When we think about what kind of investments are the safest, we tend to think of something that is very stable and is free from any kind of violent downswings. You would be right to believe this. Still, there are several other factors that people look for in safe investments.
Cryptocurrency is just like any other investment opportunity. It comes with the same risks. This brings out a common question among beginners in cryptocurrency investment.
In 2020 what has been the safest coin?
If we are talking about a cryptocurrency that hardly changes in value, we would first look at "stablecoins". These have a reputation for being the safest as their value is tied to an external source.
The safest stablecoin of 2020 is Tether. This mimics the value of the American dollar (USD) meaning unless the leading world's currency suddenly drops, Tether will stay at a constant price. At the time of writing, it is sitting at $1 USD.
While stablecoins are a safe bet for investments, they won't exactly turn an insane profit. This is what you give up when switching to a stablecoin. However, if you want to know the safest non-stablecoin of 2020, then that would be Ethereum.
Ethereum does tend to have downswing episodes, but they aren't that violent and always seem to recover pretty well. Currently, Ethereum is sitting around $486. It hit it's lowest of the year in March with $177 USD and had it's high in September with $647 USD.
As you can see, it did go up and down, but it never dipped below $100. It did regain it's value and has stayed consistently at the top of the most traded cryptocurrencies in the world.
There really is no "safest" cryptocurrency to invest in as you want an investment to turn a profit. If you only play with what is safest, you won't see any kind of long-term profit. The reality of cryptocurrency is a lot like gambling. You're betting that the coin you invest in will make a profit. Still, there is the risk that it will drop to a lower price than how much you bought it at.
Stablecoins do tend to be worth a bit less than non-stablecoins since they are linked to an external factor that controls its worth. If you do want a stablecoin that does have a hefty price attached then you should try "The Peoples Reserve" (TPR).
TPR has its value linked to the last highest price of Gold. So, it is almost guaranteed to never go down and is starting to gain some real traction.
As with any investment, make sure you test the water first and do not invest everything you have. Many people have lost money due to misinformation and only focused on success stories of people who have earned from it. Always research before investing into something, especially when it comes to cryptocurrency.
A stablecoin has it's value tied to an external source such as the American Dollar or Gold.
Ethereum is still the number two coin in the world.
Only 3% of the world are investing in cryptocurrency right now.
The "safest" stablecoin is Tether which is linked to the American dollar.