What Is The Best Cryptocurrency To Invest In During 2023?

Choosing the best cryptocurrency to invest in 2023 can be complicated if you are just getting started in the crypto market. To help you navigate through the digital currency market, Trading Education has picked for you the top cryptocurrencies to buy in 2023.

Investors looking for the best cryptocurrency to invest in during 2023 are somewhat spoilt for choice as there are now more tokens than ever poised for major growth. In the following article, we’ll be looking at some of the top cryptocurrencies of the moment and considering how they measure up as investment prospects. 

If you’ve been watching the market recently, then you’ll know that some investors have seen phenomenal returns across 2021 and many of the top tokens, such as Bitcoin and Dogecoin, have seen record breaking bulls, sending prices skyrocketing to unprecedented highs.

Blockchain technology itself has also been evolving, with DeFi continuing to take the world by storm and a growing trend for Non-Fungible Tokens that promises to change the concept of digital ownership. New platforms have also emerged to the increased challenges of the modern cryptocurrency world. Whilst this does mean that 2023 is an exciting time to invest in cryptocurrency, it does mean there is a little more to learn regarding the different tokens on the market. 

Of course, there is no way of telling which cryptocurrencies will explode in 2023, but the aim of this article is to put together a list of the tokens we think stand a good chance of seeing price growth in the near future. 

The Best Cryptocurrency To Invest In 2023 - A Snapshot 

The cryptocurrency market is now more diverse than ever before, with tokens aimed at revolutionising everything from personal finance to video gaming. Choosing which projects are likely to see the most success in 2023 is tough, but we believe any of the following contenders has the potential to be the best cryptocurrency to invest in during 2023: 

1. Bitcoin

2. Ethereum

3. Ripple

4. Cardano

5. Solana

6. Aave

7. Shiba Inu

8. Tron

 

So why these tokens in particular? To answer this, we need to look at each crypto asset in a little more depth. 

1. Bitcoin

An obvious choice, but despite being the oldest token on the market, Bitcoin has shown that it still has plenty of snap left in its tail. The original cryptocurrency led several market-wide bulls in 2021, soaring to record highs on multiple occasions October saw BTC reach $67,276 - breaking its previous record for the year and clocking the highest price ever for a cryptocurrency token. 

It’s safe to say that Bitcoin still dominates the blockchain space. In fact, some financial experts have now said that BTC is ‘too big to fail’, meaning it has built so much momentum and value that the entire crypto sector relies on its success.

Of course, some might speculate that having reached a record high in late 2021, Bitcoin has nowhere to go moving forwards. There may of course be some truth in this, but at the time of writing BTC was trading at $61,231, so we know it is capable of reaching higher prices. What’s more, many industry figures said the same thing in 2020 before Bitcoin went on to have its most successful year to date. 

Looking at analyst predictions for Bitcoin in 2023, it seems the BTC token is expected to perform well. DigitalCoinPrice, for example, believes that BTC could well break the $100k barrier - which would mean growth of over 70% on today’s price. It may seem like an uninspiring choice at this point, but we think that Bitcoin is still a good bet for the best cryptocurrency to invest in in 2023. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Ethereum

Much like Bitcoin, Ethereum has built up so much momentum that it is hard to see it losing its position as the number two cryptocurrency by market cap. The first of a new wave of platforms capable of handling smart contracts, Ethereum has proven itself to be one of the most versatile projects in the industry.

By offering an adaptable, programmable infrastructure, Ethereum provides developers with the perfect platform to build their own cryptocurrency projects. As such, many leading DeFi projects, such as Compound and Maker, are actually built on the Ethereum blockchain. Whilst Ethereum has encountered scalability problems of late, the ongoing 2.0 protocol upgrades promise to once again put the platform back at the top of the smart chain pile. 

Ethereum actually complements Bitcoin as part of a diversified investment portfolio. Both projects have well-established positions within the market but are different enough from one another so as not to be in competition. 

When it comes to Etheruem price predictions for 2023, most analysts are optimistic. Bother DigitalCoinPrice and WalletInvestor believe ETH could grow by up to 80% - reaching a token price in excess of $7,600. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Ripple

Ripple is often referred to as the ‘Bankers’ Cryptocurrency’ and its main use case alone means it should be on the radar of every forward-thinking crypto investor. The project aims to facilitate inter-currency transfers for banks and financial institutions. A notable difference between Ripple and other cryptocurrency projects, is that it is owned and operated by an organisation: Ripple Labs. 

As it stands, most banks rely on the SWIFT protocol to send money between countries. However, by leveraging blockchain technology, Ripple is able to provide faster, simpler and cheaper transfers. Several major names are already on board, including Santader, AMEX and Standard Chartered.

Ripple has experienced some regulatory woes of late, but it seems to have ridden these out in remarkable fashion and, at the time of writing, Ripple’s XRP token was the 7th biggest cryptocurrency by market capitalisation, which stood at almost $50 billion. 

Interestingly, whilst XRP has recovered well from legal entanglements in the latter half of 2020, it is one of the few top-tier cryptocurrencies that did not post a new all-time high trading price in 2021. In theory, this means that Ripple still has plenty of room to grow.

The price predictions we have seen certainly suggest XRP could be on the up in 2023, with some analysts predicting that it could almost double in value by September 2023. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

4. Cardano

Cardano was the world’s first peer-reviewed blockchain, its architecture having been scrutinised by some of the world’s top academic institutions. It features an advanced two-layer architecture and upon its launch in 2017 was hailed as the first in a new, third-generation of smart chains. 

Thanks to its smart capabilities and impressive technical credentials, Cardano is often described as an Ethereum Killer and is widely regarded as the biggest rival to the older smart platform. Until the Ethereum 2.0 upgrade is finalised, Cardano is faster, cheaper and more scalable - making it arguably more desirable for emerging DeFi projects. An interesting point of note: Cardano and Ethereum actually have shared origins, with Ethereum co-founder Charles Hoskinson jumping ship to set up Cardano. 

Heading into 2021, Cardano seemed to have drifted off the radar to a large extent. However, between 1 January and 2 September, ADA went from around $0.18 to $3.09, representing growth of over 1600% in less than a year and firmly establishing Cardano amongst the top ten cryptocurrencies by market cap. Needless to say, this has stirred investor interest.

Looking ahead to 2023, WalletInvestor believes that ADA will more than double in value, reaching an average trading price of $5.39 by the end of the year, following several months on an upward trajectory. Elsewhere, DigitalCoinPrice has a slightly more reserved forecast, with Cardano almost doubling in value to $3.92.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

5. Solana

Solana is another so-called Ethereum Killer and when it was launched in 2020, its developers claimed it was the fastest blockchain in the world, capable of processing up to 50,000 transactions per second, compared to Ethereum’s paultry 13 TPS. As DeFi projects demand more and more speed to handle their usage volumes, a platform that can boast this kind of speed has, in theory, a serious advantage over slower competitors. 

The project has already proved a hit with developers and despite its comparatively short existence, Solana has already attracted around 400 DeFi projects to its platform. It also looks well placed to cash in on the burgeoning NFT trend, having recently launched its own native NFT market place. 

With regards to its price performance, its safe to say that Solana had a very successful year in 2021. Coming from relative obscurity and trading at below $1.50 in December 2020, SOL had reached $56.20 by May 2021. However it was after summer when things really took off and Solana surged 300% in December, hitting an all-time high of $291.05.

Whilst Solana is yet to prove its longevity, it seems most analysts are optimistic about its growth potential and SOL is expected to climb steadily over the next few years. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

6. Aave 

DeFi is gradually starting to dominate the blockchain world and, at the time of writing, Aave is the biggest project in the space. Built on the Ethereum platform, Aave is a cryptocurrency lending platform that allows users to borrow various tokens as well as provide liquidity to the protocol and earn rewards. 

There are several DeFi platforms that have come to prominence in 2021, but with some $13.3 billion locked into its protocol, Aave currently holds the top spot. For this reason, it’s a solid pick for those looking to diversify their portfolios to include DeFi and is amongst the ‘safer’ bets for the sector. 

Aave hasn’t been around long, having only launched in 2020, but it has already posted some impressive price movement. Its eponymous utility token was already trading at $88.33 in January 2021, just one year into its existence. By February it was up at $529, following one of the most impressive bulls the industry has seen in 2021. Aave then reached its record high of $661.69 in May.

Leading analysts are almost unanimously predicting growth for AAVE in 2023 - although just how much varies depending on who you ask. However, we think that the continuing support for the project combined with the positive forecasts suggest that Aaave could be a good pick for the year ahead. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

7. Shiba Inu

Shiba Inu started life as something of a joke, looking to emulate the success of the now-infamous Dogecoin and build a loyal following of die-hard fans. However, whereas the latter remains a simple meme-coin, Shiba Inu has now evolved into a complete digital finance ecosystem. 

The team behind SHIB have since added a complete decentralised exchange to the their platform, along with additional tokens and even a digital artist funding pot. The whole thing is wrapped up in some pretty eye-catching branding and Shiba Inu has already started to build a solid community around it.

Of all the tokens on our list, SHIB is probably the riskiest investment as, despite the project continuing to expand, it doesn’t really compete with any of the top platforms. As such, its future success depends largely on community-led price hikes. However, as DOGE proved earlier in 2021, these can lead to significant gains.

As far as forecasts go, most are positive. DigitalCoinPrice believes SHIB will almost double in value in 2023 and continue to hold its price month by month. Meanwhile, WalletInvestor also believes Shiba Inu will close in on 100% growth, albeit not until the latter half of the year.  

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

8. Tron

Tron was set up to revolutionise the way we experience content online. Essentially, what the platform does is connect consumers directly with digital artists, making it easier and cheaper to access everything from podcasts to music videos. It was launched by the Tron Foundation in 2017 and headed by one of cryptocurrency’s most fabled characters, Justin Sun. 

There has already been a great deal of interest in Tron and it has established itself as one of the best platforms for minting and distributing NFTs, thanks to its Social NFT Platform. The Tron Foundation also hit the headlines in 2018 with its acquisition of BitTorrent - the largest file sharing protocol on the planet. 

The price of Tron’s utility token, TRX, has surged several times in 2021 and, following a downturn over the summer, it looks to be in the rise again. One of the reasons we think TRX could be a good cryptocurrency to invest in during 2023 is that the Tron Foundation has stepped up its campaign with regards to gaming, announcing a $300 million fund to invest in and incubate gamefi and NFT projects.

In terms of Tron price forecasts, we found most to be optimistic, though often more chaotic than some of the other tokens in our list. DigitalCoinPrice, for example, has TRX rising by up to 90% by March 2023, before sinking by 15 - 25% across the summer. It is then expected to really again, increasing by 95% on today’s price by November. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Tips For Successful Crypto Investing 2023

Whichever cryptocurrencies you choose to invest in during 2023, you should approach the market in a similar way to how you would any other, be it stocks, forex, bonds or anything else. There are no guarantees when it comes to investing, but there are a few ways you can put yourself in the best position for success.

Firstly, it’s important to diversify your portfolio. This means spreading your investment across multiple cryptocurrencies, ideally covering several different areas - such as DeFi, stablecoins and/or entertainment-focused projects.

Secondly, if you plan on trading in high volumes then don’t forget to use the tools at your disposal. Most trading platforms will offer stop/loss and take/profit orders, which means you can automatically close a position if the market turns against you.

Lastly, you also have the option to trade with leverage. Effectively, this means borrowing from your broker to gain more market exposure and thus potentially higher returns. However, leverage trading can also make your losses more significant and this kind of trading is not suitable for those new to the financial markets. 

Read Also: How To Invest In Cryptocurrency In 2023

Other Points To Consider When Choosing Which Cryptocurrencies To Invest In 2023

The cryptocurrency market has always been known for being fast paced - many blockchain projects represent cutting edge technology and the boundaries are continually being pushed. If you’re looking to invest in cryptocurrency in 2023, then there are a few things that are worth considering to give yourself the best chance of success when choosing which tokens to buy. 

1. Keep your eyes on the Market

Because it can change so fast, with new projects being launched on an almost month-by-month basis, cryptocurrency investing isn’t the same as, say,  stocks and bonds, which you can effectively leave unattended for years. You’ll need to keep abreast of new developments within the blockchain world, as well as any mainstream news that could affect your investments - particularly any regulatory changes from the world’s major economies. 

You also need to watch the price movement of your chosen assets, to see how it moves in relation to the wider market. Generally, when Bitcoin moves up, the rest of the market follows. If a particular token goes against the grain, you might want to consider whether it still represents a good investment opportunity. 

2. What does the project offer?

The world of blockchain is now remarkably diverse. Whereas the early tokens, like Bitcoin, Dogecoin and Litecoin, were intended as a means of value exchange and nothing more, now there are projects aimed at just about every aspect of finance, commerce and even entertainment.

There are blockchains projects like Tron and Decentraland, intended to revolutionise the worlds of entertainment and gaming respectively, as well as the likes of Basic Attention Token, which has the potential to completely change the online advertising experience. Then there are projects like Internet Computer, which claims it can completely redefine the internet. 

Considering a project’s use cases and real-world viability is an essential step in building your investment strategy. Of course, part of this also includes weighing up the competition and deciding whether one project has a better outlook than another operating in the same space. 

3. Consider your strategy

Some tokens, such as Bitcoin and Etheruem, have proven to have a certain degree of longevity. Whilst their prices may fluctuate significantly, ultimately they have appreciated in value over the years. You can therefore look at BTC and ETH as mid or long term investments. Other tokens, however, might be better suited to shorter-term strategies. Tokens like Dogecoin and Shiba Inu, for example, often experience sudden price rallies before going into fairly rapid decline. Many crypto investors prefer to see these more volatile tokens as better options for swing or even day trading. 

How To Invest In The Cryptocurrency Market In 2023?

If you are yet to start investing in cryptocurrency then 2023 could be the ideal time to take your first steps into the market. However, before you can buy any cryptocurrency you’ll need to open an account with a reliable broker or exchange.

We usually recommend eToro, as it offers an approachable trading platforms as well as listing several of the major tokens. It is also one of the most highly regarded names on the market so it’s the ideal choice for those new to cryptocurrency investment. 

Once you’re set up with a crypto trading account, then it’s worth spending some time getting to know the interface and finding out exactly which tools you have at your disposal - and how to use them. 

Conclusion

Ultimately, no one can say for sure which will be the best cryptocurrency to invest in during 2023. The market changes extremely quickly and aside from perhaps Bitcoin and Ethereum, any leading project could potentially be usurped by a rival. Any regulatory changes from the world’s major economies also have the potential to dramatically alter the cryptocurrency landscape.

That being said, it is the very dynamism of the cryptocurrency market that has made it so appealing to investors. The tokens we have put forward in this article cover several subsections of the market: DeFi, meme coins, GameFi and tokens aimed at the banking world. The list should be seen as suggestive and we encourage you to do further research before you start building a portfolio, but Everyone needs to start somewhere and we feel these coins have a lot of potential going into 2023.

It’s also worth remembering that the cryptocurrency market is one of the most accessible there is. This means that it's easy to buy and sell your holdings, should you change your mind about a particular token’s prospects.

Whichever tokens you choose to invest in, 2023 looks set to be the most exciting year yet for the cryptocurrency market and if analysts predictions are anything to go by, several of the top projects could see major growth in the coming months. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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