Discover the Best Cryptocurrencies to Invest in During 2023

Although Bitcoin remains the most well-known and widely regarded cryptocurrency, it is only one among thousands of digital coins and tokens. The cryptocurrency ecosystem has expanded into a massive space, offering equally massive opportunities for traders.

Cryptocurrencies other than Bitcoin provide new and exciting markets for traders to explore. These newer, less established projects are often more volatile, making them intriguing to traders seeking high risk and high reward opportunities.

While numerous options exist for trading cryptocurrencies, it is advisable to focus on more established coins, as they offer better liquidity, infrastructure, and trading options. This is why Bitcoin, as the largest cryptocurrency, continues to be the best choice for investment.

In this article, we will examine the top five cryptocurrencies that provide good trading opportunities and stability in this nascent space.

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1. Bitcoin

Bitcoin is impossible to ignore when discussing top cryptocurrencies. It boasts the longest history, greatest liquidity and popularity, and remains the most decentralized example of a value-gaining digital asset.

As the original cryptocurrency, Bitcoin can be credited with bringing the entire ecosystem into the mainstream. Its adoption surged due to its growth in value over ten years and rapid increase in 2017. More recently, its volatility has attracted traders, both institutional and crypto-focused.

Initially conceived as a digital cash system, Bitcoin has evolved into a digital asset often referred to as ‘Digital Gold.’ This comparison is fitting, as Bitcoin shares many characteristics with gold, including scarcity and the ability to be anti-correlated with stocks and traditional markets.

Furthermore, many experts believe Bitcoin is undervalued at its current price level under $10,000. Given its increasing adoption and decreasing deflation and scarcity, some argue that the coin could reach as high as $1 million within the next five to ten years. Mike Novogratz, a former hedge fund manager and Bitcoin bull, even predicts that Bitcoin will “easily” surpass gold’s then market cap of $7.5 trillion within a decade.

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2. Ripple (XRP)

Ripple, more accurately referred to as XRP, is an interesting cryptocurrency to invest in due to its control by the company Ripple. This cryptocurrency company targets banking and the future of finance with its blockchain platform and XRP token.

Ripple seeks to establish mainstream partnerships with banks and financial institutions to facilitate interbank transfers and break down barriers in sending value across borders. Cryptocurrency has already demonstrated its global and borderless nature, but Ripple aims to help banks capitalize on this potential.

Investing in XRP may feel like investing in the company Ripple and its initiatives. However, this should not deter potential investors, as the cryptocurrency has consistently ranked within the top three or four market caps across the ecosystem and has seen many successes.

Recently, Ripple partnered with MoneyGram, integrating their XRP token for use in remittance transactions. Reportedly, 10 percent of transactions between Mexico and the US utilize Ripple’s technology.

Although Ripple’s value has decreased in the past 12 to 18 months, this is not a cause for panic. Instead, it presents a favorable opportunity to enter the market, as the expectation is that XRP could reach around $5 per coin within the next five years. Ripple’s XRP development may support further institutional adoption worldwide, with more partnerships in the United States, Europe, and Latin America potentially boosting price evolution.

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3. EOS

EOS, a widely popular coin, has focused on the programmable blockchain domain, following the pioneering footsteps of Ethereum. It aims to provide developers with user-friendly tools for creating decentralized applications (DApps) with a fast blockchain and robust smart contracts, positioning itself as one of the blockchain platforms likely to be highly prevalent in the future.

EOS has presented itself as a versatile blockchain, boasting the security of Bitcoin while incorporating the ease of programming found in Ethereum. Furthermore, the platform claims to possess a level of scalability that surpasses even Ripple’s capabilities.

If EOS successfully achieves its ambitious goals, it stands a high chance of becoming a powerful blockchain transitioning from the ecosystem into real-world applications. If this materializes, the demand for the EOS token could skyrocket, with its price following suit.

Naturally, several ‘ifs’ are involved in this projection, resulting in varied price forecasts for the token. However, these forecasts predominantly lean toward positivity. Taking into account the total EOS supply, current prices, and the previous all-time high of $22.89, EOS holds strong price potential, with its future price outlook expected to improve further.

Even at current prices, which hover near local lows, EOS has provided early investors with a 240% return on investment (ROI). At the previous all-time high, EOS yielded a staggering 4669% ROI for early investors who purchased the ICO and subsequently sold at the peak.

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4. Litecoin

Litecoin, a long-standing cryptocurrency, was created in response to Bitcoin’s evolution into a digital asset rather than a digital currency. Often referred to as the silver to Bitcoin’s gold, Litecoin is designed to be faster, cheaper, and more efficient for general transactions.

At first glance, this might suggest that trading Litecoin would not yield significant success or present the same opportunities as an asset-focused coin with high volatility. However, the advantage of Litecoin lies in its capacity to facilitate digital transactions as the world increasingly leans in that direction.

While Bitcoin initially drove the concept of cryptocurrencies as a store of value, there is a growing interest in using them for transactions. Litecoin possesses features that make it suitable for transactions, such as high transfers per second and the Lightning Network.

Litecoin has demonstrated consistent growth throughout its history, maintaining its relevance and presence in the top 10 market cap rankings for virtually its entire existence. The coin’s price hovered around $3 before the mainstream adoption of cryptocurrency, peaking at $330. Although it has since fallen to the $50 mark, its explosive growth is indicative of its potential down the line.

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5. Ethereum

If Bitcoin represents the first generation of cryptocurrencies, Ethereum can be considered the second. This innovative blockchain introduced groundbreaking features and capabilities that were never part of Bitcoin’s original design. Moreover, Ethereum demonstrated that cryptocurrencies need not be solely financial in nature, making it both technologically viable and financially attractive.

Often referred to as the ‘world computer,’ Ethereum is a decentralized network that operates using smart contracts capable of functioning autonomously across various sectors without the need for intermediaries. Although Ethereum’s promise is immense, its delivery thus far has been subpar.

Ethereum’s blockchain is still slow and can become expensive during periods of high transaction volume, but the forthcoming ETH 2.0 upgrade aims to address these issues.

The new Ethereum iteration promises to be faster and better suited for its ‘World Computer’ moniker. If successful, it will become more usable and valuable as a technology, subsequently increasing the value of the token, ETH.

Ethereum has consistently ranked among the top cryptocurrencies due to its potential and the widespread interest in utilizing it as a platform for various cryptocurrency sectors, such as new coins and ICOs, as well as the burgeoning DeFi space.

The short-term forecast for Ethereum is quite optimistic, especially with the upcoming transition to ETH 2.0. Alex Ohanian, Reddit co-founder and well-known tech entrepreneur, is extremely bullish on Ethereum. In an interview with Forbes about cryptocurrencies, he predicted that Ethereum’s price could eventually reach $1,500.

Ohanian explained that while he maintains a bullish stance on Bitcoin and cryptocurrencies in general, he is “most bullish about Ethereum simply because people are actually building on it. It’s still early days, but you know, we’ve got a few CryptoKitties.”

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Factors to consider when choosing a cryptocurrency for investing in 2023

As mentioned earlier, the cryptocurrency landscape has undergone significant changes since its inception, with real transformative developments taking place as mainstream interest surged in 2017. Now, in 2023, the space continues to evolve, and numerous factors must be taken into account when deciding which cryptocurrency to invest in.

Factor #1 — Assess the Market

The cryptocurrency market as a whole is exhilarating but also fraught with risk. Some coins present remarkable opportunities for traders and investors, but these do come with their own set of hazards. Thoroughly evaluating each coin’s market performance before investing is of paramount importance.

Examining the market entails analyzing the coin’s price history and what technical indicators suggest for future price predictions. Understanding past trends can offer valuable insights into future performance.

However, relying solely on the market to make an investment decision may not be wise, as some cryptocurrency markets appear enticing but can lead to significant losses once the hype subsides.

Factor #2 — Evaluate the Project

While market analysis can provide insights into short-term profit potential, long-term investments require a more thorough examination of the project as a whole. Numerous initially successful projects in the cryptocurrency space have since failed, as evidenced by the fate of many ICOs. However, some projects and platforms have persisted and grown in line with their roadmaps for more than three years.

Identifying projects with tangible success not based solely on hype and speculation can lead to promising long-term gains. Projects that survived the 2018 bear market and secured partnerships outside of the crypto space are prime candidates for long-term investments.

Factor #3 — Anticipate the Future

As demonstrated by the top five coins listed earlier, many cryptocurrencies are on the verge of achieving mainstream adoption and usage. If they can make a significant impact in a future where blockchain and cryptocurrency are more widely embraced, they will likely yield attractive long-term returns.

Hence, it is crucial to consider the future potential of cryptocurrencies that aim to address increasingly pressing issues. Success in these areas will likely result in rapid growth over the next three to five years.

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Why and how to invest in cryptocurrency in 2023?

Investing in cryptocurrency in 2023 is fundamentally different from investing in 2017. Three years ago, the focus was on maximizing profits by speculating on coin trends. In 2023, it revolves around supporting cryptocurrencies that will have a lasting impact.

The best way to invest in cryptocurrencies currently is through trading, as the market is ideally suited for traders. Numerous tools and platforms have emerged to facilitate cryptocurrency trading, many of which resemble or mirror those used on Wall Street.

Cryptocurrency trading has become so popular that even Wall Street traders are entering the market to capitalize on its high volatility and profit potential. While the buy-and-hold approach was effective a few years ago, the market has since evolved, making trading the dominant strategy in 2023.

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Tips for profitable investing

As the cryptocurrency market increasingly resembles traditional markets, several tips and strategies have carried over, helping crypto traders achieve success and profitability.

Margin trading is an invaluable tool that enables traders to profit from both rising and falling markets. In a volatile market, this is particularly useful, as large drops can still result in profits for traders who correctly time their short and long positions.

Additionally, margin trading offers the opportunity to use leverage. Leverage allows traders to invest less capital in a trade while still staking a larger position, depending on the margin’s multiplier.

Numerous investment opportunities exist within the cryptocurrency space in 2023, but it has become increasingly evident that selecting the best projects and coins is essential. Consequently, Bitcoin remains an unignorable force as the most robust and resilient cryptocurrency for trading.

Furthermore, trading has emerged as the most effective method for investing in cryptocurrencies, with the market maturing to a point where traders can access the best tools and strategies to maximize their profits. These include margin trading, shorting, and the application of traditional trading techniques.

To thrive in the dynamic world of cryptocurrency investing in 2023, it is crucial to stay informed about industry developments, technological advancements, and market trends. Additionally, investors should maintain a diversified portfolio, mitigating risks by allocating their investments across multiple cryptocurrencies with varying use cases and potential for growth.

It is also important to conduct thorough research and due diligence before making any investment decisions. This includes understanding the project’s team, technology, and long-term vision, as well as any potential legal or regulatory challenges the cryptocurrency may face.

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