Since 2009, when Bitcoin was created, the Cryptocurrency market has grown steadily. Over the years, an increasing number of cryptosystems have been developed, offering solutions that Bitcoin did not offer (and still doesn’t to this day). Presently, internet users can choose between many different cryptocurrencies. Which ones are worth investing in, and which ones should be used as a substitute means of payment?
Is it still worth investing in cryptocurrencies?
The year 2020 proved to be disastrous for financial markets – the coronavirus pandemic did not spare the Cryptocurrency market either. The first months were marked by a drastic fall in the value of many digital assets, including Bitcoin, Ethereum, Binance, or EOS. It was only around October and November that the situation began to improve. Currently, Bitcoin’s exchange rate has reached the value of 30 thousand dollars. Significant improvements can also be observed in the case of other digital currencies. Therefore, the answer to whether it is still worth investing in cryptocurrencies is: yes, definitely.
Virtual assets, because of their volatile exchange rates, are a rewarding investment product. You can earn a lot of money from them. Of course, you can also lose a lot, but “there is no fun without risk, and to win, you have to play.” As this introduction indicates, in our list, we considered the investment potential of individual currencies. Thus, this is a ranking intended primarily for investors who use cryptocurrency stocks exchanges. But not just that. Some of the individuals who purchase the best cryptocurrencies use them as a means of payment – so we also took into account the popularity of a given currency and the estimated number of cryptocurrency trading and service outlets that accept it. We discuss other essential criteria below.
Most importantly, our ranking does not cover all cryptocurrencies available on the market! We have devoted our attention only to the most promising ones.
The best cryptocurrencies: what did we consider?
Any comparison of this kind is arbitrary to some extent. However, by revealing the criteria we used, we allow you to evaluate our choice on your own. The criteria could have been different – our ranking of the best cryptocurrencies would then probably look different.
CoinMarketCap’s ranking
The first consideration is the position of the cryptocurrency in question in CoinMarketCap’s ranking, which has a Good reputation in the crypto sphere. We valued projects with an optimal ratio of risk to possible profit higher than those likely to gain value in the coming months. However, they are currently inferior to many other projects.
Annual ROI chart
The second criterion we took into account is the annual ROI chart, which professional analysts frequently use. This chart shows the price history of individual currencies. It allows comparing the Return on investment (ROI) that investors who invested part of their capital in these currencies could count on last year. One of the most prominent specialists, Benjamin Cowen, famous for many accurate forecasts, uses this chart in his work. You can find many of his analyses online, including the latest one, in which he identifies the cryptocurrencies with the highest ROI between March and December 2020: LINK, VET, and ADA.
Experts’ opinions
The third criterion, the most arbitrary, is the opinions of experts. Many of them contribute regularly online: on YouTube, on portals dedicated to cryptocurrencies, or on social media. It is worth remembering that not everyone who claims the right to speak publicly about exchanges or cryptocurrencies deserves to be trusted. There are Qualified specialists who know what they are talking about and dilettantes with superficial knowledge and little experience among commentators. In our list, we have included the opinions of three analysts: the already mentioned Benjamin Cowen, Kevin Svenson, and Lark Davis.
The best cryptocurrencies on the exchange
Below, we will identify each cryptocurrency’s main features, its capabilities, and the differences between the various networks. We emphasize once again that our ranking is not a complete source of information about projects based on blockchain technology. We tried to select the best cryptocurrencies with the most chances to achieve commercial success in the coming years.
TOP 3: Ranking of the best cryptocurrencies
The best cryptocurrencies: Chainlink (LINK)
The best project is undoubtedly the Chainlink currency (LINK for short). The network has already managed to consolidate its position in the crypto market, and in 2020 it rose to the top of several rankings. As recently as early July, the currency’s rate was $5 (USD). It only took a few weeks for the price to rise to $20. After the correction, the price fell by 65%, but still, none of the investors got scared. Since then, the price has steadily increased, as has the number of people using the network (from August to December, the number of users increased by 59%). Sergey Nazarov, the co-founder of the cryptocurrency, took second place in the “DeFi Person of the Year” poll. The jury cited in their reasoning that LINK has become a standard solution in data handling by the so-called oracle.
In the compilation of Benjamin Cowen, who compared various exchanges, LINK took first place. Between March and December 2020, the project proved to be the most profitable investment in the crypto market. This revelation has also been confirmed by Kevin Svenson, noting the significant rate increase over the past year. If the upward trend continues, LINK will become one of the leading cryptocurrencies in 2021. The network is continuously growing, annexing an increasing number of new areas of the global economy. There is no indication that this trend is about to change. So buying LINK may turn out to be a great idea.
The best cryptocurrencies: VeChain (VET)
The second place in our ranking was taken by the VeChain (VET) currency. It is a powerful platform based on blockchain technology, designed to exercise Reliable control over processes related to the delivery of various types of products. Thanks to the use of blockchain technology, VET provides producers, distributors, vendors, and buyers with the possibility of controlling the quality of delivered products without the help of external companies or institutions.
Each production and the logistic stage is subject to control. VET operates under the BaaS (Blockchain as a service) business model, with a unique blockchain network and VET cryptocurrency. Users of the system can also use a utility token called VeThor Token (VHTO), designed to pay for transactions and activate the so-called smart contracts in the VeChain system (a similar function is performed by Gas in NEO).
VET allows all participants in the production and logistics process to follow its progress in real-time. Buyers, distributors, retailers, and manufacturers have full control over the product at every stage of its creation and distribution. A Specialized system is used for this: VeChain Identity (VID). With this tool, it is possible to locate where a product is currently located instantly. This possibility is provided by an NFC chip, a unique QR code, or a radio transmitter. VeChain is also equipped with a notarization feature, allowing you to assign ownership rights to each cryptocurrency. The data is stored on a durable medium.
We have devoted so much space to the VET cryptocurrency’s unique features because it stands out from other projects with its immense possibilities. It is a unique platform, filling a severe gap in the market. In 2015, it was created by a Chinese developer Sunny Lu, who still manages the entire project. Three years later, it lived to see its own network (main net) called Thor, and the VET cryptocurrency displaced VEN tokens, supported by Ethereum (ERC20).
The VeChain system is an exciting newcomer to the industry, and one can assume that it will continue to be successful. A growing number of companies, small and large, are using it. One of VET’s business partners is the American seafood giant KnowSeaFood. Thanks to VET, farmers worldwide can communicate with consumers, who will gain full insight into the origin of the seafood they buy.
The VET exchange rate continues to rise – in direct proportion to the public interest in the currency. Almost every exchange includes it in its offer. This is one of the most promising projects and a real treat for investors.
The best cryptocurrencies: Cardano (ADA)
The third place belongs to Charles Hoskinson’s project. Cardano’s network was created with a very noble purpose: it was meant to be a tool for creators, Innovators, and visionaries who could use it to bring about positive change with a global reach. Sounds fantastic? And yet, that was the basic premise of the leading creator of this system. The change he talked about is to redistribute power. The ultimate goal is to shift it entirely from centralized, anonymous structures into the hands of individuals who will be guided by the purpose of creating a safe and just society.
Cardano’s native token has been circulating for three years. After the end of the bubble in 2017, the price of the currency increased noticeably. The large declines that followed stabilized the ADA price below $0.10 (USD). Only in recent months has the cryptocurrency reached $0.10, and, as you can see from the charts, it has been gradually rising. The 2020 price momentum has ranked Cardano among the top three projects in the world. In terms of ROI, ADA may surpass LINK in the near future. Cardano’s platform thus has a good chance of becoming a profitable investment.
SUMMARY
Above, we described the best cryptocurrencies currently available on the market. If we were to extend the list a bit, the fourth-place would go to the Polkadot (DOT) project, while the fifth-place would go to the Ethereum(ETH) currency, which was created to create a global environment for decentralized applications. This would be followed by other well-known cryptocurrencies such as Bitcoin (BTC), Stellar (XLM), Tron (TRX), Neo (NEO), Binance Coin (BNC), Litecoin (LTC), Enjin Coin (ENJ), EOS, or Ripple (XRP). Those investing in Bitcoin may feel disappointed that the world’s most famous cryptocurrency didn’t make the list of the top three projects, but oh well…
We realize that our ranking, as we have already stated, may seem arbitrary to some extent. That’s why we extracted the specific criteria that guided us at the beginning. Naturally, investors will have the greatest benefit from this ranking. The projects we have identified are promising primarily as investment products. Those who do not use a cryptocurrency exchange but use Bitcoin or other virtual money to pay should pay attention to such projects as Neo, Tron, Litecoin, ETH or EOS (all of them are based on blockchain technology and have great opportunities ahead). BTC is more of a product for investors. Every cryptocurrency exchange has these currencies on offer. You can also purchase them at a traditional exchange.