By Michael Kuchar
2020 started with some good moves in some of the major cryptocurrencies. As a bi-directional market which allows you to profit from long trades as well as short trades, these cryptocurrencies could hold great potential for you.
But why should you focus on these cryptocurrencies?
a.) Good volatility with high trading volume
In any financial market, you are basically trading against the dealer or other traders. Without volume and volatility, you are left with a dead cryptocurrency which only ties down your money while good things happen elsewhere…without you. You should be able to buy and sell at will with instant order executions, and your preferred cryptocurrency should have good range of movement to help you profit from its movements.
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b.) Easy to buy or sell
The cryptocurrencies to focus on should be the ones that are easy to buy or sell on popular cryptocurrency trading platforms like Binance, Etoro, ROinvesting or IG, as a result of their general acceptability to the entire market. There is no gain in trading cryptos that no one has ever heard of or one that no one wants. If you check for example ROinvesting review, you will easily see which cryptocurrency pairs are commonly traded and which ones are sparsely traded. The candles in the latter will look more like stacked matchboxes than real candles.
Now that we know the character of the crypto assets we should look out for, here are some of the cryptocurrencies to focus on in 2020.
Bitcoin will continue to command number 1 position because it is the cryptocurrency which best fulfils the conditions listed above. It commands the most market volume, is easy to buy or sell, will always have demand and will have supply willing to meet that demand. It commands great range of movements that can potentially turn the right move into good profits.
Litecoin was created as an analogue of Bitcoin, and so it tends to track the movements of Bitcoin in the market. If Bitcoin is too expensive to trade or commands too much volatility for your account to handle, then Litecoin is a good alternative. Most of the time, you will find that the same price patterns on Bitcoin tend to form on Litecoin, and at lower prices too. So if you have a small account, Litecoin is a good trading alternative for 2020.
Ripple may just be the sleeping giant that could awaken in 2020. This is because the project has a working product that is very likely to be the future of global remittance and bank wire transfer systems. More than 75 banks from all over the world have signed up to the Ripple network. How the price of Ripple continues to trade at such cheap levels is still a wonder to many discerning crypto investors. Imagine a company with a product that has the potential to be used by billions of people in the not-too-distant future, and you have Ripple Labs. The Ripple token could be the one to surprise many this year and it is still at cheap level. As at the time of writing, it is not even up to 25 cents per token. What you would use to buy 1 BTC can fetch you nearly 8,600 XRP tokens. Lest I forget, I need to mention that the company was able to secure $200m additional investment in December 2019. Keep an eye on Ripple for 2020.
EOS is surely but quietly making giant strides in the decentralized apps (dApps) market. While Ethereum and TRON have traditionally been the two names in this space for real-life dApps and gambling-related dApps respectively, EOS is quietly taking over that market. The 260 dApps that have been created on EOS commanded a trade volume of $5bn in the last year, which represented 50% of the total spend on dApps in the market. This also surpassed the total amounts spent on Ethereum and TRON in the dApps market. EOS is also commanding more activity in this space than Ethereum or TRON. The EIDOS launch on the EOS platform has increased the number of transactions on that platform by a factor of X4. EIDOS has conferred on EOS a status of the dApp network which has lower users that command the largest activity volumes. EOS should be on your watchlist for 2020 and the cost of the token is still below $4.
These are the top 4 cryptocurrencies you need to watch out for in 2020, a year that we believe will see greater value for cryptos that are adding value to the ecosystem as well as churning out real-life use case products.
About the Author:
Michael is an experienced financial trader using Forex, Commodities and Cryptocurrencies. In addition to trading, he runs businesses, trains traders and develops trading technology products. His other passions are boxing and traveling.