Cryptocurrency is digital money that isn’t managed centrally. Instead, it is based on blockchain technology, with bitcoin being the most famous one. As digital money continues to gain popularity, more and more options are coming up. Currently, there are more than 9,500 cryptocurrencies on the market.
While many people use these currencies to make purchases, many treat them as an investment for the long term. However, volatility makes cryptocurrency investment risky; therefore, knowing what you are getting into before buying is essential. These are the top cryptocurrencies that are worth investing in 2023. Know the prices at okx.com and invest accordingly.
1. Bitcoin (BTC)
Before any other currency, Bitcoin has been around the longest. It’s easy to see why it’s a leader, with a market cap and price that is much higher than any other crypto investment options.
Various businesses have already started accepting Bitcoin as a payment method, making it a smart investment. The larger banks are beginning to incorporate bitcoin transactions in their offerings too.
2. Binance coin (BNB)
After years of relatively level prices, the binance coin took off at the start of 2023, surging from about $39 on Jan 1 of that year to $685 in May. After a steep decline, the price is once again on the upswing.
The binance coin has proved to be the most stable investment option as it performs well. Binance is considered to be the world’s largest cryptocurrency exchange, according to the market. But despite its extensive functionality and the coin’s success in Binance sub-projects, it is still a highly volatile investment.
Investors trading frequently must note that Binance had briefly paused deposits and withdrawals for some networks, including Solana and Polygon, recently while it implemented upgrades.
3. Ethereum (ETH)
The currency allows developers to create their cryptocurrency by using their network. While ethereum is more behind bitcoin in value, it’s also ahead of its competitors.
Even though it’s not that old, it has made its place in the market because of its unique technology. After Bitcoin, Ethereum is considered the most popular blockchain and the second-largest cryptocurrency. It stands to gain more ground on an upcoming upgrade nicknamed “The Merge,” which is deployed this year. The update will shift Ethereum to a proof-of-stake-based consensus that will reduce the coins and render mining obsolete. It is also expected that Merge will drastically reduce the energy consumption of Ethereum.
4. Polygon (MATIC)
A development team created the investment option that made significant contributions to the Ethereum blockchain platform. Polygon is designed for infrastructure development and Ethereum scaling. As a “layer two” solution, it expands Ethereum into a multi-chain system, improving verification and transaction speed.
Polygon has backing from the Coinbase and Binance cryptocurrency exchanges. MATIC token is used in payments as a settlement currency and transaction fees.
Some new developments which can be beneficial for the MATIC process include the launch by Zo World, a decentralized travel project, of its founder’s non-fungible token and other assets on Polygon. Individuals who will purchase those assets will also get Zo Metaverse real estate ownership.
Perhaps significantly, the Indian state government uses Polygon to issue caste certificates to help deliver government benefits to over 1 million low-income citizens.
5. Cardano (ADA)
Its network is small, which is appealing to investors for several reasons. It takes less time and energy to complete the transaction on Cardano than on any larger network such as Bitcoin, which means transactions are cheaper and faster.
Last year, Cardano launched a “hard fork,” an upgrade increasing functionality – in this case, enabling smart contract deployment. Cardano also claims to be a lot more secure and adaptable. The platform’s development is consistently improved to stay ahead of hackers.
6. Avalanche (AVAX)
It’s a new “layer one” blockchain. As described by Binance, it is a blockchain improving the base protocol to make the system more scalable. It was founded as an Ethereum competitor by Ava Labs and computer scientists at Cornell University. Whereas Ethereum’s nodes must all be valid for each transaction, Avalanche’s three individual blockchains can validate transactions independently. This makes Avalanche more scalable and better to handle large volumes of transactions – up to 7,000 per second. As a result, it is increasingly popular among Ethereum projects.
As for the coin itself, Bloomberg reported on Apr 7 that Avalanche beat out ether as Terra’s reserve currency for its UST stablecoin. Luna Foundation Guard, the nonprofit organization that supports Terra, will acquire $100 million worth of Avalanche as part of that initiative.
AVAX began trading in 2020 in a 24-hour initial coin offering. Its price has fluctuated from a low of $9.34 to a high of $146.22 over the past year. The coin currently trades for $84.09.
7. Terra (LUNA)
The platform uses stablecoins – that is, coins pegged to fiat currencies such as the U.S. dollar, South Korean won, and the International Monetary Fund’s Special Drawing Rights currencies — to power global payment systems, according to CoinMarketCap. LUNA, its native coin, stabilizes the prices of the blockchain’s stablecoins and serves as a governance token that gives holders a voice in decisions affecting the network Terra.
LUNA has been going up since June 2023, and it is only getting doubled since February. That’s likely due at least in part to Terra’s investment in assets such as bitcoin and Avalanche to hold in reserve as collateral for UST, a Terra stablecoin. The result has been an increase in demand for UST and less volatility for LUNA than some cryptocurrencies have experienced over the last several months.
The fact cannot be denied that cryptocurrencies are here to stay. The question is, which is the best investment option?
As you decide the best option to invest in, some other things to keep in mind are:
- The fees associated with transacting
- The speed at which transactions are completed
- Ability to use cryptocurrency for bank transfers and regular purchases
Remember that cryptocurrency isn’t a get-rich-quick scheme if you want to invest strictly without transacting within the network. Instead, consider it a long-term investment.