2020 is the year of the corona virus, with almost all financial markets jumping in all directions. More and more people are looking for alternatives to their savings accounts and are quickly turning to stocks, cryptocurrency or index funds.you’ve come to the right place because today I’m going to list the top 5 cryptocurrencies which you can look out for in 2020!
What is Cryptocurrency?
I guess the topic deserves a small introduction to what this whole cryptocurrency jazz is all about. Well, digital payments have replaced the whole idea of carrying cash with you! Whether you want food, groceries, cabs or even a general service, you can pay for everything digitally, but it’s not really like cash payments. Cash is untraceable, cash can be spent anonymously and more so cash is trusted. Escaping these problems was the promise made by bitcoin. It had the beautiful anonymity of cash and it was cash that was not printed by the government. Instead, it was made by a bit of code that was powered by the citizens of the internet and you could trust it. Today, anyone can buy crypto. A few sign-ups, smash in your credit card details and trade in your money for digital cash. Bitcoin got so popular that by the end of 2017, it was as valuable as the big banks it stood against. Today there are thousands of cryptocurrencies other than bitcoin, and in this article, I’m going to list the top 5 cryptocurrencies.
05. Binance Coin
The last currency in our top 5 is the Binance Coin, this is the native currency of the crypto exchange Binance. This platform is developing new features so fast that holders of Binance Coin can benefit greatly from them. Binance is the market leader in the field of crypto exchanges and offers many other services.
By having Binance Coin you can grow along with the exchange. Binance was the first to release a native currency after that many other exchanges followed. No other token is as popular as Binance Coin.
VeChain has been a household name in the crypto world for quite some time and has a large community behind it. After the rebrand in 2018, the VeChain price went down considerably. Nevertheless, the team is still working hard on the project and have many practical examples for their solutions.
Chainlink is another project that is doing great. Not only did Chainlink achieve new all-time-high several times in 2020, but Chainlink’s solutions are also being implemented by other blockchains. For example, they are working on so-called Oracles that make it possible to integrate external data into blockchains. As a result, they collaborate with many other projects such as ICON and Ontology.
In addition, the technology is also used for DeFi platforms and they are entering the Pharmaceutical sector. The sharp price increases in 2020, the new Oracle technique and many collaborations make this a very interesting project.
Ethereum became especially popular in 2017 when the ETH price rose from $10 to almost $900. Especially for the early investors this was a nice return of investment. Nowadays the Ether price fluctuates around $200 and is at position 2 based on market capitalization. Update August: around $400.
Ethereum is a second-generation currency which introduced special new features. The introduction of the platform allowed people to create ERC-20 tokens on the platform and execute smart contracts. Especially when ICO’s were very popular, this was widely used.
Bitcoin is the largest and oldest cryptocurrency in the world. Virtually the entire market follows the Bitcoin’s price. If the price goes down, the altcoins often follow as well. According to Bitcoin, no user is a trusted user and everything must be verified by public consensus which is achieved by a mathematical process called “proof of work”. We won’t get into the working of proof of work, but let’s just say its very resource heavy and equally trustworthy and hard to break. It was truly the first piece of tech that promised security over the internet. As of this day, the market capitalization of the world’s top digital currency is more than $125 billion, with a price per coin of more than $6547.