How to Research the Best Cryptocurrency to Invest in 2020 Like a Pro

How to Research the Best Cryptocurrency to Invest in 2020 Like a Pro

The popularity of cryptocurrency has significantly increased in the last two years and continues to draw millions of investors this 2020. Cryptocurrencies peaked high and attained exponential returns, as well as dramatic declines. However, due to the rise of numerous scams, most beginners have problems finding the best cryptocurrency to invest in 2020. Most of us have been riding in the same boat since its advent.

Are you confused on how it works?

Are you also looking for cryptocurrencies to invest in 2020?

Or do you ask yourself if you should be investing in Ethereum or Bitcoin?

This blog is here to help.

By the end of this post, you’ll know how to research the best cryptocurrency to invest in 2020, like a pro.

But first, let’s have a recap on cryptocurrencies.

So, what are the best cryptocurrencies to invest in 2020?

  • BITCOIN (BTC) – Probably the one you heard since the advent of cryptocurrency. It is recognized as the largest cryptocurrency, currently taking 40% share in the total crypto market cap. It was the first cryptocurrency to be recognized worldwide in 2017 and continues to dominate the market at present. If it continues to increase as it did in the last three years, then investing in BTC might be a good shot this 2020. The price of BTC fluctuates every single day. According to Bitdegree, the price of BTC rose from 76 USD to as high as 20,000 USD (all-time high) in December 2017. However, it dropped to around 6,000 USD in February 2018 and has been decreasing ever since.
  • ETHEREUM (ETH) – In 2017, ETH became the second most-traded cryptocurrency, placing behind BTC with an exponential growth of 3000% of the same year. Unlike BTC, ETH is not just a digital currency but a more advanced blockchain project; its platform provides developers the chance to build their own cryptocurrencies. Basically, ETH makes launching of new blockchain projects easier. Last year, the price of ETH peaked at 720 USD with a total market cap of around 70 billion USD. In 2018, ETH hit its highest price of 1,423 USD with a total market cap of 138 billion USD.
  • RIPPLE (XRP) – In the last three years, XRP rose to the crypto markets with a claimed growth of 36,000% and was recognized as one of the best cryptocurrencies of 2017. However, like other cryptocurrencies, the price of XRP has also diminished significantly in 2018 and currently set at 0.36 USD. If ETH has an efficient platform for rising blockchain projects, XRP’s reason for popularity is its payment system. XRP uses advanced blockchain technology in making more secure and quicker international payments. Like literally completing transactions in seconds.
  • LITECOIN (LTC) – LTC was recognized as the 5th biggest cryptocurrency with a stunning market cap of around 11 billion USD. It was created as an improvement of BTC’s technology and claims to complete transactions 4x faster than BTC. LTC was also the first cryptocurrency to utilize the Lightning Network, a novel technology of remarkable speed that can transfer LTC within the blockchain network in a second regardless of distance. Like XRP, LTC exhibited outstanding performance in the last three years with a claimed growth of 8,000%. The price of LTC rose from 4 USD to as high as 358 USD in 2017. Unfortunately, like the other cryptocurrencies, it also trailed the price trend and dropped to 110 USD in February 2018.

Investment Planning: How to Research the Best Cryptocurrency to Invest In

Do you wonder how investors make decisions whenever they want to invest in real estate or stocks? Or when do they start making investments?

STEP 1: Mark Your Target

Before you invest in any chosen platform, you must mark your target and define your purpose. You should have a firm mindset if you want to invest in cryptocurrencies. You need a clear grasp of what your investment goals are, how you will reach them, ideas of how long you are prepared to keep an open investment, and what amount of profit you are willing to take.

Let me first define you the types of investments:

  • LONG TERM INVESTMENT – This is when you expect a cryptocurrency to perform better over a longer period, which usually takes 6 months to 1 year. It is up to you how you choose to invest; you can either invest at different times or make your full investment in one go. Long term investing makes your life easier as you do not need to watch the market all the time. You believe that some cryptocurrencies will get a better return in the long run.
  • SHORT TERM INVESTMENT – This is made over shorter time periods with the hope of making quick profits which can take minutes, days, or even a few months.

BEFORE INVESTING, you must have a strong grasp of what your primary goals are:

  1. Will you sell the cryptocurrency after a certain period or will you sell it when it reaches a specific price?
  2. Will you sell off your investment at different times or all at once?
  3. Under what conditions would you sell the long-term investment? (If new things came that could affect the long-term price of your investment, you might sell it sooner.)

STEP 2: Research About the Platforms First, Know the Pros and Cons

Next, you should research which cryptocurrencies are suitable for you. I recommend that you check for the following:

  1. Is it a licensed virtual currency exchange? Or authorized by security commissions?
  2. Is it affiliated with government banks and licensed brokers?
  3. How good is their road map to success? How much losses can you accept?
  4. Is their technology better than the others?
  5. What’s their current market cap? Trading volume? ICO?

STEP 3: Focus, Do Not Lose Sight of Your Goals

The determining factor for your investments to grow is to focus. If you truly trust the cryptocurrency you invest in, you should learn to hold onto your investment even when the prices fluctuate. If you panic sell, then you could lose a significant amount of money.

Words to Ponder

Although cryptocurrencies can give you great profits, you must be prepared for one important thing — TO LOSE MONEY. Always remember that your predictions won’t always be right, and nobody knows what is going to happen to the price of a cryptocurrency.

As most cryptocurrency investors say:

“You should only invest money that you can afford to lose”.

Extreme caution should always be exercised.

So, this is the end of our How to Research the Best Cryptocurrency to Invest in 2020 Like a Pro guide. We hope we’re of great help to you and your journey to cryptocurrency investing.

About the author

Hi I'm Jeff Kiefer and this is my blog. I've been in the Internet Marketing industry for over ten years now, and I would like to share all my experience, insights and other fun stuff with you guys!

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