This year is proving to be quite fruitful for cryptocurrency HODLers. The king of crypto, Bitcoin, rose 3x from around $4,000 to just over $12,000 recently. Many of the altcoins have followed.
The current question on many cryptocurrency enthusiasts mind’s is…which coin to invest in now?
2020 is proving to be a remarkable year for assets. Gold hit all time highs, so did the NASDAQ, and even Bitcoin looks poised to make a run for its all time high of $20,000.
What are the criteria to look for when choosing the three best cryptocurrency to buy now in 2020 that could skyrocket?
Spot a Skyrocketing Crypto by Keeping Up With the News
Knowledge is always the first and best tool when it comes to spotting the next rocket ship in the crypto game.
Find a solid crypto news source and stick to it daily, even multiple times daily, if you have the time.
If you can catch crypto news on small sites before it hits bigger sites — then you’ll be able to stay a step ahead and board the rocket ship before it launches.
Spot a Skyrocketing Crypto by Trying Their Project
The projects which earn the most money are the ones which provide the most value to their customers.
The wild days of the ICO — when companies could make incredible money simply by making big, bold promises — are over. These days users in the cryptocurrency space are much more savvy and knowledgeable. They want to see working products, traction, and happy user reviews.
You can be sure that a company which delivers quality products will be one with a bright future.
The best way to spot that is to try to be a customer yourself.
The cryptocurrency Beam springs to mind. Since their launch they’ve focused on rolling out updates to their blockchain, software, and wallets. All this to help their users regain their financial privacy and keep control over their keys and funds.
Spot a Skyrocketing Crypto by Reading About Their Innovations.
A project and coin doesn’t need to only give products and value to their direct customers. They can also be delivering value for the community as a whole.
Enjin is a company that has been developing video games since before bitcoin even existed. When they discovered Ethereum and the capabilities of the blockchain, they incorporated those abilities into their work.
They’re the ones pioneering and championing the ERC-1155 smart contract — which is a contract with the ability to provide better smart contract functions for collectible items. An article explains it like this:
“While ERC-20 and ERC-721 tokens required a new smart contract deployed for each new “class” of token, the core concept behind ERC-1155 is that a single smart contract can govern an infinite number of tokens.
Think of this like a vending machine that holds a wide variety of soda, juices, and even snacks. A customer interacts with the machine using a single secure interface (inserting a coin, pressing a button), and the machine dispenses the goodies they have selected. In the same way, an ERC-1155 contract made for a game could contain a wide variety of items, from weapons and armor to health potions, magic scrolls, and more.
Each of these items could be “fungible,” having more than one copy available. Fungible tokens are used for divisible currencies (most ERC-20 tokens), and they’re also very useful for stackable items that don’t need to be differentiated, like a bundle of arrows for a bow.“
These types of innovations help the whole ecosystem. This type of help drives up the price of the cryptocurrency native to the company as well as the prices of the coins which are also part of the ecosystem.
Never Forget the King of Crypto
In the end, if you want to buy a cryptocurrency in 2020 that might skyrocket — you might not need to go any further than Bitcoin itself.
The famous Stock-to-Flow model for Bitcoin is predicting a shot at $100,000 in the future.
If you’re not experienced in trading other altcoins or simply don’t want to risk your funds on their projects — then putting a little bit into Bitcoin might be the way to go.
Of course, as with all of these cryptocurrencies, never spend more than you’re afraid to lose….not only because you might lose all your money, but also because if you’re emotionally tied to your crypto then you might sell too early or buy/re-buy too late.
Just like it was said at the start of this article — arm yourself with knowledge. Read more about these cryptocurrencies and many others. Then you can decide how much you want to spend and where to put it so that you can gain the most from the combination of your risk appetite and your circumstances.