Best crypto currency: best crypto currency 2020 presented
Bitcoin, Litecoin, Dash, Ripple – which is the best crypto currency on the market? Meanwhile the users have the choice of more than 2,900 crypto currencies and the list is getting longer. With this large selection, everyone answers the question about the best crypto currency a little differently. Some choose the crypto currency with the highest market capitalization, others with the greatest future potential. The important thing is that traders choose the best crypto currency for themselves and use it skillfully to generate profits and achieve their own investment goals, right? We show how this can work successfully.
- Bitcoin at the top of the crypto ranking based on market capitalization
- There are more than 2
- 900 crypto currencies
- Traders can trade Bitcoin and Co. on exchanges and brokers
- Earnings also possible with mining
Best crypto currency: Which crypto currency is the best?
The best crypto currency 2019 – who will win the race? A look at the Crypto Currency Ranking shows that countless other currencies have been added since Bitcoin was created. Meanwhile the number has even increased to over 2,800. A number that seems almost impossible, right? A lot has happened in the crypto market over the last ten years with the launch of Bitcoin 2009. While hardly anyone knew what crypto currency was back then, today there are countless of them and the block chain technology is also becoming increasingly popular. Determining the best crypto currency in 2019 is therefore almost impossible.
Best crypto currency based on market capitalization
Let’s look at which is the best crypto currency based on the real facts. The market capitalization is an important indication of which crypto currency is actually in high demand. Bitcoin is still at the top of the list, as it has been in all the years before. Although there are now more and more crypto currencies, Bitcoin still dominates the market with a market capitalization share of more than 60 percent. In the other places, currencies such as
Which crypto currency is actually the best depends not only on the market capitalization but also on its actual potential. What purpose does a crypto currency actually have and how important will it become in the crypto currency future? Such questions are also important for traders when it comes to trading as profitably as possible.
Best crypto currency 2020: Bitcoin remains strong
According to many experts, the future prospects of Bitcoin are also positive, so that it is also frequently mentioned in the question “Which crypto currency is the best? Bitcoin has actually managed to establish itself firmly on the crypto market and is even now recognised as a means of payment by selected shops and institutions. However, one important step is missing: official recognition as currency, such as Fiat money. Governments are still struggling to officially recognize Bitcoin and other crypto currencies, which also has implications for the taxation of profits from trading activities or, more generally, legal regulations. Nevertheless, traders can profitably trade Bitcoin and Co. on the Crypto Exchange or with brokers if they know how prices are analyzed and when the right time to enter the market has come.
Trade Bitcoin profitably: Observe risk tolerance
The crypto market is extremely volatile, as Bitcoin experienced in its early days. In the meantime, the price momentum has eased somewhat, but it is still visible in the chart. To invest successfully in the crypto currency, it is important to keep an eye on your own risk tolerance. Traders should be clear whether they are conservative or risk taking investors in the market. The financial instruments traded as well as the strategic approach are also based on this.
Diversification: Don’t bet everything on the best crypto currency
In order to make trading in the crypto market profitable in the long term, we recommend not to put all your eggs in one basket. Equity should be spread as widely as possible to avoid total losses. An investment for the best crypto currency in 2019 can generate profits, but it can also generate losses just as quickly. What happens, for example, if the traders have 100 euros of equity available and invest the entire amount of a crypto currency? The market can develop positively so that prices rise and consequently a profitable sale becomes possible. But the market can also immediately move in the opposite direction, for example due to negative news, so that prices fall and selling is only possible with losses or for a long time not at all. If the traders have not diversified their equity, but actually invested the full 100 Euros in a crypto currency, they are completely at the mercy of the market situation. To avoid this, it is recommended to invest in different crypto currencies.
Which crypto currency is the best when I want to buy cheap?
The best crypto currency to buy cheap is always the one where the price is currently in a downward trend. This gives traders the opportunity to take advantage of the market situation and buy at a low price. However, for this it is important that the price analysis is done. For trading beginners, analysis is not always easy in a volatile market situation, but experience shows that tools such as indicators make it much easier.
Best crypto currency to mine – where to get the highest reward?
Crypto Mining has indeed become a good opportunity for many investors to make money with the crypto currency away from direct trading. Users provide their computing power and take care of the transaction processing, receiving the coins as a reward. Does mining make sense in any case and is there a best crypto currency for mining? Our answer: Yes and no.
Mining requires a lot of computing power
The mining of Bitcoin and Co. initially requires a lot of computing power and often a lot of electricity. This is precisely why the miners are being criticized. Mining is associated with a high waste of resources, which is naturally less positive in times of climate change and environmental protection. Bitcoin in particular is under constant attack as the leading crypto currency, because it has the highest computing effort among crypto currencies due to the large block chain and increasing transaction processing. Meanwhile, precisely for this reason, there are numerous crypto alternatives that function according to a different consensus and where mining is much easier.
Mining Calculator helps with profit calculation
In order to calculate whether mining can actually be crowned with success, we recommend that you calculate exactly in advance. There are online calculators for this purpose, which work on the basis of various data. Required are for example:
- Hash Power
- Level of difficulty
- Electricity costs
- Power consumption
- Possible acquisition costs for hardware/software
Profitability is then determined on the basis of these factors, taking into account the current crypto price. With Bitcoin in particular, mining may not be worthwhile due to the high costs involved, so mining an alternative crypto currency may be helpful.
Trading Best Crypto Currency: How the Exchanges Work
A best crypto currency can be traded by the traders for example at stock exchanges, because here at least the most important coins are offered. Depending on the stock exchange, however, the trading offer differs, so that it may be that not only Bitcoin and the top 10 crypto currencies are available, but many more. After all, there are now more than 2,800 currencies, but by no means all of them serve a real purpose. Nevertheless, users can theoretically buy or sell them if the Exchange has them on offer. The demand is particularly high for the well-known crypto currencies, such as Bitcoin, Litecoin, Dash and Co., as shown by the enormous trading volume on the crypto exchanges. This is good for the traders, because it increases liquidity and the risk of late or no execution of the transactions decreases of course. On the other hand, those who wish to concentrate on less well-known crypto currencies should also be aware of the risk.
Selection of trading exchanges
To find a suitable crypto exchange, traders should at best make a comparison. Meanwhile, there are countless exchanges worldwide that offer trading with crypto currencies. The differences are mainly due to the trading costs, services and trading volume. If you want to find not only the best crypto currency but also the best exchange for trading, you should take some time to take advantage of the most attractive trading conditions and thus increase the profitability of the sale.
Do not forget Wallet – The best wallets for BTC & CO.
To enable traders to trade the best crypto currency on exchanges, a wallet is required. Without the digital wallet the trading activity cannot take place, because the traders store their coins in it after purchase. It is important that traders pay attention to maximum security when choosing a wallet. Wallets are differentiated according to their storage method: online and offline. While offline wallets offer a maximum level of security, online wallets are much more vulnerable to hacker attacks. An unsecured online wallet can lead to cyber criminals gaining access to the coins and stealing them. We are not talking about a theoretical scenario here, but actually about incidents from the past. Experience shows that especially in the early days of crypto currencies, less attention was paid to the security of online wallets. As a result makes it much easier for hackers to get hold of the coins and steal millions of dollars. The result was an enormous drop in prices on the crypto market and the uncertainty of many investors.
Offline wallets are more secure
Although the online wallets are extremely practical and are offered free of charge, they have a clear disadvantage in terms of security compared to the offline wallets. Hardware and paper wallet make it much better, because the offline storage does not give hackers a chance to access the coins. Although the Paper Wallet is offered free of charge, the piece of paper can be damaged even more quickly. The Hardware Wallet is more convenient to use, but it is not available for free.
Crypto future at Broker trade
If the traders want to trade a best crypto currency without a wallet or a lot of equity, there are other possibilities. Crypto brokers have significantly expanded offers in recent years, allowing traders to trade crypto CFDs, securities or other financial instruments, for example. The advantage is mainly the flexibility and the less capital outlay that for example crypto CFDs require. We already know about the dynamics of crypto prices, which are often difficult to handle, especially when trading on exchanges. However, it is the dynamics that make for the high profit opportunities. With Crypto CFDs, investors can take advantage of volatility and speculate on falling and rising prices, even sideways trends. The advantage: Contracts for Difference are only held for a short time, usually traded intraday. This allows traders to make optimal use of the opportunities offered by volatile trends.
Price analysis and risk hedging with CFDs is a must
Contracts for Difference are very interesting for traders because of the high profit potential, but they also offer enormous risk. Therefore, it is important to analyze the prices in the best possible way in order to make a well-founded forecast for the future and use it for trading. Risk hedging is also essential, as stop loss and take profit positions allow traders to limit losses or take profits, for example.
Tip: Use leverage as multiplier
CFDs also have another special feature: the leverage. Private traders can trade crypto CFDs, for example, with a maximum leverage of 1:2 and thus multiply the capital in the market. The multiplier effect of leverage offers the additional chance of higher profits, but is not undisputed due to its increased risk. Therefore it is important that traders at best practice the leverage effects without risk before the actual trading activity with a demo account in order to experience the effects themselves and learn from their possible trading mistakes and to do better when investing with their own capital.
Trading crypto securities
Brokers not only offer the crypto CFDs, but also provide the ability to trade crypto securities. For example, the traders can invest the shares of Bitcoin GROUP SE or acquire shares of companies dealing with block chain technology or the crypto market in general. The crypto securities are particularly suitable for the long-term investment horizon as well as for taking dividends with them. If the traders combine even crypto CFDs and securities with each other, there is the optimal diversification in the portfolio, which in turn contributes to the risk spreading. In addition to securities, many brokers now also offer selected crypto funds, which allow traders to pursue their investment goals through diversification.
Conclusion: Best crypto currency is not always Bitcoin
Whoever wants to trade the best crypto currency is now spoilt for choice from over 2,800 different crypto currencies. Apart from Bitcoin and its origins, the list has become longer and longer in recent years, with no end in sight. For traders, this means a lot of potential to cut a big slice of the cake from the developments in the crypto market and profit from the price movements. When it comes to trading the best crypto currency, traders can decide on the basis of market capitalization or future potential, for example. If we look at market capitalization, it is clear that Bitcoin has never been ousted from the top spot so far and will probably always be at the top in the future. With a market share of over 60 percent in terms of market capitalization, the mother of all crypto currencies dominates and is therefore particularly interesting for many traders. However, it is also the most expensive one, so that a look at alternative currencies such as Litecoin, Dash or Ripple can be worthwhile. They only cost a fraction, but are nevertheless extremely interesting investment opportunities due to their market development.