Cryptocurrencies are becoming more popular day by day. These main cryptocurrencies, such as Bitcoin, Ethereum, and Ripple’s XRP, are steadily becoming a payment option for internet businesses. Cryptocurrencies are built on a cryptographically secure ledger called blockchain technology. As a result, individuals are eager to invest in something that allows for decentralized, transactions that are trusted even when they are not governed by a bank or a country. Cryptocurrencies are also viewed as a possible currency by the majority of people. This article provides information on the top Cryptocurrencies to Invest in 2023.
List of 14 Top Cryptocurrencies to Invest in 2023
Using bitcoin, we can make purchases but most people think it to be a long-term investment. However, because of the volatile nature, cryptocurrency is crucial to understand before investing what you’re getting into. These are the Top Cryptocurrencies to Invest in 2023.
1. Bitcoin (BTC)
By market capitalization, Bitcoin is the world’s largest cryptocurrency having been launched in 2009. Unlike conventional currency, Bitcoin is produced, distributed, traded, and stored using a decentralized ledger system called the blockchain. Bitcoin has a turbulent history as a store of value; it has gone through multiple boom-and-bust cycles in its brief existence. Bitcoin, being the first virtual money to achieve global acceptance and success, has spawned a slew of other cryptocurrencies in its aftermath.
Risks of Investing in Bitcoin
Bitcoin’s value is notoriously volatile and the price could go up and down anytime. The change in price shouldn’t be too alarming if you remember that bitcoin could be a good long-term investment. Most people can’t afford to acquire full Bitcoins because they cost more than $41,000 each. For investors, this could be a drawback for those who want to avoid buying a portion of a Bitcoin.
2. Ethereum (ETH)
Ethereum is based on the blockchain platform and the most well-known asset is the ETH cryptocurrency. The blockchain technology of Ethereum allows for the public creation and maintain secure digital ledgers. We can compare Bitcoin and Ethereum in many ways, yet they have different long-term goals and restrictions.
Risks of Investing in Ethereum
Using blockchain technology, Ethereum has only one “channel” for transactions. The transactions take longer to process in an overcrowded network. Transaction costs are particularly high, peaking at $71.72 in May 2021 as per CoinMarketCap. In 2016, a cyberattack exploiting a security hole resulted in the loss of more than $50 million in Ether.
3. Tether (USDT)
A Stablecoin called Tether (USDT) is a form of cryptocurrency that tries to keep the value of other cryptocurrencies stable. Tether is a cryptocurrency that crypto investors utilize who want to escape the severe instability of other cryptocurrencies while maintaining their value inside the crypto market. The New York Attorney General accused Tether’s parent corporation of concealing an $850 million loss in April 2019. The symbol, USDT represents Tether tokens.
Risks of Investing in Tether
The current risk score of USDT indicates that it is a low-risk investment. This score will be most beneficial to investors who are primarily concerned with a risk assessment to avoid (or perhaps seek out) risky assets.
4. Binance Coin (BNB)
Created by the Binance exchange, Binance Coin is a cryptocurrency that we trade under the symbol BNB. Binance blockchain has the native currency called BNB which was originally based on the Ethereum network. It spends one-fifth of its revenues every quarter to destroy Binance tokens permanently that are held in its treasury and repurchase, a process is known as “burning.” It started as a utility token for lower trading fees, but it’s now used for a variety of things, including transaction fees, travel bookings, entertainment, online services, and financial services. Binance had a market cap of more than $56 billion at the time of writing, placing it behind Bitcoin, Ethereum, and USD Tether in terms of market capitalization.
Risks of Investing in Binance Coin
The Binance Coin was founded by a company and not by the software developers sets it distinct from its competitors. Many critics have been won over by Binance Coin’s commitment to maintaining a strong blockchain, but some investors are still wary of this cryptocurrency and its possible security risks.
5. U.S. Dollar Coin (USDC)
USD Coin (USDC) is a digital stablecoin whose value is linked to the US dollar. The Centre consortium administers the USD Coin, which was created by Circle and includes members from Coinbase, a cryptocurrency exchange, and Bitmain, a Bitcoin mining company and a Circle investor. USDC is a private currency and not a digital currency issued by a central bank (CBDC).
Risks of Investing in U.S. Dollar Coin (USDC)
Because the coins are backed by an external asset, usually USD, there is no danger. Some stablecoins, on the other hand, are collateralized by other cryptocurrencies, which increases the risk. Stable coins do not move around much. USDC, on the other hand, does not fluctuate at all.
6. Cardano (ADA)
Cardano is a platform capable of hosting financial applications that are utilized daily by consumers, businesses, and governments all around the world. It has an environmentally friendly and transparent nature and is an excellent alternative to bitcoin. Cardano has also shown to be one of the top cryptocurrencies to invest in for investors in 2023.
Risks of Investing in Cardano
Even with a better network, Cardano may not be able to compete with larger cryptocurrencies. Fewer developers mean fewer adopters. This isn’t tempting to most investors as they want to see a high adoption rate.
7. Solana (SOL)
Solana is a significant challenger to Ethereum, with a fast network and an increasing number of dApps. The most enticing features of Solana, for now, are its developer cordial similarity with the simple-to-code Rust language and its extremely low transaction fees in contrast with Ethereum. Solana is also a strong competitor to become one of the most popular networks for blockchain-based games, which, if successful, might result in a lot of usages and there could be an increase in demand for the SOL token.
Risks of Investing in Solana
Solana has witnessed a roughly 4,000 percent increase in value in the last year, and prices might fall as swiftly as they rose. Because Solana had a nearly day-long outage owing to “resource fatigue,” according to Bloomberg, as reported by CNBC, reliability could be an issue.
8. Ripple (XRP)
At the summit of the altcoin pyramid, one of the most gleaming tokens is XRP, with year-over-year growth of 377 percent. Even though it is one of the few tokens to have experienced rapid growth, investors are optimistic about the future of this cryptocurrency.
Risks of Investing in XRP
If you believe Ripple’s growth will continue, a little investment in XRP might worthwhile. It’s not as safe as investing in stock, but if it succeeds, you may make a lot of money.
Stellar is based on open-source code that allows users to convert digital cash to fiat currency both domestically and internationally. It is a decentralized protocol that works on the blockchain’s cryptocurrency, lumen, a token that trades under the name XLM. With a market cap of slightly over $1 billion, Stellar is one of the best-performing altcoins in the previous five years.
Risks of Investing in Stellar
Stellar has already destroyed half of its Lumens and has no plans to manufacture anymore. This may make its investment potential seem questionable, but it’s vital to remember that the coin will be scarce in the future. Rarity raises the value of anything, and the Lumens that are still in existence should be no exception. Because of the potential for enhanced value, XLM could be a good asset to buy and own.
10. Polygon (MATIC)
Previously Matic Network, Polygon is a blockchain scalability platform and framework for linking and creating Ethereum-compatible blockchain networks. MATIC is a utility token for Polygon that powers the network. It serves as the network’s primary transactional currency and a financial incentive for individuals who want to help the ecosystem thrive. Its utilization is also as collateral in the staking procedure, which allows users to validate transactions using Polygon’s consensus system in exchange for MATIC tokens.
Risks of Investing in Polygon (MATIC)
Because the real investment returns have a non-normal distribution on holding a position in Polygon stock, the probabilities of losses and gains will be different. The downside risk of a Polygon investment reflects the probability of losses.
11. Enjin (ENJ)
Enjin Coin (ENJ) is an Ethereum token that intends to make using non-fungible tokens simple for individuals, businesses, and brands (NFTs). ENJ is a cryptocurrency that backs the value of NFTs created within the Enjin ecosystem.
Risks of Investing in Enjin (ENJ)
Like all volatile altcoins, Enjin is a high-risk investment that might pay off handsomely or cost you a lot of money. You would have made a 10x return on your investment if you had purchased Enjin before the beginning of 2021. It’s generally a good idea to invest only what you can afford to lose in volatile cryptos like Enjin.
12. Decentraland (MANA)
It’s also a metaverse game, a game of dominance, and a move from a notion to something more tangible. In the year 2023 virtual reality will be a hot topic. Ethereum-powered decentralized virtual reality platform. As more users migrate around the online environment, Decentraland allows users to acquire virtual plots of land to produce and monetize content. Decentraland is already experiencing a boom in investor interest, which is likely to continue as individuals and businesses want to establish a foothold on the metaverse as soon as possible.
Risks of Investing in Decentraland (MANA)
Decentraland, like other cryptocurrencies, is subject to cryptocurrency volatility. This implies that its price might vary quickly and at any time, making it impossible for you to foresee what the future holds as a trader. It also has regulatory difficulties, as most nations have yet to pass legislation governing virtual currencies.
13. Kucoin Token (KCS)
The KuCoin cryptocurrency exchange has created an Ethereum token called KuCoin Shares. Holders of the token who retain it on the exchange receive a percentage of the exchange’s trading revenue.
Risks of Investing in Kucoin Token
KuCoin isn’t legal tender in the United States. As a result, users in the United States face limited withdrawal limitations and several hazards, as KuCoin does not provide the same support to unauthorized accounts.
14. The Sandbox (SAND)
Sandbox (SAND) is the Sandbox’s native token. With a total quantity of 3 billion SAND, it is an ERC-20 token. SAND is a utility token that we can utilize in the Sandbox ecosystem for any type of transaction or interaction. To play the game, design their avatars, buy LANDs, or sell ASSETS on the Sandbox Marketplace, players must own SAND. SAND is a governance token as well. A Decentralized Autonomous Organization (DAO) structure allows SAND holders to propose and vote on platform updates.
Here are a few more points to consider when you decide which cryptocurrency is the best investment for you:
- The time taken by it to execute a transaction.
- Transaction fees associated to complete.
- The ability to make bank transfers and regular transactions with your cryptocurrency.
For investors only, and if your interest is not in transacting on the network, keep in mind that bitcoin isn’t a get-rich-quick scheme but instead we can take it as a long-term investment.