Cryptocurrencies offer a decentralized and secure way to store and transfer wealth. Investing in cryptocurrencies has become increasingly popular in recent years due to their potential for high returns. Over the years, some cryptocurrencies have shown substantial price appreciation, providing opportunities for high returns for early investors. Investing in cryptocurrencies comes with a high level of risk because cryptocurrency prices can be volatile and there is a risk of fraud and security breaches. However, for those willing to take the risk, investing in the right cryptocurrencies can be a lucrative investment opportunity.
Growing popularity of cryptocurrencies
The popularity of cryptocurrencies has grown significantly in recent years. The rise of cryptocurrencies can be attributed to the mainstream adoption of Bitcoin, the first and largest cryptocurrency by market capitalization. Bitcoin’s price appreciation in late 2017, when it reached an all-time high of almost $20,000, drew significant attention to the cryptocurrency market and sparked interest among many investors.
With the development of decentralized finance (DeFi) applications built on blockchain technology, there are new investment opportunities and financial services that are accessible to anyone with an internet connection. The growing popularity of cryptocurrencies has also been supported by mainstream companies and institutions. This has helped to legitimize cryptocurrencies and increase public confidence.
The best cryptocurrencies to invest in 2023
This blog will provide an overview of selected cryptocurrencies, including their history and price performance. We will provide you best crypto projects to invest in that could provide big returns in 2023. It’s important to note this is not intended to be an investment plan, and readers are advised to do their own research before making any investment decisions.
Bitcoin
Bitcoin is a decentralized, peer-to-peer digital currency, first proposed in 2008 and released the following year. The creator remains unknown, using the pseudonym Satoshi Nakamoto. Bitcoin utilizes blockchain technology and offers a secure and decentralized digital currency. With its 24/7 availability and ability to bypass intermediaries, users have total control over their bitcoins through their private keys. Despite the proliferation of other cryptocurrencies and blockchain platforms since its launch, Bitcoin remains dominant, with the largest market capitalization of any cryptocurrency.
Why Bitcoin?
Bitcoin remains at the forefront of the cryptocurrency market and is likely to keep pace. Over the years, Bitcoin has demonstrated impressive durability, securing hundreds of billions of dollars in value through its decentralized network.
In contrast, many other cryptocurrencies available today rely on small development teams or businesses, which exposes the assets to risk. When it comes to market performance, it is difficult to see a positive trend for the cryptocurrency market as a whole without Bitcoin also doing well. The decentralization of the Bitcoin ecosystem makes it less susceptible to problems that affect smaller crypto projects. In addition, the upcoming halving of Bitcoin in 2024 is expected to be a crucial point in the market cycle. It is uncertain how long the current bear market will last, but if there is a bullish reversal in the market, the halving could be the catalyst. If you believe in the existence of cryptocurrency, owning Bitcoin could be a good investment option, with a projected price of up to $42,400 one year from now.
Polygon (MATIC)
Polygon is a Layer 2 scaling solution designed to enhance the scalability of Ethereum’s blockchain network. This allows businesses and developers to create complex decentralized applications (dApps) and decentralized finance (DeFi) solutions on Ethereum while enjoying faster transaction speeds, lower costs, and increased security. Polygon’s PoS consensus algorithms bring security, reliability, and cost-effectiveness to Ethereum’s blockchain, making it a popular choice for dApp and DeFi project developers. With its ability to process transactions quickly and efficiently. Polygon has become a sought-after solution to build and scale projects on the Ethereum network.
Why Matic?
Polygon has established itself as a leader in the blockchain space, providing developers with innovative solutions to create cutting-edge digital services. As blockchain technology continues to grow in popularity, Polygon has a key role in driving innovation and making it one of the most attractive DeFi projects for investment. One of the benefits of MATIC is its requirement for paying transaction fees, which means that an increasing number of individuals will need to hold the coin in their cryptocurrency wallets. This demand could lead to significant growth for MATIC, potentially surpassing its all-time high of $2 and offering investors big returns during the next bull market.
Ethereum
Ethereum is a blockchain platform established by Vitalik Buterin, who presented its white paper in 2013 and launched the platform in 2015. It is distinct from other blockchains because it supports smart contracts, which enable a range of complex applications, such as decentralized lending protocols and non-fungible tokens.
One of the early applications that Ethereum enabled was the creation of custom tokens, which became a popular means of fundraising through Initial Coin Offerings (ICOs) and other token sales. Presently, Ethereum boasts a thriving ecosystem of decentralized applications, including decentralized financial services, NFT marketplaces, publishing platforms, decentralized cryptocurrency exchanges, and more, making it a top choice for altcoin investment in 2023. The Ethereum network operates on a Proof-of-Stake consensus mechanism and uses ETH as its native asset as an incentive for users to secure the network. Before the switch to Proof-of-Stake in September 2022, the network utilized Proof-of-Work.
Why Ethereum?
The availability of ETH withdrawals through staking is getting closer, with the launch of the Zhejiang public testnet set for February 7th. The testnet will allow the testing of the Shanghai-Capella upgrade for Ethereum, which among other advancements, will enable users to unstake ETH from validators. This upgrade is also referred to as “Shapella”. According to Ethereum Foundation member Tim Beiko, if the Zhejiang testing goes as planned, the Sepolia and Goerli testnets will follow. The Goerli testnet, scheduled to launch in early March, will be the final step before the Shapella upgrade is implemented on the Ethereum mainnet.
BNB
BNB is a cryptocurrency token introduced by the Binance exchange in 2017. The token has two main uses. Firstly, Binance users who hold BNB are eligible for special perks. These include reduced trading fees, access to Binance’s Launchpad and Launchpool programs, cashback on Binance Visa card purchases, and more. Secondly, BNB serves as the native currency of the Binance Chain blockchain. Binance Chain is a variation of Ethereum that offers much lower transaction fees to users and makes it simple for developers to deploy decentralized applications that are compatible with the Ethereum Virtual Machine. Previously referred to as Binance Coin, BNB has undergone a comprehensive rebranding.
Why BNB?
BNB has gained widespread popularity due to its fast and affordable transactions, though there have been debates about its level of decentralization. Despite these debates, many users seem to be prioritizing convenience.
Binance has further consolidated its position as the leading cryptocurrency exchange and has seen a surge in market share since FTX’s downfall. Given that Binance continues to offer incentives to BNB holders, we expect the demand for BNB will remain strong. It’s worth mentioning that BNB also undergoes quarterly burns, which will continue to reduce its supply until it reaches 100 million coins. This reduction in supply, along with the incentives offered by Binance, bode well for long-term BNB holders.
Polkadot (DOT)
Polkadot is a cutting-edge open-source blockchain platform. It offers unparalleled interoperability by enabling secure data and asset transfers across multiple blockchains using parachains. Its innovative consensus mechanism ensures a low false-positive rate of 0%, allowing users to take advantage of both public and private blockchain features while maintaining the security of data transfers. Due to its secure and interoperable nature, Polkadot has become a hub for some of the most promising decentralized finance (DeFi) platforms, including Clover.
Why Polkadot?
The continued advancements in blockchain technology are driving the growing need for solutions like Polkadot’s interoperability. Developers and users can benefit from blockchain ecosystems without sacrificing quality or efficiency. This makes Polkadot one of the most promising DeFi projects to consider investing in. DOT, the token used on the Polkadot network, is presently trading around 90% below its all-time high, demonstrating the coin’s potential value in past bull markets. With the rising popularity and adoption of blockchain technology, there are predictions that DOT will surpass its previous all-time high and potentially experience significant growth.
The Sandbox (SAND)
The Sandbox is a virtual reality world built on the Ethereum blockchain. It offers players ownership of in-game assets, including land, through non-fungible tokens (NFTs). The game’s 3D world, created with voxel-based graphics reminiscent of Minecraft, aims to create an “open metaverse” as a player-driven alternative to the metaverse developed by big corporations like Meta (previously known as Facebook). The Sandbox is part of Animoca Brands, a leading company in the blockchain and NFT gaming industry. The game features a utility token called SAND, which can purchase assets, land, and personalized avatars. SAND also enables players to participate in The Sandbox’s governance and earn rewards in the form of GEM and CATALYST tokens by staking.
Why Sandbox?
SAND, the token used in The Sandbox, has been one of the standout performers of 2023 with a rally of almost 100% since the beginning of the year. The Sandbox project has an ongoing staking program, and the team recently announced a refill of their staking pools with 200,000 SAND per week for the next four weeks starting February 7th. At current market prices, 200,000 SAND is equivalent to approximately $150,000.
In addition, the team announced an increase in the maximum staking limit for LAND owners in The Sandbox, from 1,000 SAND to 2,000 SAND per LAND. The team has also recently released the 9.8 version of the Game Maker software, which enables users to create custom games and experiences within The Sandbox’s virtual world. The software utilizes user-created 3D voxel models, which are represented as NFTs.
Shiba Inu (SHIB)
Shiba Inu is considered a great starting point for new crypto investors with tight budgets. It rose to fame in a big way when 400 trillion tokens were given to the creator of Ethereum, Vitalik Buterin, and he burned 90% of the coins, valued at $6.7 billion. This action generated a lot of excitement and fueled the growth of SHIB. In 2023, Shiba Inu will unveil Shiabrium, a second-layer network built on Ethereum, offering SHIB token holders a fast and secure platform to transfer and receive SHIB. Additionally, the coin will continue to support the creation of NFT art and provide a marketplace for art inspired by Shiba.
Why Shiba Inu?
2023 looks to be a significant year for Shiba Inu as it moves from being just a well-known meme coin to a significant player in the DeFi sector with the introduction of Shibarium. This network aims to reduce the cost of SHIB transactions and provide a platform for building decentralized applications. This will increase the appeal and usability of Shiba Inu. With SHIB currently trading at a price that is more than 90% lower than its all-time high and exciting plans in the works for 2023, the current low trading price presents a fantastic chance for investors to earn big returns, making Shiba Inu one of the top DeFi projects for 2023 investment opportunities.
Conclusion – Best cryptocurrencies to invest in 2023
It’s difficult to predict which cryptocurrency will be the best investment in 2023. The crypto market is highly volatile and subject to sudden changes, making it challenging to make long-term predictions. The best crypto to invest in will depend on factors such as market conditions, the overall adoption of cryptocurrencies, and the success of individual projects. It’s important to thoroughly research and understand the investment before making a decision. It’s also recommended to seek professional advice from a financial advisor to ensure that investing in cryptocurrencies aligns with your investment goals and risk tolerance.
