Cryptocurrencies have long ceased to be something new, fresh, and rare, and have become part of everyday life. Many have embarked on the adventure of trading, and those who have not certainly know at least a couple of people doing it.
Criticized and despised on the one hand, and glorified and praised on the other, these digital currencies have found their place in the financial market and have no intention of leaving it. Moreover, we are currently witnessing their biggest expansion and infiltration into the payment systems of almost every business on the planet.
From Bitcoin as the first cryptocurrency until today, a whole Pleiad of different coins has appeared, which are active on the market today. There are currently about 6,000 coins in circulation that are used for transactions on crypto exchanges. This huge number can do nothing but confuse those who are new to the idea of investing in digital currencies.
Many are wondering what the market will look like in 2023, whether it is smart to jump on the train and invest, and if so, which ones should you include in your investment portfolio? Well, the simplest answer would be to invest in those which will bring the biggest profit if we invest in it? Although a simple answer, it doesn’t say anything concrete. The answer to this question would bring real wealth to anyone who could answer it.
Unfortunately, the magic wand does not exist, but it is possible, through a small analysis, to predict with high probability which digital currencies could achieve the highest growth during this year. So, let’s take a look at the list we have prepared, containing all those which are considered to be a smart, long-term investment in 2023.
The biggest favorite is, of course, Bitcoin.
A mysterious Japanese developer, who is considered the creator of it, and whose identity has never been confirmed, claims that central banks and fiat currencies are to blame for the accumulation of wealth in the hands of a small number of people. He also claims that these currencies will bring “democratization” to the financial system. As a pioneer among coins, Bitcoin has the best chances to survive and its record growth is expected.
The next cryptocurrency on the list is Ether, which, in addition to Bitcoin, is one of the currencies that are of interest to a large number of users and which is rapidly advancing on the list, both in terms of value and volume of use. We have written about the relationship between the volume of use and the value of the cryptocurrency itself in the previous sequels.
In addition to the use of cryptocurrency in the world, the Ethereum network is also used to generate so-called “Smart” contracts. These are agreements between two parties where the system automatically controls the fulfillment of the obligation of each of the parties, which adds value to the Ether blockchain platform and the Ether cryptocurrency.
Immediately behind Ether is the cryptocurrency Ripple XRP, which has the ability to enable more efficient and easier cross-border transfers of fiat currencies. Because of this feature, it is even possible for it to become part of the traditional financial system.
Although it is ungrateful to predict further developments in the crypto world, these three cryptocurrencies are the most promising.
Experiences from last year…
Almost every cryptocurrency, regardless of how old or new, has reached record highs and made staggering gains during the last year. But 2023 was not entirely marked by success in this volatile market. As it often happened, in just a few days, the value of almost every coin was wiped out, leaving them on almost minimum value. This was largely influenced by the Chinese government that decided to declare war on all digital currencies, resulting in the value of coins such as NEO dropping down in a matter of days. What they did was put a ban on all transactions done this way.
Should you jump on the train or not?
So, by now there isn’t a single person in the world that hasn’t heard about crypto. However, do you know what this is about? Here are a couple of their most significant features you should keep in mind. These are virtual currencies that are not issued by central banks nor are they controlled by central banks. In addition, there are no fees for their transactions, making international payments way simpler, and cheaper, and more accessible to everyone. In other words, anyone with an Internet connection can be part of such a system. In addition, such systems are much more resilient to inflation and are not dependent on the country’s monetary policies. All this sounds like tempting reasons to invest. One additional reason is the fact that this frenzy will not last forever, as there is a limited number of coins that are available for trading.
As for the question asked at the beginning of the paragraph… It really depends on how prepared and experienced you are. Investing in cryptocurrencies as a beginner can be alluring. However, it is a double-edged sword. You can win today and lose tomorrow. This market has volatility written all over it, and if you’re not prepared for huge changes from positive to negative, do not go deep into these investments.
That is, you can quickly win and lose a large amount of money. On the other hand, this means that such trading is exciting and it can be very difficult to keep peace of mind under great pressure.
But the good thing about them is that there are several ways you can make money with cryptocurrencies, some of which do not even require you to invest anything but your time and effort. In the beginning, people used to mine for them, then they started trading and investing, but today, affiliate programs bring a good profit and are more and more popular. Click here to find out how.