Cryptocurrencies became an important tool of investment within the last years. It took little time for various crypto-currencies to appear, following Bitcoin, which remains the best known and oldest of them. Those new currencies (called alt-coins), according to analysts, seem just as promising and have many trading opportunities.
In this article we will tell you about the 10 cryptocurrencies that seem to be the most promising,so you too can follow (and likely to buy) them.If everything works well, those currencies will prove to be good investments in 2020, but also for the years to come.
Of course, after reading our list of top 10 successful cryptocurrencies, nothing stops you from doing your own analysis.
Stellar Lumens (XLM)
If there is one cryptocurrency that has been making investors happy since its launch, it is indeed Monero. Put into circulation on April 18, 2014, to guarantee greater secrecy, this virtual currency uses the CryptoNote algorithm. In other words, this crypto-currency guarantees anonymous payments.
The prime purpose of anonymity is to prevent the leakage of personal data to Peer-To-Peer network users. Only the sender and the receiver have access to the transaction-created one-time address. The rise in Monero ‘s value after its launch is certainly explained by the increasing need for anonymity throughout the internet. Though 2018 and 2019 were challenging for the currency, Monero ‘s stability turns it into a future asset, making investors more loyal. Monero is also surrounded by a certain hype for being the cryptocurrency that most of the hackers use to be paid a ransom.
Created by the Breitman couple in 2014, Tezos is a crypto-currency that uses smart contracts to carry out transactions that are anonymous and fast. It also enables its customers to build decentralized applications.
The XTZ protocol is based on OCaml-language code. Due to formal authentication, it is not easy to find cases of hacking or freezing of funds.
Moreover, Tezos is conquering the financial world with an estimated market cap of billions of euros. Renowned businesses have decided to trust the Tezos chain. We may cite Dalma Capital, BTG Pactual or Elevated Returns, among others.
Even though its price (as prices of all cryptos) is very unpredictable, over the first 6 months of 2020, investors made good earnings.
Cardano, which was launched in September 2017, rapidly expanded to a multibillion-dollar company. Cardano, inspired by Ethereum, seeks to become more than just a blockchain technology payment provider. It allows developers to use the framework to create their own blockchain applications. Unlike Ethereum, where the two layers are interlinked, the dual-layer structure of Cardano is treating each layer separately.
Within recent months, Cardono’s price has been rising steadily. According to the crypto research firm Messari, with a cumulative rise of over 200 percent since the beginning of this year, it outperforms BTC big time. This success has certainly guaranteed him a special place in the spotlight.
The cryptocurrency has had many names since its launch in 2014, such as XCoin or Darkcoin before the name Dash (Digital Cash) was adopted.
The Dash network’s key feature is the speed of transactions. Its creator (Evan Duffield) aim was to make the fastest possible blockchain because Dash wants to become the go-to cryptocurrency for daily spending.
For the network which provides anonymous transactions (PrivateSend option), which is a major support for Dash prices, respect for private life is also essential.
The other key appeal is that this project is self-funded and autonomous, ensuring that the creation and growth of the network are not dependent on external donations.
Following a dramatic increase in prices in 2017, prices have now stabilised.
Zcash (ZEC) is a cryptocurrency that Zooko Wilcox O’Hearn, a Colorado-based American computer security specialist, introduced in 2016. The founder decided to build a blockchain that was private and untraceable and could also be used in a global payment environment.
The Zcash token is easily available at the cryptocurrency trading platform. They are other bought next to Bitcoins (BTC), Ethereums (ETH) or Ripple (XRP) to quote the most popular of them.
ZCash is a very attractive coin, since the beginning of this year, its price has multiplied by more than 3 times.
NEO is the NEO network’s native currency. NEO was originally known as Antshares and was founded by Da Hongfei and Erik Zhang in 2014. The NEO project aimed to develop a “smart economy” following its name change in 2017. That includes the exploitation of smart contracts to distribute digital products effectively.
The NEO token hit its highest price in January 2018 at nearly $200 after the leadership had its name changed to the NEO network. The NEO price is about $15 as of today and has almost doubled since early 2020.
EOS belongs to the third generation of blockchain and cryptocurrencies. Its goal is clearly to surpass Ethereum. Riding on an unprecedented craze, EOS founder Daniel Larimer managed to raise funds summing up to an incredible $4 billion during the ICO (Initial Coin Offering).
Choosing EOS to diversify your portfolio of cryptocurrencies could be a logical idea. Investors expect to benefit from the resale, even considering the high volatility of their values.
Stellar Lumens (XLM)
Stellar Lumens, was created by Jed McCaleb in 2014, is now known by one of the best qualities in the cryptocurrency world.
The Stellar blockchain validates operations within 2-5 seconds of operations. The network is capable of executing 1000 transactions per second as well. Moreover, transaction fees are rather low. This is why its users are calling it “decentralized PayPal”.Like the other virtual currencies to XLM should be closely followed in 2020, since its launch, Stellar Lumens has reported a strong increase in its price.
Established in 2015, ChainLink is one of the cryptocurrencies on the web with a dedicated and active community. It is the very first online trading site in the cryptosphere to use smart contracts with “oracles.”
It functions in the same way as Ethereum ( ETH). Since the start of the year 2020, it has reported a rather bullish movement with a price that has multiplied by more than 10.
IOTA, released in 2015, is based on a ‘blockless’ proprietary blockchain named Tangle. The IOTA, stands out from other cryptocurrencies, because of it’s strategic alliances with reputable brands such as Cisco Systems Inc. and Samsung Electronics Ltd. That can lead to even higher value in the future.
According to the consulting firm Bain, the IoT market is projected to hit $470 billion in 2020. Moreover, since early 2020, its price has already risen sharply.
Which crypto trading strategy to use?
There are two main types of trading strategies for those who want to use a cryptocurrency trading platform.
Buy and hold conservation strategies
These strategies consist of long-term investment in cryptocurrencies.
To set it up, one would need to purchase virtual currencies using a crypto exchange site. Then you can keep them in an online or offline crypto wallet free of charge to use or resell them later.
If you want to try what is called a “buy and hold” strategy, you keep your tokens rather than reselling them shortly after you buy them.
We suggest that you still closely follow news and trends to put the odds on your side in this type of strategy.
On the crypto-currency markets, geopolitical and economic news can have a huge impact. A common skill of all professional traders is reading the market and feeling the trends.
It is important to be continuously aware of the news and to see how the markets respond to them in order to make decisions and manage accounts.
There are good free blogs and websites out there, they are really accurate and based on paid real-time news services. You may also consult the economic reports of the large banks’ research departments, documents that are often difficult to understand, but which are very reliable and allow you to use the economic analysis in your advantage.
Scalping and day trading strategies
Among the more active and agressive types of trading, cryptocurrency scalping and day trading are the most popular.
These two strategies take advantage of minor price fluctuations over a few minutes to a few hours, primarily based on chart analysis (technical analysis),the movements of which can be amplified by the use of leveraged products such as CFDs for example.
You should know that learning process never stops for a crypto-trader, and you will have to make sure to constantly deepen your knowledge, particularly with regard to the use of advanced trading indicators.
Besides If indicators like the Moving Averages that are known to most of traders, there are also hundreds of others, such as the RSI or the MACD, that are more complex to use or less know to the majority of the market players. Their principle, however, remains the same: you constantly monitor and send buy and sell signals.
These metrics help you identify turning points in the market, and confirm that patterns are going to continue.
It is therefore important to constantly train in new technical metrics, to remain at the cutting edge of research. This will allow you to incorporate these metrics into your method of trading and thus make it evolve.
I am no financial advisor, but I personally follow a buy and hold strategy. Important is to pick your projects based on the underlying value of the coin and not just speculate on news and partnerships.