Which cryptocurrencies will grow in 2020

Which cryptocurrencies are the most promising for investment in 2018? Let's understand the InvestFuture material.

2017 was a significant year for the digital asset market, with capitalization rising from $18 billion to $800 billion. Unfortunately, in 2018, the trend completely changed - the value of most cryptocurrencies fell sharply, and the capitalization level fell to $260 billion.

To help you increase or at least save your money during this difficult time, we have prepared for you a rating of cryptocurrencies that, in the opinion of the editors, have the greatest potential. So, let's go!

Bitcoin

Bitcoin, the world's first virtual currency, was created in 2008 by a developer or team of developers under the pseudonym Satoshi Nakamoto. BTC tokens operate on a distributed database technology called blockchain. Using Bitcoin, you can transfer funds directly, without the participation of banking organizations. Initially, cryptocurrency was created as an alternative to fiat currencies (rubles, dollars, etc.).

Advantages:

Bitcoin has the largest community of developers and investors.
BTC is easy to buy and store as most cryptocurrency exchanges and wallets support the token.
Bitcoin is used by many large companies (Bloomberg, Microsoft, Overstock.com, Expedia.com)

Flaws:

Slow transaction speed and low network scalability.
The blockchain is capable of processing no more than 7 transactions per second.
Bitcoin can only be mined on expensive, super-powerful devices.
High commission for transferring coins.

The cheapest cryptocurrency of 2020 – Bytecoin

First place on our list is Bytecoin.
Let’s say right away that its blockchain technology may seem ancient to you (it was developed five years ago). On the other hand, the source code of the platform is completely unique, and is not based on a fork of Ethereum or Bitcoin. You can purchase tokens on sites such as Poloniex and HitBTC. Purchasing with fiat money (euros, rubles, etc.) is not possible here. Therefore, first you will still need to buy a popular cryptocurrency, such as Bitcoin. You can also learn how to do this from the article “How to buy and sell Bitcoin” on our website.

At what cost to purchase? $0.003 each. Currently, the cost of the crypto coin is $0.0045.

Ethereum

The second most valuable cryptocurrency is Ethereum. It was created in 2020 by Vitalik Buterin. Ethereum is not only a token, but also a blockchain platform on which decentralized applications and smart contracts can be developed. Thus, new projects do not have to create their own networks; they can use the ready-made Ethereum blockchain.

Advantages:

The most popular platform for creating smart contracts.
Blockchain projects can launch an initial coin offering (ICO) on the Ethereum platform.
The transaction speed is several seconds.

Flaws:

The Ethereum blockchain has a limited level of scalability.
The network uses a proof-of-work protocol and therefore requires high costs to confirm transactions.
Supports only one programming language - Solidity.
Ethereum's competitors, NEO and Cardano, offer users similar platforms, but with improved technology.

Ripple (XRP)

The uniqueness of the Ripple cryptocurrency is that it is aimed at solving problems in only one area - international money transfers. The company was created in 2012, with a total of 100 billion XRP tokens in circulation, half of which are owned by the developer Ripple labs. This makes XRP different from other digital assets.

Advantages:

The transaction fees are lower than many other cryptocurrencies.
The optimal solution in the field of international money transfers.
Ripple cooperates with many financial institutions, in particular, American Express and Santander use its platform.

Flaws:

High level of centralization, since the company owns half of the tokens.
Ripple's financial partners are developing their own digital assets and may opt out of the company's services in the future.

Seventh position - BitShares

This digital coin does not boast huge volatility, and is pegged to the yen and dollar.
According to the creators of the project, they have developed a “3 in 1” startup - a community, securities and a cryptocurrency platform at the same time. You can buy on the websites Binance, Poloniex and ZB.com. Now the value of BitShares digital money is going down, so be careful. We are confident that the optimal purchase price is $0.135. Currently the price is $0.24.

Bitcoin Cash (BCH)

The Bitcoin Cash cryptocurrency emerged as a result of the Bitcoin hard fork in 2020. BCH was created to solve existing problems with Bitcoin, especially the network's limited scalability and high transaction fees.

Advantages:

Bitcoin Cash transactions are much faster than the Bitcoin blockchain due to its larger block size (8MB vs 1MB).
The average BCH transfer fee is $0.067, which is much lower than the Bitcoin network.

Flaws:

The decentralization of Bitcoin Cash is in question, since the platform is managed by the executive body of the company.
Mining BCH tokens yields little profit and is therefore unpopular among miners.
Not all leading cryptocurrency exchanges work with Bitcoin Cash.

Bitcoin Cash (BCH)

Bitcoin Cash appeared as a result of a Bitcoin fork in the summer of 2020.
One of the youngest cryptocurrencies, Bitcoin Cash, appeared at the end of the summer of 2020 due to problems with scaling BTC blocks. The Bitcoin community decided to split the blockchain. Some participants wanted to increase the block size to speed up the processing of payment transactions, others believed that it was necessary to avoid changes now in order to get a larger blockchain in the future. As a result of the Bitcoin fork, the BTC chain was updated, and its branch, called Bitcoin Cash, received the old version of the blockchain.

Over the six months of its existence, BCH has increased in price by 840% (to $2,380), but its growth is still inferior to that of competing currencies, and the rate is only a small part of the BTC rate. There is an opinion that the cryptocurrency community needs a little more time to get used to the new version of Bitcoin, and then parity between the “relatives” will be established. Taking into account the common origin of both currencies, this forecast looks quite reasonable, and under a certain set of circumstances, it is quite possible that the value of military-technical cooperation and military-technical cooperation will be equal in the future.

EOS

EOS tokens were released in 2020 during an ICO on the Ethereum platform, and already in June 2020, the developers successfully launched their own innovative Mainnet EOS network. The cryptocurrency was created by Dan Larimer, the founder of the Bitshares crypto exchange and the Steemit website. Based on the EOS Mainnet, decentralized applications and smart contracts can be developed, as is the case with Ethereum. However, the EOS blockchain is technologically ahead of its competitor.

Advantages:

High performance of the EOS network, which can process up to 100 thousand transactions per second thanks to the use of an advanced confirmation mechanism.
EOS supports several programming languages, including C++.
The company's staff consists of experienced specialists.

Flaws:

The Mainnet network has yet to be tested in the field; its effectiveness has not yet been proven in practice.

Cardano (ADA)

The Cardano cryptocurrency was created by Ethereum co-founder Charles Hoskinson in September 2020. Like Ethereum, the Cardano platform allows the development of decentralized applications and smart contracts. The Cardano blockchain differs from its competitors in several technological innovations. The network of this virtual currency operates on the basis of the third generation of the block generation protocol of blockchain technology.

Advantages:

The project supports the scientific community of distributed database technology researchers.
The Cardano network is much more powerful than Ethereum, capable of 257 transactions per second.
The Cardano blockchain is interoperable, meaning it can interact with other digital currencies.

Flaws:

Many of the developers' ideas have yet to be implemented, so the success of the final product is not guaranteed.
Cardano faces strong competition from Ethereum, EOS, NEO and Fusion.

Litecoin (LTC)

Litecoin was created by Charlie Lee in 2011 based on the Bitcoin blockchain. Therefore, like its “big brother”, Litecoin does not support the smart contract function. The token has been on the market for 7 years and has earned a reputation as a stable, reliable cryptocurrency.

Advantages:

Transactions on the Litecoin network are completed faster than on the Bitcoin blockchain (2.5 minutes versus 10).
A relatively small average commission for transfers is about $0.179.

Flaws:

The Litecoin platform does not have any specific features that would set it apart from other digital assets.
Mining tokens is only possible on specialized powerful equipment and is expensive.

Stellar (XLM)

Stellar was founded in 2014 by Jed McCaleb, the founder of Ripple. Like XRP, Stellar tokens are designed to improve the efficiency of international money transfers. Stellar is different from all other virtual currencies in that it is run by a non-profit organization, the Stellar Development Foundation. This explains the company's goals of fighting poverty and expanding access to financial services.

Advantages:

Stellar is more decentralized than Ripple.
The high degree of trust in cryptocurrency developers is due to the non-profit nature of the organization.
Stellar cooperates with 30 banks and such large companies as Deloitte and IBM.

Flaws:

Stellar is inferior in competition to its main opponent Ripple.
The company has not created any innovative approaches in the field of international transfers.

Comments from IAFT users

Only registered users can leave reviews.
voron222qwe 08/13/2018

I agree that the emphasis will be on cryptocurrencies with the highest degree of protection against cyber attacks. Now they are working on this, and they are working actively.

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IOTA

The IOTA cryptocurrency, created in 2020, is rightfully considered unique. It works based on a protocol called “Tangle” and Internet of Things (IoT) technology. The IOTA project aims to develop and improve this technology.

Advantages:

There are no transaction fees.
The technology behind IOTA solves the problem of network scalability and therefore ensures high system performance.

Flaws:

The future of the IOTA platform largely depends on the success of the Internet of Things technology.
Several vulnerabilities have been discovered in the Tangle protocol.
If the big ones develop their own virtual currencies, IOTA may lose out to them in the competition.

IOTA(MIOTA)

Blockchain was the driving force behind IOTA . The German non-profit IOTA Foundation has been overseeing the virtual currency IOTA and launched a two-month demo of the Data Marketplace in 2018. IOTA Data Marketplace is a system that allows companies to sell data to encourage data sharing. In addition, this market does not have blocks, since all transactions on the network can be carried out for free. This removes one of the biggest limitations in blockchain technology - transaction fees. Today it is one of the best cryptocurrencies, less than 6m for 1 dollar.

On the eve of growth. Price at the bottom. Events Launch of the network coordinator on April 10. Link.

NEO

The Chinese cryptocurrency NEO was created in 2014 by Da Hongfei. It was originally called AntShares and changed its name to NEO in June 2020. NEO tokens are often called the “Chinese Ethereum” due to the platform being similar to Ethereum in many ways. Applications and smart contracts can also be developed on the NEO blockchain.

Advantages:

The NEO network is capable of processing 10,000 transactions per second.
Supports several programming languages, including C++, C#, Go, Java.
The project is supported by the Chinese government.