Nowadays, cryptocurrency is one of the most promising investments. Undoubtedly, Bitcoin is the best option to choose; however, the cryptocurrency market is loaded with a great variety of different altcoins. Are they even worth investing in? We say YES. You should always diversify your cryptocurrency portfolio.
The crypto market is very young and is still changing. For example, in recent months, the crypto market has moved from $130 billion to $250 billion. That allows you to experiment with different cheapest cryptocurrencies.
Here is our list of the penny cryptos that will explode in 2020.
Before Investing in Cryptocurrencies
The most trusted digital currencies are the ones most popular among traders and crypto investors. However, those that eventually hit the top 10 in the rankings start small – even Bitcoin did. Here are a few signs to look out for that mark a cryptocurrency as promising:
- high liquidity,
- stable rate growth,
- prospects for further development of the ecosystem,
- reputation of developers.
All in all, you should always do your own research on the crypto you are going to invest your money in. Never invest more money than you can afford to lose.
Most Promising Cryptocurrencies in 2020
You need to invest in a variety of assets in order to diversify your portfolio so as to reduce risk. There is always a chance that at least one of the coins you invested in will drastically go up in price, much faster than the rest, those following a general trend, will. Here is our ultimate Top-9 list of the cheapest and most promising cryptocurrencies.
#1. Chainlink (LINK)
Chainlink cryptocurrency facilitates the interaction of the consumer with the supplier of goods or services. Due to the active integration of blockchain technologies into the life of an ordinary person, such currencies have been in massive demand recently. ChainLink appeared in 2017 in the USA. The developer is SmartContract, a company founded in 2014 in San Francisco.
Chainlink has developed a technology that forms channels between different data providers through blockchain technology. He created oracles that ensure the implementation of a smart contract between the crypto infrastructure and third-party sources of information. This allows you to create information networks between several companies. Such networks are not regulated by anyone or anything other than a smart contract and are essentially decentralized.
Chainlink allows all network operators, that is, information providers, to earn their token LINK. Participants receive a certain amount of coins as a reward for using smart contracts with Chainlink oracles and inclusion in the network.
From an investment point of view, Chainlink looks like a pretty attractive project. Here you can see the list of confirmed partnerships:
- V SYSTEMS
- Dapps Inc
- Google Cloud
- RTrade Technologies Ltd
- Matic & more
The profitability of investing in the cryptocurrency according to CoinMarketCap charts was estimated at several hundred percent already at launch. The exchange rate did not fall below the initial price multiplied by two, even during significant downturns in the cryptocurrency market. It is likely that now that the market is stabilizing, we can count on it to grow.
You can read our Chainlink (LINK) price prediction for 2019-2020, and decide whether to invest in this cryptocurrency or not.
- One Coin Price: $2.68
- Market Cap: $937,857,647
- ROI: 1,612.27%
- Market Rank: #16
#2. Basic Attention Token (BAT)
Eich offered a fundamentally different format of interaction that is beneficial to both parties. Users choose whether to watch ads or not, and the browser monitors their activity in real-time. For the functioning of such a mechanism, BAT tokens are needed. These are internal coins for calculations in the Brave browser.
Then BAT can be withdrawn to a cryptocurrency exchange and swapped for other coins.
So why is it profitable to invest or simply to use Brave and earn BAT?
- Firstly, the creators of the browser and cryptocurrencies launched a massive affiliate program designed to popularize the project. Many YouTube channels, well-known bloggers, and websites are rewarded for recommending Brave to their users.
- Secondly, the Basic Attention Token project secured the support of the anonymous Tor browser and the DuckDuckGo search engine. This news positively influenced the market dynamics of BAT, and the cooperation itself is sure to expand the Brave user base.
- One Coin Price: $0.247024
- Market Cap: $335,060,632
- ROI: 46.84%
- Market Rank: #28
#3. Synthetix Network Token (SNX)
Synthetix Network Token (SNX) is a platform network token that allows you to create online assets that track the value of real assets. The SNX token is the core of the Synthetix network and allows people to participate in the creation of Synths and provide them support. In turn, synthetic assets allow everyone to benefit from asset ownership without actually owning it.
The Synthetix project appeared at the end of 2017 and was called Havven. Synthetix Network Token operates on the Ethereum network and is an ERC-20 standard token. SNX is used as a reward for using these tokens for collateral and mint. Each week, SNX holders who reserve tokens claim their share of the reward for the stake. Rewards must be collected within 2 weeks of receiving them. Any unsolicited rewards are added back to the entire SNX reward pool.
Synthetix is a promising project in the Ethereum ecosystem. Synthetix Network Token is the core of the Synthetix network and allows people to participate in the creation of Synths and provide them support.
- One Coin Price: $0.857354
- Market Cap: $123,212,966
- ROI: 88.85%
- Market Rank: #49
#4. DxChain Token (DX)
Thanks to the decentralized DxChain data exchange platform, users can own and control their own data, as well as safely trade and analyze data. Using blockchain technology with multiple nodes and distributed storage, the cost of retrieving and storing data is also significantly reduced.
The DX token is the main token of the network protocol. DX tokens are a secure and basic payment method between network members. The computing and storage providers needed to run various applications and transactions are rewarded with DX tokens. Miners are also rewarded with DX tokens based on the usefulness of the work they provide passively.
The project is very ambitious, as it focuses on both data storage and computing, as well as the transfer of Hadoop to a decentralized environment. It also aims to provide the world’s largest storage space.
- One Coin Price: $0.001208
- Market Cap: $60,400,886
- ROI: 72.76%
- Market Rank: #76
#5. Seele (SEELE)
Seele (SEELE) offers a neural consensus algorithm that is extremely scalable. Seele is the next generation public blockchain infrastructure project. The ecosystem uses Matrix-Proof-of-Work (mPoW). The mPoW requires miners to compute the determinants of submatrices from a matrix constructed with n hashes other than brute-force-hashing using a hash function to find the target. It consists of several steps that can efficiently prevent ASIC and GPU from dominating the network.
The project has launched its mainnet in 2019, and the token rate went up recently. If we look at the cryptocurrency’s price graph, we can see that token may be a good investment in 2019 and 2020.
- One Coin Price: $0.081551
- Market Cap: $56,812,782
- ROI: -73.14%
- Market Rank: #79
#6. Centrality (CENNZ)
Centrality is a venture studio that concludes agreements with leading innovators from various industries to create a marketplace for applications. These applications allow consumers to manage their daily tasks by transmitting peer-to-peer transactions. To gain access to all services, it is enough to go on the platform once, and the execution is carried out using blockchain technology.
CENNZ token is a token that connects the whole Centrality ecosystem. CENNZ is used as in-app currency and as a reward for customers. It’s possible to buy real goods using the CENNZ token. As the demand for the platform increases, so does the rate of its cryptocurrency.
- One Coin Price: $0.133132
- Market Cap: $141,433,331
- ROI: -69.15%
- Market Rank: #40
#7. OmiseGo (OMG)
OmiseGo is a blockchain platform for exchanging currency, cryptocurrencies and conducting transactions in real-time, regardless of where in the world the participating parties are.
The OmiseGo platform works equally well with cryptocurrencies and with many fiat currencies. Through this framework, each user can successfully make an exchange between cryptocurrencies and fiat money. The buyer pays for the goods in a way that is convenient for them, and the seller receives a currency they prefer as payment for the goods. This is just a simple overview of how the platform works.
In 2018, the OmiseGO team entered into a partnership agreement with Shinhan Bank, one of the largest banks in South Korea. OmiseGO could be a good long-term investment to diversify your portfolio.
- One Coin Price: $0.978665
- Market Cap: $137,253,217
- ROI: 82.81%
- Market Rank: #44
#8. IOTA (MIOTA)
IOTA (MIOTA) is a decentralized internet-of-things token. This project was created by German developers. The token was developed based on a distributed ledger technology designed directly for use in the Internet of Things (IoT). The system uses a directed acyclic graph (DAG) instead of a conventional blockchain.
The Internet of Things (IoT) is a system of interrelated computing devices, mechanical and digital machines, objects, animals, or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction.
- One Coin Price: $0.289759
- Market Cap: $805,395,162
- ROI: >9000%
- Market Rank: #21
#9. Ontology (ONT)
Ontology (ONT) is a project created by the Chinese Onchain company. Initially, the project was created for the introduction of blockchain in the activities of various organizations and enterprises.
Ontology describes itself as a provider of high-performance public blockchains, which includes distributed ledger and smart contract systems.
The Ontology (ONT) module works with users, assets, and objects authentication. The individual number (ID) issued to each system owner cannot be hacked. ONT ID is a framework based on a decentralized identification protocol, using blockchain and cryptographic technology, that connects people, data, and services. Furthermore, ONT ID protects user privacy and guarantee data security, enabling trusted collaboration.
- One Coin Price: $0.715312 USD
- Market Cap: $805,395,162
- ROI: -72.72%
- Market Rank: #27
Cheap or Pricey?
What definitely should not be done is to go to the exchange without a plan, succumbing to hype. You need to decide for yourself why this or that asset is acquired and what perspectives it may or may not have. If your purpose for investing is savings, perhaps you should not buy anything other than Bitcoin. This is why it is sometimes called digital gold as there is nothing more reliable than this digital ingot on the crypto exchanges.
Bitcoin is advertised everywhere, it is the most recommended crypto, it is constantly predicted to grow, but, in the world of finance, there is nothing worse than succumbing to the mood of the crowd. If this asset demonstrates false growth, then after the start of a correction, the price of altcoins can increase significantly.
If an investor is ready to take greater risk and is ready to follow the main trends of the market, then it makes sense for them to draw up an investment portfolio that will be profitable even in the changing market conditions.
- One Coin Price: $0.223874 USD
- Market Cap: $318,610,385 USD
- ROI: 33.08%
- Market Rank: #31
Buying cryptocurrency can only be profitable in the long term. Due to the high volatility, no one can guarantee short term profitability.
Choose the cryptocurrencies that you should invest in 2019-2020. Rely only on your inner instinct, knowledge and experience. If you like some kind of coin and you believe in its technology and its future prospects, then buy that coin.
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.