10 Best Cryptocurrencies to Invest in 2023
Cryptocurrency is a digital currency not regulated by a central banking system, yet. It is instead based on blockchain technology. Bitcoin is currently the most popular cryptocurrency.
Digital currency is becoming more common on Wall Street and this has led to the availability of more options. Now, there are over 5,000 cryptocurrencies.
You can use digital currency to buy stuff; but for most people, it is a long-term investment.
Cryptocurrency investing can be risky, especially if you don’t have enough information.
So here are the 10 best cryptocurrencies that you can invest in.
How the Top 10 Cryptocurrencies Were Picked
Longevity
Has the cryptocurrency been around for long? This is not to say that new digital currencies are bad. But historical data helps you analyze the performance.
Track Record
The performance of the company over the years is important. If the prices have had some stability, that’s good. A promising currency is one that is gaining value over time.
Technology
Is the platform usable and secure? Transactions should be handled smoothly.
You also don’t want to lose your investment because of an insecure platform.
Adoption Rate
A high adoption level usually means that the digital currency has great liquidity. It will be easier to spend, sell or trade in the future.
The Top 10 Cryptocurrency Investments in 2021
1. Bitcoin (BTC)
Bitcoin is the oldest cryptocurrency. Its volume, market cap and price are higher than those of the other options. It represents 40 percent of the market cap.
Risks
Bitcoin fluctuates a lot. It is also quite expensive for people who want to purchase whole shares.
2. Ethereum (ETH)
Ethereum is both a cryptocurrency and a network, making it unique. It may be cheaper than Bitcoin but it is well ahead of the other online currencies.
Risks
Transactions can take long to process.
3. Binance Coin
Binance has grown slowly but consistently. This has made it a stable investment option with fewer risks.
Risks
Many people are skeptical when it comes to security.
4. Tether (USDT)
Tether is extremely stable because it is connected to the US dollar.
Risks
There have been doubts about the actual reserve stock.
5. Cardano
Investors love Cardano because transactions are cheaper and faster. It has also proven to be quite secure.
Risks
The low adoption rate makes investors hesitant.
6. Polkadot (DOT)
The creators of Polkadot are former Ethereum leaders. They wanted to create an online currency with a much better network.
Risks
Polkadot has a short history so it’s hard to assess its track record.
7. Ripple (XRP)
Ripple offers international transactions and the transactions only take seconds.
Risks
The growth rate is not that impressive.
8. Algorand
Algorand completes transactions much faster than Bitcoin. If the fast transaction rate continues, it could grow dramatically.
Risks
It is closely tied to Bitcoin so its value fluctuates a lot.
9. Chainlink
This cryptocurrency has an appealing price and it is easily accessible. It has also shown promise when it comes to growth.
Risks
Its low market cap doesn’t make it attractive.
10. Stellar (XLM)
This cryptocurrency acts as a bridge between blockchain networks and banks. It serves a niche need.
Risks
If it faces stiff competition its value could drop.
