Are you looking for the best cryptocurrency investments for 2023? This guide outlines top-rated coins and tokens to consider when investing in crypto.
With the rise of digital assets, it can be difficult to decide which cryptos are worth your investment. This guide outlines the top cryptocurrencies for 2023 and explains why you should consider them for your portfolio.
What is Cryptocurrency, and How Does it Work?
Cryptocurrency is a digital asset designed to work as a medium of exchange and a secure store of value. It uses cryptography to secure and verify transactions, as well as control the creation of new units. A cryptocurrency, unlike traditional money and financial services, is decentralized, meaning it does not have a controlling system or authority. Instead, it runs on peer-to-peer networks that rely on cryptography for security.
Bitcoin (BTC) & Ethereum (ETH)
Bitcoin and Ethereum are two of the most popular cryptocurrencies you can invest in, with BTC being founded in 2009 and ETH following shortly after in 2015. Both of these cryptocurrencies have had runaway success over the last few years—and there’s no sign of that success stopping anytime soon. Bitcoin is currently the largest cryptocurrency by market capitalization, while Ethereum is second. Both have experienced tremendous growth and are often implemented together to increase portfolio diversity.
Ripple (XRP) & Litecoin (LTC)
With Ripple (XRP) and Litecoin (LTC), investors have two more opportunities to access crypto markets. Ripple is a distributed financial technology platform that focuses on global payments, while Litecoin is a peer-to-peer cryptocurrency designed to be faster and more efficient than Bitcoin. They both offer unique benefits for investors looking for long-term returns. XRP was released in 2012 and has developed partnerships with major payment networks like American Express and has operated openly in the banking sector since its launch. LTC was born in 2011, as one of the earliest alternative crypto coins, and it continues to be widely adopted as a digital means of payment by businesses worldwide.
Cardano (ADA), Polkadot (DOT), and Basic Attention Token (BAT)
Cardano (ADA), Polkadot (DOT), and Basic Attention Token (BAT) are three of the most exciting crypto investments for 2023. Cardano is a blockchain platform designed to provide a secure, distributed, scalable platform for developing smart contracts and decentralized applications; DOT mimics Ethereum's capabilities, but touts scalability as its main payoff; BAT is a payment token used to reward advertisements given to users on Brave. All three of these coins offer investors the potential to gain great returns, but come with risks that should be appropriately managed when investing.
Tron (TRX), IOTA, and Chainlink (LINK).
Tron (TRX) has seen great adoption, with many dApps built on the protocols, and several other projects underway. IOTA is an open-source distributed ledger protocol, focused on providing secure access to data across the internet of things, as well as removing all transaction fees associated with blockchain technology. Chainlink (LINK) is a decentralized network that provides blockchains with a secure connection to real-world data via external APIs and off-chain payment processing. All three of these coins have tremendous growth potential for 2023 and beyond, but must be approached with caution, as cryptocurrency investments involve risk.