Since its emergence in 2008, Bitcoin has inspired the development of all other cryptocurrency projects. Currently, there are over 5,000 “alternative” cryptocurrencies, also known as altcoins.
2022 was a challenging year for Wall Street. The major US stock indexes plummeted to bearish lows. However, the situation was not as dire as in the still-immature and highly turbulent crypto space, which lost around $1.4 trillion in market capitalization in 2022 and over $2 trillion since reaching its price peak in November 2021.
2023 is likely to be another challenging year for crypto investors, considering the deep uncertainties in the economies of Europe and China. The year started with much lower expectations compared to 2022, given the negative news from all sides. Although the US economy is in a much stronger position than the economies of most countries, which is undoubtedly a plus for crypto.
Overall, the beginning of the year is expected to be quite uncertain for investors. It is important to follow the flow of news, which can emerge from any major and significant region in the world.
Significant drops in the stock market are historically considered opportunities to acquire undervalued assets. Deep declines can be an ideal option to invest in promising cryptocurrencies at an excellent price.
The key to finding profitable opportunities lies in blockchain projects that offer significant advantages compared to their competitors.
In this overview, we will not mention the top crypto leaders – Bitcoin and Ethereum. Simply because so much has already been said about these giants. Let’s explore alternative projects that are interesting for investment.
Which cryptocurrency to invest in 2023?
Dogecoin (DOGE) started as a meme coin but has now become the 8th largest cryptocurrency project by market capitalization. Dogecoin is primarily focused on payments and continues to be a significant player in this area alongside Bitcoin and Shiba Inu. Additionally, DOGE is actively promoted by Elon Musk. Many believe that DOGE payments could be integrated into the Twitter system, making it the largest payment digital asset in the world. However, these are all speculations at this point.
Dogecoin is an open-source blockchain that was originally launched as a fun component of the blockchain network. The project gained attention after influential personalities like Elon Musk, Snoop Dogg, Lil Yachty, Kevin Jonas, and Gina Simmons started talking about it.
Furthermore, it is an altcoin with no limit on its total supply, which is also a plus.
Dogecoin ranks eighth on Coinmarketcap and can be used for payments in over 300 online stores and companies (including Tesla), despite being a meme token.
Compared to its competitor, SHIB (ranked 15th), DOGE technically operates much more efficiently.
Shiba Inu Coin
Shiba Inu Coin (SHIB) has one of the largest communities in the cryptocurrency world. Plus, the project’s top management is very active in the social media space. For a cryptocurrency project, this is a strong argument when assessing investment prospects.
SHIB started as a meme coin but gradually evolved into a token with multiple use cases. It is accepted as payment in many places. Shiba Eternity is a popular game, and Shibaswap is an excellent DEX platform. Undoubtedly, there will be other innovations as well.
The problem with the project lies in excessive design within the network blocks and slower development pace. However, the token’s potential remains high for the outlook of 2023-2024, assuming the current pace of development is maintained.
Trust Wallet Token (TWT)
Trust Wallet Token (TWT) surged in popularity after the loss of trust in exchanges following the crashes of FTX and Binance. People are transitioning to non-custodial wallets such as Trust Wallet and Atomic Wallet Coin, as custodial crypto wallets store all user data in cold and hot storage, which are easier to hack.
The token can be used for payment of products and services across various platforms that accept TWT. TWT can also be used for exchange (or purchase) of other crypto assets.
Trust Wallet offers many unique features compared to its counterparts: user-friendly interface, mobile app for gaming, access to numerous dApps, as well as decentralized exchanges. Additionally, TWT can be used as a means of payment for services accepting the coin. TWT holders have the opportunity to receive significant discounts on cryptocurrency investments through Trust Wallet.
Trust Wallet supports a wide range of tokens across different blockchains, including Binance, TRON, Ethereum, and more.
When discussing the most innovative solutions and considering which crypto to buy in 2023, the first one that comes to mind is Ethereum (ETH) – an undisputed niche leader. Ethereum is essentially the main network for most decentralized applications (dApps). In 2022, Ethereum generated $3.8 billion from dApps, which is seven times higher than its closest competitor, according to TokenTerminal.com.
But let’s imagine that Ethereum suddenly had a more advanced technical functionality for creating dApps. And the best solution happens to be Avalanche (AVAX).
One powerful advantage that sets Avalanche apart from its counterparts is network speed. Leading cryptocurrencies like Bitcoin and Ethereum are capable of processing peak transaction values of 7 and 14 transactions per second (TPS), respectively. According to Avalanche developers, the network is potentially capable of handling over 4500 TPS.
Another aspect of Avalanche’s performance is its technical compatibility with Ethereum/EVM. This is the software used for dApp development. Since Avalanche operates on the EVM, the network can provide access to a convenient tool that developers are already familiar with. Additionally, transaction costs are low, and transactions are much faster compared to Ethereum.
In 2022, Avalanche generated $96.1 million from dApps, which is significantly less than what Ethereum earned. However, if Avalanche continues to attract developers with its faster and more cost-effective network, it has a chance to achieve remarkable results in 2023.
The most desirable answer to the question of which cryptocurrency to buy in 2023 is the one that can provide several hundred percent profit. For example, Algorand (ALGO). Like Avalanche, Algorand is a smart approach to building dApps with a strong focus on decentralization in the financial sector (DeFi).
Algorand is a high-speed network. For instance, while Avalanche achieves 4500 TPS, Algorand can handle 6000 TPS. It is a top-tier blockchain project that processes and verifies a large number of transactions.
One standout feature of Algorand is its focus on compatibility. Many existing blockchain networks do not connect or function together. In decentralized finance, Algorand operates on a first-tier blockchain that serves as a bridge between different chains.
Another positive aspect is that Algorand operates on a Proof-of-Stake model. Owners of the native ALGO tokens are randomly selected for voting processes and block creation within the network. The Proof-of-Stake model ensures maximum security while also supporting scalability and decentralization.
There is no definitive answer to which cryptocurrency to buy in 2023. It is necessary to diversify purchases into different coins. For example, you can invest in the payment project IOTA (MIOTA). Although not as popular as the previous two cryptocurrencies, it possesses tools that allow the project to be a leader in optimizing payment systems within the Internet of Things (IoT) segment.
IOTA does not operate on blockchain solutions. Transactions are executed based on a decentralized algorithmic directed acyclic graph model called the Tangle.
Classical blockchain has its drawbacks. In particular, the consensus processes required to launch new blocks, verify transactions, and conduct voting significantly slow down the performance of most networks. IOTA does not have such limitations, and transactions are processed very quickly.
Another strong point is that the Tangle is designed to continuously improve. With each subsequent transaction confirming previous ones, the network has the ability to constantly expand the boundaries of scalability and efficiency after each payment.
Other unique aspects of IOTA, which serve as arguments for buying this cryptocurrency in 2023, include feeless transactions and seamless scalability that does not hinder the network’s normal functioning. These are the advantages that can contribute to the growing popularity of the payment system, as IoT devices are increasingly being integrated into our daily lives.
Why not consider buying the cryptocurrency Stellar (XLM) in 2023? A regular payment blockchain network won’t surprise anyone. However, considering the clear advantages of Stellar, XLM has real chances for significant success.
The key goal of blockchain technology, especially in the financial sector, is to eliminate/bypass the slow and costly route for traditional transactions.
When you send money across borders, you usually have to pay a fee. And it’s quite possible that your payment will take a long time to process and confirm. However, a transaction through the Stellar network with its native token, Lumen, is processed in a matter of seconds.
Here’s another plus. The classic transaction fee within the Stellar network is 0.00001 XLM. Since Stellar Lumen was valued at $0.072 at the time of writing this material, the fee for a transaction within the network would be a negligible amount of $0.00000072. In other words, you can make around 1.4 million transactions within the network, and you would only pay one dollar for all of them. This is impossible with any traditional bank.
What other arguments are there in favor of buying the cryptocurrency Stellar in 2023? There are indeed strong arguments. The network is inexpensive when it comes to transaction fees, but at the same time, it has high throughput (over 1000 TPS) and excellent functionality. According to a report by ForexSuggest.com for 2022, Stellar was recognized as the leader in daily transaction volume. Stellar executes six times more transactions every day than Ethereum and 32 times more than Bitcoin.
In summary, it can be concluded that the Stellar network has the potential to become the most sought-after solution for conducting payments. If Stellar manages to secure agreements with new partners in the new year, it would be very beneficial as it would create a significant boost for continuous growth in 2023-2024.
Which cryptocurrency to invest in 2023?
Monitor exchange rates, cryptocurrency project news, analytical information, and choose cryptocurrencies for your investment portfolio.