Best Crypto investment planning for 2023
What is Cryptocurrency
A cryptocurrency is a digital currency which is an alternative mode of payment created using encryption algorithms. These encryption algorithms help in cryptocurrency transfer from one digital account to another digital account within a very short period of time. Not only domestic transactions, crypto transfer is possible all around the globe. All you need is a crypto wallet. These wallets can be software that is a cloud-based service or is stored on your computer or on your mobile devices. These wallets are nothing but the tool through which you store your encryption keys that confirm your identity and link to your cryptocurrency.
Now the question is in which cryptocurrencies you should invest your hard earned money. From Bitcoin and Ethereum to Dogecoin and Tether, there are huge number of various digital forms of money, which can make it overpowering when you’re initially beginning in the realm of crypto.
Look, anyone in this world invest his/her money to see it grow further that means to gain some particular interests on the invested amount over the period of time. We keep our money in bank, invest in funds, bonds, gold, real estate etc in order to achieve some financial goals or objectives.
Since cryptocurrencies are relatively new, the Market of this digital currency system always remain highly volatile. Volatile means you can not simply predict the trend of the price action over a certain period of time. At some point you think the market is doing good, but all of a sudden the market will start exhibiting a downtrend. So it is quite challenging to predict and analyze the crypto market properly and to invest wisely.
However, based on recent performances and trends, here is the list of few cryptocurrencies which you can consider for investing and thus growing your capital in future to meet your financial expectations. (But it is highly recommended that investors must do their own research work before investing in cryptos).
1. Bitcoin (BTC)
- Market cap: Over $847 billion
Created in 2009 by someone under the pseudonym Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.
Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy a Bitcoin for about $500. As of March 1, 2022, a single Bitcoin’s price was over $44,000. That’s growth of about 7,800%.
2. Ethereum (ETH)
- Market cap: Over $360 billion
Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
Ethereum has also experienced tremendous growth. From April 2016 to the beginning of March 2022, its price went from about $11 to over $3,000, increasing more than 27,000%.
3. Tether (USDT)
- Market cap: Over $80 billion
Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins.
4. Binance Coin (BNB)
- Market cap: Over $68 billion
The Binance Coin is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world.
Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.
BNB’s price in 2017 was just $0.10. By the beginning of March 2022, its price had risen to around $413, a gain of approximately 410,000%.
5. XRP (XRP)
- Market cap: Over $39 billion
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. As of March, 2022, its price reached $0.80, equal to a rise of more than 12,600%.
6. Terra (LUNA)
- Market cap: Over $35 billion
Terra is a blockchain payment platform for stablecoins that relies on keeping a balance between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, are tied to the value of physical currencies. Their counterweight, Luna, powers the Terra platform and is used to mint more Terra stablecoins.
Terra stablecoins and Luna work in concert according to supply and demand: When a stablecoin’s price rises above its tied currency’s value, users are incentivized to burn their Luna to create more of that Terra stablecoin. Likewise, when its value falls compared to its base currency, this encourages users to burn their Terra stablecoins to mint more Luna. As adoption of the Terra platforms grows, so too does the value of Luna.
From Jan. 3, 2021, when its price was $0.64, to the beginning of March 2022, Luna has risen over 14,200% to $92.
7. Cardano (ADA)
- Market cap: Over $32 billion
Somewhat later to the crypto scene, Cardano is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification present in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which are powered by ADA, its native coin.
Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was $0.02. As of March 1, 2022, its price was at $0.99. This is an increase of 4,850%.
8. Solana (SOL)
- Market cap: Over $35 billion
Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms that help it process transactions quickly and securely. SOL, Solana’s native token, powers the platform.
When it launched in 2020, SOL’s price started at $0.77. By March 1, 2022, its price was around $101, a gain of nearly 13,000%.
9. Polkadot (DOT)
- Market Cap: Over $21 billion
Polkadot, founded in the year 2016, is a unique blockchain interoperability protocol designed to connect different chains together. It also allows exchanging data and processing transactions for parachains, or parallel blockchains without compromising their security. Developers can create their own blockchains while using the Polkadot security.
The core founder of Ethereum, Gavin Wood created Polkadot. The exciting feature of DOT is that it has no hard limit on its total supply. Rather, a new token is constantly in circulation.
Polkadot’s price reached its heights in May 2020 at $6.30 and later in May 2021, the price hit its all-time high of $55.11.
10. Litecoin (LTC)
- Market Cap: Over $10 billion
Litecoin, an open-source blockchain project launched in 2011, was created by former crypto exchange Coinbase software engineer Charlie Lee. It was one of the initial cryptocurrencies whose code is imitated from Bitcoin’s. Despite the fact that it has similarities with Bitcoin, it is developed to have a faster transaction confirmation time. It can be used as an avenue for paying people around the world without a mediator. LTC is frequently considered as “silver to Bitcoin’s gold.”
Litecoin has a total round-off supply of 84 million tokens. In May 2021, it recorded its lifetime high of $413.47 but it dropped by over 50%. There are a growing number of merchants that undertake Litecoin. It has a per token value of around $106, the 21st-largest cryptocurrency in the world.
Conclusion
As cryptocurrencies get more matured, we will be able to see a lot of stability that will help us to transfer cryptos smoothly. It will be used widely by government, business enterprises, and almost everyone as a part of daily life. Cryptocurrency is still a lot in its early stages and some people are still skeptical about it but it is here to stay and has been adapted into our lives and will be a currency used by everyone which is only a matter of time. With the acceptance and how widely talked about it is, the future of crypto is sure to be bright.
