Although many crypto investors expected that the market would never recover after the collapse of 2018, the year 2019 proved the opposite. Bitcoin - the main asset of the cryptocurrency market, has almost doubled in 2019. This fact inspires hope for investors who are in search of high-yield investments.
So, what are the most promising cryptocurrency assets in 2020?
As we already mentioned, the closure of 2019 around levels of $7200 per bitcoin means an increase of more than 100%, but this is not the subject of headlines and does not cause crazy purchases that we saw in the past.
The average investor is too emotional to withstand the strong ups and downs of Bitcoin. Nevertheless, there is a continuing interest in the asset, which is provided by the following facts:
- The current price level is far from the historical maximum (20 000 USD).
- The launch of ETFs and deliverable Bitcoin futures has at least attracted the attention of institutional investors. On December 2, the SEC approved the launch of an investment fund that will invest in bitcoin futures. Thus, investors will be able to access the cryptocurrency through its most important representative, Bitcoin.
- Significant growth expectations for Bitcoin after halving in 2020. So far, in the short bitcoin ‘s history of, there were two halving, and both led to an increase in the value of the crypto asset.
- One of the most professional development teams, including leading crypto experts of the world, such as Adam Back.
- Liquidity. Bitcoin has the highest liquidity in the cryptocurrency market.
- Price volatility. Despite its volatility, the BTC is known as one of the most stable cryptocurrencies. A lot of funds would be required to manipulate its price.
- Limited issue of 21 million coins. As demand grows, the price will rise substantially.
Unlike Bitcoin or Litecoin, Ethereum has no strict emission restrictions. New coins are created by the blockchain to reward miners, which added about 10% of the newly created coins to the market on an annual basis. Currently, more than 104980163 coins are in circulation.
Fundamental ETH Value Growth Factors:
- Command. Ethereum was founded by Vitalik Buterin. Despite the fact that he is young, Vitalik proved himself as a real expert in cryptocurrency. Enthusiasm and dedication have attracted thousands of developers from around the world. The Ethereum Foundation is the largest association of cryptography developers and specialists in the World.
- Ethereum 2.0. The team plans to launch a network update in 2020, which, along with the PoW consensus, will allow miners to participate in staking due to the appearance of mining in the PoS protocol. At the same time, the reward for PoW will decrease from 3 ETH to 0.6. This update together will reduce emissions to 2.5% and will encourage the removal of ether from free circulation for long-term storage.
- Liquidity. Ethereum is also highly liquid, usually takes 2nd or 3rd place under bitcoin. You will not have problems buying or selling Ethereum.
- Price volatility. Ethereum has a loyal community and a professional team, which means that the price is more likely to remain stable and grow in the long run.
- Crypto Economics. Keep in mind that Ethereum feeds the DApp ecosystem. This means that millions of developers and companies need ETH to release their smart contracts, launch their own decentralized applications and pay commission.
Binance Coin (BNB)
Unlike Bitcoin, which is intended for use as a means of payment and saving funds, the Binance coin is a utility token. This means that its value depends on how well Binance feels good and confident.
Binance Coin, in fact, is one of the few tokens that have reached their maximum price after the 2017 bull market. Since then, its price has been growing slowly, and last year it updated its own price record several times.
Fundamental BNB Value Growth Factors:
- Command. Changpen Zhao, or as Binance users lovingly call him - CZ - is the founder and CEO of Binance Exchange. Given the successes that he and his team are achieving, it is safe to say that they have the skills and resources to make this coin successful.
- Liquidity. Binance Coin is one of the most liquid cryptocurrencies at the moment. It is in the top 10 at Coinmarketcap, with an ever-increasing trading volume.
- Volatility. This cryptocurrency is quite volatile, but has a constant growth. Its price was multiplied by x3 at the beginning of 2019, during the bear market.
- Crypto Economics. 200000000 BNBs were issued through ICOs at a price of $0.10 per coin. Binance offers discounts on trading fees for users who own a 50% BNB for the first year of trading. Binance also uses 20% of its profits for each quarter to buy back tokens and burn them until the amount of BNB is reduced to 100000000. Another innovation that stimulates the growth of the BNB rate is the launch of Lending and Staking. This functionality allows users to freeze part of the deposit to obtain a percentage of profit for a predetermined period.
Since its inception, TRON has generated great expectations for its digital content network. In addition, the project technical team is one of the most all-encompassing in the crypto sphere, led by the great Justin Sun, one of the most popular characters in the industry.
The main objective of the Tron coin is to create an ecosystem of entertainment content based on Blockchain, which storage is вусутекфдшяув. Any user can distribute any content on the Tron network: videos, images, music, etc. And most importantly, this content will be distributed and stored throughout the network in a decentralized way and not depend on a single server.
The goal of the project is to ensure that content authors can distribute it without sharing revenue with the network. Tron (TRX) is a cryptocurrency that will become a bargaining chip on the network so that consumers can pay direct to the creators of the content.
Fundamental TRX Value Growth Factors:
- Command. The Tron development team is one of the most active in the crypto space. Justin is a regular at every major conference and event dedicated to cryptocurrency. His Twitter is updated and pleases investors with ambitious plans every day. Justin does not miss a single opportunity to promote and give extra advertising to his brainchild - Tron cryptocurrency.
- Liquidity. TRX cryptocurrency is active for acquisition on the most popular exchanges, such as Binance, Huobi, OKEx and HitBTC. Moreover, in November 2019 there was news that Justin plans to acquire the famous Polonex cryptocurrency exchange and integrate it into the common TRON ecosystem
- Volatility. TRON is famous for its high volatility. Now TRX is close to its historical lows. Thanks to the energetic and eccentric Justin, it is likely that we will see more than the coin rise and fall. It makes sense to buy TRON into a portfolio, if only to sell it at the next impulse growth in the future.
- Crypto Economics. The story of the Tron is just beginning. A little time has passed since the launch of its own network (the stage known as the Odyssey), much remains to be done in terms of development and implementation. In the future, the Tron will still have 4 phases, which are schematized in the long term. Its development will extend to the stage of stabilization and mass introduction, known as "Eternity", the completion of which is scheduled for 2037. In 2020, a phase will begin where TRON can become an ecosystem capable of launching an ICO.
Stellar Lumens (XLM)
Stellar Lumens (XLM) is designed to address the challenges of improving global financial infrastructure. It strives to make all payments quick, easy and inexpensive. The goal of the developers was to create a decentralized consent platform that would provide both ordinary people and large companies the opportunity to conduct transactions without any intermediary ties.
Jed McCaleb, the famous creator of the Ripple network, who left the company due to a conflict with management, became the founder of the Stellar network. The new coin appeared as a result of the hard fork of Ripple, but a year later it switched to its own open source protocol. Thus, XLM is an improved version of the old protocol.
Fundamental XLM Value Growth Factors:
- Command. The Stellar team has announced partnerships with money transfer agencies Tempo and ZED, ICO Smartlands and Mobius, as well as at least 30 major projects and banks, including Stronghold, Novatti, Hyperledger, Mobius, Hashcash and SatoshiPay.
- Volatility. XLM is quite volatile in the market and is now close to its lows. Buying a coin is advisable at least for speculative purposes for sale on the next pump.
- Crypto Economics. Stellar has all the advantages of Ripple, but lacks flaws, the first of which is the centralization of the coin. Excellent blockchain throughput, focus on retail consumers and small businesses, decentralization, no additional issue and only 5% of all issued coins managed by the Stellar Foundation. All this indicates a good growth potential in the case of the new altcoins’ season.
Not all projects managed to survive the cryptocurrency winter, and many top coins went “under the baseboard”. Examples of such failures are NEM, Bytecoin, STEEM, Stratis. In fact, the list can be very long. Despite the fact that there are about 5000 different coins in the cryptocurrency market, it is really difficult to choose worthy from them.
For long-term investment, development prospects with a road map, a professional development team, and a large and active community are primarily important. All the projects discussed above have these characteristics. At the same time, BTC, ETH, BNB, TRX, XLM are still in the TOP list by trading volumes, which provides liquidity and makes it possible for large investors to buy.
Author: Kate Solano for Сrypto-Rating.com