As the crypto winter worsens, investors are on the lookout for cryptocurrencies offering returns over the long run. With so many coins to choose from, identifying which ones will provide the most value in 2023 can be difficult. In this article, we’ll look at five cryptocurrencies that look attractive and could be of interest to investors in 2023.
Tough Year for The Industry
Cryptocurrency enters a tumultuous year in 2023 as the industry is rocked by multiple shocks. The first was the massive decline in prices across most of the top currencies during the first half of the year. This was followed swiftly by major crypto projects like Terra Luna failing under the weight of market forces.
The latest blow came with the collapse of FTX, a $32 billion cryptocurrency exchange. According to reports, exchange users’ funds were manipulated, which sparked massive controversy, resulting in the firm filing for bankruptcy and damaging the entire industry with it. The incident has severely dented investor confidence in the industry and raised questions about whether cryptocurrencies are reliable investments.
Investors now await further news from regulators, exchanges, and other players to decide on the future course of the crypto space. With so much uncertainty around, some analysts suggest a wait-and-see approach, for now, advising investors to stay away until the market stabilizes.
However, this does not mean that crypto is a bad investment.
Why Crypto Has Potential
The fact of the matter is that no market can remain stagnant forever. It’s inevitable that the market will eventually either dip or skyrocket — whichever comes first.
And there are several reasons why cryptocurrencies will continue to be popular in the future. Firstly, they offer a more secure and anonymous way to make payments compared to traditional methods like credit cards.
Secondly, cryptocurrencies are becoming more mainstream all the time. More and more businesses are starting to accept Bitcoin and other coins as payment, and this trend is only going to continue in the future.
Lastly, blockchain technology is starting to be used in other industries beyond just cryptocurrency. There are now many applications of blockchain technology in healthcare, supply chains, etc.
Weak and speculative projects are likely to die out. However, the projects with a solid idea, a strong team of developers, a large community, and real-world applications are likely to weather the storm. Therefore, for those investors looking to make a long-term commitment, the key is to identify crypto assets that have the potential for growth in the coming years.
Here are just some cryptocurrencies worth considering for your portfolio in 2023:
The original cryptocurrency, Bitcoin, continues to be the most popular and widely-traded coin on the market, with a market cap of $325 billion and a market share of 38%.
Since its launch in 2009, this decentralized digital currency has proven to be an incredibly reliable asset, and many industry experts predict a strong future for Bitcoin in 2023 and beyond.
The adoption of Bitcoin as a form of payment is growing, with more people and businesses turning to cryptocurrency for their transactions. As its popularity increases, so too do the opportunities it presents to those looking for innovative ways to handle payments.
Despite the recent dip in value, many investors are confident that Bitcoin will survive the crypto winter. With its long-term potential for growth, Bitcoin could still prove to be an attractive asset for those looking to diversify their portfolios.
Ethereum is the second-most popular cryptocurrency, boasting a market capitalization of over $200 billion.
Ethereum is a Layer-1 blockchain solution that has been widely adopted by other projects. From decentralized finance platforms to non-fungible token ventures, Ethereum’s underlying infrastructure has enabled the development of many innovative apps and systems. As a result, demand for ETH, the native token of Ethereum, remains high. Additionally, ERC-20 tokens — tokens based on the Ethereum blockchain — have become a mainstay within the cryptocurrency space.
Ethereum’s potential is vast and, some argue, even greater than that of Bitcoin. Its innovative platform allows developers to continue researching and creating new applications, such as the emerging decentralized finance (DeFi) trend, which promises to revolutionize banking as we know it. With Ethereum, the possibilities seem almost limitless.
As many dApps and tokens are based on the Ethereum network, the Ethereum price is likely going to stabilize and increase in the future. We can expect that Ethereum will continue to be a reliable choice for many investors looking for a secure and profitable cryptocurrency investment.
c) Uniswap Token
Uniswap is a decentralized exchange platform based on Ethereum that allows users to swap their tokens for other cryptocurrencies.
The UNI token has been on a tear since its launch in 2020, with a market cap of over $4.5 billion today. The token acts as the governance token for Uniswap DEX and its holders are entitled to a share of the fees generated on the platform.
Uniswap DEX has been designed to address some of the most pressing challenges faced by crypto traders. By removing the power and control of major exchanges such as Binance and Coinbase, Uniswap has become an integral part of the DeFi movement.
In light of the loss of confidence in centralized exchanges after the collapse of FTX, investors are increasingly looking for decentralized ways to exchange currencies with one another. Therefore, DEX platforms such as Uniswap will become much more popular in the future. As such, the Uniswap token is likely to remain a key player in the cryptocurrency market and could prove to be a lucrative long-term investment.
XRP, more commonly known as Ripple, its parent company, remains one of the top digital currencies based on market capitalization, even after facing a lawsuit from the U.S. Securities and Exchange Commission (SEC).
Ripple is aiming to revolutionize international money and security transfers with its speedy and efficient payment system, which could replace the traditional SWIFT system.
The company has focused its efforts on developing an open-source technology that can be used by mainstream financial institutions to process cross-border payments more quickly and cheaply than the current system. To date, Ripple has partnered with over 100 banks and payment providers worldwide, and its technology is being used by millions of people daily.
The XRP token is the native cryptocurrency of RippleNet. The coin is gaining increasing attention from institutional investors for its real-world utility and due to its relatively low price. Its market cap now stands at over $20 billion.
The legal battle between Ripple and SEC is still ongoing, but many in the crypto community remain hopeful that Ripple will come out on top. If this proves to be the case, it could have a positive effect on the XRP price. In any case, the project looks promising for the future of finance, and many investors have their eyes on XRP in the next few years.
A Polygon network is a blockchain protocol that enables different blockchains to connect and scale.
Polygon’s main goal is to revolutionize the way blockchains are used by introducing a new framework they’re calling an “internet of blockchains.” This would allow developers in the industry to create standalone, flexible, and scalable blockchain networks that could interconnect with each other, providing a great degree of freedom in network creation.
The introduction of an “internet of blockchains” could also provide a secure platform for developers to build on, encouraging more innovative projects and applications. Several popular dApps have already been deployed on Polygon, including SushiSwap and Aave.
No one can guarantee whether or not Polygon will succeed in creating an “internet of blockchains” and its associated benefits. However, the potential for success is there, and investors should keep their eyes peeled for any future news related to Polygon’s ambitious project.
The MATIC token serves as the native coin of the Polygon network. With a market cap of around $8 billion, MATIC is becoming an increasingly popular choice for investors looking for long-term opportunities.
With potential rewards come risks, and it is important to understand the volatility of crypto assets before investing. Cryptocurrencies are known to have dramatic price swings, so you must be comfortable with short-term risks if you want to achieve long-term profitability.
Don’t forget to do your research — analyze the technology, team, and market capitalization of any asset before investing to ensure that you are making sound decisions.
Remember that diversification is key. Also, regularly review your portfolio and adjust it in line with changes in the market or your personal goals. Make sure never to invest more than you can afford to lose, and stick to your long-term financial goals.