Best Cryptocurrency to Invest in 2023

Bitcoin is without a doubt, the most popular cryptocurrency to exist in the world right now, and rightly so, it brought about the Crypto revolution and has been the trendsetter ever since. But every leader has its followers, and so following the footsteps, there has been a huge spike in the number of cryptocurrencies available today. In fact, currently there are more than 18,000 cryptocurrencies in existence. Some of these are very much like Bitcoin, others are wildly different, so which one should you invest in to make your money’s worth?

What is cryptocurrency?

Before understanding the reasons for the success of Bitcoin (or BTC), let us first review the basics of cryptocurrency. It is a form of digital money that exists in the form of virtual coins. The term crypto in cryptocurrencies is used because these are encoded using complex cryptography to prevent theft or loss of kind.

Since they work on blockchain technology, all cryptocurrencies are designed to be decentralised, i.e., free from the government, it’s actually one of the main reasons for its popularity. All cryptocurrencies that are modelled after Bitcoin are called Altcoins, or even sometimes, shitcoins. These crypto coins are often made to prove that they are a better, or at least a modified version of Bitcoin. Even though the truth is that so far none of the altcoins have been able to reach Bitcoin’s level of security.

Types of Altcoins

Cryptocurrencies

Many altcoins (that is, those that are not Bitcoin or Ethereum) are classified in this way and may sometimes be called value tokens since they transmit value (like digital money) across a decentralised network.

Tokens

These are the blockchain based tokens that are made for purposes other than digital money.

There are also blockchain-based tokens that are meant to serve a different purpose from that of money. Like, Storj tokens, which allow people to share files across a decentralised network, or Namecoin, which provides decentralised Domain Name System (DNS) service for Internet addresses.23 These are known as utility tokens.

Top Cryptocurrencies

Now let us review the top cryptocurrencies to invest in.

1. Bitcoin (BTC)

Almost every crypto investor has invested some portion of their capital in Bitcoin. It is after all, the breakout currency and even though bitcoin has seen huge volatility ever since its breakout in 2017, it is inarguably the face of cryptocurrency in the world right now. It has the largest market cap and one BTC can worth anything north of $30k depending on the market status at that time, but usually its always more than $40k.

2. Ethereum (ETH)

This is a popular decentralized software platform that allows the building of smart contracts and decentralised applications (dApps) without any interference from a third party. Ethereum based applications run on ether, the designated token of the platform. The value of a single ETH is around a whopping $2,556 and despite being the second most popular cryptocurrency it’s market cap is less than half of that of bitcoin.

2. Litecoin (LTC)

Launched in 2011 by MIT graduate Charlie Lee, LTC was one of the first crytpos to follow BTC and is often referred to as “silver to Bitcoin’s gold”. It is open source and offers a faster transaction time. It is a good investment because today a lot of merchants have also started accepting Litecoin.

With a total supply that is four times more than that of Bitcoin, Litecoin has a coin supply that is more plentiful, which adds to its attractiveness for regular transactions. A robust and active development community, together with Litecoin’s safe and decentralised structure, have helped the cryptocurrency maintain its relevance and stability in the ever-evolving crypto ecosystem. As a tried-and-true digital asset, Litecoin continues to draw buyers, sellers, and consumers who appreciate its dependability, efficiency, and dedication to innovation.

4. Cardano (ADA)

Created by one of Ethereum’s co-founders, Cardano is a unique blockchain platform created after extensive research. It has been called the “Ethereum killer” because its underlying blockchain is claimed to be more powerful than that of Ethereum. One ADA is worth about $0.80 but it has the 8th largest market cap of $26.9 billion

5. Polkadot (DOT)

Popular for its unique characteristics, Polkadot actually aims to deliver interoperability among different blockchains. It has been designed to connect different blockchains to work together, and parallel chains can have their own native tokens for specific-use cases!

It can be claimed to be better than Ethereum because users cannot only build dApps, but their own blockchains using Polkadot’s existing security measures. This concept is referred to as shared security. This makes it a popular investment choice.

6. Bitcoin Cash (BCH)

Cryptocurrencies are decentralized and any major change to the code cannot proceed without consensus. In cases of disagreement among large factions of developers and miners, the currency sometimes has to split, and this is called forking. Bitcoin Cash is a result of (and the most successful) hard forks of the original Bitcoin.

Unlike BTC, which has a limit on the size of blocks, BCH increases the block size thereby increasing the transaction speeds. It has also made some other changes which make it a good candidate for investment purposes.

7. Stellar (XLM)

Stellar is an open blockchain network designed to connect financial institutions for the purpose of large transactions. Banking and investment firm transactions that used to take several days involved a number of intermediaries, and cost a lot of money can now be completed nearly instantly with no intermediaries and cost little or nothing to the parties involved.

It allows cross-border transactions among any currency. However, its native currency is Lumens (XLM) and a user is required to hold some XLM to be able to transact on the network.

8. Solana (SOL)

Even though a lot of people are often found comparing BTC with ETH, one has to realise that Ethereum platform has so much more to offer than just the cryptocurrency. The ETH has a stronger backbone and reliability as compared to BTC, but BTC is the king of the market.

Solana blockchain however, comes as a plausible rival for Ethereum and SOL is one of the top-10 cryptocurrencies with a market value of $32billion. It is often considered a better alternative than Ethereum because of a considerably lower network fee. Hence, investors should definitely keep an eye on it.

9. Tether (USDT)

When it comes to investments, it’s always good to play safe. Being one of the first and most popular stablecoin (cryptocurrency with a market value anchored to a currency) in the world, USDT does seem like a good investment.

Unlike mainstream cryptocurrencies like Bitcoin which are a victim of extensive volatility, Tether’s price is tied up with the value of the US Dollar making it very stable in comparison. As of March 2022, it is the third largest cryptocurrency by market capitalisation ($80 billion) where each token is worth $1.

10. Binance Coin (BNB)

Binance is the world’s largest cryptocurrency exchange at the moment. It has numerous successful projects in the decentralised world and is a leader in the market. The Binance coin is the native cryptocurrency of Binance and given the extensive success of the company, it seems like a good investment alternative.

11. Polygon

It is one of the top altcoins for building and connecting Ethereum-compatible blockchain networks. It provides scalable solutions on Ethereum, supporting a multi-chain Ethereum ecosystem.

This is one of the best altcoins that helps you to combine the best of Ethereum and sovereign blockchains into a full-fledged multi-chain system. It is one of the best altcoins that can fully benefit from Ethereum’s network effects and is certainly a more open and powerful technology.

Other cryptocurrencies to invest in

1. Lucky block

Lucky Block is a crypto-lottery platform that uses blockchain technology to improve traditional lottery systems. Users can purchase lotto tickets using LBLOCK, the platform’s native token, meaning the entire process is digitised and absolutely fair.

2. Avalanche (AVAX)

Another exciting new cryptocurrency to invest in is Avalanche. Avalanche is a super-fast blockchain platform that uses three chains rather than one – meaning tasks are divided, and transaction speeds are significantly increased. Speeds are boosted even more since Avalanche uses two separate consensus mechanisms, ensuring that the platform is immensely scalable.

3. Maker (MKR)

Maker is the native token of MakerDAO, a decentralized lending platform built on the Ethereum network. Users can lock up ETH in the protocol and create ‘DAI’, a stable coin pegged to the dollar. Essentially this allows users to receive crypto loans and generate yields without the need for invasive KYC checks.

4. Chainlink

Chainlink is an innovative network that uses ‘oracles’ to provide off-chain data to the blockchain. Off-chain data, such as stock market prices, can be used by smart contracts within dApps, yet has to be sourced in a decentralized manner. Chainlink’s nodes can source the data for a fee, which is paid in LINK.

5. Uniswap (UNI)

Another option for which cryptocurrency to buy in the DeFi space is Uniswap. Uniswap is a decentralized exchange (DEX) hosted on the Ethereum network and allows users to exchange crypto tokens easily. As it is decentralized, there is no requirement for users to provide personal details.

6. Enjin (ENJ)

Enjin is an Ethereum-based cryptocurrency used to power an ecosystem of NFTs. The exciting thing about Enjin is that the coin can be used in various blockchain games to buy and sell items. Furthermore, items denoted in ENJ can be used across multiple games, offering interoperability between different developers.

7. Basic Attention Token (BAT)

It is unique crypto that looks to revolutionize the digital advertising industry. Users on the Brave web browser can be rewarded in BAT simply for watching ads, whilst advertisers can also get rewarded for creating advertisements that capture users’ attention.

8. Yearn.finance(yfi)

Yearn.finance is a DeFi protocol that provides users with access to high yields on their crypto holdings. Users can deposit their holdings into ‘vaults’ and generate impressive passive returns – for example, depositing Curve tokens can net investors an APY of up to 48.42%!

9. XRP (XRP)

XRP, which was founded by some of the same individuals as Ripple, a digital networking and payment systems company, could be used on that network to facilitate exchanges of various currency types, such as fiat money as well as other major virtual currencies.

10. Dogecoin

This coin was created as a meme/joke, and even the co-founder is taken aback by it. Its value skyrocketed due to celebrity endorsement, but experts say its nature ensures that it will not skyrocket again in the future.

Unlike many other cryptocurrencies, bitcoin is motivated by significant technological goals. But as soon as its warm and active community welcomed it, it gained surprising popularity and wide acceptance. Low transaction costs and quick block times of Dogecoin have made it useful for tipping and microtransactions on social networking networks. Dogecoin is an intriguing and unusual participant in the world of digital currencies because, despite its roots as a joke, it has maintained its presence and even attracted popular attention.

11. Monero XMR

It actually turned out to be many of the things that Bitcoin was expected to be. It is most comfortable in the dark, is relatively untraceable, has value, and can be created confidentiality agreements on home computers.

Importance of cryptocurrencies

Cryptocurrencies were introduced in the world to operate on blockchain-based platforms to allow individual users the benefits of a peer-to-peer financial system without a central authority (like banks) that could misuse their private data, freeze their assets or charge high transaction fees. It was developed with a motive to make finance more democratic and transparent.

Do your research (DYOR) — Here are some things to look for:

1. Appreciator trust – The community that forms around a cryptocurrency and the belief that it inspires can mean the difference between such a currency that rises to the top of the charts and one that sinks without a trace.

2. Blockchain generation – Virtual currencies are categorised as coins or tokens, and current generations enable the underlying blockchain to activate exciting options.

3. Specialisation – Over time, each currency settles into a distinct niche.

4. Supply conditions – Whether supply is limited or unlimited can influence fundamental aspects of how a currency is used and its impact on the broader economy.

5. Transaction speed – Similar to waiting in a check-out line, you’d like the cashier to confirm your purchase or sale as soon as possible.

6. Transaction privacy – Within the crypto community, currencies can be perceived as providing varying levels of privacy, even though law enforcement authorities have methods for tracing almost every transaction.

Prospects for the Future

Several countries across the world are attempting to implement regulations, which could lead to the maturation of the virtual currency market in the coming years.

Investors would feel more at ease investing their money if regulatory guidelines were in place, and business owners would feel more at ease starting businesses centred on cryptocurrencies and blockchain.

Everyone wants to enjoy the cryptocurrency wave, but the fear of missing out on the rally could be detrimental to investors. Crypto is a unique and modern technology, but it is only one component of the larger economic boost that blockchain provides for financial activities. We have satisfactorily established a foothold in the Indian market, with more than 3,000% growth within last quarter.” We have seen an increase in digital consciousness and appetite.

Frequently Asked Questions on Cryptocurrencies

Q1. What Is the Importance of Cryptocurrencies?

Blockchain-based cryptocurrencies are decentralized platforms enabling individuals to conduct peer-to-peer financial transactions or enter into contracts. There is not much need for a reliable party middleman, including a bank, currency board, jury, or judgments.

Q2. Why Is There So Much Variety in Cryptocurrencies?

A large percentage of today’s digital currencies are in some manner inspired by Bitcoin, which uses open-source code and suppression of free speech architectural style. This means anyone can copy the code and modify it to create their new coin. This also implies that anyone is free to join or transact in its network.

Q3. What Are Some of the Other Major Cryptocurrencies?

Many cryptocurrencies have gained prominence or have the potential to do so. Ripple (XRP), Solana, USD Coin, and Tezos are virtual coins.

Q4. Why Is Bitcoin Still the World’s Most Valuable Cryptocurrency?

Despite the emergence of numerous competitors, Dogecoin, the first virtual currency, remains the predominant player with many usability and economic gains. As of December 2021, each coin (BTC) was worth approximately $47,000, with more than $886 billion market capitalisation.

Conclusion

In this article, we learnt all about cryptocurrencies and tokens. We all reviewed some of the best investment options in the crypto sphere currently and why they should be invested in, aside from discussing some faqs. At the end, we learnt the importance of cryptocurrencies as well.