Cryptocurrencies have transformed the business world. They have created a whole new approach to investing. Although only 3% of investors currently trade with digital currency, the numbers are steadily increasing worldwide. The cryptocurrency market is growing at a rapid pace. As a result, new cryptocurrencies have emerged almost every year since the launch of Bitcoin. Many experts are predicting a significant increase by 2020. Some of these currencies are more secure than others. Read on to find out more and discover the three most promising crypto-currencies in 2020.
BITCOIN, in top position
Bitcoin is the star of cryptocurrencies and the first to catch the attention of the general public. It is also the digital currency that is the most widely used by investors. It is the first cryptocurrency to operate on the blockchain system. This technology allows the secure and transparent storage and transmission of information without the need for a central control body. In other words, hundreds of computers simultaneously record every transaction made with Bitcoins. This guarantees a very high level of security, which makes the transaction unfalsifiable. The blockchain can be compared to a ledger, which is public and permanently accessible. All transactions that have been made since the beginning are listed on it.
Let’s not forget that Bitcoin reached almost 20,000 dollars in December 2017. A spectacular rise, much to the delight of investors. After three years of ups and downs, Bitcoin finally stabilised in 2019 and is currently holding at around $11,700. This is the best option for investors who want to invest in cryptocurrencies safely and hope to achieve a long-term return on their investment. Bitcoin is the original cryptocurrency, making it a safe bet. A rating of the most promising crypto-currencies in 2020 would therefore be incomplete without Bitcoin at the top of the list.
ETHEREUM, the favourite of the ICO sector
Ethereum and its currency, Ether, is one of the most popular cryptocurrencies, just behind Bitcoin. Launched in 2015 by Vitalik Buterin, a Russian-Canadian computer scientist who was 19 at the time, Ether has since seen a sharp increase in value. The strength of Ethereum, which is comparable to Bitcoin, lies in its blockchain, the technology on which it is based. Its blockchain can be used for a multitude of applications, unlike Bitcoin’s blockchain, which is only used for transactions.
Ethereum can be used to create “smart contracts”, for example. Some specialists believe that this could radically change and improve the way in which all transactions are carried out. In their view, the Ethereum blockchain could eventually act as a “trusted third party” in a transaction. It could potentially replace the intervention of notaries or lawyers. In addition, Ethereum is gaining ground in the ICO (Initial Coin Offering) sector. An ICO is a method of fundraising that works by issuing digital assets that can be exchanged for cryptocurrencies during the start-up phase of a project.
After experiencing a few setbacks, this crypto-currency is currently worth over $270. The forecasts for 2020 are rather optimistic. Some analysts even claim that Ethereum could reach the level of Bitcoin. We don’t entirely agree with this statement. However, we do believe that Ether will continue to grow and remain one of the leading crypto currencies next year. This clearly makes it one of the most promising cryptocurrencies in 2020.
STELLAR, the undervalued cryptocurrency
Stellar is an open source value exchange protocol founded in 2014 by Jed McCaleb and Joyce Kim. Its cryptocurrency is the Stellar Lumens, also known as XLM. Stellar enables peer-to-peer capital transactions in real time. This means that Stellar primarily targets microtransactions and international payments. The creators of Stellar also feel they have an altruistic mission. A large part of the world’s population remains unbanked. Stellar therefore seeks to create universal access to the global economy. With this cryptocurrency, the global payment system is made accessible, inexpensive and easy to use. The individual is placed at the centre of Stellar, unlike other cryptocurrencies. So, we could say that Stellar is the humanist of the group!
Stellar also plans to cover its operational costs by reserving 5% of the total available Stellar Lumens for its own use and by accepting donations. According to some experts, the price of Stellar Lumens, which is currently only $0.23, could rise sharply in the coming months. Which would bring it up to about $1. Although this is far from the price of Bitcoin and Ether, Stellar is clearly undervalued in view of its potential. Firstly transactions are almost instantaneous (2-3 seconds). And secondly, they are almost free (0.00001 XLM per transaction). How much time and money do you think it would take to send a $1000 transaction to France using a traditional bank transfer? Or from Canada to Argentina? With Stellar, it only takes a few seconds and a fraction of a cent. These are significant advantages.
A small cryptocurrency with big partners
It may surprise you to know that Stellar is partnered with Stripe, IBM and Deloitte. Going back to the IBM partnership, Stellar recently partnered with this huge US company as part of its IBM Blockchain World Wire project. They aim to collectively solve the problem of global cross-border payments. This association is very promising for the future of this cryptocurrency. In our opinion, Stellar is grossly undervalued given its potential, and the scope of what they plan to do with IBM. Stellar has a strong team, reliable technology, a working product, and a great idea with a positive impact on the world and significant partners. So now is most certainly a good time to invest in this cryptocurrency. You wouldn’t be taking much risk, and it could well pay off in a big way.
Are cryptocurrencies really showing promise in 2020?
Investing in cryptocurrencies can lead to extremely profitable opportunities. However, you do need to be aware of the latest market trends and know how to buy and/or sell them properly. Investors wishing to inject money into crypto-currencies need to be very careful and spend a lot of time and effort evaluating future trends in this area. This is not a simple task, but it is necessary, as the cryptocurrency market is still very new. We need more hindsight to have a comprehensive view of this market. It is also important to know exactly what you’re getting into. The three cryptos that we have presented to you here, however, are all safe bets. And 2020 will be the year they come into their own.
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