What are the best altcoins to buy for 2023? What is a good cryptocurrency to invest in? How do you know what cryptocurrency to invest in? If you’re asking yourself these questions, this article is for you!
Indeed, the belief among some of the oldest investors seems to be that the only way is upwards.
An article by Cointelegraph revealed how 95% of Bitcoin transactions only involve ‘young coins’, implying that those who got into Bitcoin earlier are continuing to hold on.
But what about the rest of the cryptocurrency market?
Bitcoin is not the only way to make money.
While Bitcoin has the best returns by far and dominates approximately 43% of the market, it is highly possible to profit from ‘altcoin’ as well.
An altcoin is any cryptocurrency that isn’t Bitcoin and there sure are a lot of them. While sources vary, the highest current estimate is that there are at least 7,000 cryptocurrencies.
That's why we put together a list of the best Altcoins to invest in 2023. Keep reading our top picks, and a brief guide about how to find the right cryptocurrency choice for you.
Top 10 Altcoins For 2023
To recap our top picks:
- Cardano (ADA)
- Binance Coin (BNB)
- Ethereum (ETH)
- Polkadot (DOT)
- Dogecoin (DOGE)
- Ripple (XRP)
- Stellar 'Lumens' (XLM)
- Litecoin (LTC)
- Chainlink (LINK)
- Bitcoin Cash (BCH)
1. Cardano (ADA) - Could we see highs of $2 by December 2023?
Usually, Ethereum dominates the top spot for altcoins. It’s like Bitcoin’s little brother, tagging along everywhere he goes.
While of course, Ethereum is an amazing coin to trade, and we will get to it in a moment, Cardano was a real achiever in 2021. Why?
The answer is simple: Cardano is one of the most improved coins of the year, positioned on No. 6 in terms of market capitalisation, and might be the best cryptocurrency to invest in for 2023.
Why invest in Cardano?
At the heart of Cardano is their Ouroboros algorithm that uses two blockchains (or parachains, if you will), one for regular transactions and a second for smart contracts.
At the end of February and the beginning of March 2021, Cardano rose to the third-largest cryptocurrency by market capitalisation before being pushed back to sixth by Binance Coin, Tether and Solana.
The reason for this surge in the price? Well, while no one can give you a 100% certain answer, it most likely is attributed to a major protocol upgrade.
Cardano’s growth has supposedly been so great Charles Hoskinson, Cardano’s co-founder, recently stated that there are 100 companies looking to migrate from Ethereum.
Also, a random fact for you: Cardano is most popular in Japan, known to some as the ‘Japanese Ethereum’. Supposedly, about 95% of the ICO participants were from Japan.
Is investing in Cardano risky?
Despite Cardano’s bull run of 2021, you might be surprised to hear that the project is not yet finished and there is not yet any major functionality.
This poses a major risk because when the project officially starts. If there are issues, it could have a terrible impact.
And what makes this worse is the fact that the project is delayed by more than a year!
But then again, it should be mentioned that many crypto projects, particularly those that aim to create improved smart contracts and DApps, are not quite ready either.
Perhaps the next big risk to Cardano is its academic nature. While it helped cement Cardano as a serious choice, the documentation it has produced is not the easiest for people to understand, which hinders adoption.
Further to this, an academic approach will likely continue to slow down Cardano’s development too, while other projects may overtake it.
Should you invest in Cardano?
It looks like Cardano is set to go up in 2023 and beyond!
Walletinvestor predicts that Cardano’s ADA token could reach a high of $1.7 by December 2023 and a low of $1.
Would you invest in Cardano (ADA)?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2. Binance Coin (BNB) - Reaching highs of $533 by December 2023?
Binance Coin comes in a close second in our list of best altcoins to invest in for 2023.
Arguably, Binance Coin might even make a much better investment than Cardano. And while it is still fairly behind Ethereum in terms of market capitalisation, it looks like it could be poised to surpass them and might be the next cryptocurrency to explode in 2023.
What makes Binance Coin a good investment?
While Binance Coin might not seem like the most interesting altcoin to invest in, it has a couple of aces up its sleeve.
The first ace is that the coin is used to give users a discount on the Binance Exchange when they pay for fees.
And so, what tends to happen is whenever there is a big buying or selling boom, traders flock to the Binance Exchange and Binance Coin, benefits from all the trading. Remember, the Binance Exchange is the largest in the world!
Then Binance Coin’s second and perhaps lesser-known ace is the Binance Smart Chain, the second blockchain that runs parallel to the main chain.
Launched in 2020, the smart chain allows smart contract capabilities and is growing in popularity with many DeFi projects now being launched on the platform.
And just like Ethereum’s Ether, projects on the Binance Smart Chain need Binance Coin to function. What this means is that BNB is in more demand, increasing its price.
Are there any risks involved in investing in Binance Coin?
Perhaps the biggest risk about BNB is that it is not open-source and is owned by a private company, the Binance Exchange.
To give you an example of why this would make many crypto traders think twice about BNB, there have been cases where Binance has been caught making changes and not disclosing them.
This lack of transparency loses users’ trust, and in this industry, trust is golden.
Always remember that Binance Coin is not designed to change the world. They don’t want to change the financial system or fix issues. BNB has simply been made to help the Binance Exchange turn a profit. That’s it.
Also, a risk that the majority of the value of BNB comes from its use on the Binance Exchange, which means that if the exchange gets into trouble, it will likely affect the price of the coin too.
That said, with the introduction of the smart chain the move into supporting DeFi, this risk is perhaps reduced.
On top of that, Binance has had to move its headquarters twice, first from China to Japan, then from Japan to Malta, and, possibly, it may have to move a third time after Malta defined them the right to operate there.
Should you invest in Binance Coin?
Though Binance Coin is not the most technically advanced coin, it definitely seems to have everything going for it!
The Economy Forecast Agency predicts that Binance Coin could reach a high of $533 by December 2023 and a low of $455.
Read More: Binance Coin Price Predictions
How much would you invest in Binance Coin (BNB)?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Ethereum (ETH) - Looking like it's about to explode to $5,000?
Maybe you’re not happy with Ethereum being ranked third on this list, but you need to understand that while it is the second-largest coin in terms of market capitalisation and dominates 20% of the market, it so far has not given us the momentum crypto traders are looking for.
Why is Ethereum a good investment?
Ethereum has its tentacles wrapped around almost everything in the crypto market. It has been the second-largest crypto by market cap for so long now.
It spearheaded smart contracts and DApps. Before Ethereum, no one was thinking about using blockchain technology in this way.
On top of that, Ethereum is like the hive for creating altcoins too. Many altcoins actually started on the Ethereum blockchain as a token (another idea Ethereum introduced!), including Binance Coin.
Ethereum is soon to complete something spectacular: switch from proof of work to proof of stake. The move, known as Ethereum 2.0, is seen as a major improvement and could add an immense amount of value.
Why could Ethereum be risky to invest in?
There are of course plenty of reasons to be cautious with Ethereum. Perhaps the biggest reason is that it doesn’t have a cap on the total number of coins that can be created like Bitcoin and many other altcoins.
What this means is that if for whatever reason wanted to, Ethereum could simply increase the number of Ether in circulation, which would devalue everyone’s holdings. Remember that a lot of Bitcoin’s value comes from its scarcity.
That said though there have been suggestions by Vitalik Buterin to implement a limit of 120 million. But for one reason or another, it was viewed as a joke.
Should you invest in Ethereum?
Ethereum is likely going to keep pushing forward in the years to come. It has so much to offer it’s hard not to see the potential value.
Is Ethereum (ETH) the moneymaker you’re looking for?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
4. Polkadot (DOT)
Polkadot is the new Ethereum killer (a title formerly held by EOS) and the youngest crypto, bursting into everyone’s minds in 2020. Many believe that it is the next big cryptocurrency.
A Tweet by Polkadot themselves best summarises why they are important:
“Polkadot was created with the belief that no single blockchain can do everything; that rather, the future is multichain”.
Why could Polkadot be a great investment?
Polkadot is like the last missing of the blockchain puzzle. That final piece that ties the whole picture together.
In short, Polkadot plans to create a network connecting all the different blockchains of different cryptocurrencies so they will be able to share information and assets.
As we now have potentially 7,000 cryptos, such a network would be very helpful in growing this digital ecosystem.
Probably one of the coolest things about Polkadot is that they’re founded by Ethereum co-founder Dr Gavin Wood, who also created the coding language Solidity.
Are there any risks involved in investing in Polkadot?
Polkadot is not production-ready yet (just like Cardano). We are yet to see it actually work, so there is always a chance that it won’t.
Because of this, it may be wiser to wait a while until Polkadot gets up and running before investing in the project. Otherwise investing in Polkadot is pure speculation without any real proof that they can succeed.
Additionally, there is a lot of competition in the smart contract space with several other projects attempting to achieve something similar. Perhaps the most notable is Kusama.
Should you invest in Polkadot?
If you believe that Polkadot’s plan to connect different blockchains together is a good idea, then it may be the investment you were looking for.
Walletinvestor seems to believe that Polkadot could practically double up by the end of the year. They estimate that DOT could be worth a high of $29.6 or a low of $19.
Check Out: Polkadot Price Predictions
Could Polkadot (DOT) make you your fortune?
5. Dogecoin (DOGE) - Could Redditors and Musk pump its price up?
Dogecoin was created by Jackson Palmer and Billy Markus based on the Doge meme back in 2013 and has since become the new favourite toy of Elon Musk and Redditors
These days, it looks like we have to start taking the ‘memecoin’ seriously - or at least seriously enough to make a quick profit from it. The short-term looks bright, but the long-term is uncertain.
What are the benefits of investing in Dogecoin?
There is absolutely nothing special about Dogecoin technologically. It really was created as a joke and not meant to last this long.
The real value behind Dogecoin is the community that has rallied around it. Over time, Dogecoin became a way of tipping people online when they post something useful or entertaining.
The Reddit group SatoshiStreetBets was largely responsible for pumping up the excitement around Dogecoin, attempting to do the same thing the WallStreetBets group did with GameStop stock.
It marked the turning point where Reddit became a force in leading the way in crypto, something we will likely continue to see.
But that’s not the whole story. Elon Musk, who obviously loves attention wherever he can get it, recently made a song about NFTs (non-fungible tokens) and decided to sell it as an NFT.
Offered $69 million for it, he replied “420M Doge”. It’s not completely clear how serious the whole thing is, but nevertheless, it again gave Dogecoin another extra boost in popularity.
Is investing in Dogecoin risky?
Dogecoin is probably the riskiest coin on this list. As mentioned above, the value is purely added on top by Redditors and figures like Musk. There is no real use case or technological benefit to Dogecoin.
Which raises the question: what happens when Musk and Reddit get bored?
Dogecoin is definitely not a good long-term investment, but definitely something you can trade in the short-term to make some profit, so exercise some caution!
Should you invest in Dogecoin?
Investing in Dogecoin is no real joke!
Digitalcoinprice predicts that Dogecoin could reach $0.19 by December 2023.
Would you invest in Dogecoin (DOGE)?
6. Ripple (XRP) - Plotting a comeback of epic proportions?
While Ripple got itself into a spot of trouble with the US SEC (Securities and Exchange Commission) - their former best buds, it may be about to make a major turnaround. The global remittance platform is not out of the game yet!
Why could investing in Ripple be a good idea?
For several years, Ripple held the position of third-largest cryptocurrency by market cap, and this should not be forgotten.
It led the way forward for the idea of global remittance in cryptocurrency with some comparing it more to an exchange than a crypto as it made it easy to swap currencies without a third party.
They also forged a solid relationship with many big financial institutions, leading many to believe that Ripple really was the "one to rule them all" (with big money behind you, who can stop you?).
2021, aside from legal issues which we’ll get to in the section below, it was a busy year for Ripple.
In March, it was announced that Ripple will start working on creating private ledgers for central bank digital currencies (known as CBCDs) based on Ripple’s technology. The move could be very profitable for them.
What might make investing in Ripple risky?
The legal action taken by the SEC is definitely a thorny issue. They are currently suing Ripple for $1.3 billion and making the quite frankly ridiculous claim that they are actually a security.
It’s a classic case of institutions attempting to bend cryptocurrency to fit their regulation instead of updating their own rules and definitions.
If it wasn’t for the SEC suing Ripple, it likely wouldn’t have lost its position and would have shot to the moon as Bitcoin and Ethereum did. It was the worst possible timing!
While many believe the SEC is very much in the wrong and Ripple will win the case, it cannot be ruled out that the SEC might play some dirty tricks and attempt to make an example out of Ripple.
However, it should be noted that even if, for whatever reason, Ripple gets banned, it will still exist outside the USA, and so it will simply continue to live on elsewhere in the world.
Should you invest in Ripple?
Despite the bologna with the SEC, Ripple is trading higher now than most of its existence!
Coinpriceforecast predicts that by December 2023, Ripple could be worth $1.06.
Is Ripple (XRP) the best crypto investment of 2023?
7. Stellar ‘Lumens’ (XLM) - Expanding into CBCD and Southeast Asia
Stellar is fast emerging as probably the best hedge against Ripple and it’s not too surprising, given that the two are closely related in more ways than one.
Top reasons why Stellar could be a good investment
Stellar is very similar to Ripple. Jed McCaleb, one of the co-founders of Ripple left to found Stellar after disagreeing on the direction it was taking.
The primary way it distinguishes itself from Ripple is that it focuses more on the unbanked and less so on forging partnerships with financial institutions. But should also be mentioned that Stellar is more decentralised than Ripple too.
The top reason Stellar might shine bright in 2023 is that Stellar is working with the government of Ukraine to create a CBCD (an interesting coincidence!).
This single piece of news might be all it takes to overtake Ripple. But that’s not all that’s been going on with Stellar.
In March 2021, it was announced that Velo Labs would work together with Interstellar, to use the Stellar blockchain to ‘enable faster, cheaper cross-border payments in Southeast Asia’, which, if successful, could make Stellar highly influential in the region.
Top reasons why Stellar could be a risky investment
Again, going back to the similarities with Ripple, Stellar is actually a fork of Ripple and there is some debate in the community over which blockchain should be treated as the original.
Furthermore, we also have to face the fact that Ripple is just hundreds of times more popular than Stellar. It will take a lot for traders to switch allegiance.
This is also reflected in the fact that Ripple’s development team is much, much larger than Stellar’s which allows it to develop much faster.
Should you invest in Stellar?
Stellar is by far probably the best hedge against Ripple, so if you like Ripple, you’ll probably be interested in Stellar too.
Digitalcoinprice predicts that in 2023, Stellar might be worth a high of $0.31 or a low of $0.27.
Do you think Stellar (XLM) is a good investment?
8. Litecoin (LTC) - where will MimbleWimble update take this altcoin?
Litecoin is perhaps the most similar project to Bitcoin (aside from maybe Bitcoin Cash, who we’ll get to in a wee bit). Founded in 2011 from forking the Bitcoin blockchain, it is one of the oldest altcoins.
What could make Litecoin the best investment?
First and foremost, we should not forget that Litecoin is technologically better than bitcoin in quite a few ways. If Bitcoin wasn’t so popular, it wouldn’t be surprising if many jumped over to Litecoin.
Like many of the altcoins in this list, Litecoin is also on the verge of major updates which may skyrocket its value (just like what happened with Cardano).
In March 2021, Litecoin completed its MimbleWimble update to improve scaling and privacy. It was a huge update that took about a year to complete.
Named after a Harry Potter spell, the update will allow users to send confidential transactions, hiding both the number of coins in the transaction and the users’ addresses.
This new element of privacy makes Litecoin a new rival for all privacy coins and could even steal some of their mojo in the process.
What risks are associated with Litecoin?
The sad truth is that most crypto traders are not yet looking for an alternative to Bitcoin. It generally works fine as it is and is immensely popular.
Because of this, over time Litecoin has lost a good deal of credibility as it failed to keep up with the growing number of alternatives.
It even looks like Charlie Lee, the founder of Litecoin, has lost his faith. Back in 2017, when the cryptocurrency market went through its first major boom, he sold almost all his LTC. It’s almost like he was thinking: ‘that’s it, it won’t get any better than this!’
Maybe Litecoin needs to distinguish itself more from other cryptocurrencies. The MimbleWimble update is a start, but perhaps more work is needed to cement Litecoin.
Meanwhile, another issue that needs to be confronted is the fact that, according to a study by Recorded Future in 2019, Litecoin is the most used coin on the dark web, which really doesn’t help its image.
Should you invest in Litecoin?
The MimbleWimble update is a major change and could bring a good deal of value to Litecoin in the coming months.
The Economy Forecast Agency predicts that by December 2023 LTC could be worth a potential high of $162 and a low of $140.
Would you invest in Litecoin (LTC)?
9. Chainlink (LINK)
A few years ago, Chainlink was very much on the periphery, only a few knew about it. But over the course of the last couple of years, it’s dabbled in joining the top 20, sometimes squeezing in and then getting squeezed out again.
What makes Chainlink a great investment?
Chainlink is a great example of a cryptocurrency that comes along to solve a major problem with the current state of blockchain technology.
And that problem is that blockchains can’t communicate with the outside world. They tend to be self-contained.
This is a problem for any project that wants to create a smart contract that relies on something happening in the outside world. For example, a contractor informing their client a job is complete - how can they prove it?
Chainlink uses ‘oracles’ to inform blockchains on when smart contracts should be activated. These oracles aggregate news from the outside world and use this information to activate smart contracts.
When you start to think about it, the possibilities are quite mind-boggling. Imagine certain smart contracts being activated if the weather is good and you can start to think of all the different ways it can be used.
Also, worth noting, according to CoinMarketCap, Chainlink is one of the top DeFi coins too.
What risks are involved in Chainlink?
In the growing age of misinformation spreading online, a concern many have over Chainlink is if it has adequate mechanisms to prevent misinformation from being spread on the platform and activating smart contracts that shouldn’t be activated.
Supposedly, Chainlink does, requiring multiple sources of information to validate that something has indeed happened, and that one source of data cannot activate a smart contract alone.
But the question still remains if it would be possible to infect numerous sources of news and overrule this protection.
Further to this, there are some questions over Chainlink’s security, specifically how well-protected its nodes are.
Should you invest in Chainlink?
Chainlink is very much one of the popular kids these days in the crypto scene and it looks like it will stay that way.
The Economy Forecast Agency predicts that Chainlink could reach a high of $16.48 or a low of $13.28 by December 2023.
What do you think of Chainlink (LINK)?
10. Bitcoin Cash (BCH)
Made from a fork of Bitcoin back in 2017, Bitcoin Cash is a choice for the purist rebels who want to keep following the original idea of cryptocurrency. A belief that Roger Ver embodies and who is largely seen as their ‘unofficial’ leader.
While Bitcoin has become mainstream and accepted, Bitcoin Cash wants to stick closer to Nakamoto’s original vision, albeit in their own way. They don’t want to grow up and become part of the system, they want to continue opposing it.
It makes Bitcoin Cash a great hedge against Bitcoin with its main technical difference being blocks that are 32 times bigger.
What makes Bitcoin Cash one of the best investments for 2023?
The main reason to be excited about Bitcoin Cash is the updates that might soon be coming.
Bitcoin Cash doesn’t have a roadmap and is being worked on by many separate teams who work on different features, so it can be hard to know when a major change is coming. It is a bit chaotic.
One of the most interesting things Bitcoin Cash devs have been up to is the creation of what they call the ‘Scalenet’.
This is where they stress test BCH and the default block size is 256 MB, which is gigantic! And so, what we might see this year or in the coming years is the introduction of much larger blocks that could handle more transactions and therefore be much faster.
There is also the possibility that they will work on creating blocks in the scalenet as large as 1 GB!
What makes Bitcoin Cash a risky crypto to invest in?
All of the above could be read in a completely different way depending on the person you are.
While some may approve of a more chaotic development, many would hate it as it can easily lead to issues like bugs or even security concerns.
And speaking of security concerns, there are many out there that disapprove of Bitcoin Cash’s block size as they say it’s very risky.
So, to such people in the crypto community, the idea of continuing to enlarge the size of blocks is just insane.
Should you invest in Bitcoin Cash?
Despite all the chaos, Bitcoin Cash does work and is very popular. While it may not be in the top five anymore, plenty can still be made trading this coin.
The Economy Forecast Agency predicts that by December 2023, BCH could reach a high of $453 and a low of $393.
Is Bitcoin Cash (BCH) the investment you’re looking for?
Why You Shouldn’t Just Invest In Bitcoin
It would be completely foolish to try to debunk the idea of Bitcoin being the best cryptocurrency investment, if not the world right now, but investing all you have only into Bitcoin is a rookie mistake!
Firstly, that’s the riskiest thing you could ever do as an investor. Why? Because if Bitcoin tanks in price, you lose everything.
What you should actually be doing is diversifying your risk but investing small amounts here and there in different cryptos. This lowers risk because if one crypto fails, you still have several others that are doing fine.
Secondly, while many believe that Bitcoin’s ascent is proof that a "digital cash revolution" is about to happen, there are also those who believe that while such a revolution is on the way, it won’t necessarily be Bitcoin leading it.
When you think about it, it’s quite logical that the first cryptocurrency won’t necessarily be the one we all end up using in the end.
“[I]t’s a combination of short-term emotions, technical analysis (i.e., pretty charts), and a grossly inefficient crypto market that overwhelmingly favours the buy side. After all, it’s nowhere near as easy to bet against bitcoin as it is to bet against a publicly traded stock”.
While Williams is largely critical of the crypto market in general, he does point out something crucial: a lot of Bitcoin traders are drawn to the idea of making a quick buck and end up letting their emotions lead them. Both are very risky!
It’s an important reminder that a lot of the money pouring into Bitcoin is from amateur traders which could represent some risk. Their emotions can make the market more volatile (that said, it’s definitely clear that more mature traders are entering the market).
They so strongly believe in Bitcoin because of its success so far, they are blinded to the possibility of better alternatives already out there.
On top of that, it is important to remember that Satoshi Nakamoto never said that Bitcoin was the solution, if anything it’s like an experiment that broke free from the lab and went haywire in the real world.
We need to listen to such opinions, though they can be hard to hear because they help broaden our opinion and see something we might not have seen before.
Thirdly, and perhaps slightly contradictory to the point above, it now looks like we will live in a world with many cryptocurrencies, that are not going to disappear. Instead, different cryptos will be used for different purposes, for blockchains with different goals.
It is still possible that Bitcoin could be the coin that everyone uses for transactions, but it is very unlikely that Bitcoin will replace Ethereum’s smart contracts or DApps, isn’t it?
Bitcoin won’t always be the primary source of profit in the crypto market. At times, other coins will outshine it.
So, while we are definitely not trying to knock on Bitcoin’s credibility, crypto traders need to be able to openly accept Bitcoin’s potential flaws and that some cryptos might just do the job better.
Conclusion: Which Is The Best Altcoin To Invest In For 2023?
Aside from Bitcoin, the best cryptocurrencies to invest in right now are most likely Cardano, Binance Coin and Ethereum.
Cardano is getting an unbelievable amount of attention after performing amazingly in 2021. Cardano’s protocol upgrade was what likely brought it a lot of attention.
Similarly to Cardano, Binance Coin grew a lot in 2021. Its growth has been so fantastic that it might even be better than Cardano.
This improvement is largely due to the immense amount of trading on the Binance Exchange, but also the growing popularity of the Binance Smart Chain.
Then comes Ethereum which is perhaps the most solid choice of the entire list and by far the most well-known and could be a good choice for someone who wants something more stable.
Polkadot is similar to Ethereum in the sense that it is holding its ground very well but has a bit more momentum to trade with.
And for those who are looking to take some bigger risks, Dogecoin is definitely the coin for you. Just don’t count on fun lasting forever.
Next, Ripple and Stellar will stand out for anyone who believes in their vision of creating a global remittance system and ‘banking the unbanked’.
After that comes Litecoin which is one of the oldest altcoins around and could be a good second choice for a crypto trader who wants something similar to Bitcoin; simple, that only aims to be ‘digital cash’.
Following on is Chainlink which really stands a chance of enhancing how smart contracts work, and finally, we have Bitcoin Cash, which could be a good hedge against Bitcoin.
How To Decide What Cryptocurrency To Invest In?
Deciding what cryptocurrency to invest in depends on several factors. Not only does it depend on the cryptocurrency itself, but you as a trader.
One of the first things you need to consider is your risk appetite. While all cryptocurrencies are considered highly risky, some are riskier than others.
For example, trading any of the top ten shown in CoinMarketCap would not be as risky as trading a relatively new and unknown crypto.
So, you need to make a stand on how comfortable you are as trading a coin you feel is too risky could negatively affect how you trade it.
But perhaps even before this point, you must make sure you understand the coin you want to trade.
This actually falls into risk - anything you don’t understand is risky because you don’t know the pros and cons of the coin. Don’t just trade a coin because you see some profit! That’s a surefire way of getting rekt!
You must have some understanding of how the coin works, what it aims to achieve and the people behind its creation.
Next, you want the coin you want to trade should be secure. The last thing you want is hackers twisting the blockchain to their advantage. No one wants a repeat of the Ethereum and Ethereum Classic split.
Generally speaking, the more popular the network is, the harder it is for hackers to manipulate it because it’s much larger and more dispersed.
Turning the questions back towards yourself, you also need to ask yourself how much time can you dedicate to trading? This can impact how you trade.
If you can dedicate a lot of time, you might be able to day trade cryptocurrency, which will enable you to profit from small changes and accumulate profit over time.
Or, if you can’t dedicate a lot of time to trading, a ‘sit and wait approach’ might be better. You should look for coins that are predicted to grow over time.
Exercise more caution on new coins. These coins haven’t been around enough to show promise, we don’t know their potential (again, it is a risk).
Also, a very important tip: if a coin is very young and cheap, there is no need to invest heavily in it. If it really has potential, just a small amount will do.
To conclude, whatever you decide to do, make sure it’s your decision and that you are not being pushed or influenced by someone else.
You really should believe the choice you are making is right and that it won’t be one you will regret later on - that’s how to know what cryptocurrency to invest in.
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If you remember anything from What Cryptocurrency To Invest In? Best Altcoins 2023, make it these points.
- Cardano tops our list as the best altcoin to invest in for 2023. Recent updates have made it one of the best performing cryptos of the year so far.
- Binance Coin comes in a close second. Aside from benefiting from the Binance Exchange, the Binance Smart Chain is a major hit.
- Ethereum and Ripple remain as the two most well-known altcoins. Until very recently, they were the second and third-largest cryptocurrencies by market capitalisation.
- Chainlink, Dogecoin and Polkadot also stand out as major game-changers. All three have made significant gains in the last year and are some of the best cryptocurrencies to invest in for 2023.
What’s the cheapest cryptocurrency to invest in?
According to CoinSwitch, some of the best cheap cryptocurrencies are: QuantStamp, IOTA, Ardor, Nem, Ravencoin, Stellar, Cardano, BitTorrent, Pundi X, and Ontology.
What is the best cryptocurrency to invest in long-term?
The best cryptocurrency to invest in for the long-term would definitely be Bitcoin. It has shown us it has the best potential; it is the most popular coin and it’s drawing in big investors from all over the world.
What cryptocurrency to invest in right now?
As per our list - aside from Bitcoin - Cardano and Binance Coin appear to be doing the best right now and might be the best investment of 2023.
What new cryptocurrency to invest in for 2023?
According to Capital.com, the best new cryptocurrencies to invest in are: Polkadot, Uniswap, and Compound.