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Best Crypto to Buy Now – The Complete Guide

07.10.2020

2020 has been an intriguing year for crypto. The crisis is sparking an interest in alternative investments, and cryptocurrency is top of the list. Many people are entering the world of crypto for the first time, and they’re wondering – what’s the best crypto to buy now? 

If you’re also wondering this, then we’ve got your back! This article breaks down what makes up a solid crypto investment and all the tips to make a great pick. Let’s get in!

Best Crypto to Buy Now – Where to Start?

If you’re new to the world of crypto, no worries! We’ll start with the basics, including what cryptocurrencies are and why they’re so popular. 

Cryptocurrencies are fairly young in the world of trading. The first cryptocurrency was only invented in 2009. Can you guess what that was? Yes, bitcoin! When it was launched though bitcoin was strange to most people. In fact, many people still have no idea what it is or how it works. bitcoin didn’t really attract much attention when it was launched. At least, until 2013, when it first gained significant value. And then in 2017, when cryptocurrencies grew by a stunning 4,000%!

What do cryptocurrencies do?

The purpose of bitcoin was simple – to become a fast, secure and efficient store of value. Bitcoin, like other cryptocurrencies, was created to make buying and selling easier. They remove the middle man (banks) from transactions. This makes commerce easier, cheaper and more efficient. Today, even banks are beginning to take notice of cryptocurrencies. For instance, Ripple (XRP) is a favourite amongst financial institutions. This is because it also functions as a payment system. Its blockchain enables swift and secure international money transfers. This cuts transfer time from 2-10 days to as little as a few seconds. Sweet!

Let’s talk a bit about blockchain technology. You surely must have heard about blockchain a lot in relation to crypto. That’s because all cryptocurrencies use blockchain technology. This is the basic tech that lets them all function. How does it work? Think of a blockchain as blocks of information. Each block contains historical info about a coin. So it tells you who initially owned it. What it was used for. Everyone it has been transferred to. But this information is secure. And it cannot be changed unless everyone agrees. Each block of information is linked to a previous one. This means you can find all the info about a coin, from inception till date. 

There are many types of cryptocurrencies today. Some function only as digital money. Many others have an additional function. For instance, Ethereum (ETH) is also a platform that lets people build their own crypto. Also, Ripple is a payment system, in addition to being digital currency. 

Now we know what crypto currencies are. Next up, let’s look at how trading works and how to pick the best crypto tokens in 2020!

How to find the best crypto to buy now

Buying cryptocurrency can feel a bit complicated. This is because many people are new to the world of crypto. It’s also exciting, because crypto is super intriguing. Unlike other tradable assets, cryptocurrency is unique. That’s why you should learn the unique rules to buying these assets. Let’s look at some of these rules, starting with volatility. 

Volatility 

Volatility is the first factor to consider in picking the best crypto to buy now. Volatility is a measure of sudden price changes in an asset. In cryptocurrencies, it measures the sharp rise or fall in prices. Crypto assets are famously volatile. In a matter of days or even hours, prices can change drastically. But this is not the same for all cryptocurrencies. Some cryptocurrencies are less prone to volatility than others. 

In deciding which crypto to buy, volatility will play a part. Lower volatility represents a less risky asset. Although, it may be more difficult to make large gains over a short period. Many people are attracted to crypto assets like bitcoin because of its high volatility periods. 

Liquidity 

Liquidity is a measure of how easily a cryptocurrency changes hands. You want to buy a crypto asset that is relatively liquid. Such assets guarantee you will always be able to buy or sell when you want to. Liquidity is also important for trading. Sometimes, you may need to sell or buy an asset fast. If it is illiquid, then it’s harder to trade, causing you to lose the opportunity. 

Some of the most liquid cryptocurrencies are also the most popular. The more people know it, the better. This is why bitcoin, Ethereum, Ripple, Litecoin and many others trade a lot. People know them and are more willing to buy. 

Market capitalization 

Market capitalization tells how dominant a crypto asset is. Those that have good market cap are great assets. They can be easily sold, and are relatively stable. But you should not go for those that are too dominant. A high level of dominance may mean lower growth. bitcoin is very dominant, for example. It enjoys roughly 50% market cap. But there are some other crypto assets with less dominance that are great. Coins like Chainlink have negligible market cap. But they are growing very fast. Meaning there’s plenty to expect. 

Price 

Another important consideration is price. Some of the popular cryptocurrencies are quite pricey. For instance, bitcoin is valued at €8,937 as of writing. That’s a lot. Most other cryptocurrencies are not as pricey. Ethereum, at time of writing, costs €295, and Ripple costs €0.198. If this is a factor for you, exploring a lower priced option can be beneficial. You can view the most current prices here

But you should know price may not matter. It is possible to buy only a fraction of a coin. So, you don’t need to shell out eight thousand euros for 1 BTC. 

Trading volume

Lastly, trading volume can be an important factor. Trading volume tracks the total volume of crypto traded over a period. Cryptocurrencies that have a high trading volume are desirable. It shows there’s a great degree of interest in them. Lower trading volumes tells you people are not so hot about the asset. 

You can check trading volume over specific periods. There are daily, monthly, yearly and the like. Some crypto assets only have high trading volume during a specific period. This tells you it might be a good idea to only buy during that period. 

What are Some Interesting Crypto Assets to Buy Now? 

It’s impossible to mention the best crypto to buy now without the major tokens. All the factors here show bitcoin (BTC) remains a strong investment. The same goes for Ripple (XRP), Ethereum (ETH) and Litecoin (LTC). All of these are in the top ten tokens with the highest market cap.

But the really exciting tokens this year have been the small cap coins. Chainlink (LINK) has had a stellar 2020. On the back of a 450% growth in 2019, it grew by 400% this year too. Tezos has made a huge comeback. PRQ has flown to great highs in the summer of 2020 and Kadena has built promising tech. That’s blazing hot! Want to see more exciting tokens for 2020? Head on over to our guide on the best crypto tokens in 2020. You’ll find plenty!

How to Get Started with Trading Crypto

Now you know all you need to pick the best cryptocurrency to invest in now. Your next thought may be where to trade and how. Here’s a quick primer on how crypto trading works. 

Before crypto, trading started with shares, bonds and other securities. Trading involves buying and selling these securities. With crypto trading, you’re buying and selling digital assets. 

There’s one thing everyone needs to start crypto trading – a crypto exchange! Crypto exchanges are platforms where people trade cryptocurrency. These platforms let you buy and sell at convenience. Usually, they also include a specific number of trading pairs they support. Trading pairs are buy-sell combinations. Examples are BTC-EUR, USD-ETH, BTC-USD etc. The crypto exchanges are those that have many traders and fair transaction fees. CoinMetro is an option for trading cryptocurrency at transparent prices. 

There are many strategies involved in cryptocurrency trading. These include day trading, copy trading, margin trading, swing trading and HODLing. We have tons of articles for you to find out more about these strategies. We also have guides that help you learn how to utilize these strategies. You can learn about margin trading tools, day trading indicators and more.  

Looking to start trading after buying your first crypto? Head on over to CoinMetro to see how cryptocurrency trading works! If you have any questions, or need any help, our support team is here to help 24/7. Get in touch!

Disclaimer: Trading cryptocurrencies is risky and may result in losing some or all of your capital. This is not financial advice. You should always do your own research and never trade with more money you can afford to lose.