Today cryptocurrencies have taken over the market by storm. Cryptocurrency is a potentially significant investment in this generation. Many experts consider Cryptocurrencies to be the currency of the future; but it hasn’t been this good for cryptocurrencies always.
In the past, Cryptocurrencies were considered an asset where investors were predicted to fail. Many countries, including India – even banned crypto trading. But today the world is acknowledging it now. Countries are allowing people to invest in bitcoins and other cryptos.
Read my feature on the future of Cryptocurrencies in India
Cryptocurrency made a big leap in the year 2017 when its market capitalization grew from $18 billion to $800 billion but then again fell down to $260 billion in 2020. In 2020, a total of over 1600 cryptocurrencies are available to mine, sell or purchase and the list is just growing.
Top Cryptocurrencies in 2020
Of the 1600+ options to choose from, some of the most popular ones are listed here. In this list, I am going to see some potentially profitable cryptocurrencies that are dominating the market in 2020. I have not considered the currencies which have degraded in 2020 but were doing great earlier.
Current Market Cap: $167,566,280,833.00
Bitcoin is the first-ever Cryptocurrency, which was launched in 2009 and since it has grown exponentially and remained as the vanguard of the market. So far, it is the Cryptocurrency with the highest market capitalization.
- It’s very easy to purchase a bitcoin, even for beginners, and is supported by almost all exchange wallets.
- The mainstream economy is adopting bitcoin as top companies such as Microsoft, Bloomrang has started accepted payments in BTC.
- It has lower transaction fees.
- Very slow transaction speed.
- There is an Exposure to bitcoin-related scams and fraud.
- There are some environmental ills of bitcoin mining as it consumes a vast amount of electricity.
- Has the potential to be taken over by some other Cryptocurrency.
Current Market Cap: $25,276,660,061.78
Etherium joined the market in 2015 and is the next biggest competitor in the Cryptocurrency industry today. Etherium differs from Bitcoin in terms of its purpose and technology. Nowadays, many prefer Etherium over bitcoin because of its practical smart contract-based application.
- It has a very fast transaction speed of a few seconds against the 10 minutes or more in bitcoin.
- It has an open system, which means anyone can join the project and contribute its growth and development.
- It has the largest community of developers working on its blockchain technology.
- Enterprises can achieve a massive amount of privacy with Etherium.
- It is unstable as it undergoes many changes.
- It has issues regarding scalability.
- There can be some minor breakdowns in the system.
Current Market Cap: $6,037,243,765.92
Tether is a digital-to-flat currency which was known as Realcoin but re-branded it in 2014. It was created with intention of helping people convert real world currencies to crypto coins or digital money very easily.
- Its transaction speed is very fast and highly secured.
- There is almost low or no fees at all for sending coins to another tether wallets.
- It has great costumer support service.
- There is no provision of the public mining in Tether.
- The one major advantage other Cryptocurrencies hold over tether is that it doesn’t provide anonymity feature. You have to provide various documents to confirm your identity.
- Sometimes Tether management is blamed for market manipulations.
Current Market Cap: $4,071,751,982.01
Bitcoin Cash, as the name suggests, was born out of an idea to make Bitcoin more practical in day to day payments.
When the Bitcoin team couldn’t come to an agreement about the future of bitcoin, some of them divaricated and started bitcoin cash in 2016.
- Bitcoin cash transactions are much faster than the bitcoin transactions.
- Transaction fees are very low compared to bitcoin.
- It can handle many transactions per second.
- Just like bitcoin, bitcoin cash is also decentralized.
- Bitcoin cash mining is just as expensive as bitcoin mining, which is not favorable among the miners.
Current Market Cap: $2,852,128,816.78
Bitcoin Satoshi’s Vision (BSV) is one of the newest players in the crypto world. It was created out of Bitcoin cash (BCH) in 2018. It aims to bring back the values of original Bitcoin and use this Cryptocurrency technology as payments and trade methods.
- BSV developers have made payments affordable to people by minimizing transaction costs.
- It has a bigger block size of 128MB as compared to the original Bitcoin, which was only 32MB.
- It is used by many businesses and companies.
- It is difficult to trade in Bitcoin SV, so it has been removed from some crypto exchanges.
- Bitcoin SV software is too radical, making it less appealing.
Current Market Cap: $2,679,551,469.29
Litecoin was founded by a former Google employee named Charlie Lee in 2011. It was built with the purpose of improving the Bitcoin, and as a result, it caused Bitcoin to split into two: creating Bitcoin and a Litecoin.
- Average transaction fees are very less when compared to Bitcoin.
- Litecoin transactions take around 3 minutes while it is 10 mins for the bitcoin.
- The process of mining is very straightforward in Litecoin.
- Like Bitcoin, Litecoin doesn’t provide a platform for smart contracts.
- The extreme anonymity creates a bad image for this coin, as it’s usually used for illegal things like DarkNet.
- Just as Bitcoin mining, Litecoin mining is also very expensive.
Current Market Cap: $2,410,819,051.50
Binance is a popular Cryptocurrency exchange service that was launched in 2017. It is specially designed to connect buyers and sellers more efficiently. The name Binance is a mashup of two words ‘binary’ and ‘finance.’ Today this platform offers its exchange services for more than 100 cryptocurrencies.
- It can process 1.4 billion transactions per second.
- It has very low transaction fees of 0.1%. It will be even lower if you pay using BNB.
- Binance has provided high liquidity to its customers over the years.
- Customers can’t deposit funds using traditional payment methods.
- Data can’t be modified once it has been added to the blockchain.
Current Market Cap: $2,380,930,372.33
EOS, just like Etherium, is designed to be used within the ecosystem. EOS platform is very easy-to-use and highly scalable. EOS is so quick and more efficient that it can conduct about 50,000 transactions per second.
- EOS transaction speed is terrific. Its transactions are processed and validated expeditiously.
- Anyone who holds EOS tokens is eligible to participate in the voting process on the governance structure model.
- The EOS platform is self-sustaining.
- EOS has much competition. EOS might be left behind if it fails to step up its game.
- As EOS depends on voting by stakeholders, Low votes may lead to further centralization.
Current Market Cap: $1,897,517,423.89
Tezos is a new emerging Cryptocurrency which is on track to beat the Bitcoin. It is one of the most popular platforms for new projects, that was created to fulfill the same role as the Etherium.
- Tezos upgrades seamlessly to protect itself from price fluctuations.
- A verifiable contract feature provides an extra layer of security against the attacks.
- It’s affordable for users to delegate their tokens.
- Tezos is not widely supported in commercial transactions.
- It has an immature network.
- It has some lawsuits against it regarding the delay in token distribution.
Current Market Cap: $1,389,348,665.60
Stellar is a Cryptocurrency which was founded by Jed McCaleb, who was also the co-founder of Ripple. Stellar is a non-profit organization that is focused on making international payments faster and more efficient.
- It’s more decentralized as compared to the Ripple.
- It has partnered with over 30 potential banks.
- It has Fast payments and low transaction fees.
- Steller has high competition; hence it’s difficult for it to stay in the field.
- You must have a minimum of 20XLM coins in your wallet for it to work.
Current Market Rates for Top Cryptocurrencies
Future of Cryptocurrencies
The emergence of Bitcoin changed the financial world completely. Today Cryptocurrency is a growing trend that is recognized worldwide. Cryptocurrency is the future of how payments will be made, and investing in it is an excellent way of diversifying your portfolio.
This list was intended to make you familiar with some of the most popular cryptocurrencies to help you pick the best ones for yourself. Use this knowledge to invest in the best Cryptocurrency available today.