Introduction
Cryptocurrencies have been gaining in popularity over the past few years. With the rise of Bitcoin, the first and most well-known cryptocurrency, other options have begun to emerge in the market. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, and other cryptocurrencies have become viable investment options for many people. Cryptocurrencies are often volatile, but their overall trend has been positive as more and more people adopt them.
In this article, we will discuss the best cryptocurrencies to invest in 2020. We will cover each option’s pros and cons so that you can make an informed decision about which ones are right for you.
Bitcoin
Bitcoin is the original and most well-known cryptocurrency. It was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin is a decentralized digital currency, meaning it is not subject to government or financial institution control. Transactions are verified by a network of computers and recorded in a public ledger called a blockchain. Bitcoin can be bought, sold, or exchanged for goods and services.
Bitcoin is often lauded as a revolutionary technology that could change the financial world. However, it remains to be seen whether it will be widely adopted.
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is a public blockchain-based distributed computing platform, featuring smart contract functionality. It provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called "ether", which can be transferred between accounts and used to compensate participant nodes for computations performed. "Gas", an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.
Ethereum was proposed in 2013 by Vitalik Buterin, a cryptocurrency researcher and programmer. Development was funded by an online crowdsale that took place between July and August 2014. The system went live on 30 July 2015, with 11.9 million coins "premined" for the crowdsale. This accounts for approximately 13 percent of the total circulating supply.
In 2016, as a result of the collapse of The DAO project, Ethereum was split into two separate blockchains – the new separate version became Ethereum (ETH), and the original continued as Ethereum Classic (ETC). The value of the ether token is determined by free market dynamics; it is not backed by any central bank or government.
Litecoin
Litecoin is one of the most popular cryptocurrencies today. It was created in 2011 by Charlie Lee, a former Google engineer. Litecoin is similar to Bitcoin in many ways, but it has a faster transaction speed and a larger supply of coins.
Litecoin is often called the "silver to Bitcoin's gold." This is because Litecoin is cheaper and more accessible than Bitcoin. Litecoin is a good choice for investors who want to diversify their portfolios.
Bitcoin Cash
Bitcoin Cash is a cryptocurrency that was created in August 2017. It is a fork of the Bitcoin blockchain, with the main difference being that it has an increased block size limit of 8 MB. This allows for more transactions to be processed per second, and therefore, reduces fees and waiting times. Bitcoin Cash also has replay protection, meaning that if one chain is attacked, the other will not be affected.
Ripple
Ripple is a cryptocurrency that was created in 2012. It is based on a peer-to-peer network and allows for fast and cheap transactions. Ripple is different from other cryptocurrencies because it doesn't use a blockchain. Instead, it uses a distributed ledger system that is managed by a network of computers. This allows for faster transaction times and lower fees. Ripple is also one of the most popular cryptocurrencies, with a market capitalization of over $10 billion.
Conclusion
When it comes to the best cryptocurrency, there is no one-size-fits-all answer. Different cryptocurrencies offer different benefits and drawbacks, so the best choice for you will depend on your individual needs and preferences.
However, we can narrow it down to a few contenders. Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple are all excellent choices for different reasons.
Bitcoin is the original cryptocurrency and still the most well-known. It's also the most widely accepted by businesses and exchanges. Ethereum offers smart contract functionality and is also gaining traction as a platform for initial coin offerings (ICOs). Litecoin is faster and cheaper to transact than Bitcoin, making it ideal for small payments. Bitcoin Cash is a fork of Bitcoin with improved scalability. And Ripple is a popular choice for banks and financial institutions looking to use blockchain technology.
Ultimately, there is no single best cryptocurrency. But if you're looking to get started in the world of digital currencies, these six coins are a good place to start.
