What Are The Best Cryptocurrencies To Trade In 2023?

These cryptocurrencies could easily double your money in 2023

Last Updated December 20th 2022
12 Min Read

Not ready to read through this article? Well, the top cryptocurrencies to trade in 2023 are Ethereum or Polygon.

Do you want to trade cryptocurrencies in 2023?  With the high volatility in the cryptocurrency market today, this can be a tough task.

You don’t have to worry though, here at Trading Education, we have compiled a list of the 10 best cryptocurrencies to trade in 2023.

Besides, if this is your first time trading crypto, then you have come in at the right time. Analysts believe that due to institutional inflows, 2023 could be one of the best years to trade cryptocurrencies.

In 2021, we have seen some cryptocurrencies give returns in the thousands of percentages. This goes to show that trading cryptocurrencies can be much more rewarding than conventional assets.

It is for this reason that we have compiled a list of the top cryptocurrencies to trade in 2023.

Ready? Let’s get started…

The Top 10 Best Cryptocurrencies To Trade In 2023:

  1. Ethereum
  2. Polygon
  3. Decentraland
  4. Harmony
  5. Sandbox
  6. Dogecoin
  7. Gala
  8. Loopring
  9. Terra
  10. Avalanche

What Are The top Cryptocurrencies To Trade In 2023?

If past results are anything to go by, then it makes sense to have cryptocurrencies in an investment portfolio. The challenge comes in choosing the best out of thousands of cryptocurrencies, with new ones coming up daily.

You don’t have to worry though, here are the best 10 cryptocurrencies to trade in 2023:

1. Ethereum (ETH)

Ethereum easily stands out as one of the best cryptocurrencies to trade in 2023. That’s because on top of being the largest platform blockchains in the market, it has a lot of developments coming up in 2023.

For starters, the transition to Ethereum 2.0 is set to be completed in mid-2023. Most of the work is already done, with a number of key upgrades already completed in 2021. For instance, the London fork of August 2021 introduced a deflationary element to Ethereum. This basically means that going into the future, Ethereum’s value will be heavily dependent on its usage.

Considering that Ethereum is the number one platform blockchain in the market, usage will only go up in 2023, especially now that Ethereum scaling issues are about to come to an end.

One of the key factors that could drive Ethereum usage in 2023 is the Metaverse. There is a lot of hype around the Metaverse at the moment, and lots of Metaverse cryptocurrency projects have come up. These cryptocurrencies will play a huge role in burning Ether, and drive up the value of Ethereum.

The potential for Ethereum to grow in value driven by usage is evident in its price action since August. An explosion of meme coins on the Ethereum blockchain saw it become one of the best performing cryptocurrencies in the last quarter of 2021. This goes to show that growth of the Metaverse in 2023 could significantly boost Ethereum’s value.

Ethereum is also set to benefit immensely from FOMO. There is a lot of expectation that once Ethereum 2.0 is live, the value of ETH could explode. This could see Ethereum draw in lots of investment, both retail and institutional going into Ethereum in 2023.

A combination of FOMO, deflationary tokenomics, and value drivers like the Metaverse make Ethereum one of the top cryptocurrencies to trade in 2023.

What drives Ethereum’s price?

Factor 1: Transition to Eth 2.0

Factor 2:  Market dominance

Read More: Ethereum Price Predictions

2. Polygon (MATIC)

Polygon is an Ethereum layer-2 scaling solution. It has been taunted as one of the projects that will take the load off the Ethereum mainnet, and FOMO is already building up. In the last two months of 2021, Polygon’s value has grown quite strongly. That’s an indicator that once the Eth 2.0 shift is complete, Polygon could take off in 2023.

Among the many Ethereum scaling solutions available in the market, Polygon stands out for a number of reasons. Firstly, it is one of the older, and better known layer-2 blockchains in the market. This means as FOMO grows around Ethereum layer 2 solutions, Polygon stands to benefit the most.

Besides being well-known, Polygon has a number of capabilities that make it stand out as an Ethereum scaling solution. For instance, it makes use of Optimistic Rollups. A rollup is an execution that posts data onto the main Ethereum chain (layer 1). This gives Polygon security properties like those of its parent layer, while still performing in a different environment. Essentially, this means all transactions carried out on Polygon are safe, which is a critical aspect to adoption by high profile applications.

Polygon is also highly scalable, which is the whole essence of it being a layer-2 scaling solution. This positions it well for growth in the fast-growing DeFi ecosystem that is emerging on the Ethereum blockchain.

However, the best part is that there is actually an ecosystem growing on top of Polygon. Back in July, Polygon announced that Plasma Finance had launched on the Polygon blockchain. Plasma Finance leverages the low cost and scalability of Polygon to give users fast, crypto swaps at low costs. As more of these launch, there is a good chance that the value of Polygon will go up.

Such strong fundamentals make Polygon one of the very best crypto coin to trade in 2023.

What drives Polygon’s price?

Factor 1: Dominant position as a layer 2 scaling solution

Factor 2:  A growing ecosystem

3. Decentraland (MANA)

The Metaverse has had a phenomenal 2021, and 2023 is only set to get better. That’s because with the hype that has built up around it, developers will be committing resources into play-to-earn gaming and other Metaverse projects. This means the growth potential for Metaverse projects like Decentraland is pretty high.

One thing that stands out for Decentraland is that it is easy to use. Pretty much anyone can build on the Decentraland Metaverse. On the Decentraland online platform, there are 16x16 meter plots called parcels or scenes. They are designed for developers to build upon in order to create unique virtual worlds just as immersive as real-life.

You also do not need to be a coder to build on Decentraland.  This is thanks to a tool called the builder. The Builder is a drag and drop editor with many items that you can change to your liking without any coding knowledge needed. This makes Decentraland a perfect platform for those who want to experiment with NFTs but lack the skills that come with building on the blockchain.

For those who have the skills, and would like to come up with complex Metaverse projects, Decentraland has something for them as well.  This is all thanks to the Decentraland SDK. With the Decentraland SDK, you can create your own scene and share it with others. This makes Decentraland an extremely powerful platform, one that is likely to remain a key play as the Metaverse grows going into 2023.

A combination of excitement around the Metaverse, growing adoption, and powerful tools such as the SDK, easily make Decentraland one of the top cryptocurrencies to trade in 2023.

What drives Decentraland’s price?

Factor 1: FOMO around the Metaverse

Factor 2:  Easy to build platform

4. Harmony (ONE)

Blockchains are disconnected at the moment, and this is a huge bottleneck to adoption. This means blockchains that can connect multiple blockchains have a high chance of growth going into the future.

Harmony is one of the blockchains that have the capacity to connect multiple blockchains, creating the perfect environment for adoption. Harmony also has a number of internal fundamentals that give it an edge as a platform for connecting blockchains.

For instance, Harmony is one of the most scalable blockchains out there, and that’s because it takes a sharded approach to scaling. While Sharding is nothing new, Harmony has managed to do it in a very secure manner.

To prevent single shard attacks, Harmony uses a large number of nodes per shard, while also employing cryptographic randomness. All of the Shards have 250 reliable peers for stiff security guarantees against Byzantine behaviours that are achieved using Verifiable Delay Function (VDF).

Harmony is also working towards funding individuals who can help come up with better solutions for interconnecting blockchains. It currently has around $13 million that will be used to fund DAOs, and hackathons for this purpose. This is a big deal, and could see Harmony grow to become the number one blockchain for connecting blockchains.

Already Harmony has a number of projects that are working on top of it.  One of the big ones is Hashkey. A while back, Harmony announced that Hashkey would provide $10M USD in funding, and will have more than enough resources to grow DeFi on Harmony.

With DeFi becoming one of the potential growth aspects of blockchains, Harmony is without a doubt one of the best cryptocurrencies to trade for 2023.

What drives Harmony’s price?

Factor 1: Scalability

Factor 2:  Easy to build platform

5. Sandbox (SAND)

Like Decentraland, Sandbox has a good chance to hit it big in 2023. One of the factors that make Sandbox a crypto to watch in 2023 is its focus on the play-to-earn gaming aspect of the Metaverse.

This is a big deal because play-to-earn is set to become the next big thing in gaming – a high growth industry. Industry experts believe that traditional gaming could be on its way out due to play-to-earn. One expert who holds this view is Steven Walters, who is also the founder of the Gallant token. Walters believes that conventional gaming is becoming less popular because of the play-to earn model.

Walters also believes that this is an opportunity for teenagers and adults alike to make money.  He noted that parents and their children can create wallets through which they can save money earned while playing video games, and pay real life expenses such as tuition among others.

As this new area of gaming emerges, Sandbox is positioned right in the middle of it. Back in November 2021, a new play-to-earn game called Alpha started on the Sandbox. The result was a surge in the value of SAND since one needs the token to participate in Alpha.

Going into 2023, the number of participants in Alpha will grow. By extension, this means there is a high potential for SAND to grow in value as well. At the same time, many other play-to-earn games could launch on Sandbox in 2023. This further positions SAND for potential growth in value going into 2023 and beyond.

Sandbox is also likely to benefit from FOMO as well. Since it launched, Sandbox has become one of the best performing cryptocurrencies in the market. With the hype around the Metaverse set to get stronger in 2023, there is a good chance that Sandbox could easily best its 2021 returns, making it one of the best cryptocurrencies to trade.

What drives Sandbox’s price?

Factor 1: Play-to-earning gaming

Factor 2:  Sand staking

6. Dogecoin (DOGE)

Dogecoin was making headlines from 2020 all the way to May 2021. This had a lot to do with the Elon Musk inspired pump that saw Dogecoin gain by 12,000%. So, what next for Dogecoin going into 2023?            

If Dogecoin’s upcoming news are anything to go by, there is reason to believe that it could become a top cryptocurrency performer in 2023. One of the factors that could drive Dogecoin’s value in 2023 is the upcoming Doge-1 mission.

This mission was announced by Elon Musk back in May 2021. While there has been little to no mention of it in the months that followed, there is reason to believe that Musk is still serious about it. That’s because his most recent moves prove that he still believes in Dogecoin, both as a currency, and an investment.

For instance, he recently announced that Tesla would start accepting Dogecoin for some merchandise sales. If the Doge-1 mission comes to fruition, Dogecoin could easily see excitement levels similar to those last seen in 2020.

There are two factors that could drive this FOMO. The first one is the use case that Dogecoin will have gained in space exploration. Space is the last frontier for mankind and so far there has been a lot of developments around it. As such, if Dogecoin gains a use case in this market, then its intrinsic value would shoot up.

At the same time, this event will raise Dogecoin’s profile high enough that it will draw even more adoption in other areas. Since 2020 when it started surging in value, adoption has been exponential, and it’s by major corporations like Tesla, and the Dallas Mavericks.

Essentially, with all the good things happening around Dogecoin at the moment, it stands out as one of the best cryptocurrencies to trade in 2023.

What drives Dogecoin price?

Factor 1: Upcoming Doge-1 mission

Factor 2:  Tesla adoption

7. Gala (GALA)

We expect 2023 to be a big year for NFT gaming. That’s why we have Gala on the list of the best cryptocurrencies to trade in 2023.

Gala launched in August 2021 trading at $0.21, and by November, it had shot up to $0.74. That’s an increase of 71% in just 3 months. While Gala cooled down thereafter, it still has a lot of potential going into 2023.

Gala is not just a player in the fast growing NFT gaming market, it also has the fundamentals to see it grow in value.

For starters, Gala games are easy to understand for pretty much anyone. Gala believes in designing games so all players can jump right into them and enjoy, regardless of their technical knowledge.

It uses easy-to-understand game mechanics that make it accessible for new users who may never have heard about cryptocurrencies before. This is a big deal because for NFT games to gain traction, they have to be available to pretty much anyone who would want to play.

Gala also has the advantage of being community owned. There is consensus among experts that for NFT gaming to take off, it has to be community-driven. That’s why Facebook’s entry into the Metaverse space drew criticism from multiple quarters.

Gala does not have such problems because it allows you to own anything that you earn or win, and it will be yours forever. Your status could even pass down through generations like an heirloom.

Still on the aspect of community ownership, Gala always engages the community before any game is developed. The Gala community is integral to the development and design of every game.  This is a big deal as it means every game developed has the input of those who will be using it. These factors make Gala a top cryptocurrency to keep an eye on in 2023.

What drives Gala’s price?

Factor 1: Community driven

Factor 2:  FOMO around the Metaverse

8. Loopring (LRC)

Ethereum layer 2 scaling solutions are expected to be a big deal in 2023. Quite expected considering that Ethereum’s transition to Ethereum 2.0 is expected to be completed in mid-2023.

Loopring is one of the Ethereum scaling solutions that could benefit from the transition to Eth 2.0. That’s because it targets the trading of Ethereum tokens, a process that is currently affected by high gas prices.

Since Loopring DEX transactions are done outside of the Ethereum mainnet, they are much cheaper. This makes the Loopring DEX highly attractive to traders looking to make the most out of their trades.

Aside from having a superior use case, Loopring has strong technical capabilities. Loopring is so fast it can settle up to 2,025 trades per second without sacrificing security. This is thanks to its use of ZkRollups.

Loopring is also continually innovating to make transactions better for traders. For instance, back in 2020, Loopring announced an upgrade that could help accelerate withdrawals. This is a big deal that could play a role in Loopring’s adoption by crypto traders.

Back in 2020, Loopring also announced that it was working on introducing a bounty to help keep bugs out of the way. This guarantees that Loopring will operate smoothly going into the future, and that’s a huge deal towards its value growth.

The Loopring token (LRC) is also an attractive way to earn a passive income in crypto. That’s because it can be staked, helping investors deal with the volatility that characterizes the crypto market. The best part is that Loopring staking is quite easy, and pretty much anyone can do it.

Going by Loopring’s high intrinsic value, it is not hard to see why LRC is one of the best cryptocurrencies to trade in 2023.

What drives Loopring’s price?

Factor 1: Low transaction costs

Factor 2:  FOMO around Ethereum layer-2 scaling solutions.

9. Terra (LUNA)

DeFi is on a growth trajectory, and that means any cryptocurrency that has an innovative edge in this market has growth potential. Terra is one of the cryptocurrencies that easily stand out in terms of DeFi innovation.

Terra’s main use case is in the launch of algorithmic stable coins. These are stable coins that function the same way as fiat currency, but have a low risk of regulations. That’s because they do not need to be backed by reserves.

The way Terra algorithmic stable coins work is simple. When there is high demand and low supply, it increases in value; whereas when its counterpart occurs with too many units being made available for sale at once--the opposite happens resulting into a decrease in current market rate valuation.

Because algorithmic blockchains do not present a regulatory risk, Terra has experienced a surge in adoption for the launch of stable coins.

For instance, Terra’s stable coin UST now has a market capitalization of $10 billion. It has now surpassed DAI, an indicator that DeFi investors are taking a keen interest on Terra stable coins.

Terra’s growing adoption is also evident in the growth of its total value locked that is now higher than that of the Binance Smart Chain. Recently, data provider DeFi Llama revealed that Terra has $17.9 billion worth of assets in TVL while Binance Smart Chain (BSC) currently sits at $17.3 billion.

With such metrics, and DeFi on a growth trajectory, it is not hard to see why Terra (LUNA) is one of the best cryptocurrencies to trade for 2023.

What drives Terra’s price?

Factor 1: Algorithmic stable coins

Factor 2:  Scalability

trade terra luna

10. Avalanche (AVAX)

Avalanche stands out as one of the best cryptocurrencies to trade for 2023 for its scaling capabilities.

Avalanche is able to achieve extremely fast transaction speeds, which makes it perfect for DeFi and NFTs. The best part is that it does not position itself as an Ethereum competitor. Instead it aims for compatibility, which could drive adoption by developers looking to build interoperable blockchain.

Besides, the Avalanche Virtual Machine is designed for ease of use. This makes it perfect for developers who may not have in-depth knowledge of blockchain coding but may want to launch Dapps.

With these factors in play, and DeFi on a growth trajectory, there is every reason to believe that Avalanche could outperform most cryptocurrencies in 2023. Already, it has emerged as one of the best performing cryptocurrencies in 2021. In the last one year, Avalanche is up by 3500%. If the broader market turns bullish in 2023, Avalanche could easily beat its 2021 gains.

What drives Avalanche’s price?

Factor 1: Scalability

Factor 2:  Compatibility with Ethereum

Key Points:

  • Top cryptocurrencies to trade in 2023 have performed well all through 2021.
  • The best cryptocurrencies to trade in 2023 are Ethereum, Polygon, Decentraland, Harmony, Sandbox, Dogecoin, Gala, Loopring, Terra, and Avalanche.
  • Ethereum is almost done with the transition to Ethereum 2.0
  • Ideal time to buy Polygon ahead of Eth 2.0
  • Decentraland looking good as Metaverse grows in popularity.
  • Harmony looks good as interoperability grows in importance.
  • Sandbox has potential due to its position in the NFT gaming space.
  • Dogecoin could explode if the Doge-1 mission is a success.
  • Gala community-driven games likely to drive growth.
  • Loopring low-cost exchange to drive adoption.
  • Terra making new highs as algorithmic stable coins grow in importance.
  • Avalanche’s Ethereum interoperability is a potential value driver in 2023.
  • Of all the cryptocurrencies above, Ethereum has a perfect mix of stability and growth. However, it is not the only one with high potential. For instance, Polygon price predictions for 2023 point to potential growth.

Other top cryptocurrencies to trade in 2023 include but not limited to Gala, Sandbox and Decentraland. 

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