to date information on how the markets are doing and what to expect from any given crypto.
The best way to go about this is to use a reliable platform that has open accessibility like https://bitvavo.com/en, or other platforms designed with beginners in mind. These exchanges will have the best information on what’s happening in the market at present, as well as generally enjoy a higher security level.
Speculating vs. Mining
Technically, speculating on the market and mining are both ways in which people can invest in cryptocurrencies. While the former may seem more straightforward, the fact of the matter is that either way to invest requires a good amount of research and a touch of savvy.
Speculating seems simple enough. Head to your trusty crypto exchange and buy some coins or tokens. Wait a few weeks and profit! Right?
No, not right. Speculation requires users to not only have a decent understanding of how each crypto they’re choosing works. From the network, to how it reaches consensus, to the technology that that token or coin signifies. This way, a user will be better fit to understand when to buy, when to sell, and when to HODL (a crypto savvy way of saying you’re holding the asset).
Even investors that consider themselves seasoned traders in traditional markets will need to hit the books. This is because cryptocurrency markets tend to be much more volatile than other tradable assets. Each crypto also has subtle nuances that can make that particular coin or token far outperform others in any given quarter.
Superficially, mining seems profitable and simple. However, look a bit closer into the mechanics- and it gets either really expensive or fairly convoluted. If someone is looking to “mine” bitcoin, they’ll need to either previously own, or invest in some serious computing power, like ACIS machines. Which do not come cheap.
Should a “miner” look past bitcoin and want to explore how to gain money through transaction fees on other networks, there are any number of predicating steps you’ll need to know about before raking in those tokens. The first of which is finding out how that particular crypto reaches consensus. Then, in most proof of stake systems, you’ll need a small pile of tokens to get started.
The Way Things Are
Currently, crypto has many fascinating applications, and even in the wake of the worldwide economic downturn caused by Coronavirus, the future is very bright. This is largely because few cryptocurrencies actually function like currencies. Many are designed for use in conjunction with the underlying technology.
Things like supply chain reporting and compiling- a must in a world that does most of its shopping via online delivery. Or smart contracts- also wise when you’re not supposed to be meeting with people face to face, but still need to build and enforce contractual agreements. Or perhaps even a way to connect all banks and all currencies, without creating large fees or massive delays in delivery of funds.
The truth is that each of these examples are already types of technology that is being promoted and developed by existing cryptocurrencies. As anyone can clearly see how these examples, and many, many more, could be hugely beneficial to the way things are now. They could revolutionize and simplify the teething problems that societies and economies are currently having under this new paradigm.
So, investors, start your engines and get ready to seriously consider these cryptos in 2020.
Top Crypto to Consider
Each of these cryptocurrencies and the technology that they are designed for were described above. Each one has a unique set of qualifying attributes that make them so incredibly relevant in this specific market- and quite rightfully beyond it.
As crypto tokens, technologies and currencies are further utilized to bolster the economy as it stands now- as well as integrated for ease of everyday use, these are the cryptos most likely to stack up.
- VeChain Thor