Despite instability and significant circumstances such as the collapse of the FTX crypto exchange, cryptocurrencies remain one of the most popular assets to invest in today. Learn how to trade the best coins of 2023, and safely exchange cryptocurrency on Quickex without any difficulties.
Results of the Year on the Cryptocurrency Market
The total capitalization of the cryptocurrency market has grown from $432.936 trillion in January 2018 to $1.015 trillion in July 2022, representing exponential growth. This reflects the resilience of the sector, which is strengthening day by day as a vital part of the functioning of global finance.
Nevertheless, we can say that the cryptocurrency market is ending this year with a downward trend. For example, in recent months, the fall of FTX, a Bahamian cryptocurrency exchange founded by Sam Bankman-Fried, has caused great uncertainty in the cryptocurrency world. This was reflected in fluctuations in cryptocurrency prices, including Bitcoin.
Still, given the upside potential of many cryptocurrencies, there are several factors that can suggest to traders that this is still a good time to enter the market. For this reason, analyzing the best cryptocurrencies of 2023 is vital, especially for a medium- to long-term investment perspective.
Best 7 Cryptocurrencies for Investments
There are about 10,000 virtual currencies today, and the difference between these cryptocurrencies lies in the technology they use, the type of encryption and their prospects of value in the markets.
We propose to get acquainted with the list of the best crypto tokens for investment in 2023:
- Ethereum (ETH)
- Bitcoin (BTC)
- Dogecoin (DOGE)
- Cardano (ADA)
- Tether (USDT)
Ethereum is the second largest crypto currency by market capitalization, and so far it has operated on a Proof-of-Work model since its launch. However, the ultimate goal has always been a Proof-of-Stake system, and to achieve that goal, it has made changes to its model in recent months in a step called “Merge.”
Ethereum prices have been volatile for weeks, declining as global markets reacted to the FTX saga, but then recovering and showing declining volatility. In the first week of December 2022, Ethereum gained $39.54, a gain of 10.82% and confirms the upward trend for ETH, which is considered one of the best cryptocurrencies to invest in 2023.
Its price in early December 2022 was around $1,261.50, and the cryptocurrency is expected to continue recovering during 2023.
The impact on the BTC price after the FTX collapse and its reaching $15,890 per unit is an indication of the high level of selling in the market. However, there are several signs that this should not be a bad sign.
Bitcoin surpassed the $17,006.70 mark in early December 2022 and could reach $18,151.74 by year’s end. It is expected that BTC’s minimum and maximum prices could reach $24,460.46 and $31,020.54, respectively, during 2023. Given the great potential for revaluation, Bitcoin is expected to be one of the best cryptocurrencies to invest in 2023.
Dogecoin, a cryptocurrency developed by programmer and former IBM engineer Billy Marcus, appeared in 2013. DOGE grew out of a simple meme on which an Internet joke was based and became very popular on social networks such as Twitter. DOGE is an inflationary cryptocurrency with no issuance limit and uses a Shiba Inu dog as its mascot.
Dogecoin rose 21% in the last week of November 2022, trading above $0.1. This is the highest price it has reached in more than 3 weeks, aided by Elon Musk’s possible inclusion on Twitter. The tycoon posted a message on Twitter showing slides about the “new Twitter.” The last image of the list includes a payments section, although it was not specified which method Musk was considering for inclusion on the social network. This has sparked speculation that DOGE could be considered as a new payment currency on Twitter6.
Currently, DOGE remains one of the most affordable cryptocurrencies on the market and has great growth potential, especially if it becomes a form of payment on Twitter. DOGE is expected to become one of the most popular cryptocurrencies for investment by 2023.
Cardano, founded in 2017 by Jeremy Wood and Charles Hoskinson (co-founder of Ethereum), is characterized by the use of mathematical principles in its consensus mechanism. Cardano is one of the cryptocurrencies with the highest growth rate, achieving a 50-fold increase in value by 2021.
Cardano, which is seen as one of the most popular cryptocurrencies by 2023, plans to develop a new blockchain called Midnight, whose main goal will be complete privacy. This will make the Midnight blockchain similar to Monero, a decentralized cryptocurrency that promises to handle its users’ finances privately and securely.
Also a good crypto investor is always recommended to turn to a stable currency for the simplest transactions, deposits, purchases and much more. Our recommendation is Tether.
Tether is one of the most popular and marketable stabelcoins in existence today. It is a financial instrument capable of interacting with blockchain networks, the main characteristic of which is that its value is supported by the fiat currency with which it maintains parity.
These tokens function as a digital representation of paper money in blockchain , and Tether USDT is the embodiment of the U.S. dollar. It is for this reason that its denomination is USDT, which is nothing more than a union between the official dollar acronym (USD) and the project initial (T).
New USDT tokens are issued when users deposit USD into the company’s bank accounts. Thus, Tether Limited creates tokens on behalf of these deposits, representing a 1:1 parity. That is, for every dollar deposited, there is a USDT token in circulation.
The crypto currency market continues to attract the interest of investors worldwide, and cryptocurrencies are increasingly being positioned as a viable alternative to the centralized financial system. Therefore, it is very important to take the time to analyze the market and study new trends.
Factors to consider when trading cryptocurrencies include the volatility of the cryptocurrency in question, as well as its level of scalability, transaction costs, current price, forecasts and degree of centralization.