The best cryptocurrencies to invest in fall 2020: our 5 go-to picks
11:18, 9 September 2020
2020 has been quite a year
The Covid-19 pandemic and its fallout left many nations struggling for normalcy. The virus has taken a heavy toll on financial markets, too. Uncertainty led many to explore assets like cryptocurrency as an alternative investment to hedge against shrinking economic output.
Attention to crypto helped fuel the immense popularity of decentralised finance (DeFi) during this year. DeFi apps are designed to seamlessly integrate with other protocols to cultivate a cutting-edge digital financial system. So far in 2020, from Chainlink to Band Protocol, some DeFi projects made waves and reaped sizable returns for investors.
The numbers do not lie when it comes to DeFi. About $1 billion was locked in decentralised finance at the start of June. The figure skyrocketed close to $9 billion at one point in August.
There are some DeFi skeptics who do not believe that the technology is ready for mainstream adoption just yet. Critics point towards the dForce protocol Lendf.me that temporarily lost nearly all its funds after a late April hack. Issues related to infrastructure were also exposed on MakerDao when the price of Ether drastically decreased in March.
Financial uncertainty led to increased stablecoin interest during 2020. Well-known coins like Binance USD, Tether and Pax Gold surged in popularity as crypto enthusiasts looked for avenues to hedge against volatile markets.
Increased corporate interest in Bitcoin is another notable trend. In August, software development company MicroStrategy purchased more than 21,000 bitcoins. The entity said the purchase was part of a “capital allocation strategy.” Many believe that corporate interest in crypto will boost the adoption rates.
A Swiss region known for its crypto-friendly attitude looks to be cashing in on the interest in digital currency by accepting tax payments in Bitcoin and Ether. Officials in the Zug canton said they would permit crypto tax payments from companies or individuals paying up to around $110,000 in taxes.
As fall is in the air, many are curious: what does the future hold for the industry and what are the top cryptocurrencies to invest in going forward? While it can be difficult to make a sound investment strategy amid economic uncertainty, a plethora of stories on the news, from Covid-19 to the US Presidential elections to Brexit, equate to opportunities to take advantage of what will be an active crypto market during the autumn.
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Best cryptocurrencies to invest in fall 2020: this time, it’s not just BTC
Ethereum (ETH)
Ether remains the most well-known altcoin, and continues to enjoy a large ecosystem in the cryptocurrency world while serving as a base for countless projects. The limitless potential of DeFi makes the coin one of the top cryptos to invest in simply for its future prospects alone.
The cryptocurrency has been performing strong this year, hitting a new 2020 high at around $475 on 1 September. Analysts are projecting a race past $500, which would represent astronomical growth since the start of 2020.
The launch of Ethereum 2.0 is expected to boost the price of the coin as the blockchain will be able to fuel more powerful dApps.
Ripple (XRP)
Ripple is one of the most promising cryptocurrencies for real-world application, due to its strong bank partnerships and emphasis on remittance transparency.
However, the XRP coin has had a tough year so far, hitting a bottom of $0.11 in March, a far cry from a $3.84 peak in January 2018. However, the cryptocurrency seems to have broken through recently, hitting the $0.26 mark.
There was heavy trading during the last days of August, as a “whale” moved 20 million XRP tokens. A number of large Ripple transactions were also reported.
Some analysts speculate that there is the short-term opportunity with hopes Ripple could continue its August run-up in the fall. For that, XRP does have a chance to be one of the best cryptocurrencies to invest in now.
Litecoin (LTC)
Big changes are coming not only to Ethereum. Typically, Litecoin might not be as flashy a choice as other cryptos from an investment standpoint, as creator Charlie Lee opts for a more cautious approach when it comes to rolling out new features. However, the upcoming MimbleWimble upgrade projects to enhance the privacy and scalability of Litecoin – posing the potential for a price upswing.
Besides, the coin can already boast many benefits, including, among others, the blockchain’s speed, limited supply, and high block reward, which entices crypto enthusiasts to carry out transactions with LTC.
The price of the cryptocurrency has been on the upswing over the last few months, mostly remaining well over the $60 level during the second half of August.
Demand for the cryptocurrency among institutional investors is booming ahead of the MimbleWimble upgrade and continued fears of inflation.
NEO (NEO)
NEO is China’s first open-source crypto. The cross-platform smart contract is designed to make it easy to digitise real assets in order to promote blockchain adoption across the world.
NEO makes the list for those asking what cryptocurrencies to invest in fall 2020 for a few reasons. The cryptocurrency has been a consistent riser since March, having jumped from $16.68 in February to just above $20 at the end of August, surpassing bullish predictions of many crypto enthusiasts. The latest price upswing coincided with the NEO Foundation’s positive first-half report.
While NEO remains far below highs seen in 2018, the transition period towards NEO 3.0 looks positive. The eventual development of decentralised consensus nodes should give investors much to smile about, as the NEO Foundation is a well-funded and strong organisation.
Bitcoin (BTC)
Ok, let’s be honest here, no list of the best crypto to invest in can come without good old BTC being included.
There are a lot of trendy cryptocurrencies making waves right now. Some ask whether it is still worth it to invest in Bitcoin with the wide variety of other options. Well, so far, it is still the largest cryptocurrency in the world that is considered the industry's gold standard and a strong investment.
Optimism remains high for Bitcoin in the fall. Bloomberg Intelligence analyst Mike McGlone writes how Bitcoin “appears as a resting bull market on the back of gold,” arguing the cryptocurrency “should come out ahead in most scenarios.”
Over the past few days, BTC has been sliding. The cryptocurrency recently dipped below $11,000 for the first time in a month. At the time of writing, September 4, BTC traded at $10,450 per coin.
What does the rest of 2020 hold for crypto?
There’s plenty to look forward to when it comes to cryptocurrencies. While the year has been tough for traditional markets, the bull market in the digital money industry looks likely to pick up a renewed head of steam for the rest of the year.
The further emergence of stablecoins and the increasing clout of altcoins gives investors a variety of options to put money towards. Moreover, increased institutional interest in crypto looks to open up more opportunities for the crypto ecosystem.
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