Relatively small investments in cryptocurrency can really bring big profits if you choose the right coin and market entry point. This is much easier said than done due to the unpredictability of the cryptocurrency market.
Entering the crypto space is an overwhelming experience, and not just for beginners. Keeping up with at least tracking the development of technology is not easy even for experienced investors. In addition, too much choice of cryptocurrencies makes it very difficult to make decisions. Despite the many upheavals of 2022, there are still plenty of reasons to buy cryptocurrency in 2023.
The Best Cryptocurrencies to Buy in 2023
As tempting as the headlines are that someone was able to sell NFT for a cosmic amount, remember that quick big profits are the exception rather than the rule. Before buying coins, do your own research and learn as much as possible about the asset you like.
Bitcoin is a veteran of the cryptocurrency market. He has already experienced some fantastic ups and downs. For most of 2022, the price of the asset moved in a relatively narrow range of $17,000 – $22,000 per coin with short-term breakouts above and below the corridor boundaries.
Most analysts agree that Bitcoin will soon begin to recover and give optimistic forecasts for the foreseeable future. These forecasts are quite stable and Bitcoin is considered one of the safest assets for beginners.
Ethereum consistently holds the second position in many respects. It is expected that the recently completed transition to Proof of Stake will become a new powerful impetus to the development of the platform and, accordingly, to the growth of the price of the coin. There are prerequisites for expecting a steady increase in prices in the next few years.
Ethereum is the first platform that provides the technical basis for the development of the decentralized finance segment. However, it has competitors who do basically the same thing, but, according to their creators, are better and cheaper than Ethereum. However, it is still too early to talk about equal competition.
Ripple occupies a very specific niche in the market. The platform was originally created not as an alternative to traditional financial systems, but as a tool for their improvement. XRP is fairly stable in the top 10 most capitalized cryptocurrencies, despite the ongoing litigation with the SEC.
The settlement of the lawsuit is one of the key conditions for wider institutional acceptance and growth in the price of the coin. At the same time, many crypto enthusiasts consider Ripple to be too centralized and therefore a particularly risky asset.
Cardano is one of the direct competitors of Ethereum. 2021 has been a good year for many cryptocurrencies, including ADA. The coin showed one of the best growth rates and for some time ranked 3rd in terms of market capitalization. After the next network update, the number of smart contracts based on Cardano began to increase.
As the platform develops, its functionality is getting closer and closer to that of Ethereum. In particular, Cardano has already launched a function to create its own tokens. Perhaps 2023 will be the year that ADS investors are looking forward to.
Uniswap is a decentralized exchange (DEX) on top of Ethereum that directly connects buyers and sellers of various digital assets. DEX are expected to overtake traditional centralized crypto exchanges in the future. Now the DEX segment is just beginning to develop, so investing in Uniswap cryptocurrency can be potentially profitable. It is possible that this could be comparable to the success of early Bitcoin investors, but time will tell whether this will happen.
Compound is one of the leading crypto lending platforms, which in itself is new to the DeFi market. Compound Treasury is an investment service for financial institutions that allows you to raise money for crypto lending. Attracting large institutional investors will be the impetus for the continued growth of DeFi and crypto lending. Potentially, Compound is the future bank of the crypto world.