Capital.com Research TeamCryptocurrencies are the future of money. We’ve all heard it said. However, that does not make it easier for most people to start using or investing in them. The fact that there are over 2,000 cryptocurrencies currently available to traders and investors makes it even harder to know the best ones to bet your money on.
Investors and traders, especially new market entrants, find it hard to choose the top crypto coins to invest in. This is because the market changes, and different cryptocurrencies peak for various reasons.
In this article, we discuss the best cryptocurrency to invest in spring 2020 and possibly beyond. These digital coins have strong fundamentals, which could propel them to perform well before this year comes to an end.
General crypto market overview
2020 has been an exciting one so far for the cryptocurrency space and the financial markets in general. The coronavirus (COVID-19) outbreak has been the primary topic of discussion so far this year, and it has affected several economies around the world.
In the cryptocurrency industry, most people believe the bear market is over as BTC price has been hovering around the $10,000 mark for the past few weeks. The Bitcoin mining reward halving in May is another highly anticipated event. In terms of adoption, cryptocurrencies have been gaining momentum globally.
Recently, the Indian Supreme Court overturned the ban on cryptocurrencies put in place by the Reserve Bank of India (RBI) in 2018. This means cryptocurrencies can now be available to millions of people in India.
Also, the central bank-issued digital currencies (CBDCs) have been highly discussed in the mainstream media. The US Federal Reserve is already researching the use of blockchain technology and is being advised to explore the possibility of developing a digital dollar. Other countries looking to develop their CBDCs include Japan, Russia, England, China, Sweden, Ukraine, the Marshall Islands, and others.
Facebook's Libra project has also witnessed several changes in recent months, with companies such as Visa, MasterCard, Vodafone, and a few others leaving the project. However, it is still unclear if the cryptocurrency would be launched in the second half of the year.
Top cryptocurrencies to invest this spring
With so many things currently affecting the cryptocurrency landscape, it gets harder to choose the best digital currencies to buy now.
So, here is our list of the top cryptocurrencies to invest in spring 2020.
Bitcoin (BTC)
When you ask the question, "what's the best cryptocurrency to invest this spring?" the answer Bitcoin comes to mind. BTC is the first cryptocurrency to be developed and remains the largest by market cap. It remains the first crypto people look at when venturing into the crypto space.
The Bitcoin halving is the most significant event for the cryptocurrency this year. The mining reward, which currently stands at 12.5 BTC, will be slashed to 6.25 BTC by May. This will be the third Bitcoin halving since the cryptocurrency went live 11 years ago.
Historically, the halving event was followed by a bull run, and 2020 does not seem to appear any different. Investors are optimistic that a bull rally is coming this year and are holding the cryptocurrency. From our trader sentiment, you can see that there are over 90 per cent buyers and less than 10 per cent sellers. This implies that more people are looking to buy and hodl the cryptocurrency ahead of the halving event. Thus, making Bitcoin one of the best cryptocurrency to invest in spring 2020.
Ethereum (ETH)
Ethereum has played second fiddle to Bitcoin for a long time now. It is the second-largest crypto by market cap and remains perhaps the most widely used altcoin. It joins this exclusive list because of the upcoming changes to the Ethereum network.
So far this year, the price of ETH has spiked, similar to what other cryptocurrencies have experienced. However, the price could surge even higher in the coming months. Ethereum is now looking to move away from the Proof of Work (PoW) blockchain to become a Proof of Stake (PoS) network. This means the cryptocurrency would be staked instead of mined.
The transition is set to make Ethereum the most secure cryptocurrency in the world. It could come with other benefits. Already, Vitalik Buterin, Ethereum co-founder and inventor, is heading the move towards the new network. The transition is expected to happen this year, and it could lead to a massive rally in the price of the cryptocurrency.
Dash (DASH)
One of the cryptocurrencies that could be benefiting from the ongoing COVID 19 outbreak is Dash. The World Health Organization (WHO) recently notified the general public that the virus could be transmitted through the exchange of paper cash. As such, people are advised to use contactless technology to receive payment.
In the cryptocurrency space, Dash remains one of the best cryptos suited for instant payment. It is already used by thousands of merchants around the world since it is easy, fast and cheap to send and receive money using this cryptocurrency.
Ripple (XRP)
XRP is another cryptocurrency that is gaining wide adoption, thanks to the various technologies rolled out by Ripple. An increasing number of traditional banks across the globe are using XRP and its technologies for faster, cheaper and easier cross-border transactions.
In addition to that, financial institutions such as MoneyGram, Azimo, Hanpass, WireBarley, and others are already using XRP and Ripple technologies. The number of large organisations adopting the coin to their operations is set to increase this year. With growing mainstream usage of the cryptocurrency, the price could spike over the coming months.
Our trader sentiment also shows that much more people are now buying the cryptocurrency than selling it.
Tron (TRX)
Tron has been one of the most exciting cryptocurrencies for a long time now. The founder, Justin Sun, ensures that his project is one of the leading cryptocurrencies and continues to make moves that could help boost the network.
Recently, Tron took over Steemit, the blockchain-based social media platform. This comes just a few weeks after Steemit created its dApp on the Tron network. While Tron has been facing a few challenges since its takeover of the Steemit network, no one can deny the fact that the move is beneficial to the Tron network and its cryptocurrency TRX.
This latest acquisition means that Tron now controls BitTorrent and Steemit, two platforms with huge followings. Thus, making TRX an exciting cryptocurrency to consider for investment.
Spring forecast for the crypto market
The cryptocurrency market has already started the year on a positive note, and it is expected to stay that way for a while. The upcoming halving of Bitcoin mining reward is causing excitement within the cryptocurrency space. Most analysts are bullish and believe the halving will likely lead to a bull run. As was the case in the past, a Bitcoin bull run usually sees other cryptocurrencies record massive rallies.
So, does it mean that the top five cryptocurrencies are poised to hit fresh record highs? Follow Capital.com to always stay on top of the latest market developments and trends.
