So, what are the best crypto coins to buy in 2020? Is it Bitcoin, Ethereum, or one of the many other crypto-currencies now available?
There is no one correct answer to which coins to buy right now in 2020. Most digital coins you can buy represent excellent investment opportunities for both novice and experienced coin buyers.
Here we look at how to buy coins and which are the top ten for value this year.
The guide is divided into two sections. The first part is for newbie digital coin buyers, and the second part is for more experienced crypto investors.
Before we start, remember that there is a wide variety of coins to buy. Investing in cryptocurrency is inherently risky, but you can spread the risk by buying coins of varying types. Diversification is the name of the game. And this applies whether you are entirely new to buying coins or a seasoned veteran investor in cryptocurrencies.
Diversify your coin buying
To diversify their coin collection, we recommend that novices buy more than one kind of coin. Doing so spreads the risk.
Buying coins that are less prone to volatility, and which are easy to store and trade, are best for beginners. We will examine each in turn and give you the knowledge necessary to make informed decisions on which digital coins to buy.
Usually, Bitcoin is the first cryptocurrency people will have heard about in their daily life. This awareness is because it was the first-ever crypto coin you could buy, and today is still the most widely traded cryptocurrency.
Nobody knows for sure who ‘minted’ this cryptocurrency. But it is widely believed to have been created by Satoshi Nakamoto. Whether this is a nom de plume, we still don’t know for sure. However, the open-source underpinnings of Bitcoin are regularly updated.
Bitcoin, which makes up 60% of the crypto marketplace valuation, is one of the most accessible coins to buy and sell. With Bitcoin, the focus is on the ease with which it can be bought, sold, and converted into cash.
Despite Bitcoin’s price being volatile, it remains a stable cryptocurrency. Anyone wishing to manipulate the price would, therefore, need to have deep pockets.
If this is your debut buying digital coins, Bitcoin is the best place to start for beginners.
If Bitcoin had a sister, Litecoin would be its sibling. As such, it is a dependable coin to buy right now and is powered by the same source code as Bitcoin. Litecoin, though, is faster to process, so it is better for retail purchases and has ambitions to be a global p2p currency.
Computer scientist, Charlie Lee of Coinbase fame, founded Litecoin. He is well respected within the cryptocurrency community and is a brother of Bobby Lee, who developed BTC China.
Litecoin is currently ranked as the sixth-largest cryptocurrency, and compared to other smaller market cap cryptos is much less volatile.
While rival, Bitcoin gets by with 21 million coins, Litecoin has 84 million coins to buy and sell.
Again, Litecoin is one of the best coins to buy for beginner’s dabbling in cryptocurrency.
Another attractive crypto coin to buy is Ethereum, which is second only to Bitcoin. What sets Ethereum apart from the pack is the ease with which it is possible to buy and sell coins.
Ethereum was also the first significant cryptocurrency to offer smart contracts. This innovation made Ethereum the de facto blockchain ‘web.’
Courtesy of Ethereum, it is possible for developers to create dApps (decentralized applications) to operate on the blockchain. Today, it warehouses tokens and allowed the advent of the process of initial coin offering (ICO).
Like other top cryptocurrencies, Ethereum is less prone to volatility in price. As a result, it has gained a lot of traction in the market. It is now arguably in the top three most valuable coins you can buy.
Going forward, dApps which run on Ethereum coins have the potential to ensure Ethereum remains stable and gains further market share in the future. Without a doubt, Ethereum is a great coin to buy in 2020. The potential to roll out global applications powered by Ethereum is huge as dApps, and smart contracts become ever more crucial to big business.
Binance Coin (BNB)
Binance is one of the most important digital coin exchanges in the world. This means that novices researching how to buy coins should take a look at Binance to diversify their portfolio.
The BNB coin is the token used in the Binance exchange. Its value flows from how versatile the BNB coin is within the Binance exchange.
By trading volume, the Binance coin is one of the most popular out there. However, volatility remains high. That said, those buying Binance coins in 2019 saw their value increase three-fold.
The initial coin offering of Binance coins saw 200 million BNB coins issued for ten cents per coin. Since then, the number of coins in circulation has steadily decreased thanks to Binance buying back their coins. The consequence of this has been to push up the price of BNB coins.
If you wish to buy coins, Binance is offering discounts on trading fees. The cut starts at 50% in the first year and then goes on a sliding scale in subsequent years, reaching zero in the fifth year of trading.
Basic Attention Token (BAT)
If you have downloaded the Brave web browser, you will already be aware of BATs as a means of tipping content providers and service providers online.
The BAT, then, is a utility token that can be used for one-off payments or recurring payments to creatives. It is also linked into the browser’s ad watching reward program for users. Advertisers hold the BAT tokens, only releasing them when the user views their advert.
While there has been volatility in the BAT valuation, the price has remained remarkably stable in the last two years. It is widely expected that the market value of BAT will increase in the future.
Looking ahead, BAT could prove to be one of the best coin buys of 2020. The Brave browser, with its added privacy, security, and speed, is setting out to be a Google Chrome-killer. If you are new to buying coins, BAT may be the way to go to dip your toe into cryptocurrency.
Coin buying for beginners roundup
The five digital coins we have discussed are as safe as a cryptocurrency investment as you can get. All five are backed by experienced teams and are an excellent way for novice coin buyers to invest. There is potential for growth, and all make good choices to diversify your digital coin collection.
Top coin buying advice for experienced digital coin buyers
Before we continue, bear in mind that while there is potential to make more significant profits, it comes at the price of higher risk. We also assume here a degree of knowledge of projects that are currency-focused and platform-focused.
So, what are the top five picks for experienced coin buyers?
Consider Monero as it is highly liquid due to its focus on privacy that protects the identities of coin buyers and coin sellers. As such, Monero has been the go-to cryptocurrency on the dark web.
Monero is consistently one of the most reliable by market value, hence its popularity with coin buyers and coin sellers. Monero’s XMR coins are undoubtedly in demand, and this looks set to continue in the foreseeable future.
A word of warning, though. Monero is gaining popularity, but storing the coins is a pain compared to Bitcoin, Ethereum, and BAT, for example. Only experienced investors should buy coins from Monero.
Nicknamed the Chinese Ethereum, NEO is a similar smart contract-based platform that uses dApps on the blockchain. NEO, though, is much more centralized than Ethereum, with just ten decision-making nodes compared to the hundreds deployed by Ethereum.
Buying coins from NEO is not a biggie. It is a highly liquid currency that has enjoyed less volatility than many others. This fact raises hopeful forecasts for the future.
Given the number of NEO coins in circulation and the way they were rolled out, it looks suspiciously like the coin supply is now finished. Expect the price to increase in step with future demand.
In the long term, NEO has a lot going for it. The smart contract segment is vast and growing, and with NEO ruling the roost in China, it is a very significant cryptocurrency option. Going forward, NEO appears to be a top tip for experienced investors and can act as a hedge for Ethereum.
Privacy-focused like Monero, Beam coins have been causing a splash. Where it differs is in its deployment of an innovative blockchain protocol entitled Mimblewimble.
This new protocol is designed to scale up the blockchain and boost the speed of transactions. At the same time, it offers a serious level of anonymity for transaction participants.
Beam, it should be noted, has a modest market cap, but is highly liquid. Consequently, it is easy to buy coins and sell them whenever you need. Additionally, Beam coins have been consistently hovering around $1. Nonetheless, there is potential to plunge or soar at any moment.
Like Bitcoin and Litecoin, Beam deploys the Proof of Work (PoW) protocol. Users, therefore, buy hardware to mine Beam and earn rewards.
Beam will top out at shy of 263 million, but inflation will be linked to block rewards, which are halved every four years. This halving is designed to ensure inflation decreases over time. If demand increases, this will likely be matched by an increase in the coin’s price.
With its scalability, privacy, and speed, it is understandable that Beam coins are good buys for experienced investors.
Nexo is a software wallet cryptocurrency that has been attracting a lot of attention lately. Nexo allows users to borrow against the value of their tokens, or loan their cryptocurrencies and earn interest. Currently, Nexo is also issuing credit cards for free to its users.
The innovative Nexo business model is intriguing coin buyers. As a digital coin, it is unique in that it is regulated by the US Securities and Exchange Commission. And it also pays dividends to investors.
The team responsible for Nexo is headed up by European fintech legend, Kosta Kantchev. He was one of the pioneers of Bitcoin and co-founded one of Europe’s top fintech companies, Credissimo, Nexo’s backer.
Nexo makes an excellent choice for the small experienced digital coin buyer. The growth in price has been organic, so fluctuations have not been drastic to date.
Nexo is a new name in cryptocurrency but has grown into an exciting investment opportunity for the experienced investor. It is a unique coin and makes for an interesting option for those who wish to diversify their cryptocurrency portfolio.
Unlike others in the field, Nexo is a project with a functional, real-life product to its name.
Similar to NEO and larger rival, Ethereum, Cardano is another competitor in the smart contract sphere definitely worth a look by the experienced investor.
Hopes for Cardano are pinned on it becoming more scalable and having development tools that are easier to use than others.
The underlying technology and the credentials of the founders have ensured that Cardano is one of the top players in cryptocurrency by market volume. Because of the high level of trading, ADA coins are easy to buy and sell.
Progress, of course, has not been without peaks and troughs. That said, ADA coin buyers have seen only a moderate amount of volatility.
Taking the broad view, Cardano is a leading cryptocurrency coin buy in 2020, driven by a highly experienced team with a clear vision of where they want to go. In this case, scalability through the introduction of distinct layers of technology, one for tracking ledger balances, and the second to transfer value.