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Top 10 Cryptocurrencies of 2020 - Full Report


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The coins together with the greater risk score ought to be handled with stop-losses, and shouldn't cosmetics over 2 percent or 3% of your portfolio.  Riskier coins have smaller marketcapitalizations liquidity, and adoption.  That having been said, its own marketcatches a bidding and if the job succeeds, the payoff is far higher than a coin that is insecure.  Due to the factthat that these coins are not as understood and bigger, they provide you with a chance to be a earlyadopter of a technology.  

We'll also rate that which we believe the risk variable isalso in holding those coins.   The greater the hazard, the greater volatility we are that advantage.  Bear in mind, these markets exchange 24/7/365.  You are able to go to sleep and wake around acoin 80% down.  We've seen it happen before, and it'll happen again (as an example, a high 50coin known as MATIC this season tanked about 80 percent in 3 hours).  So use orders and neverinvest.  

The initial 10 crypto picks of the"Best 20 for 2020" are given below.  Because we've got them strong, undervalued, and technically sound,well-vetted We're allocating a mixture ofthese coins.  We consider these coins have of out-performing the remainder of the marketplace by the close of the 22, a percentagechance.  


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1.Bitcoin (BTC)
Risk: 2

Bitcoin is first on the list, and has the lowest risk score out of any crypto for several reasons.Bitcoin was the first cryptocurrency ever invented. It has the most price history and has proven to be resilient against many different attacks. In technology, there is an important concept called the Lindy Effect, which states that the future life expectancy of a non-perishable thing (i.e.technology) is proportional to its age, so that every additional period of survival implies a longer remaining life expectancy. Basically-- the older a crypto gets, the more likely it is to get older!Therefore, the cryptos that have stood the longest test of time have less risk of dying in the near term, making it a great option.

Secondly, Bitcoin is the most liquid coin, meaning it has the most active trading markets with the most money behind it. Bitcoin’s market capitalization, or the total value of the circulating supply of coins is also the largest (note: to calculate market cap, multiply Price by Circulating Supply).The more liquid an asset is, the greater ability that a hedge fund has to trade because they won’t incur significant slippage when placing multi-million dollar orders. This is a very positive demand-side factor.

Moreover, since the crypto markets are all generally small and illiquid, Bitcoin will be the only coin that many institutional money managers will feel confident placing their clients funds in.There is the Grayscale Bitcoin Investment Trust Fund (GBTC) that you can buy like you would a normal stock.

There are also new Bitcoin derivative products traded on the Chicago Mercantile Exchange(CME), which allows for institutional money to place complex bets to manage their risk better. All this to say that Bitcoin has become the most financialized coin, and offers an institutional portfolio tremendous opportunities. If it is good enough for a hedge fund, it is good enough for the average citizen’s portfolio.

Also, many cryptocurrencies trade against Bitcoin only, which means you need Bitcoin in order to buy a smaller altcoin on an exchange. This is another inherent demand-side part of the equation.

On the flip side of increasing demand, we have a fundamental supply-side factor that is happening in May 2020: the halving (AKA the halvening). Unlike a fiat currency that can have its interest rates and inflation schedule changed at the whim of a centralized, controlling group of people, one of Bitcoin’s main value proposition is that it has an algorithmic, projectable inflation schedule. The halving happens every 4 years, and causes Bitcoin’s issuance schedule, or its inflation rate, to get cut in half. This is extremely important because it contributes to the increased scarcity of the asset, and causes less sell pressure from bitcoin miners. During the first 4 years of Bitcoin’s existence, each block mined, happening roughly every 10 minutes,would create 50 new Bitcoin. Then it got cut to 25 Bitcoin every 10 minutes. Since July 9th 2016, every block that gets mined, generates 12.5 Bitcoin to the miner. At the time of the halving in May 2020, the block subsidy drops to 6.25 Bitcoin. Ulitmately, a lower inflation rate matched with a steadiness or increase in demand, will cause price to rise.

Beyond that, Bitcoin is practically a household name at this point, and everyone knows “brand recognition” is an intangible but highly valuable factor to weigh in. The news media have talked at length about Bitcoin, but not much about any crypto beyond that. The next person you talk to-- ask them if they’ve heard about blockchain or cryptocurrency. Chances are they will say no to both. But if you ask them if they’ve heard of Bitcoin, there is a high chance they say yes.

At its peak in December 2017, BTC was $19,784. We like buying BTC below $10,000 in Q12020, about 50% below its all-time high.


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