Cryptocurrency trading provides a myriad of opportunities for both short-term traders and those looking to make more serious investments. Are you a ‘hodler’? Then consider buying these cryptocurrencies for the best long term investment. They promise to show tremendous growth in the upcoming years.
What Does Long Term Mean?
When it comes to investments, “long term” is pretty relative. Traditionally, holding a currency for 1+ year is considered to be long term. However, when it comes to cryptocurrency, it’s hard to establish some benchmarks. A lot depends on how much time it takes for a cryptocurrency to take its place under the sun and gain market capitalization. While Bitcoin and other crypto giants might grow by hundreds of dollars overnight, for other less popular assets, it might take years to gain some 50-200%.
Top 10 Crypto Coins to Invest in 2020
1.Stellar Lumens (XLM)
Although Stellar Lumens (XLM) is trading at as low as $0.05, it is not a cryptocurrency with low capitalization. This is a great choice if you are looking for a cheap cryptocurrency to invest in in 2020. With one of the largest market capitalizations of all cryptocurrencies in circulation, XLM still has great potential for growth.
Stellar works to accelerate payments and reduce fees on cross-border transactions. XLM is widely used by companies with multi-million capitalizations, and is one of the leading cheap cryptocurrencies. XLM is currently the 13th largest cryptocurrency coin in terms of market capitalization ($1 063 138 615 as of 01/16/2020).
During 2019, the number of Stellar accounts increased by 73%, and the company shows a clear development uptrend. 2020 promises to be full of events for Stellar: the company has expanded its staff to 56 people and plans to establish a more inclusive financial system.
Ethereum is the second most popular cryptocurrency. It is considered the most serious competitor to Bitcoin. And all thanks to the fact that ether has one important advantage over other altcoins: it can be immediately exchanged for dollars without having to first convert it to Bitcoins (as is the case with other Bitcoin-dependent cryptocurrencies). The demand and popularity of this digital currency is also associated with its unlimited emission. That means that in theory it could be mined for a very long time. Ethereum is not just a cryptocurrency.
The system is a decentralized application development platform. The more such applications work, the more stable the Ethereum project as a whole and the higher the cost of its tokens.
Currently, more than 1,000 applications are running on the Ethereum platform.
Based on the smart contracts technology, the broadcast completely turned the concept of the course of financial transactions. Self-executing contracts facilitate the process of concluding a transaction and tracking the fulfillment of obligations of the parties, and make interaction between the parties as simple and transparent as possible.
2020 is a very important year for Ethereum. First, the switch to Ethereum 2.0 is getting closer. Secondly, Serenity protocol is designed to simplify the implementation of smart contracts. There’s only one issue that raises concerns: will ETH and ETH 2.0 exist side-by-side?
Possessing all the main features of a digital currency (decentralization, cryptographic encryption methods, lack of control by the state), this Chinese cryptocurrency also has strong competitive advantages thanks to which it confidently established itself in the Top-10 currencies by total market capitalization.
NEO is distinguished by significantly lower commissions than the ones for other blockchain systems, the energy-efficient PoS algorithm, support for most popular programming languages, which expands the prospects for the commercial use of the cryptocurrency. Collaboration with the Chinese authorities and partnership with leading world corporations also contribute to the stable growth of the coin price and its rapid market advancement.
Monero is considered one of the most anonymous cryptocurrencies. This is a very promising currency characterized by unlimited emission and a high level of capitalization: it has all the chances to grow in the upcoming years. Monero’s advantages are also associated with a special mining method which makes it impossible to use ASIC devices. Thanks to the introduction of the CryptoNight algorithm, the process of extracting new coins on the Monero network is more decentralized. The popularity of cryptocurrencies is also positively affected by its easy scalability: Monero has no block size restrictions.
5.Pundi X (NPXS)
Pundi X (NPXS) is a transaction management system that can be deployed in small and medium-sized trading businesses. It allows you to conduct payment transactions in a convenient payment system using cryptocurrency. The main feature of Pundi X (NPXS) is that the buyer and seller can use their existing crypto for transactions.
You can also buy cryptocurrencies such as Ethereum, Bitcoins, ERC20 tokens, etc. using Pundi X. The NPXS application allows users to replenish their cards with existing real currency. This helps users sell blockchain-related services in the physical market.
Pundi X is considered to be one of the best long term investments for 2020. It has already displayed great potential: for example, in 2019, its growth was about 150% in just a week. Trading volumes are gradually rising, and the price of $0.00013608 is what attracts early investors.
6. IOTA (MIOTA)
Why long term investment strategies include buying MIOTA? This is a very attractive asset for traders. The peculiarity of the IOTA cryptocurrency is that it operates without commissions and miners. The project developers managed to launch a fully self-sustaining and infinitely scalable network where users themselves confirm the transactions of other users. Moreover, the project is not based on Blockchain: instead, it uses the unique Tangle consensus method. It is also noteworthy that this coin was launched as a means of payment for implementing the IoT (Internet of Things) concept. Experts suggest that by 2020, the number of connections through IoT will exceed 1 billion. The popularity of IOTA, respectively, will also grow.
7. Ardor (ARDR)
Ardor (ARDR) works on the Blockchain as a Service (BAAS) business model, and this is the main reason why many companies want to invest in it. However, since blockchain is a complex technology, the barrier to entry for most enterprises is simply too hard to overcome.
Ardor is committed to providing enterprises with the opportunity to implement blockchain in their operations. ARDR is the altcoin that you need to keep tabs on because the project has the potential to serve millions of companies around the world.
8. Tron (TRX)
This is a decentralized platform similar to social networks where users watch, post and store various entertainment materials. It is also a platform created in analogy with the AppStore and Google Play, which developers use to promote games and applications.
The popularity of the Tron cryptocurrency is directly related to the prospects of the entire digital entertainment market: currently, Tron market cap is $1.12 bln, and the project continues to gain momentum. Experts suggest that in the near future 10% of all projects related to online entertainment will switch to blockchain, which will undoubtedly positively impact the investment attractiveness of this digital asset.
9. QuantStamp (QSP)
QuantStamp is known as the first scalable security audit protocol designed to track security loopholes when concluding Ethereum smart contracts. Cryptocurrencies and blockchains are vulnerable to hackers. For example, during the DAO attack in 2016, hackers stole 3.6 million ETH.
QuantStamp (QSP) Airdrop offers several new coins for long-term investors every month. Traders can make a great profit by investing in QuantStamp.
QuantStamp has reached its bottom due to the scalability issue of Ethereum which reduces its cost. Therefore, QSP is considered an interesting long term cryptocurrency investment worth less than $1.
10. Ripple (XRP)
Ripple’s XRP is one of the fastest working cryptocurrencies: this is what determines the huge demand for it among users. Being the third cryptocurrency by market cap, Ripple is widely used by banks. The project team is very actively working to promote its product: a lot of agreements are being made with large payment systems (for example, MoneyGram), as well as with Japanese and Korean banks that test coin technology. Ripple cryptocurrency has one significant difference from Bitcoin: its authenticity is confirmed by the consensus of the participants in the system. Many crypto experts believe that this currency is extremely underestimated. Some experts believe that Ripple will cost $3 per token in 2020. Although it seems to be an unrealistic prediction, XRP has all the chances to multiply its price.
The ultimate winner: Bitcoin
How could we forget about the king of crypto? Even despite its high price, Bitcoin still has the largest profit potential – it might grow by several hundred bucks in a few hours.
This is the most liquid crypto – there’s a large choice of exchanges and places where you can buy and sell BTC. Being created back in 2009, Bitcoin has always been the first of its kind, and is still the best long term cryptocurrency from an investment standpoint. Even now, when its competition grew to 1,000+ coins, Bitcoin is still the most popular.
Bitcoin has become a well-established brand: its role in the field of cryptocurrencies is as great as the role of the dollar in the global economy. Bitcoin is available on all exchanges, all calculations are made on the basis of it, all investors are guided by it.
During the 10 years of Bitcoin’s existence, its value has never decreased too greatly. Experts believe that eliminating the main drawback of the Bitcoin network will positively affect the cost of tokens, and in 2020 the first cryptocurrency will set new price records.
Make your investments in a timely manner – after a long bearish period, BTC might start getting back to $10K:
There is a wide variety of cryptocurrencies for long term investment to choose from. However, you should be able to find a diamond among a pile of stones: analyze what you’re going to invest in. While Bitcoin and Ethereum are surely a win-win scenario, unpopular and new cryptocurrencies should be picked with a more in-depth analysis.
Pay attention to:
- The team of founders and developers;
- Roadmap and current achievements;
- Price predictions made by experts (if any);
- Reviews and reputation of a crypto project;
Before putting your money at risk, you need to know what your investment goals are. In addition, you need a plan to achieve these goals. Remember that your forecasts will not be 100% accurate, so you should be prepared to a drawdown and invest only the funds you can afford to lose. No one knows what the future will be like and what will happen to the cryptocurrency market.