Don’t have the time to go through the article? No problem. The top growth cryptocurrencies to buy and hold in 2023 for $2000 are Ethereum, Terra, and Polygon.
The potential of this new financial world (crypto) is reflected by how much funds crossed over from traditional markets in 2021. That’s despite some difficult events such as new Covid-19 variants and a China ban on crypto that caused lots of upheaval in the market. It’s an indicator that institutional investors are becoming more confident in cryptocurrencies as an investment.
What Does This Mean For Cryptocurrency Investors In 2023?
With the macro environment looking bright, there are two major implications for the cryptocurrency market in 2023:
- More institutional money could flow into cryptocurrencies as investors look for growth in alternative assets.
- The adoption of major cryptocurrencies that have strong use cases is likely to grow, as Web 3.0 begins to reshape the internet.
With this background in mind, what are the best growth cryptocurrencies to buy and hold in 2023 if you only have $2000 to invest?
5 Growth Cryptocurrencies To Buy And Hold In 2023 With $2000
1. Ethereum (ETH) – Eth 2.0 Is A Game-Changer
Ethereum has made major strides in recent months, with its value increasing 291% over the past year. While other small-cap cryptocurrencies are delivering higher gains to date (some of them by 1000%), it's still an impressive feat given how much larger Ethereum is. We expect ETH will continue to do well into 2023. Here’s why.
For starters, Ethereum is a pretty safe investment. You have undoubtedly heard stories about rug pulls, among other scams mainly involving new cryptocurrencies. Ethereum is one of the most adopted and decentralized cryptocurrencies and is unlikely ever to face such issues. This makes it pretty attractive to investors, both retail and institutional. This factor makes ETH one of the best cryptocurrencies to buy and hold in 2023 if you only have $2000 to invest.
Ethereum is also likely to be in the news a lot this year, thanks to its transition to Ethereum 2.0. Most of the work towards the transition is complete. It is highly anticipated that the full transition will be complete by mid-2023. One event likely to stir up FOMO just ahead of the full transition is the Devconnect which will take place in Amsterdam this April.
Devconnect will be an intimate experience for those seeking to learn more about Ethereum and its potential. The weeklong gathering will incorporate discussions on different topics in depth. It will be done in smaller groups than ever before so that attendees can talk individually or collaborate as they wish while making serious progress towards solving real-world problems using Ethereum.
Devconnect will be highly watched by investors and is likely to impact on the price of ETH positively.
With all these factors at play, Ethereum can easily double in value in 2023. This makes it a growth cryptocurrency to buy and hold in 2023 if you have $2000 to invest.
Check Out: The 5 Best Ways To Buy Ethereum (ETH) Now
2. Dogecoin (DOGE) – Keep An Eye On Doge-1 News
If you want to take a higher risk, but one with the potential to turn your $2000 into 10s of thousands of dollars, then Dogecoin is the one.
Dogecoin is a meme coin that is already up by thousands of percentages in the past year. This means there is a risk of stagnating or losing value in 2023.
On the flip side, it has something big coming up that could easily see it rally by a huge margin. The big news is none other than the Doge-1 mission that is scheduled to take place this quarter.
Elon Musk announced the Doge-1 mission in May 2021. He said that it aims to test the application of cryptocurrencies in interplanetary commerce.
Since then, a lot has happened, all geared towards making the mission a success.
For instance, back in November 2021, The Unizen and ZenX teams announced that they were working to build a new use case for cryptocurrencies with DOGE-1, a 40 kilogram — about 88 pounds— CubeSat.
The teams stated that the satellite will be launched into space so it can obtain intelligence from sensors & cameras that have been sent back home regarding GEC's analysis of lunar spaces. The information gathered by these tools should provide us with all sorts of fascinating insights.
Besides helping drive space exploration, Doge-1 is likely to draw a lot of FOMO around Dogecoin and trigger a new rally. For this reason, if you have $2000 to invest, it makes sense to buy and hold Dogecoin in 2023.
The risks are there, but it is worth the investment for the potential 1000%-plus gains.
Don't Miss: How To Make (Or Lose) Money With Dogecoin
3. Polygon (MATIC) – Eth 2.0 To Drive MATIC Growth
Polygon is tied to Ethereum at the hip, and with Ethereum prospects in 2023 high, an investment in MATIC makes sense.
The ongoing shift to Ethereum 2.0 is about taking the load off the Ethereum mainnet and pushing it to layer-2 solutions. Polygon has emerged as one of the best on this front.
Polygon's commitment to providing developers with tools for creating scalable decentralized applications is a driving factor in why they are so successful. Their technical architecture, which includes Proof-of Stake commit chains and More VP L2 scaling solutions, helps drive performance, UX/UI design considerations while also ensuring security risks have been mitigated as much as possible without compromising on any one aspect too heavily.
Besides its use of Plasma scaling and security, Polygon has also been incorporating Zk Rollups. Zero-Knowledge Rollups allow processing multiple off-chain transactions and then submitting them together as proof or "rollup" of validity.
These smart contracts work by combining hundreds, if not thousands of transactions, in one go, before being submitted back onto the Ethereum blockchain. The submission is made with just enough information to certify that all parties involved conducted themselves honestly throughout their interaction(s).
Zk Rollups allows for fast, highly secure transactions and have become one of the best ways to scale Ethereum. Polygon has increased its presence in the Zk Rollups space with the purchase of Mir for $400 million in late 2021. The acquisition gave Polygon access to a technology called Plonky2.
Plonky2 is a new and exciting tool that can revolutionize Ethereum smart contracts. The fastest solution available, plonky’s polynomial execution engine, can come up with recursive proofs in just 170 milliseconds when using an ordinary laptop. Most importantly, though? It only takes up 45kb of space when fully optimized.
Essentially, Polygon has the edge over other layer-2 solutions available today. This makes MATIC one of the best growth cryptocurrencies to buy and hold in 2023 if you only have $2000 to invest.
Read Also: Will Polygon Make Me Rich In 10 Years?
4. Terra (LUNA) – Terra Is Gaining Adoption As A Stablecoins Launchpad
Terra is an innovative platform for trading stablecoins that has been built from the ground up, with a focus on simplicity and security. These features make it easy to trade and ensure your funds are safe no matter what happens in crypto markets.
Terra (LUNA) had an impressive 2021 and closed the year with gains of over 13,000%. With the demand for algorithmic stable coins high, demand for this blockchain is likely to grow in 2023.
One of the key factors likely to drive demand is the increased regulators' interest in stable coins. For instance, a recent report by the US Treasury stated that Stable coins are now used for all sorts of things, including moving assets easily between different platforms, especially in decentralized finance (DeFi) services. However, the report noted that there are risks that could threaten the entire financial system.
For this reason, investor interest in algorithmic stable coins such as those launching on Terra is gaining in adoption. The best part is that as these stable coins launch, there is an impact on LUNA’s demand. That’s because Luna is used for governance and mining. It's also used to issue stablecoins or pay network fees on the Terra blockchain.
With such a strong use case, LUNA comes across as a promising cryptocurrency to buy and hold in 2023 if you only have $2000 to invest.
Check Out: Terra Price Predictions
5. Pancake Swap (CAKE) – Low-Cost DEX Likely To Keep Drawing Investors
Last but not least on the list of the best growth cryptocurrencies to buy for $2000 now is Pancake. Its potential has a lot to do with the increased growth of DeFi and the fact that decentralized exchanges have a significant role to play in it all.
Pancake has over 2.8 million users, and the numbers are growing daily. This has a lot to do with its low fees compared to other decentralized exchanges in the market. There is also the option to stake CAKE, which has grown considerably over the past year.
With all these factors at play, there is a high chance that CAKE could rally if the broader market turns bullish this year. Besides, with DeFi on a growth trajectory, it makes sense to buy and hold CAKE in 2023 if you only have $2000 to invest.