Small investments in cryptocurrency can pay off handsomely if made at the appropriate moment, but only if the buyer is prepared to take on the associated risks. With the cryptocurrency market seemingly on the verge of a comeback, you are undoubtedly thinking about rebalancing or starting your cryptocurrency investment portfolio.
In a market with over 20,000 different crypto coins to pick from, how do you decide which ones are the best cryptocurrencies to invest in, in 2023? Investors should always properly research every available choice when weighing their options.
In this article, we explore some of the most promising cryptocurrency projects with solid fundamentals and strong communities to help you choose the best cryptos to buy right now.
Cardano (ADA)
Cardano’s promising use cases put it among the most popular cryptocurrencies expected to witness rapid growth in 2023.
Cardano was initially designed by Charles Hoskinson to facilitate the development of cutting-edge blockchain systems. Hoskinson acknowledged the problems with scalability, interoperability, and sustainability that exist in existing networks like ethereum and bitcoin. To address these problems, he developed Cardano, a platform that prioritizes openness, transparency, and decentralization as it makes use of cutting-edge technology like smart contracts and side chains.
Widely regarded as one of the most exciting new blockchain platforms available, it is becoming increasingly apparent that Cardano is poised to become a game-changing industry disruptor that will alter our perception of blockchains and pave the path for a decentralized, networked future.
Cardano utilizes a ‘Proof-of-Stake’ (PoS) validation technique instead of the more common ‘Proof-of-Work’ (PoW) for verifying transactions and creating new blocks. The creation of new blocks on the Cardano blockchain now has a far smaller impact on the environment than with other blockchains.
The Cardano network’s smart contract features are also useful for developing decentralized applications. Cardano is a promising platform for dApp development and deployment due to its high level of security and cheap transaction fees. As a result, it is quickly becoming a go-to spot for blockchain industry game-changers and one of the best long-term crypto investments, as hailed by investors.
Polygon (MATIC)
The future of Polygon (MATIC) seems promising as an alternative to Ethereum. The project is a Layer 2 scaling solution that was initially designed to increase Ethereum’s scalability, which means it may operate side chains in parallel with the main blockchain. Also, it is faster than Ethereum, making it a potential competitor while ETH gas prices are high.
In 2020, Polygon was added to the OpenSea NFT market as a low-cost substitute for Ethereum listings of non-fungible tokens. Polygon’s new zero-knowledge EVM, i.e., Ethereum Virtual Machine (also known as zkEVM), is being developed in close collaboration with Ethereum and may be the catalyst that makes Ethereum more scalable.
With over $3 billion in Total Value Locked (TVL) in 2022, Polygon has surpassed other major Ethereum bridges, including Arbitrum, Optimism, Near, and Fantom. Polygon has joined the Disney Accelerator Program thanks to its successful track record of partnerships. Furthermore, the number of decentralized applications (dApps) on the network has increased by nearly 53,000, which is an eightfold increase since the beginning of 2022. Based on this, MATIC might be one of the best cryptocurrencies to invest in, in 2023.
Solana (SOL)
One of the major criteria that will determine how widely cryptocurrencies are used in the future is their capacity to scale. That is why Solana is one of the top altcoins to watch out for in 2023.
Solana is a blockchain that was built from the ground-up to address some of the most pressing problems with existing approaches. Solana’s innovative Proof of History consensus mechanism enables it to scale to unparalleled levels of performance and efficiency. Due to its lightweight consensus mechanism, Solana can process thousands of transactions per second while using very little memory.
Solana’s cutting-edge architecture and robust programming language make it easy for developers to build intuitive apps that function flawlessly in the distributed setting. Solana claims to be a forward-thinking hub for anyone interested in blockchain solutions or in simply exploring cutting-edge tech.
Buying Solana at the current price would be a huge bargain for any investment. This is due to the fact that its fundamental metrics are boosting uptake, notably in the introduction of NFTs. Thus, it may see a similar boom to the one in 2021 during the next bull cycle and become one of the best cryptocurrencies to invest in, in 2023.
Uniswap (UNI)
UNI is a governance token created by the decentralized cryptocurrency exchange Uniswap. This autonomous market maker uses smart contracts to establish a liquidity pool for ERC20 tokens and operates without an order book.
UNI has established itself as a frontrunner in the decentralized banking industry. Because of its status as a governance token, UNI token owners have a say in the directions the protocol and the platform will head towards in the future.
There has been a steady stream of updates from developers that aim to make cryptocurrencies more user-friendly and speed up their widespread adoption. Recent developments include Optimism support, which has brought several advantages to the project, such as the ability to use any token to pay gas fees, scalability, instantaneous financial transactions, and lower transaction costs.
Ripple (XRP)
Ripple is an international network for the transmission of funds. So far, the project’s primary users have been large financial institutions. Its primary objective is to integrate with financial institutions and expand monetary settlement technologies based on the blockchain.
XRP is the native cryptocurrency for the XRP Ledger, introduced as a payment mechanism by Ripple in 2012. The XRP Ledger does not rely on proof of work or proof-of-stake for consensus and validation; instead, it employs a consensus method known as the XRP Ledger Consensus Protocol. Transactions are signed and sent from client apps to the ledger servers. The servers analyze the transactions and decide which ones belong in the ledger.
XRP token advocates are adamant that the token’s value will rise in the not-too-distant future. The token’s price has stalled because of the SEC’s lawsuit against Ripple. The leadership and legal team at Ripple have been exceedingly confident as of late, seemingly believing that the SEC has no case against the company. If Ripple succeeds, XRP’s price will likely surge in 2023.
The fact that XRP is consistently a top token in terms of market capitalization is another significant aspect of this coin that solidifies its position as one of the best cryptocurrencies to invest in, in 2023.
Sandbox (SAND)
The Sandbox is one of the most popular cryptocurrencies for gamers and developers. Built on the Ethereum blockchain, it provides users with a metaverse in which they may design and share their own games, virtual goods, and content, as well as earn money from the sales of these items in a decentralized market. The Sandbox is a major step forward for the future of digital gaming.
As play-to-earn gaming continues to gain steam, Sandbox has emerged as one of the most prominent players in the industry. The fact that businesses use Sandbox over other Metaverse coins is the most telling indicator of its widespread use. For instance, Warner Music decided early in 2022 that Sandbox would be the best platform for its virtual concerts. Play-to-earn games are also proliferating rapidly in the sandbox environment. Because of this, it is one of the most exciting cryptocurrencies in the Metaverse in 2023.
Which crypto has the best future in 2023?
The prices of cryptocurrencies can be affected by multiple factors despite the projects having solid fundamentals and community backing. While it is nearly impossible to predict which cryptocurrencies will have the best future, we believe the aforementioned projects are going to stand out amongst the thousands of other cryptocurrencies.
What is the best cryptocurrency to invest in right now?
The crypto market is volatile, and trading on shorter time frames requires a lot of skill and experience, irrespective of the cryptocurrency being traded. As such, the safest way to ensure success when investing in cryptocurrencies is trading on longer time frames, such as over months or years. By this logic, any of the cryptocurrencies mentioned above, or any project with solid fundamentals, can be a good option to invest in right now.
Conclusion
While it is yet to be seen if the cryptocurrency market will recover in 2023, these top 6 cryptocurrencies may provide investors with diversity and potential for gains. There is little doubt about the significant potential of most of these cryptos, while the fates of others are subject to several variables.
Important Disclosures:
Certain statements in this document might be forward-looking statements, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “target”, “seek”, “will” and similar expressions to the extent they relate to the material produced by Bytex staff member. Forward-looking statements are not historical facts but reflect the current expectations regarding future results or events. Such forward-looking statements reflect current beliefs and are based on information currently available to them. Forward-looking statements are made with assumptions and involve significant risks and uncertainties. Although the forward-looking statements contained in this document are based upon assumptions the author of the material believes to be reasonable, none of Bytex’s staff can assure potential participants and investors that actual results will be consistent with these forward-looking statements. As a result, readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results or events to differ materially from current expectations
The commentaries contained herein are provided as a general source of information based on information available as of MMMM DD, 2022. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change investment decisions arising from the use or relevance of the information contained here. ByteX. makes no representation or warranty to any participant regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. Prospective participants must not rely on this document as part of any assessment of any potential participation in buying and selling of virtual currency assets and should not treat the contents of this document as advice relating to legal, taxation, financial, or investment matters. Participants are strongly advised to make their own inquiries and consult their own professional advisers as to the legal, tax, accounting, and related matters concerning the acquisition, holding, or disposal of a virtual currency. All content is original and has been researched and produced by ByteX.