The best cryptocurrency to invest in spring 2020
Bitcoin may be bullish right now, but it faces a battle as it tries to return to previous levels. Is it the best cryptocurrency to invest in spring 2020?
What is the best cryptocurrency to invest in spring 2020 as the coronavirus continues to threaten the equity markets and the global economy?
It’s a tricky question – but irrespective of the financial climate, the best coins to invest in are always those that have a compelling use case.
Countless crypto pundits have argued that, in times like these, 0'>Bitcoin has potential to thrive. Central banks worldwide are effectively printing new money worth trillions of dollars in an attempt to revive their economies. Although this may help consumers in the short run, there’s a real risk of inflation further down the line. In theory, BTC offers an antidote to this because it has a fixed supply of 21 million – that said, its status as a store of value has been undermined recently because of its close correlation to the US stock market.
Others maintain that the ultimate crypto to invest in right now are those that facilitate easy electronic payments. In an attempt to reduce the spread of COVID-19, many retailers are now frowning upon the use of banknotes and coins – instead favouring credit cards and contactless payments on mobiles. This offers an opportunity for coins, and the industry as a whole, to increase public adoption.
Here, we’re going to explore which cryptocurrency to invest in now and offer an insight into the current state of the market.
Which cryptocurrency is best to invest in spring 2020?
Whatever you’re interested in, it’s likely that the best cryptocurrency to invest in spring 2020 is a lot cheaper now than it would have been just a few short weeks ago. Thursday 12 March sparked a rather nasty correction on the crypto markets, with the likes of 0'>Ether falling by more than 30 per cent. Although this was rather unpleasant for those who already own digital assets, it did provide a more affordable entry point for those who didn’t.
When deciding which crypto to invest in, you should ideally be thinking slightly longer term – and given crypto's inherent volatility, only invest what you’re prepared to lose. The best coins to invest in are unlikely to deliver a quick profit.
At the time of writing, Bitcoin is facing a battle as it attempts to head back above $8,000 – levels that have not been seen since the beginning of March. Although BTC’s price is beginning to creep upwards, the world’s biggest cryptocurrency is facing resistance every step of the way. Recently, a drive towards $7,200 was emphatically rejected, meaning it slid back into the $6,000s. It’ll likely take patience and a lot of determination for Bitcoin to return to five figures – and those hoping that it’ll break $10,000 before block rewards are halved in May could be disappointed.
When deciding the best crypto to invest in spring 2020, it’s worth looking at which altcoins have been outperforming Bitcoin – and why.
What is your sentiment on ETH/USD?
In the seven days to 6 April, BTC managed to gain 11 per cent. Just some of the cryptocurrencies that have outperformed it include Binance Coin, which is up 17 per cent. This, in part, could be down to how Binance recently acquired CoinMarketCap, with reports suggesting that the acquisition was worth $400m. Ether has posted gains of 18.3 per cent over the same period.
Even more impressive is Monero’s 23.7 per cent jump. Attention is increasingly turning to privacy in the crypto industry – an issue that is this coin’s focus. With continual improvements made to the software that supports the coin, it could be well-placed to capitalise on increasing demand for anonymity. Of course, past performance is no indication of what’ll happen in future.
Top crypto coins to invest in 2020
It seems very unlikely that 0'>Facebook’s Libra stablecoin is going to launch this year, even though this was a stated aim. The social network has faced overwhelming levels of regulatory pressure, and the coronavirus pandemic will have undoubtedly delayed development further.
That said, it’s likely that we are going to see more of an emphasis on digital assets designed to foster financial inclusion. This could be a blessing for the unbanked, those who currently don’t have access to checking and savings accounts. It’s also possible that coins could gain valuable inroads in emerging economies, where achieving widespread use can easily unlock millions of users.
The best cryptocurrency to invest in is one that taps into market trends. Look out for influential voices who are calling out some of the biggest challenges that the industry is facing. Scalability is likely to be one concern – and although it may seem healthy for hundreds of start-ups to press ahead with their own visions for what blockchains and cryptocurrencies should look like, this fragmentation could cause serious issues. Major retailers who start to accept digital assets as a form of payment can often contribute to substantial rises in prices, so it’s worth keeping an eye on the news.
In many ways, we’re in uncharted waters. Crypto has never had to deal with a coronavirus pandemic before, and it’s unclear how the markets will react. Investing in digital assets could very easily become a luxury as consumers free up cash to pay for essentials. For others, it may be put to the test as an alternative to stocks.
FURTHER READING: Should you invest in blockchain? Some important tips to bear in mind
FURTHER READING: Cryptocurrency regulation in Europe: where things stand