Today we are going to analysis which cryptocurrency provides better investment options. Our main focus will be on the ones mentioned above,i.e., Bitcoin, Litecoin, Ethereum or Ripple.
If we go by the reports of cryptocurrency analysts, then we will see that these four mentioned names are predicted to top the list of cryptocurrencies that are going to make good market value in 2020.
But we can not take the risk of making such huge investments on the basis of some mere predictions, and we need to look into the advantages and disadvantages of each currency for ourselves and decide for ourselves which one the four will give us the maximum returns.
And that is exactly what we are going to do today in this article.
Cryptocurrencies have always been a difficult thing to predict. Even the experts are not quite able to make a committed statement about whether it would be a good investment or turn out to be your worst. In such a scenario, people are known to make good investments out of it if they made their investments while keeping in mind the demand and the fluctuations in the rate chart. And people have also been known to make the bad investment if they did not analyse the subject at hand properly.
So let’s begin with-
Being the no.1 on the lists of cryptocurrencies it is supposed to make a huge market explosion in 2020.
Introduced in 2009, Bitcoin grabbed the market of virtual money as it was the first major breakthrough in the field and with time it became the predecessor of most of the new cryptocurrencies that came later.
And with the coming of more advanced technologies each day, experts realised that blockchain, the system that makes it almost impossible to crack the cryptographic codes protecting the Bitcoin, has more use than just Bitcoin protection if used with a bit more innovations.
Now moving forward to the pros and cons of Bitcoin.
While investing in Bitcoin comes with many risks, let’s first focus on the advantages.
In comparison to the other currencies, Bitcoin is the most liquid asset and can be traded for cash or gold whenever the investor wants within a short period of time.
Investing in Bitcoin comes with guaranteed protection of the money and cuts down any risk of inflation at all.
With more advanced technologies coming into the market daily, there is always a chance of earning huge gains.But even if we don’t have to worry about the security, we need to worry about the fluctuation rate.Like every other investment, the price of Bitcoin can rise and fall anytime any day.And since nothing is impossible, the blockchain can be hacked, and one such unfortunate hacking can cost an investor his entire earnings.
So, even if you earn the gains, it will always come with the risk of a bad investment.
Read more about How much money do Bitcoin Miners Make
Initially released in 2015, reports suggest that Ethereum took its own time to reach the market.But even though it started late and slow, it took the market quite steadily, and today, the experts believe that Ethereum has the potential of becoming the “next Bitcoin”.Apart from always being head to head competitors, Ethereum and Bitcoin are quite similar.
-both are decentralised; protect their data using blockchain and are stored in digital wallets.
But let’s focus on whether Ethereum is a good investment or not?
Taking into account the market of 2020, the reports suggest that the gains in Ethereum investment had been low, but that might be due to the current pandemic situation.
But the predictions are such that the gains are going to rise high by the time we enter into 2021.
Ethereum 2.0 which is going to enter the market soon is a technologically advanced version of the current Ethereum, and it is expected by experts that it is going explode the markets with gains when it comes.
So, investing in Ethereum can prove to be beneficial, but before you do that, let’s check the risk factors or the bad investments of Ethereum.
The set back of Ethereum and the factor that leads to bad investments in the sector is its unstable nature. One moment you would be gaining, and in the blink of an eye, the chart would drop.But over the years, unlike Bitcoin, the price of Ethereum has always been on the rise. So if you can ignore the fluctuations, Ethereum is a good investment for the future.
Read more about What is the Difference between Bitcoins and Ripple
Initially released in 2011, Ripple was stably released in 2018. Being on the 3rd rank on the lists of rising cryptocurrencies, Ripple is expected to gain a good market.
The biggest plus point of Ripple is that it provides the investors with low investment options, unlike the cryptocurrencies, which need huge investments.
Since Ripple is associated with centralised authority, it legal trustworthy security that the decentralised cryptocurrencies don’t.
Even though Ripple has been facing a low-rise market since 2017, the graphic charts suggest that IT has more potential in the coming time when compared to Bitcoin.
And so, even though investing in Ripple won’t earn us any gains right now, in the coming years when it reaches its full potential, Ripple can prove to be a good currency in the coming times.
Read more about Best UK sites/apps to trade Bitcoins?
Entering the market in 2011, Litecoin is said to be an altcoin of Bitcoin.
However, when compared to Bitcoin, it has a faster transaction speed per speed and a more easily accessible blockchain.
But does it offer a good investment?
Analysis suggests that for the coming few years, Litecoin is going to hold the market well but being about the 7th on the list of gaining good profit, the guarantee of good investment through it in 2020 is low if compared to the Bitcoin, Ethereum and Ripple.
And the risk remains the same, the rise and fall of the value.
Thus we can see that each and every investment comes with good and bad points, and if we want to gain, we have to take the risk.