If you're just getting into cryptocurrencies, chances are you're big on Bitcoin. And you wouldn't be wrong as Bitcoin is still a very strong investment. But, while it's a great cryptocurrency, it is not the only one of the market. As a matter of fact, over 5000 altcoins are being traded at this very moment.
Only a few will survive, however, and not all of those are worth your time. Still, there are a few out there that could end up giving Bitcoin a run for its money at some point in time.
Some of these could also have more potential for growth than Bitcoin.
Let’s take a look at some of the reasons why Bitcoin is still a great coin to invest in 2020 and the other cryptocurrencies you should keep an eye on.
Bitcoin is Still King
If you own crypto, then you need to have some Bitcoin in your wallet.
That’s because it has the largest market share out of all cryptos and this is not going to change anytime soon.
Bitcoin counts for over 40% of the crypto market and is by far the most recognisable crypto. It is also the one with the most liquidity.
The problem with Bitcoin, however, is its fundamental flaws. One of them is excessive transaction fees and the second is slow transaction times.
Bitcoin is still a sound investment due to how accessible and popular it is.
It’s also one of the best cryptocurrencies for beginners. If you want to learn how to invest in Bitcoin, we suggest you check out Coinjournal’s Bitcoin guide.
It teaches exactly how to purchase Bitcoin step by step.
It also teaches you about the different platforms for buying Bitcoin and explains which one would be the best depending on your situation.
Watch Out for Ethereum
A lot of people see Ethereum as competition to Bitcoin, but it really isn’t.
Ethereum isn’t just a cryptocurrency, it is a programming ecosystem. It allows people to program their own decentralised apps that will be powered by Ethereum’s network.
In other terms, it allows people to rent Ethereum’s massive decentralised blockchain in exchange for Ether, the platform’s proprietary token.
What this also means is that you can use Ethereum’s platform to launch your own cryptocurrency and many cryptocurrencies are already doing so.
This means that there is an intrinsic value to Ether whereas Bitcoin is purely subjected to the forces of supply and demand.
Ethereum costs a little under $350 USD at the time of writing, which could end up being a bargain.
That’s because some observers like Julian Hosp are predicting that its market cap could increase to 200 billion USD from the around 38 billion USD it is today.
If this prediction turns out to be correct, Ether could be hovering around the $2000 USD mark.
Ripple is Making Waves
Another crypto that deserves more attention is Ripple. Ripple is the battered stepchild of the crypto industry.
This is because Ripple and its token, the XRP, were made to serve legacy systems, not go against them.
XRP and the Ripple network were created solely to facilitate money transfers between people and institutions.
The Ripple network is not decentralised either.
This is why some people don’t see Ripple as a ‘true’ cryptocurrency, even though it is in every way. Ripple could be a very sound investment for someone who’s looking for a steady store of value.
Ripple is the third biggest cryptocurrency in terms of market cap, and the XRP still has room for growth.
Ripple’s network is also the most trusted and respected by major institutions, with Santander, JP Morgan, and American Express counting as partners.
So, if you’re looking for a coin that is relatively stable and will continue to get attention for the next few years to come XRP would be a good option.
The goal here is to look at new partnerships. These could have a direct effect on the price.
What About Litecoin?
Despite the name, Litecoin is far from being a “light” version of Bitcoin. As a matter of fact, Litecoin does a lot of things that Bitcoin can’t.
Transactions are processed much faster on Litecoin, and, unlike Bitcoin, Litecoin could be more useful as an actual currency.
It is the fifth cryptocurrency in terms of market cap, but there’s no telling where it could go.
Litecoin doesn’t get the same brand recognition as Bitcoin and there are chances that it never will.
However, there is the possibility that it will get adopted by people in savvier industries. Litecoin is already being embraced by many in e-commerce, for instance.
This is why Litecoin should be part of anybody’s portfolio.
A Look at Project Based Cryptocurrencies
While some people like to invest from a purely speculative standpoint, and others for transactions, others may want to look for blockchain-based projects they want to support.
Tron is a prime example. It is a content sharing platform that focuses on keeping user information private. It sees itself as an alternative to other platforms like YouTube or even Facebook and could be promising.
You also have platforms like EOS that are quite similar to Ethereum with a few minor differences. EOS, for instance, allows for some transactions to be performed for free.
You even have platforms like Golem that allow you to use the computers in its massive network to rent some of their CPU power.
You also have cryptos now that mimic the movement of certain commodities, like gold for instance.
These cryptos could allow you to own gold that will be stored in a vault and could be redeemable. Paxos Gold is a perfect example.
These could be a good option for people who would like to combine real assets with crypto or find a more accessible way to own commodities.
Conclusion: Bitcoin yes or now
Bitcoin still is a great option for anyone getting started with cryptocurrencies. However, there are tons of different options out there to choose from.
So, make sure that you do your homework, and look at the details of every project before you even think of investing.
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