How to Invest in the Best Cryptos in 2020 with Bitcoin Profit App

Published days ago on November 17, 2020
By Anton Kovačić

Understanding Cryptocurrencies

Let’s start with the basics and understand what cryptocurrencies are. Cryptocurrencies are also known as digital or virtual currencies. They are decentralized networks developed on a blockchain that have a distributed ledger. The distributed ledger for these cryptocurrencies is enforced by an extensive network of computers all over the world. One of the most defining points of cryptocurrencies is the use of cryptography in securing the networks. Thanks to this security, it is almost impossible to hack, double-spend, or counterfeit the digital currencies. Another unique feature of cryptocurrencies is that they are not issued by central authorities such as central banks, governments, or similar agencies. In essence, they are protected from government manipulation and constant interference.

With cryptocurrencies, users get to enjoy cheaper transactions as the fees are lower than what we are used to on fiat networks. Even cross-border remittance on cryptocurrencies is faster and cheaper. All these features, and many more, come together to make cryptocurrencies enticing to millions of people all over the globe.

Investment and Trading Opportunities

As the number of people who show interest in cryptocurrencies increases, the value of these digital coins increases too. Cryptos have become one of the best investment opportunities, with hundreds of thousands of global traders trading them daily, while millions of people buy and store them for investment purposes.

In terms of investment, cryptocurrencies have had a better ROI over the past decade than any other asset class, surpassing gold, stocks, and more. With cryptos, investors have enjoyed hundreds or thousands of percentages of return on their investments over the past few years, with many becoming millionaires almost overnight. Thanks to the numerous investment opportunities present within the crypto space, more people are quickly venturing into this exciting market space.

However, before investing in cryptocurrencies, you need to have some basic knowledge about them. The volatility of these assets means that you could lose your entire investment capital if you do not use the right tools or know which cryptocurrencies to invest in at a particular time. Gaining basic knowledge of the different cryptocurrencies and learning how they work will help you a lot. There are also trading software and tools that are designed to make cryptocurrency trading and investment easy, even for beginners. This review attempts to address these topics and we will also discuss the best cryptocurrencies that every investor and trader should consider.

How Do Cryptocurrencies Work?

As a cryptocurrency enthusiast, you will know by now that there are various classes of cryptos, and each of them serves a particular function. Since they have various functions, they must work differently, right? Wrong, this isn’t entirely the case. Regardless of the various functions of the different cryptocurrencies, they have a similar working pattern. All cryptocurrencies are supported by a blockchain. This is a decentralized peer-to-peer network that ensures that each coin on the network is accurately kept track of, regardless of whether it is used for the trading, transfer, or stored in a digital wallet.

The blockchain has an effective infrastructure that makes it nearly impossible to cheat the network. Bitcoin was the first to enter the fray, coming up with a system that requires both the sender and receiver of funds to sign off on payments. Once they do that, a digital signature is created. To enable the creation of digital signatures, each party in a transaction needs to have a private and public key. The network miners verify each transaction on the network for accuracy. In addition, the system is anonymous and transparent, which means every transaction is visible to everyone on the network.

At the center of the network is the blockchain ledger. Each crypto has a ledger where all the transactions on a network are recorded and made public, enabling everyone on the network to see them. Thanks to the ledger, everyone on a blockchain network is forced to play fair and hence, this eliminates vices such as charge-backs and double-spending. The blockchain ledger cannot be modified or edited by anyone without triggering certain conditions.

Miners and validators are in charge of approving transactions on the cryptocurrency networks. The miners verify the transactions and proceed to add them to the public ledger. To achieve that, these miners use powerful computers to solve complex mathematical equations that are important to the transaction verification process. Cryptocurrency mining is open-source, which means that anyone that mines can confirm a transaction after they solve a problem. The miner proceeds to add a block to the transaction ledger and, in return, is rewarded with transaction fees for such an effort.

Major Classes of Cryptocurrencies

The digital currency market has grown rapidly over the past decade, and we now have more than 5,500 cryptocurrencies in existence. While that is a huge number, it shows the great potential in the cryptocurrency market. However, all these different cryptos are categorized into three major groups.

Bitcoin

This was the first cryptocurrency to be created, and it is still the benchmark for the crypto sector. Bitcoin has a market dominance of more than 60%, which means that more than half of the cryptocurrency market is occupied by Bitcoin. It has the largest market cap in the sector, which makes it the most attractive cryptocurrency for individual and institutional investors.

Altcoins

The second group are the altcoins, known as alternative cryptocurrencies. This group comprises every cryptocurrency asides Bitcoin. The altcoins are cryptos that operate their own blockchain, and they serve numerous purposes within the cryptocurrency sector. Amongst the leading altcoins include Ethereum (the second largest with over $20 billion in market cap), Tether (USDT), Ripple (XRP), Bitcoin Cash, Bitcoin SV, Litecoin, EOS, Binance Coin, and more.

Tokens

The third group is those we call the tokens. Unlike the other two classes, tokens do not operate their own blockchain. Rather, they are deployed on other blockchains like that of Ethereum, Tron, EOS, and more. The tokens are used on decentralized applications (dApps), which are designed to use smart contracts to execute transactions. The tokens are the coins used for transactions on those dApps and smart contracts. Some altcoins started as tokens that were deployed on other blockchains before they underwent mainnet and migrated to their blockchains.

Top 10 Cryptocurrencies to Buy in 2020

There are over 5,500 cryptocurrencies currently in circulation. However, these ten are the best you can invest in at the moment.

Bitcoin

Bitcoin will always lead the investment charge in the cryptocurrency sector because of its unique position. BTC is in a class of its own when it comes to cryptocurrency investment. Bitcoin is the industry leader and controls more than 60% of the entire cryptocurrency market. This means that it has the largest trading volume and market cap, hence, making it the primary investment asset for every investor.

Furthermore, Bitcoin is the most used cryptocurrency in the world. It is used for a wide range of purposes, such as payment for goods and services, trading, and as an investment vehicle. The increasing use of Bitcoin in the real-world positively affects its price and this will likely boost its value in the short and long-term.

Bitcoin recently underwent its third mining halving event in May. This is one of the biggest events in the crypto space, and it is usually followed by a rally of the cryptocurrency. Analysts are estimating that the price of Bitcoin will increase drastically over the next year, making it an interesting investment option for traders globally.
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Ethereum

Ethereum’s position in the cryptocurrency space is undisputed. It is the second-largest cryptocurrency by market cap and rightly so. Ethereum remains perhaps the most useful cryptocurrency as its blockchain is home to some of the leading decentralized apps and smart contracts in the world.

The massive market cap and daily trading volume of Ethereum provide investors with the liquidity they need to successfully invest in and trade the asset. It is also easily available to all investors as it can be found on many cryptocurrency exchanges, P2P platforms, and brokerage platforms.

A development that is making Ethereum a darling amongst investors is the soon to be launched of the proof of stake (PoS). The Ethereum network is set to migrate to the PoS protocol over the current PoW (proof of work). The move will make the Ethereum network scalable, allowing it to handle more transactions per second. With that achievement, more dApps and smart contracts will likely be deployed on the network, and Ether (Ethereum’s native coin) will gain more users. This could lead to a spike in the price of ETH in both the short and long-term.
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Binance Coin

Amongst the native coins of cryptocurrency exchanges, the Binance coin (BNB) stands out. This isn’t a surprise because Binance was created in 2017 and instantly became the leading cryptocurrency exchange in the world, a position it has maintained and expanded on ever since. BNB is the native coin of the Binance ecosystem, allowing users to pay for transaction fees at a lower rate using the cryptocurrency, to purchase new project tokens, and to serve other functions.

Binance has been expanding its presence in the cryptocurrency space by acquiring some crypto exchanges and other payment services. These acquisitions are setting up Binance to become perhaps the most valuable company in the cryptocurrency space. This is excellent for BNB as the cryptocurrency will likely be used on more platforms and services owned by Binance. The increasing usage of the Binance coin within the Binance ecosystem could lead to the further price surge, with BNB currently occupying the tenth spot in the crypto market cap ratings.
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ChainLink

Only a few cryptocurrency projects are as exciting as Chainlink. It has strategically placed itself in a unique position within the cryptocurrency space. Chainlink provides both on-chain and off-chain services that allow other blockchains to obtain data feed and APIs with ease. Thanks to their services, blockchains can get on-chain and off-chain data with ease and in real-time.

Several blockchains are using the Chainlink service to get the necessary information they require. This has increased the use of the LINK cryptocurrency over the past few months as it is now the ninth-largest cryptocurrency in terms of market cap. As more blockchains integrate it into their system, LINK will likely become an even more valuable cryptocurrency. As one of the top ten in the market, LINK has a market cap of nearly $3 billion and a trading volume of more than $1.4 billion per day. This means that investors will not struggle for liquidity when trading or investing in this cryptocurrency. Based on all of this, this makes ChainLink a good investment option for interested investors.
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Ripple (XRP)

As one of the most exciting cryptocurrency projects with real-world use cases, Ripple deserves to be on this list. It is the fourth-largest cryptocurrency by market cap, valued at over $8 billion with a daily trading volume of nearly $1 million. This cryptocurrency has enough liquidity to handle a vast number of global investors and traders.

The most enticing feature of XRP is its use in the real world. Ripple has developed several technologies that are deployed by banks and other financial institutions to handle cross-border remittance, faster and cheaper. Using Ripple solutions over SWIFT (Society for Worldwide Interbank Financial Telecommunication) saves banks both money and time when dealing with cross-border transactions. Most of these solutions are fueled by the XRP coin, and as banks use these technologies, the XRP coin gains more usage and value. As a result of this, XRP is currently one of the best cryptocurrencies to consider for investment in 2020.
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Basic Attention Token (BAT)

One of the most interesting cryptocurrencies to keep an eye on in 2020 is the Basic Attention Token (BAT). It is an exciting project that has been gaining a lot of traction within the cryptocurrency space.

The basic idea behind BAT is simple. Due to the current broken state of the digital advertising model, user and advertiser incentives do not often match. They are rather the opposite of each other. This means that consumers do not wait to watch the ads, but the advertisers want them to. BAT intends to realign the incentive structure in the digital advertisement network, enabling both the users and advertisers to enjoy the new model. As such, users are paid BAT coins when they watch ads in the Brave browser, which means that they gain financial incentives for watching an ad. With this, more customers will watch ads, and advertisers will get to sell more of their products or generate more brand awareness.

This is an excellent business model that is already generating more interest as more people start using cryptocurrencies. As more people use the Brave browser to access the internet, the use of BAT coins will likely increase, and so too will the price.
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Monero

Monero is the top privacy-focused cryptocurrency on this list. It allows people to pay for goods and services and receive money online anonymously. Due to the nature of Monero, it is almost impossible to track transactions on the network.

The features of Monero has made it largely popular among dark web users. XMR is also used by people who wish to pay for products and services without using their identities, especially in the porn industry. Monero is one of the leading cryptos, and the increasing usage of the cryptocurrency could set it up for a massive surge in its price.
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Tron

Tron is another exciting cryptocurrency project that has gained traction over the past few years. Although it has dropped down the rank in terms of market cap, it remains one of the top digital currencies in the world. The acquisitions of Steemit and Bittorrent makes Tron a unique cryptocurrency project.

Following the success Tron has achieved in the dApp and smart contracts sector, Tron is working on expanding its services into the decentralized finance (DeFi) sector. The zeal to venture into new territories and become a dominant player is another reason why Tron is a cryptocurrency to be considered seriously by investors.
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Litecoin

Popularly called the Bitcoin sister, Litecoin was one of the first cryptocurrencies to be created to correct the failures of Bitcoin. It has survived in the market for nearly a decade and has always been one of the most valuable cryptocurrencies in the crypto space, despite the challenging economic climate of the industry.

Litecoin has always been focused on micropayments. It has expanded its use cases amongst merchants all over the world over the past few years. However, what is attracting investors at the moment is the proposed Litecoin 2.0. According to founder Charlie Lee, the upcoming MimbleWimble upgrade will boost the scalability and privacy of the Litecoin network. The scalability of Litecoin will be greater than that of privacy-focused protocols, like Monero or Z-Cash. Hence, the reason why investors are interested is excited to see what this cryptocurrency has to offer going forward. When it comes to cryptocurrency investments, Litecoin is always one of the top coins to consider buying or investing in 2020.
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Cardano

One of the biggest winners recently is Cardano. This cryptocurrency has experienced a massive price boom over the past few months, and this could be because of the release of the Cardano Shelley upgrade. With this upgrade, Cardano is set to move into numerous areas in the cryptocurrency space, such as supply chains and decentralized finance. The launch of the Shelley upgrade will lead to a hard fork by the end of July, which is expected to make Cardano an even better cryptocurrency.

The developments on track by the Cardano team, led by Charles Hoskinson, is something that has intrigued investors all over the world. Cardano has jumped to the seventh on the list in terms of market cap in the cryptocurrency space, showing how much confidence investors are having in the cryptocurrency. Based on all of this, Cardano should be another cryptocurrency to consider buying in 2020.
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What to Do Before You Start Investing in Cryptocurrencies

Carry Out Market Research

The cryptocurrency market is complex, and you need to understand a project before you invest in it. Conducting in-depth research on a cryptocurrency project is the first thing to do. Everything else comes second. You have to ask certain questions and be satisfied with the answers you get. What does the project entail? Does it have a real-world application? Who are those on the development team, and what is their track record? What are the goals of the projects in both the short and long-term? Are the team transparent with their activities and how they manage funds? What are the latest developments by the team, and what are the upgrades they are working on? These are some of the questions you need to ask and find accurate answers for before you invest in any cryptocurrency.

Don’t Invest Because of Hype

Several projects have died in the cryptocurrency space, and there have also been a lot of pump and dump projects. Make sure that you take your time to invest in a cryptocurrency project based on the potential and not because of hype. Check the prospect of the project and the track record of its management team. If you don’t do this, you might encounter massive losses. The crypto market is highly volatile, and it is crucial that you don’t invest or trade based on emotions. Only work with facts, data, and statistics before putting your money in any cryptocurrency.

Understand Your Risk Level

If you are an investor, then you have to understand your strength before you invest in any project. You need to know your level of risk tolerance, the amount you can invest, how much you can wait for the cryptocurrency investment to become profitable, and more. Cryptocurrency investment can be a long-term game, and you have to work towards that. If you wish to make daily profits, then you should stick to cryptocurrency CFD (contracts for differences) trading and automated trading software, such as Bitcoin Profit App, is designed to help you become profitable in the market.

Diversify Your Portfolio

Serious cryptocurrency investors don’t stick with a single coin. The key to success is diversifying your portfolio. Since there are more than 5,500 cryptocurrencies available, you can invest in a number of them to boost your profitability chances. Based on this, you should diversify your crypto portfolio and invest in various exciting cryptocurrency projects.

Secure Your Cryptocurrencies

It is no secret that the rising value of cryptocurrencies has made them targets for hackers and other cybercriminals. Since your cryptocurrencies might be at risk, you should endeavor to store them in digital wallets. These wallets provide adequate security to your cryptocurrencies. Make sure that the private keys of your wallet are also safe and backed up somewhere. If you don’t want to go through that stress, you can trade cryptocurrencies from online brokers. When you do this, you don’t have to worry about securing your cryptos as you are not actually buying digital coins. Instead, you are simply making a prediction regarding the direction that the price of the crypto will move. This is an excellent way to get into the crypto space, even if you are a beginner.

Where to Buy and Trade Cryptocurrencies

Over the past decade, the digital currency market has opened up, with more companies entering the sector and offering numerous services to clients. Thanks to this advancement, you can now purchase, sell and trade cryptocurrencies from various platforms.

Crypto Exchanges

When it comes to buying and trading cryptocurrencies, the one place to look is at cryptocurrency exchanges. These platforms allow people to buy, sell, and trade hundreds of cryptocurrencies with ease. Usually, you can trade the cryptocurrencies against a wide range of fiat currencies like the GBP, euro, and the U.S dollar. You can also trade them against other cryptos like BTC and Tether (USDT). Some of the leading crypto exchanges include Coinbase, Binance, Kraken, Poloniex, Bitstamp, and more.

P2P Platforms

Peer-to-peer platforms are another great avenue to buy digital currencies. The function of these platforms is to connect the buyers with the sellers. The two meet and agree on the price and complete the transaction on the platform. Some of the leading P2P platforms include Paxful, LocalBitcoins, Altcoin.io, and Bisq.

Online Brokers

The last group is online cryptocurrency brokers. These platforms allow people to invest in cryptocurrencies like Bitcoin. However, unlike P2P platforms and crypto exchanges, investors and traders do not hold the physical coin in their wallets. Instead, traders are simply trading crypto CFDs or contracts for differences. Here you are required to predict the direction that the price of an asset will move, either up or down.

Tips on How to Effectively Invest in Cryptos

To invest in cryptocurrencies effectively, keep the following things in mind:
Look for strong projects to invest in
Check the strength of the development team and their track record
Make investment decisions based on the real-world usage of the cryptocurrencies and their future developments
Start with the established cryptocurrencies
Buy and sell coins from established platforms
View cryptocurrencies as long-term investments
Use digital wallets to store your cryptocurrencies, preferably cold storage wallets
Be updated on the latest trends and events in the cryptocurrency world, as you will know how they affect the prices of your assets.
Select only reputable online brokers to trade with

Bitcoin Profit App - The Best Automated Trading Software for Investors and Traders

We all know that cryptocurrency investment and trading can be challenging. Despite knowing all about them, where to buy them, and the best investment tips, making the right choices are hard, and it is even harder to be profitable at all times. Most investors don’t make a profit most of the time from the cryptocurrency market. This is how the market operates but the fact it, there is an opportunity to make money.

To achieve constant success, investment experts have figured out that they need to stay ahead and be active in the market all the time. As a result, they have turned to automated trading software, which is designed to be active 24/7 and to engage only in profitable trading opportunities.

Automated Trading Software

There is a wide range of automated trading software systems, but the Bitcoin Profit App app is a grade above the others. It is designed to constantly look at the cryptocurrency market using advanced features and algorithms to pinpoint profitable trading opportunities. Bitcoin Profit App is unique because it analyzes the markets, finds a trading opportunity and then generates a trading signal. In addition, it operates with a time leap of 0.01 seconds, giving users a head start in the market. Thanks to the numerous features of the Bitcoin Profit App app, traders and investors are sure of making a profit in the cryptocurrency market.

The features and function of the Bitcoin Profit App software are complicated and numerous, which makes it a highly effective tool for traders. The unique algorithm of Bitcoin Profit App is continually analyzing the cryptocurrency market to identify profitable trading opportunities. Once such opportunities are identified, a trading signal is released, the trader is notified, and the trade is even executed automatically in the trader’s account. As a result, all profitable signals can be taken advantage of at every hour of the day. This feature gives traders an excellent advantage over other cryptocurrency investors and traders.

Choice of Assets to Trade

The focus of the software is Bitcoin since it is the largest crypto in terms of trading volume and market cap. However, over the past few months, the Bitcoin Profit App software has been modified to also analyze and trade other leading cryptocurrencies and assets. This simply translates into more profits for the traders. This is where Bitcoin Profit App helps traders diversify their investment portfolios and to boost their earning potential.

New and Experienced Traders

Overall, the Bitcoin Profit App software offers real profits to traders that use it to trade digital currencies. The first advantage of the software is that it is working at all hours of the day to ensure that you don’t miss profitable trades. You are even making money while you sleep! Bitcoin Profit App also carries out an in-depth market analysis of the numerous cryptocurrencies, pointing out profitable trading options within the market. This saves you the time and stress of doing the analysis by yourself. After completing the analysis, the Bitcoin Profit App software will automatically execute the trades on your behalf once the required market conditions are met. All these functions combine to ease the cryptocurrency trading process for you and to allow you to make a profit without putting in much effort.

Every investor, both novice and experienced, can use the Bitcoin Profit App software to stay ahead of the market and to become profitable. The advanced and powerful features and functions of the Bitcoin Profit App software put it in a class of its own. It has been helping hundreds of traders make thousands of dollars in daily profit, and you can be one of them. It is simply the best, automated cryptocurrency trading app in the crypto space.

Anton Kovačić

Anton is a finance graduate and crypto enthusiast.
He specializes in market strategies and technical analysis, and has been interested in Bitcoin and actively involved in the crypto markets since 2013.
Apart from writing, Anton’s hobbies and interests include sports and movies.