Since its inception in 2008, Bitcoin has inspired many other crypto projects. There are currently more than 5,000 “alternative” coins — altcoins.
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2022 was a stormy year for Wall Street. In 2022, the major US stock indices collapsed into a bearish zone. But it wasn’t as bad for stocks compared to events in the turbulent crypto space. The crypto segment lost about $1.4 trillion in 2022 and more than $2 trillion after reaching the price peak in November 2021.
We welcomed 2022 with more positive thoughts, but the year decided to turn on its head with energy prices rising and China reporting a record number of COVID cases which also kept the global economy at the bottom.
2023 started with lower expectations. It will also be a challenging year amidst the uncertainties in the EU and China. The good thing is that the US economy looks much better. All in all, the beginning of 2023 looks uncertain. One should monitor newsflow around major economies.
Investors know that drawdowns in the stock market are an opportunity to acquire depreciated assets. Big dips could be a chance to buy a promising cryptocurrency at the best price.
How can one find a profitable project? One should search for projects that create impressive advantages compared to their competitors.
Best coins to invest in 2023
Dogecoin
Dogecoin (DOGE) started as a meme coin, but today it is the 8th largest cryptocurrency project by market cap. Dogecoin focuses on payments. It’s a leading player in this sector along with Bitcoin and Shiba Inu. In addition, DOGE is actively promoted by Elon Musk. Many believe that Dogecoin payments may be accepted on Twitter, which could make the token the largest cryptocurrency used for payments.
Dogecoin is an open-source blockchain launched simply as an entertainment feature of blockchain. The project began to attract attention after celebrities like Elon Musk, Snoop Dogg, Lil Yachty, Kevin Jonas, and Gene Simmons started talking about it.
In addition, it is an altcoin, the total number of which is not limited.
Dogecoin ranks eighth in the Coinmarketcap rating and can be used for payments in more than 300 online stores and companies (including Tesla), even though it is a meme token.
Compared to its competitor, SHIB (ranked 15th), DOGE is technically much more efficient.
Shiba Inu Coin
Shiba Inu Coin (SHIB) has one of the largest crypto communities in the world. Plus, the top management of the project is very active on social networks.
SHIB started as a meme coin but gradually grew into a token with multiple uses. It is accepted in many places. Shiba Eternity is a popular game, and Shibaswap is a great DEX platform. Without a doubt, there will be other innovations.
The problem of the project is excessive design within grid blocks and slow development rates. But the token prospects for 2023-2024 look quite positive, provided that the current development pace is maintained.
TRUST wallet token
Trust Wallet Token (TWT) took off after the loss of trust in exchanges shortly after the collapse of FTX and Binance. People are moving 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 is easier to hack.
One can use the token to pay for products and services of various services that accept TWT. TWT can be used to exchange (or buy) other crypto assets.
Trust Wallet has many unique features compared to its counterparts: user-friendly, a mobile games app, and access to numerous dApps. In addition, TWT can serve as a payment for various services. TWT holders can receive discounts on crypto investments through Trust Wallet.
Trust Wallet supports many tokens on various blockchains – Binance, TRON, Ethereum, etc.
Avalanche
If we talk about the most innovative solutions, Ethereum (ETH) comes to mind as an undisputed niche leader. Ethereum is the base for most decentralized applications (dApps). In 2022, Ethereum earned $3.8 billion on dApps. That is seven times more than its nearest competitor’s result, according to TokenTerminal.com.
Let’s imagine Ethereum has obtained better technical functionality for creating dApps. And Avalanche (AVAX) offers the best solution.
The big difference between Avalanche and analogues is network speed. Leading cryptocurrencies — Bitcoin and Ethereum — can bring through peak values of 7 and 14 transactions/second (TPS), respectively. The developers of Avalanche say that the chain can carry more than 4500 TPS.
Another advantage of Avalanche is technical compatibility with Ethereum/EVM. That is the software used to develop dApps. Since Avalanche runs on the EVM, the chain can provide access to a handy tool that developers already know well. At the same time, transaction costs are low. By the way, the Avalanche chain runs much faster than Ethereum.
In 2022, Avalanche earned $96.1 million on dApps. That is a small amount compared to what Ethereum made. However, if Avalanche continues attracting new developers, the project has every chance for excellent results in 2023.
Algorand
What cryptocurrency to buy in 2023? The answer is the one making several hundred per cent a year. Algorand (ALGO), for example. Like Avalanche, Algorand is good at building dApps with a strong focus on decentralized finance (DeFi).
Algorand is a high-speed chain. For example, Avalanche implements 4500TPS, while Algorand has a throughput of 6,000 TPS. That is a powerful first-level blockchain project processing and validating many transactions.
A striking hallmark of Algorand is focusing on interoperability. Many blockchain chains that exist in nature do not connect and, accordingly, cannot function in a bundle. In DeFi, Algorand runs on a first-level blockchain, which serves as a connection between different chains.
Another positive aspect is that Algorand uses a pure proof-of-stake (PPoS) protocol built on Byzantine consensus. Native ALGO token holders are randomly selected for voting and developing new blocks in the chain. The Proof-of-Stake consensus mechanism is the safest. The options to scale and decentralize are also well-supported.
IOTA
What crypto to buy in 2023? Consider investing in the IOTA (MIOTA) payment project. This crypto is not as popular as Avalanche or Algorand. But it could be a true leader in payment systems within the Internet of Things (IoT).
IOTA does not work on blockchain solutions. Transactions are implemented based on decentralized algorithms of the directed graph model — Tangle.
The classic blockchain has its drawbacks. In particular, verifying and voting slow down the speed of most chains. IOTA doesn’t have all these problems and can work very quickly.
Another strong point is that Tangle is continuously improving. Since each subsequent transaction confirms the previous one, the chain can constantly expand its scalability and efficiency after every payment.
Other unique features of IOTA, are free-of-charge transactions and perfect scaling ability that does not interfere with the chain work. That is a trump card that can add to the popularity of the payment system since IoT devices are increasingly coming into our daily life.
Stellar
Why not buy Stellar (XLM) in 2023? Given that Stellar offers rewards points, XLM has a real chance for success.
The main 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 abroad, you usually pay a fee. And your payment might get stuck in the operation process for a very long time. But any transaction through Stellar using a native Lumen token could be processed just in a few seconds.
And one more advantage. The classic transaction fee is 0.00001XLM. Since Stellar Lumen was worth $0.072 at the time of writing, the whole amount would be just $0.00000072. Simply put, you can make about $1.4 million in transactions, paying just one dollar. That is not possible in any traditional bank.
What other arguments are there in favor of buying the Stellar cryptocurrency in 2023? The network is cheap in terms of fees, but at the same time, it has a high throughput (over 1000 TPS) and excellent functionality. According to the 2022 ForexSuggest.com report, Stellar ranks first in daily trade volume. Stellar executes six times more transactions daily than Ethereum and 32 times more than Bitcoin.
Thus, Stellar has a chance to be the most popular solution for payments. If Stellar concludes agreements with new partners in the new year, this will be very good, creating a good boost for continuous growth in 2023-2024.
Which cryptocurrency to invest in 2023?
Follow stock quotes, crypto news and analysis, choosing crypto for your investment portfolio.
Here is the list of cryptocurrencies you can buy with AMarkets.
