Which cryptocurrencies to invest in in 2023

by Newson Graham · May 22, 2023

Digital currencies are assets that are used as an alternative or additional payment system. Digital currencies are legal in many countries but are not regulated by the banking system in any way. Virtual currency operates onthe principles of cryptography and is capable of performing financial transactions, namely buying and selling.

People buy crypto to increase their income. It is possible to view price charts and rate changes and analyse the growth of aninvestment on specialised exchanges.

Common ways to invest in crypto are:

Buy and hold coins;
investing in cryptocurrency companies;
invest in crypto funds;
become a cryptocurrency miner or validator – someone who validates transactions on the blockchain and gets paid for doing so.

But first, choose the currency you want to invest in.

Top cryptocurrencies in 2023:

Bitcoin is a very popular form of digital currency. Bitcoin uses blockchain technology to support peer-to-peer transactions between users in a decentralised system. The crypto was created by an anonymous developer under the pseudonym Satoshi Nakamoto in 2009. The author created the first bitcoin wallet and generated the first block. Initially, the value of one unit of currency was counted by energy expenditure. Only two years later, the currency became widely known and is already listed on financial exchanges on a par with the US dollar, the euro and the pound sterling. BTC is one of the most expensive currencies in the world, even more expensive than platinum, which is why it is chosen. In addition, bitcoin is one of the stable types of electronic currencies in the financial market and its role will only get stronger. All participants in transactions are completely anonymous, as there is no personal information (bank details and personal data of the parties) in the transactions.Quick payments can be made at any time of the day or night. Of course, there are also disadvantages: price volatility – the exchange rate fluctuates, there is minimal risk of hackers breaking into the system and crypto is not covered by investor protection insurance (SIPC).
Ethereum is a cryptocurrency and platform for creating decentralised online services based on smart contracts. The platform was launched in 2015 by developers Vitalik Buterin and Joe Lubin, founder of blockchain software company ConsesSys. ETH tokens are the second largest and most valuable cryptocurrency on the market. The cryptocurrency can be stored in an Ethereum e-wallet. The platform is decentralised, so users remain anonymous. Any changes to the network with private partners (sales, purchases, transactions) are only possible by full consensus of all parties, and if not, payments will not be possible. These changes protect users’ rights. However, if they forget their login details to the service, they will not be able to recover it, as it is not possible to show proof of ownership of the account.
Solana, a platform where more than 11.5 million accounts have been created, is remarkable for its speed! It processes up to 65,000 transactions per second, while other platforms only process around 30 or even less! Fast transactions with minimal fees, information security, anonymity and a decentralised system – the system is blockchain-based and offers the same guarantees as other cryptocurrencies. Solana was only founded in 2020 and is therefore not as widespread as its more well-known competitors, but it claims to be expanding its services in the market. The value of digital tokens depends on a number of factors: supply and demand in the market, asset prices, platform performance and more. For these reasons, there is volatility in the prices of SOL shares and e-currency. The service also charges a small fee for payments and the execution of smart contracts.
Binance coin launched in 2017 and is one of the largest crypto exchanges in the world in terms of daily trading volumes. Since its launch, the firm has attracted quite a few investors, including large enterprises. Buying a BNB coin is a very worthwhile investment, as according to expert analysis and predictions, the value of the digital currency will grow steadily and will be 25% more by 2025! Instead of the usual smart contract codes, there is a more simplified contracting and transaction process. These networks are protected by Binance’s own blockchain and a consensus mechanism for action confirmation (PoW).
Polkadot is a type of digital cryptocurrency that enables the creation of a modern asset through transactions between independent mining nodes and other instruments. The platform, launched in 2017, regularly introduces new technologies and updates. The system uses validators (computer nodes) for blockchain security. Polkadot provides scalability not only in a single chain, but also in parallel blockchains. In addition to tokens, assets, data and contracts can be transferred in the system for trading and business transactions. The DOT is expected to reach its maximum value in 2026. The exact value is currently published in the DOT’s online timeline. Newcomers will need to learn how to use the site’s e-wallet, but the security and assurance of the service is as good as any of its competitors.
Cardano is a platform created by Input Output Hong Kong and Charles Hoskinson, former co-founder of Ehterum, in 2017. The blockchain platform combines ground-breaking technology to provide unprecedented security and resilience for decentralised programmes. The company uses a unique prook-of-stake consensus mechanism – it is less costly than the prook-of-work algorithm, which is more commonly used in cryptocurrency. The service offers auxiliary features, such as transaction reduction and additional security measures. ADA is a long-term investment: an increase in demand for coins leads to an increase in the price of supply. However, long-term holders of cryptocurrencies are less likely to sell their coins in times of market volatility.

An investor should monitor trends to know which cryptocurrencies are best to buy in 2023. And don’t forget that cryptocurrencyprices are very volatile, so it’s important to study forecasts.