Cryptocurrencies are digital assets that rely on cryptography to provide increased security. Although they are not the same as pounds or dollars, cryptocurrencies serve a similar purpose, requiring widespread consumer trust so they can operate as a means of exchange. Bitcoin is the original cryptocurrency and has seen massive growth throughout the years, maintaining a firm position in the market, despite all the challenges. Attitudes about the Bitcoin price are positive, as many experts believe the digital asset could reach a peak of $42,225 by the end of the year.
While this makes Bitcoin appealing to investors, it may be worth taking a look at other profitable digital assets. Since diversification can help mitigate risks, determining what other cryptocurrencies hold great value in 2023 is imperative.
Ethereum
Ethereum is a digital asset and a blockchain platform many developers love due to its applications, such as smart contracts and NFTs. But there are other reasons why Ethereum stands out as a worthwhile investment. For instance, it has a solid roadmap for upcoming upgrades that aim to improve it by providing better scalability and increased security. Ethereum 2.0 was a major upgrade, involving a shift from the PoW algorithm to Pos, decreasing energy consumption and increasing transaction speed. But more upgrades will follow, and they are expected to enhance Ethereum’s adoption and utility, resulting in a price increase.
Ethereum is a good investment option for beginner investors because it’s an established cryptocurrency with a solid track record. Moreover, this digital asset has multiple real-world use cases, revolutionizing healthcare and voting and improving shipping by preventing the misplacement of goods. These applications highlight the value of Ethereum, making it a great addition to any investment portfolio.
Binance Coin
Binance Coin, or BNB, is another popular cryptocurrency which can be traded on Binance, a top crypto exchange. This digital asset was first launched in 2017, and since then, it has grown exponentially, being now used for other purposes besides trading, such as payment processing and booking travel arrangements.
BNB is one of the best-performing assets in the market, and its history shows how much the token's value has increased over the years. This cryptocurrency has great use cases – perhaps some of the best in the industry- providing excellent useability compared to other coins. If you’re looking for a digital currency with huge market potential, consider investing in BNB, as this token could possibly double your money.
Solana
Solana (SOL) provides improved scalability, introducing unique technologies that ensure enterprise-level security and unparalleled transaction speeds. Since it was first introduced in 2017, Solana has seen significant growth. The architecture of the network is resilient to censorship and expandable. Moreover, the cryptocurrency relies on innovative energy-saving mechanisms, making it an eco-friendly asset.
Even though Solana had a difficult year in 2022 (like other cryptocurrencies, for that matter), experts are optimistic about its future performance, believing it will experience considerable growth.
Cardano
While Cardano entered the crypto scene later, this cryptocurrency is notable because it uses a PoS consensus mechanism, which lowers energy usage and speeds up transaction time. Moreover, just like Ethereum, this digital asset enables smart contracts and DApps. Cardano differs from other digital assets because it depends on the academic sector. The platform's design was created via evidence-based methods based on educational theory and scientific philosophy and completed through peer-reviewed research.
Cardano has excellent use cases, and its developers seek to use innovative technologies to restore trust in economic systems worldwide. Specifically, it enables businesses to operate securely and more transparently and sustainably. Although this cryptocurrency had a modest growth compared to other assets, experts believe its future is bright, so it may be worth considering in 2023.
Polygon
Polygon, initially named Matic Network, is another crypto worth keeping on your radar this year. Many consider it a scalability solution which decreases blockchain congestion and lowers transaction fees. Polygon uses zkEVM technology, a sophisticated cryptographic methodology that helps verify transactions on the Ethereum blockchain quickly and efficiently. zkEVM is one of the reasons why Polygon is a valuable cryptocurrency, as this robust methodology has been used to develop new blockchain protocols and digital assets.
Considering its price prospects and fundamentals, Polygon is a good investment in the long run, delivering potentially high returns to investors.
Dogecoin
While Dogecoin started as a joke, it quickly evolved into a popular cryptocurrency due to its dedicated community. The total supply of Dogecoin is more than 5 trillion coins, with 100 billion of them in circulation, making the cryptocurrency one of the most abundant ones in the market. This digital asset is a good option for beginner investors because it doesn’t require putting a significant amount into it, as other cryptocurrencies do – you can buy it for just $20.
Besides investing, Dogecoin can also be used for donations, tipping, and purchasing services and goods. Some believe Dogecoin will provide compelling use cases in the future – for instance, the cryptocurrency may deliver smart contracts. Moreover, there are rumors that it may switch to a PoS consensus mechanism, increasing the coin’s value and reducing environmental concerns associated with cryptocurrencies. These aspects make Dogecoin a good option to consider for your investment portfolio.
Choosing the best coin to buy in 2023
Given that so many cryptocurrencies are available, it can be daunting to figure out which is the best buy. However, some factors can help you make the right decision, such as a fundamental analysis of the cryptocurrency, which will help you opt for a coin with long-term profitability instead of chasing a coin whose quality is questionable. You should also look for a cryptocurrency with a strong community around it, as this shows that people are genuinely interested in it and believe in its potential. Analyzing the technology of a digital asset is equally important because it gives you an idea of what kind of problems it aims to solve.
Lastly, you should always choose cryptocurrencies with a defined vision for the future. Ultimately, it’s all about long-term growth, so even if an asset may not perform well in the present, that doesn’t mean it never will. It’s essential to conduct a thorough research about a crypto project before investing in it, as this will help you understand it better and ensure it is the best choice for your portfolio.