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Top 6 Cryptocurrency Investments in 2023

Cryptocurrency is an unregulated virtual currency . This means this digital currency isn’t
governed by any central body. Unlike the fiat currencies such as the USD, AUD, EURO, CAD, and
GBP, which are governed by the central bank. The cryptocurrency is established on a technology
named blockchain. With the crypto market gaining more popularity, let’s take a look at the Top 6
Cryptocurrency investments in 2023.

This decentralized currency can be used for purchases, however, a good number of prior use it
as a long-term investment.

Nevertheless, it is risky to invest in cryptocurrency, due to its level of volatility. This can be seen
with last year’s bearish rally.

The crypto market comprises over 26,000 different cryptos. Bitcoin is the most traded crypto
across the world, followed by Ethereum.

Top 6 Cryptocurrency Investments in 2023.

Listed below are the top six cryptocurrencies that are an excellent buy in 2023.

BITCOIN (BTC)
ETHEREUM (ETH)
BNB
Cardano (ADA)
Polygon (MATIC)
Terra 2.0 (LUNA)

1. Bitcoin (BTC)

Bitcoin is the first crypto that was formed. This crypto is the leader of all cryptos as it is evident
why. It has the highest market cap and also the highest price.

A lot of top firms already accept Bitcoin as legal tender. Bitcoin can be used for buying and
selling. For instance, Visa, and Stripe accept Bitcoin transactions. The big banks have also
enabled the use of Bitcoin in performing transactions.

In May 2022, Luna Foundation Guard declared openly to change $1.5 billion in loans to Bitcoin
and terra USD. This strategy was to stabilize and boost the coin.

Risks of Investing In Bitcoin

The major risk involved in Bitcoin’s long-term investment is the level of volatility. Bitcoin tends
to fluctuate a lot. In a month the crypto coin can have up to thousands of fluctuations.

Bitcoin took a great hit when the FTX cryptocurrency collapsed. However, bitcoin was referred
to as the only digital currency that can be seen as a commodity following the collapse of FTX.
Judging from the start of the year till date, BTC had recorded an 85% increase.

If you aren’t used to trading assets with high volatility, it’s better to avoid investing in Bitcoin.
However, if you have nerves about it, then yes, this is the investment for you.

Additionally, the price of Bitcoin discourages investors. As earlier stated, BTC is highly-priced,
currently priced at $30,000. A lot of investors who are willing to purchase this coin can’t afford
it. It is not advisable to buy a fraction of this coin.

2. Ethereum (ETH)

Ethereum network is the second most traded crypto. This network enables developers to
produce and distribute their cryptocurrency using smart contracts. Being the second
most-priced crypto asset, the value of BTC is higher than ETH.

Note that ETH was produced years after the inception of some other cryptos. However, ETH has
surpassed the market hitting a unique mark in the technology space.

With the recent upgrade, ETH is predicted to cover more ground in the tech space. In
September 2022, ETH upgraded to a proof-of-stake-based technology. This upgrade decreased
the number of coins, thereby inducing a low mining rate. The upgrade also decreased ETH’s
energy consumption.

Unlike BTC, ETH is not widely accepted, however, some companies have adopted the use of the
coin.

For instance,
Wall Street Journal stated that Fidelity is building up its tech space to develop the workforce
required to have custody of ETH. They want to give their customers the right to trade ETH.

Risks of Investing In Ethereum

With the recent upgrade known as the merge, ETh has greatly improved. However, it didn’t fix
the high gas costs or the sluggish transaction rates. The platform has one channel used in
performing transactions. This results in a slow transaction speed due to overload.

The cost of a transaction is high. However, this matter can only be fixed when ETH enforces
“danksharding”.

3. BNB (BNB)

BNB has shown great performance over time. BNB is the Binance coin, and it has shown to. Be a
stable form of investment. This crypto coin is the native coin of Binance which is the biggest
cryptocurrency exchange in the world. However, even with the high yield value, the coin is still
as volatile as its counterpart rivals.

One of the major catalysts of BNB is that Binance destroys coins per quarter. The most recent
burn was done on April 14, this burn decreased BNB to over 2 million tokens. For short-term
traders, the price of BNB was not affected. This strategy has a positive effect on the crypto. The
ability to manage the number of tokens in circulation is highly recommended. This can create a
sense of scarcity. Presented, BNB had a total supply of 200,000,000 but has been reduced to 155,850,872 which are all circulating. This figure makes it one of the Top 6 Cryptocurrency
investments in 2023.

Binance is the biggest crypto exchange that is instrumental in establishing the crypto space after
the FTX exchange collapsed. CNBC stated that Binance has financed $1 billion into the recovery
fund designated to help sustain struggling cryptos.

Risks of Investing In BNB

BNB is vulnerable to regulation issues. With it being the native coin of Binance the coin is prone
to issues connected to the Binance company. For instance, BNB declined by 7.3% in June 2022
because of the investigation carried out on Bianace. SEC reported that Binance was under
investigation to ensure it adhered to proper policies in its 2017 initial coin offering.

Issues like this can lead to high fluctuations in the coin. So the coin is prone to high volatility
with issues regarding its parent company.

4. Cardano (ADA)

When it comes to market value, Cardano is currently ranked at No. 7.

The Cardano network is not as popular as the rest. However, traders are drawn to this crypto
for numerous reasons. Completing a transaction on Cardano requires little energy compared to
a bigger network like Bitcoin. This means transactions are seamless and cheaper. It has very low
transaction fees which makes it so affordable and attractive to traders.

Cardano launched a system upgrade in 2021. This upgrade was defined to increase functionality
by allowing the use of smart contracts. They also launched another upgrade in September 2022
which enhanced the Cardano blockchain’s scalability.

Recently, Cardano established a platform called AdaSwap. However, this new platform is still
being tested. The platform was created to enable developers to create decentralized finance
apps. With this recent launch, Cardano status will be promoted to the Web3 network, and the
price of the coin will increase.

Risks of Investing In Cardano

Cardano provides seamless transactions and high functionality. However, the crypto still can not
meet up with the higher cryptos. Cardano doesn’t appeal to many investors and thus is not
regarded as a high option.

5. Polygon (MATIC)

Polygon was established by a team of innovators that made substantial contributions to the
Ethereum blockchain network. According to CoinMarketCap, Polygon is created to boost the
Ethereum infrastructure. Its token coin is known as MATIC and it is used for transaction fees,
payment of services, and also a compensation currency.

Polygon declared the launch of Polygon zkEVM in July 2022. This new launch is the first
Ethereum scaling network that operates swiftly with all smart contracts, creator devices, and
wallets in existence. This network performs its operation using a type of cryptography known as
knowledge proofs.

As of October 2022, it’s recorded that Polygon had hosted over 53,000 decentralized apps.
These apps include Meta, Stripe, Credit Suisse, and Deutsche Bank.

Additionally, Polygon completely endorses the tether stablecoin, which helps in the growth of
the network. Also, its recent investment in carbon neutrality has stimulated a bullish price rally.

Risks of Investing In Polygon

The main aim of creating a Polygon layer-two is to combat Ethereum’s lagging issues. However,
the ETH Merge upgrade will potentially provide a solution for the lagging issues. This can render
the services provided by Polygon useless.

6. Terra 2.0 (LUNA)

The 6th Cryptocurrency to invest in is the Terra Classic. This crypto uses found that are attached
to fiat currencies, these could be known as stablecoins. They are attached to currencies such as
the International Monetary Fund’s Special Drawing Rights currencies, The US dollar, and the
South Korean won.

According to CoinMarketCap, these stablecoins fuel the worldwide power payment networks.
LUNC is its native coin and has supported the price of stablecoins.

However, in early May 2022, terra prices crashed greatly. This was due to the high volatility of
the stablecoins in the whole crypto market. This event resulted in the collapse of many crypto
platforms due to bankruptcy.

After the crash of Terra, the cryptocurrency launched the Terra Classic (LUNC) with a new name
Terra 2.0 (LUNA). This new crypto is a new blockchain that has no fiat currency pegged to it. This
network was developed to enable investors who lost funds from the previous coin crash to
recoup.

Risks of Investing In Terra 2.0

Terra 2.0 is yet to gain investors’ trust, especially after how the former coin crashed. Traders
think the relaunch is suspicious and controversial. However, several new networks have been
established on Terra 2.0, so its new coin might be worth it.

CONCLUSION

*The 6 Cryptocurrencies listed above are the Top 6 Cryptocurrency investments in 2023.

*These crypto coins have a high investment return value.

*They have proven to have what it takes to rake in all the needed profits this 2023.

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