At the time of writing, there are 3,336 crypto assets and 211 Exchanges with a Total market Capitalizatìon of $240.7B listed on CoinMarketCap. This makes choosing what coin to select and where to buy them quite a complicated project.
So what is the best way to choose which crypto to invest in?
Market Cap
You could choose from the 5 or 10 top market cap products
But price doesn't tell the full story.
You could research every product and look at the use case for every product, but you'll be studying for years.
So firstly, decide what you want to do - long term investment (HODL or Hold On for Dear Life) or Trader.
What I do is I follow a couple of Technical Analysis guys, The Blockchain Backer and D.I.Y. Investing. I really like these guy's styles and their analysis. I also subscribe to a number of Crypto people on YouTube and Twitter and keep up to date with what's happening in the market.
My top picks for 2020 are:
- Bitcoin (Coinmarket Cap rank #1) Bitcoin is the Grandfather of all Crypto and for a lot of people, it's the only Crypto they've ever heard of. Bitcoin hit its all time high in 2017 of nearly $20,000. It is predicted that in 2020 it should reach a new all time high of $100,000+ Bitcoin doesn't really have a good use case but is touted as a "store of value", a bit like Gold in the physical world. If Bit pin does achieve this price point you're looking at about a 12x return on investment (ROI 1200%)
- XRP (Coinmarket Cap rank #3) For me, XRP has the best and most advanced use case of all the crypto assets. It's price does not reflect it's true value. The company behind XRP is Ripple. They have been involved in money transfer technology for the last 7 years. The price is currently around $0.235. The most likely prediction in my view is around $28 which is an 11,914x ROI
- Ethereum (Coinmarket Cap rank #2) Ethereum has a good use case for developers creating DApps. Ethereum is a blockchain that handles smart contracts. Ethereum current price is $163.80. It's all time high was around $1,200. Price projections for 2020 are around $500. Whilst this may not seem much compared to the other 2, a 250% return on investment is not too shabby.
- VeChain (Coinmarket Cap rank #29) The use case for VeChain is quite interesting. It is positioned in the supply chain market for the Enterprise ecosystem. For me, this is a long term hold. Current price is $0.006.
- Enjin (Coinmarket Cap rank #73) The current price is $0.074. Another long term hold for me. Again, based on use case I find this has a good potential. This is a coin that can be used in gaming and has recently partnered with Samsung and an Enjin wallet will be pre-loaded on the Samsung S series smartphones.
This is just my picks for this year and don't solely rely on this information for making your buying decisions. Do your own research and find some reliable sources to keep you up-to-date. I am not a registered investment adviser so use this as a starting place if you find it interesting.
