Cryptocurrencies To Buy, Watch And Avoid

Last Updated September 14th 2020
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Here are some of cryptocurrencies you might buy, watch, and avoid

What cryptocurrencies should I consider buying? Are there any cryptocurrencies I should be watching? And are there any cryptos I should definitely avoid?

If you want to know which cryptocurrencies to buy and watch and which to avoid, then this article is just for you.

We at Trading Education can help you gain an in-depth understanding of the crypto world and blockchain technology. Simply sign up for one of our online crypto courses that will provide an enjoyable learning journey to cryptocurrency trading success!

Why Should I Know about Different Cryptocurrencies to Buy, Watch and Avoid?

Cryptocurrencies To Buy, Watch And Avoid

Best Cryptocurrencies to Buy

Other Cryptocurrencies to Watch

What about the Rest?

Cryptos to Avoid at All Costs

When Buying Cryptocurrency

Key Points

Why Should I Know about Different Cryptocurrencies to Buy, Watch and Avoid?

The world of cryptocurrency trading is gaining more and more supporters from all over the globe. Including you!

So, after weighing its pros and cons, you have decided to dive into the world of cryptocurrency trading. You may even end up buying or trading numerous cryptocurrencies at once.

Of course, you should do so with a good understanding of how they work. Some are well suited to day trading while others to swing trading or even long term investing.

When researching a cryptocurrency, it’s important that you do not just look at its price and market movements. You also need to do a fair amount of research regarding the technology behind it, as well as any government regulations that may affect cryptocurrency trading.

Only when you gain enough knowledge about the complexities of the world of cryptocurrency, you can start practicing trading in order to establish a successful cryptocurrency trading strategy and healthy trading habits.

For these reasons, it’s important to know about different cryptos to buy, watch, and avoid.

Cryptocurrencies To Buy, Watch And Avoid

Now let’s look at some popular cryptocurrencies considered to be good for buying, as well as some key cryptocurrencies that you should keep an eye on. We’ll then look at some notorious cryptos that you should avoid.

Best Cryptocurrencies to Buy

cryptocurrencies to buy

1. Ethereum (ETH)

Ethereum is one of the best cryptos to buy. Perhaps one of the most attractive aspects is Ethereum’s ability to support smart contracts, which makes it highly useful to businesses.

Given its tech advantages, it’s no surprise that a large number of other cryptos have now been built on top of its blockchain

On top of that, Ethereum has a wide number of dApps (decentralised apps) using their system. All this makes Ethereum a favoured cryptocurrency in terms of predicted longevity.

In terms of price, Ethereum has been quite stagnant over the last few years, but for buyers who prefer stability over volatility, Ethereum is pretty appealing.

Have You Considered Buying Ethereum?

2. Bitcoin (BTC)

Perhaps you are not surprised to see Bitcoin - the first and most traded crypto ever - on our list. Despite its high price, Bitcoin remains the most favoured cryptocurrency to buy; largely because it is the oldest crypto, hence, the most trustworthy. 

That said, Bitcoin is also the most volatile cryptocurrency, maybe even the most volatile financial asset. 

Note that Bitcoin’s prices always go through cycles. At the time of writing this article, Bitcoin is worth $10,841.50 per coin, which is a huge gain compared to the notorious 2018’s price slump when prices dropped down to $5,938.18. Unfortunately, this might happen again. When? Who knows! But it is something to bear in mind.

Even if you don’t decide to buy Bitcoin, you should watch it closely as its price movements usually have a knock-on effect on other cryptocurrencies.

Have You Considered Buying BTC?

3. Ripple (XRP)

Ripple is another great crypto to buy. Ripple aims to be a viable means for bank transactions. To be more precise, with Ripple, one could make a payment to another person in one currency and they would receive it in another.

Ripple may end up acting as a bridge between the crypto industry and the banking world. Ripple can help institutions adopt blockchain technology and cryptocurrency - something that is arguably already happening.

If banks fully apply Ripple to their transactions, traders who hold Ripple may benefit substantially from it. 

That said, we should note that much of the cryptocurrency world has shunned Ripple due to its attempt to cosy up with banks, which to them are the mortal enemies of crypto enthusiasts.

Have You Considered Buying XRP?

4. Litecoin (LTC)

Litecoin is another popular crypto that you should consider buying. 

Considered a clone of Bitcoin, Litecoin was once the second most traded coin, particularly before Ethereum and Ripple came along.

Though Litecoin has lost momentum since its original release in 2011, it is still a very respected name and one of the most widely accepted cryptocurrencies for payments and transactions. 

In some senses, Litecoin keeps things simple, which may work to its advantage and may attract more and more traders and investors.

Have You Considered Buying LTC?

5. EOS (EOS)

If you are looking for a great coin to buy, then consider EOS. EOS continues to compete with Ethereum to take the no. 1 spot for smart contracts and dApps. In fact, in the last few years, EOS has gained the largest community of dApps users.

What makes EOS stand out is its ability to defeat the issue of scalability by adopting horizontal scaling over traditional vertical scaling

In other words, as the system grows, instead of enhancing computing power, more nodes (aka machines) will be added to the equation. Of course, we’ll have to wait and see if this method can be actually beneficial.

Meanwhile, EOS remains one of the most attractive cryptos to buy and sell in the world of cryptocurrency trading.

Have You Considered Buying EOS?

6. Stellar (XLM)

Stellar’s Lumen is simply a stellar cryptocurrency to buy

Note that Stellar is often considered by far the closest platform to Ripple. Simply because Stellar was a hard fork of Ripple’s XRP, with similar functionality or the ability to facilitate transactions between different cryptocurrencies and fiat money.

Nevertheless, Stellar is different from Ripple. Stellar has its own code. Moreover, its main purpose is to be completely open-source to facilitate individual use and crypto trading.

As such, Stellar is more a tool for the people and less a tool for the banks, winning the affection of many traders in the crypto community.

Have You Considered Buying XLM?

7. Cardano (ADA)

Although Cardano is relatively new, there’s no doubt that Cardano is a reputable contender for Ethereum’s spot in the world of smart contracts and dApps. 

What makes Cardano stand out is its two-layered blockchain; one specifically for smart contracts and another for financial transactions. This two-layered blockchain, named ouroboros, might be a potential way to overcome the dreaded issue of scaling. 

However - just like with other cryptocurrencies that are trying to overcome this problem - only time will tell if Cardano’s strategy can be effective or not.

We should also note that Cardano benefits from its strong tech and academic backing, which makes it one of the best cryptocurrencies to buy.

Have You Considered Buying ADA?

8. IOTA (MIOTA)

Though IOTA is somehow veiled in controversy, we should admit that IOTA is perhaps one of the most unique and interesting technologies on our list. 

In essence, IOTA uses the IoT (Internet of Things) to process payments. By using the IoT, any device with a Wi-Fi connection will be able to validate payments. 

Not only does this make payments cheaper, but it also reduces the amount of computing power needed.

In fact, its uniqueness doesn’t stop here. IOTA can be used as an alternative to blockchain technology altogether thanks to its algorithm the Tangle. This algorithm does not require miners, which means (at least for now) that there are no transaction fees.

Have You Considered Buying IOTA?

Other cryptocurrencies to watch

cryptoccurencies to watch

1. Ethereum Classic (ETC)

Ethereum Classic is one of the cryptos that you should be watching. Let’s not forget that in 2016, Ethereum was divided into Ethereum (ETH coin) and Ethereum Classic (ETC coin). 

There was a time when people felt that Ethereum Classic was able to rival Ethereum. As time has passed, though, now it seems a lot less likely. As a matter of fact, the team behind Ethereum Classic will never be accepted by Buterin and the Ethereum Foundation.

Yet, in terms of trading, buying and selling Ethereum Classic might turn out profitable and worth your time.

→ Click here to start trading ETC

2. Bitcoin Cash (BCH)

Though Bitcoin Cash, Bitcoin’s little brother, may fall to the same fate as Ethereum Classic, this coin is definitely worth considering. 

In fact, Bitcoin Cash shouldn’t be considered a carbon copy of Bitcoin as there is a key difference between the two; Bitcoin Cash’s blocks are four times larger than Bitcoin’s. This means that miners can validate four times as many transactions, increasing transaction speeds and possibly mitigating the issue of scaling.

No surprise that as of 2020, Bitcoin Cash is among the top 10 cryptocurrencies by market cap, as per CoinMarketCap. All this makes it a valuable asset that you should be watching.

3. Tron (TRX)

Tron is another digital asset worth considering, one of the top cryptos to explode this year

Tron has an interesting niche. It aims to monetise online content and remove third parties that profit from hosting online content, such as YouTube, Google and Facebook.

With Tron, as a content creator, you will receive funds for what you publish, which is believed to be fair. Tron also claims to be able to handle 2,000 transactions per second. Thus, Tron’s TRX is definitely a coin you should be watching!

4. Tether (USDT)

Tether is one of the most interesting stablecoins that you should consider trading. 

We should note that one Tether coin is nearly equal to one US dollar, and many traders use Tether to hold value of their investments.

Given that one of the main reasons Tether was created was to help big companies move money, there’s no doubt that Tether is a crypto that traders should be watching.

5. Dash (DASH)

Dash is also an interesting coin that crypto traders should be watching. Dash is competing in two crypto races: to be faster than all the rest and to offer more privacy than them. 

Note that with Dash, you have two options: PrivateSend to send money anonymously, and InstantSend to send money instantly.

Interestingly, Dash is growing in popularity, especially among merchants and retailers, as it is competing with centralised payment platforms, such as Visa.

→ Click here to start trading DASH

6. Monero (XMR)

A rival of Dash, Monero is another privacy coin worth considering. It offers an obfuscated public ledger, which means that no one can view the amount sent or the participants.

Yet, due to Monero’s secrecy, this coin has gained the attention of controversial groups, such as white nationalists, drug traders, and hackers (e.g., WannaCry attack back in 2017). For Monero to really strive, it needs to shake off its shady image. 

Until then, Monero is definitely one of the cryptocurrencies that traders should be watching.

7. Zcash (ZEC)

Zcash is another coin that you should consider. It was created as a fork of Bitcoin, and just like Monero and Dash, it has a focus on privacy (an incredibly difficult area to compete in). 

Zcash uses zero-knowledge protocols to validate transactions, which means that transactions can be fulfilled correctly without revealing any information about them.

At the same time, Zcash has attempted to be transparent, which makes it a lot more appealing to crypto traders and regulators.

→ Click here to start trading ZEC

8. Bitcoin SV (BSV)

Bitcoin SV is one of the top cryptos to watch and trade. It will be interesting to see if this coin can reach the positions of other Bitcoin offshoots, such as Litecoin and Bitcoin Cash.

Interestingly, this coin has the cryptocurrency community divided. Note that the abbreviation SV means ‘Satoshi Vision’. Thus, Bitcoin SV is supposed to be as close as possible to Satoshi Nakamoto’s ideas. For some, this means Bitcoin SV is closer to realising what cryptocurrency is supposed to be. Others aren’t sure and claim that Bitcoin is the real Bitcoin.

Aside from its vision, Bitcoin SV stands out because of its huge block sizes that can handle tonnes of transactions, with a focus on scaling. 

9. Binance Coin (BNB)

Binance Coin is a quite intriguing coin. Even though Binance Coun is not offering anything particularly unique in a technical sense, it is a crypto worth considering. In fact, it has been highlighted as one of the most stable coins in recent times.

Binance Coin was exclusively made to work on the Binance exchange, giving users a 25% discount when they purchase cryptocurrency. Its value is almost exclusively tied to how well the exchange platform performs.

It is also worth noting that Binance is based in Hong Kong. As China continues to crack down on cryptocurrency and Hong Kong, this may cause problems in the years to come.

10. Neo (NEO)

Talking about China, we should mention that another prospective cryptocurrency worth watching is Neo. If Neo manages to shake the shackles of China’s crypto regulation, it may end up dominating the smart contract sphere. 

Note that Neo has some advantage over Ethereum as it can be coded in many different and popular languages. Ethereum, on the other hand, can only be coded in Solidity, a new coding language created specifically for smart contracts.

As such, Neo has a lot of prospects. However, until its status is sorted, it might not live up to its fullest potential.

What about the Rest?

The world of cryptocurrency trading is changing constantly, so our list is far from being full and complete. There are thousands of cryptocurrencies out there, and many more to come. So, keep your eyes peeled and look out for great trading assets.

Just remember that, as of 2020, there seem to be four primary areas cryptocurrencies and blockchain platforms are striving for:

  • To beat Bitcoin. Bitcoin 2.0, Bitcoin Cash, Litecoin, and Bitcoin SV are aiming for this spot.
  • To beat Ethereum. To build a platform that can support dApps and smart contracts (or at least one of the two).
  • To beat Ripple. To bridge the gap between banks and cryptocurrency and make transactions seamless between the two worlds.
  • To offer the most privacy. There really isn’t any cryptocurrency that can claim the top spot here, though Zcash, Monero and Dash are all fighting for it.

Cryptos to Avoid at All Costs

cryptocurrencies to avoid

While there are many popular cryptos to buy and many more you should be watching, some cryptos should be avoided at all costs. According to Weiss Crypto Ratings, cryptocurrencies with low ratings, ranging from E-, E to E+, should be avoided. To put that into perspective, at the time of writing, both Bitcoin and Ethereum have a B+.

For instance, if you come across any of these, stay away from them:

  • Expanse
  • Comet
  • Matchpool
  • Mixin
  • Salus
  • PotCoin
  • Novacoin
  • Auroracoin
  • Quark
  • GameCredits
  • Megacoin
  • ATMchain

Note that Weiss updates their ratings quite regularly, and this list may become outdated very quickly. Keep an eye on it when looking into new cryptocurrencies to buy.

When Buying Cryptocurrency

Though choosing a cryptocurrency can be hard, traders should consider different crypto trading complexities. Crypto trading is not like stock trading. For example, while buying stocks generally requires proper monitoring of the market, the crypto market is largely volatile.

As such, there are different trading options to consider when dealing with cryptocurrency. Interestingly, the majority of investors favour purchasing a coin at its low price and then storing it until it becomes a more profitable investment.

Thus, to develop a successful trading plan, one should invest in proper trading education, trading practice, and emotional self-control.

Key Points

If you remember anything from this article, make it these key points.

  • Bitcoin, Ethereum and Ripple are still at the top. Though they are facing ever tougher competition, they are among the top cryptocurrencies to buy.
  • Several cryptos are fighting to be the no. 1 privacy coin. It is especially hard to declare a winner in this area, so keep your eyes open and consider coins, such as Monero, Zcash, and Dash.
  • There are still plenty of cryptocurrencies to avoid at all costs. Do your research, be aware of scams, and make sure the cryptocurrency of your choice is a safe investment.
  • Cryptocurrencies are not like stocks. They are highly volatile and can be bought in many different ways.

We at Trading Education can help you master the art of crypto trading. Simply sign up for one of our trading courses to become a pro in the world of cryptocurrency trading and blockchain technology.

Now you know what cryptocurrencies to buy, watch and avoid. If you're feeling inspired to start trading cryptocurrency, you may be pleased to know that etoro provides the ability to buy Crypto assets on up to 90+ cryptocurrencies. Crypto Traders can build a diversified portfolio with the most popular coins.  

Which crypto would you consider buying and which one would you watch? Which cryptocurrency would you avoid? Let us know in the comments below.

We hope our article Cryptocurrencies To Buy, Watch And Avoid was usefull to you and saved you some time in your research.

Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk and Past performance is not an indication of future results.

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