Are you curious to know about the top 10 cryptocurrencies to invest in for 2023?
Upon hearing or reading the term “cryptocurrency”, you might think of just a couple of mainstream digital currencies, including Bitcoins, U.S.D coins, or Ethereum. In fact, any form other than Bitcoin (BTC) sounds alien to the majority of people. As there are thousands of various digital currencies or types of crypto functional in the market at present, getting overwhelmed by their names and respective significance comes as no surprise when stepping into the world of crypto and blockchain technology. To help the millennials and tech-savvy generation find their feet in this fast-paced era of digitalization, we have put together a list of the 10 best cryptocurrencies – in terms of market capitalization, to invest in in the year 2023.
Read more: How to purchase luxury cars with cryptocurrency?
Before we delve into the list of hot-selling virtual currencies, let’s find out what cryptocurrency is and what you can purchase with it.
What are cryptocurrencies and what can you purchase from them?
A cryptocurrency is a decentralized digital asset that circulates freely without being controlled by a regulating authority. This type of currency exists only in digital format that can be used to buy goods and services online without passing through an intermediary, such as a bank or a financial institution, or it is digitally stored as an investment. This way, it can serve as a great ideal for those willing to keep their online financial dealings anonymous and are reluctant to get a third party involved. In other words, cryptocurrency is often preferred to cash because of its ability to secure online transactions. You can simply form a unique key for each transaction and utilise multiple e-wallets to keep your transactions confidential.
The purchases you make with the digital currency are not just limited to sandwiches, grocery items, or electronic appliances, but also cover mega entities, such as luxury cars and top-notch automobiles. Yes, you heard it right!
Did you know?
Back in the year 2013, a man from Florida purchased a Tesla Model S for 91.4 Bitcoins (equivalent to $103,000) from a Lamborghini dealership in Newport Beach, Calif. In reference to the dealer’s blog, following are the words stated:
“That’s right; an electronic currency was used to purchase a fully electric vehicle,”
10 Best Cryptocurrencies to Invest in:
1. Bitcoin (BTC)
Bitcoin (BTC) is the first original cryptocurrency debuted in 2009 by Nakamoto. It currently has a market capitalization of $315.4 billion. Not surprisingly, due to its skyrocketing popularity, BTC leads the cryptocurrency market in terms of market cap. Price-wise, it has experienced a growth rate of 3,182% over the last 6 years. Similar to other cryptocurrencies, it runs on a blockchain and is kept secure from scammers via certain verification checks.
2. Ethereum (ETH)
This type of digital currency serves as both a crypto and a blockchain platform, and is highly popular amongst program developers due to its potential applications, such as smart contracts and NFTs, that automatically run once their contract-specific conditions are fulfilled. With a current market cap of $147.9 billion, it has also undergone burgeoning growth – rising by 10,890% in 6 years’ time.
3. Tether (USDT)
Dissimilar to some other types of cryptocurrency, Tether (USDT) is one of the stable coins, implying that it is supported by fiduciary currencies, including Euros and U.S. dollars and conjecturally keeps a value equivalent to one of those denominations. In simple words, theoretically, Tether’s value ought to be more consistent than other digital currencies, and is preferred by investors who are skeptical of the acute instability of other coins. It currently has a market cap of $65.3 billion.
4. Binance Coin (BNB)
With a current market cap of $48.0 billion, BNB can be used for trading and paying fees on Binance, one of the greatest cryptocurrency exchanges across the globe. Its popularity primarily revolves around facilitating trades on the Binance exchange platform, processing payments, and booking itinerary plans. Moreover, it can be traded for other forms of virtual currency, including Bitcoin or Ethereum.
5. U.S. Dollar Coin (USDC)
Just as Tether, USD Coin (USDC) is considered a stable coin, implying that it is also backed by the U.S dollar and runs on a 1:1 USDC ratio. This form of currency is powered by Ethereum and can be used to perform international transactions. It currently has a market cap of $44.0 billion.
6. Binance USD (BUSD)
Founded by Binance and Paxos, Binance USD (BUSD) is another stable coin that is pegged to the value of the U.S. dollar. It has a market cap of $22.38 billion at present. In order to stabilize this value, Paxos keeps a certain amount of U.S. dollars equaling the total volume of BUSD. This form of cryptocurrency enables crypto users, investors, and traders to be involved in transactions with other digital assets while nearly mitigating the volatility risk.
7.XRP (XRP)
Founded by some of the creators of Ripple, XRP has been created for facilitating the exchange of multiple currency forms, such as paper currencies and prime digital currencies. XRP, a native token used by Ripple, possesses a currency code the same as Ethereum’s Ether (ETH). With a current market cap of $19.8 billion, XRP has witnessed a growth of 6,400% in terms of price.
8. Dogecoin (DOGE)
Originating as an entertaining “meme coin” endeared by its community in 2013, Dogecoin (DOGE) evolved into a notable cryptocurrency with a current market cap of $13.51 billion. Unlike many other digital currencies, DOGE coins can be created in unlimited numbers, leaving the currency prone to devaluation with an increase in supply.
9. Cardano (ADA)
Cardano (ADA) is prominent for its early clasp of proof-of-stake validation algorithms. This method ramps up transaction time and minimizes energy consumption as well as environmental effect via eradication of competing and problem-solving features of how transactions are verified in platforms, such as Bitcoin. Just as Ethereum functions, Cardano also facilitates smart contracts and unregulated applications. In comparison to other major coins’ growth rates, ADA has experienced subtle growth over the last few years, having a market cap of $10.6 billion.
10.Polygon (MATIC)
Polygon, previously known as Matic Network, was founded in 2017. It supports over 7,000 decentralized digital platforms or applications. This form of currency has a market cap of $7.3 billion at present, and it has also faced tremendous growth since its first inauguration.