Just a year ago, in 2022, crypto markets suffered a considerable collapse, and the current crypto appears to be still in motion. So, if the plan is to purchase crypto in 2023, it’s best to keep an eye on established projects with better survival chances in the face of a prolonged price dip.
In that case, which cryptos will make the list? We have Ethereum, Bitcoin, and Cardano. These are the three cryptos worth watching in 2023.
Many die-hard crypto enthusiasts consider the market slump a great time to select quality cryptos at bargain prices. This may be correct, but only partially. If 2022 has taught us a lesson, it’s that even popular projects are not short of getting hacked, failing, or perhaps both.
Therefore, sticking with well-established cryptos this year is not a bad idea. Although a guarantee is not assured, they have great chances of surviving the continued turbulence the market currently faces.
A Better Look At The 3 Cryptos To Watch In 2023
1. Bitcoin (BTC)
When it comes to cryptocurrency, Bitcoin has gained grandfather status, and the market cap of BTC accounts for about 40% of the combined value of all cryptocurrencies. So far, Bitcoin has managed to survive several crypto winters and has always progressed well in reaching new highs within the crypto scene.
There are no guarantees, significantly, because regulatory rules can transform the method of selling or buying cryptos. To be fair, we don’t have a long record on which to base our judgments. Regardless of it, many believe that Bitcoin carries the potential to become the internet currency. While others, such as Cathie Wood from Ark Invest, believe that Bitcoin's price can reach the million mark by 2030.
Arm Invest believes this leading digital currency can take shares of the global remittance market, gain traction as a type of digital gold, or play a prominent role as currency in emerging markets. Such cases show the potentiality of Bitcoin.
However, there’s always the case of market volatility and heavy Bitcoin critics such as Warren Buffett claiming that it carries zero intrinsic value and continues to dismiss the entire crypto industry. Others also worry that BTC might be a little chunky and slow to perform as currency and, of course, the question of whether such a volatile asset can ever successfully take over traditional money.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2. Ethereum (ETH)
Next to Bitcoin is the second largest crypto in the market. If Bitcoin has grandfather status, we can say Ethereum is the son. This crypto platform has quickly become a pioneer in smart contract tech, which refers to tiny code prices that reside on the blockchain.
This converted the project into becoming a whole ecosystem, meaning other projects and cryptos could be developed on their network. But what about the downsides? Well, the transactions done on Ethereum are much more expensive and slower than its competitors.
Ethereum is currently making a line of upgrades to make the platform much more sustainable and scalable. But it is still taking quite some time to deliver on this promise. In the meantime, a risk factor indicates that the crypto may lose its market share due to faster competitors. Regardless, Ethereum has overcome many challenges, making it already well-established to handle any turbulence.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Cardano (ADA)
Much like Ethereum, Cardano’s (ADA) is also a programmable crypto that allows developers to build crypto projects and applications. The crypto stands out among similar platforms due to its dedication to testing. The platform takes a slow and steady developmental approach that offers a robust long-term survival change.
Cardano is also known for developing numerous genuine world partnerships, especially in Africa, which states a mission to utilize blockchain for solving local problems. But it has also faced its own share of critics. Some feel that the crypto hasn’t moved much and is yet to offer the same level of utility delivered by other Ethereum alternatives. According to stats from DefiLlama, there are more than $25 billion in locked projects stacked on Ethereum's network, while Cardano shows around only $50 million.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Purchasing And Investing In Crypto In 2023
As experts discuss shifting from crypto winter to a possible crypto ice age, it’s challenging to understand whether crypto prices will recover or not. Many investors are already severely underwater with their crypto investments, meaning their once-flourishing assets are worth less than their original investment value.
In fact, tons of people purchased crypto during the 2021 frenzy, but these individuals are no longer thinking about which cryptos to buy but instead which cryptos they already own to sell. So, if you’re thinking of buying/investing in crypto this year, make sure to carry out your share of research and then seal the investment. Also, ensure you’re only investing money you can afford to lose.
Of course, if the current crypto market does recover, you’ll be in for a significant return. However, this doesn’t justify any kind of gambling to acquire your financial goals. There’s always a good chance of crypto prices dipping further, and with that may come the failure of many projects before the crypto winter ends.
Hence, the only definite way to weigh out the major potential risks involved in crypto is to ensure it doesn’t wholly damage your finances. So, make sure you’re limiting every investment you make to remain on the safer side. You can also hold your digital currencies in a non-custodial crypto wallet.
That said, investing in crypto is a risky move as it also largely depends on which crypto you’re betting on. So, as mentioned earlier, it’s good to go with well-established ones like Bitcoin, Ethereum, Cardano, etc. After all, they’ve remained at the top for a good reason.