by | Aug 20, 2020 | Precious Metals

As of August 2020, there are over 2,000 exchange-listed cryptocurrencies on the market. With so many altcoins to choose from, it’s easy to lose track of the most promising coins and ICOs. Luckily for you, we’ve put together a list of the best cryptocurrency to invest in 2020 so you can trade with confidence in the months ahead. 

With the Covid-19 pandemic hitting the crypto market hard in Q1/Q2 2020, there’s been a great deal of disruption that has affected price stability across a number of coins. In light of the developments surrounding the coronavirus outbreak, we’ve provided our best judgment regarding the upside potential and downside risk of some of the year’s hottest coins. 

 

Our Top 5 Cryptocurrencies For 2020

Below, we’ve listed the five cryptocurrencies that we’re most bullish on in the months ahead. From decentralized oracle networks such as Chainlink (LINK) to smart contract platforms like Ethereum (ETH), we narrowed our picks down to five diverse, well-balanced selections that have proven themselves resistant to Covid-19 related price movements and are poised for strong future growth.

 

Ripple (XRP)

Although Ripple often gets a bad rap from decentralization purists, XRP remains one of the most promising cryptocurrencies on the market. It’s a real-time global settlement network that lets users make instantaneous and cheap cross-border payments. 

Plus, Ripple has the backing of large institutional players such as American Express, HSBC, Barclays, and Azimo through their RippleNet platform. Currently, XRP is the third-largest cryptocurrency token by market cap ($12.9 billion) and boasts a trading volume of $2.4 billion. 

It’s unclear whether Ripple will live up to its promise of replacing (or at least competing with) the SWIFT international payment system. Following the outbreak of Covid-19, XRP took a big hit in March and April 2020. However, its strong fundamentals, mainstream media coverage, and deep institutional backing make it a worthy hold through the rest of 2020.

 

Litecoin (LTC)

For years, Litecoin has been a reliable altcoin in a market full of half-baked competitors. Often referred to as “silver” to Bitcoin’s gold, LTC has much faster transaction times than BTC and a greater number of coins can be produced compared to Bitcoin. Therefore, LTC is considered by some pundits to have a greater potential for mainstream adoption than BTC.

Litecoin is the 7th-largest cryptocurrency by market cap (>$4 billion as of August 2020) and has a trading volume of over $3 billion. Backed by its proprietary Scrypt cryptography (instead of the industry-standard SHA-256 algorithm), LTC is a unique coin that has a legitimate chance to become a widely adopted international currency. 

As depicted by the chart below, LTC’s recovery from the March 2020 coronavirus crash has been strong and steady. As the momentum builds, investors would be wise to get on board and increase their holdings in LTC for 2020-2021.

Source: Coindesk

 

Chainlink (LINK)

Chainlink (LINK) is undoubtedly the hottest cryptocurrency of 2020, as evinced by its rocketing 60% growth in July alone. LINK has proven itself to be a promising growth coin, but one that’s mired by volatility and extensive media hype. Media personalities such as Dave Portnoy have recently taken long positions in LINK, which has contributed to significant internet buzz around the digital asset.

Our Chainlink price forecast is quite bullish for 2020-2021. We find that, despite the inflationary bubble that it currently finds itself in, LINK has a positive risk-reward profile as some experts predict a price ceiling as high as $2,000 in the next couple of years. For this reason, it’s a worthwhile hold for risk-tolerant investors. 

 

Basic Attention Token (BAT)

Basic Attention Token (BAT) is an advertising token built on the Ethereum blockchain. The main value proposition of BAT is that it creates an ad exchange market that brings together users and advertisers. The BAT token is issued as a reward to those who view advertisements on the Brave web browser. 

BAT is a unique token that has the potential to drive tomorrow’s most popular web browser. Few cryptocurrencies manage to differentiate themselves from BTC and ETH like Basic Attention Token. The bottom line is that digital advertising isn’t going away any time soon, and BAT is the leading decentralized platform for bringing digital ads to the blockchain. We foresee BAT as a strong long-term hold with a price ceiling of around $0.80.

 

Bitcoin (BTC)

Finally, Bitcoin (BTC) is our last cryptocurrency recommendation for 2020. Due to the coronavirus pandemic, BTC has enjoyed a price boost as investors seek safe-haven assets while the U.S. dollar and the equities market tumbled. During times of instability, BTC has proven itself as a relatively safe bet. For this reason, BTC deserves a place in every crypto investor’s wallet. 

The benefit of investing in Bitcoin is that there’s far greater upside potential to BTC than there is downside risk. When Bitcoin’s price tumbles, as it did in January 2018, it experiences a relatively steady recovery pathway before booming again. Due to its relative stability and its status as a household name, Bitcoin should be included in your portfolio in 2020.

 

Our Verdict: What’s The Best Buy of 2020?

The best cryptocurrency to invest in 2020 varies according to one’s risk tolerance. For the risk-averse investor, BTC and LTC are the safest options that are headed for slow and steady growth in the year ahead. XRP and BAT are for the riskier investor who can afford to make a loss if these assets dip in the coming months. 

For those willing to take a gamble, LINK has the highest upside potential—but its momentum could come crashing down at any time if whales decide to abandon the project.

No matter what coins you choose to invest in 2020, make sure you properly diversify your crypto wallet. Consider opening a self-directed cryptocurrency IRA to hedge against systemic risk and diversify your retirement portfolio while sheltering your gains from Uncle Sam in a tax-deferred account. 

 

Amine Rahal