Which cryptocurrency to invest in in 2023

Brokers Investment  » CryptoBrokers »  Which cryptocurrency to invest in in 2023

Which cryptocurrency to invest in in 2023


Which cryptocurrency to invest in in 2023 – Bitcoin, Ethereum, Binance coin, Polkadot, Cardano, Avalanche, Filecoin, Trust Wallet Token, PancakeSwap (CAKE)

Despite the crisis, cryptocurrency is still a popular and lucrative means of earning money. If you want to invest your savings in digital assets, first find out which cryptocurrency will be the most promising and safest to invest in 2023, according to experts.

Is it even worth investing in cryptocurrency in 2023

The year 2022 has been a challenging one for all cryptocurrency asset owners. Bitcoin’s 4-fold fall – from $68,000 to $16,500 – had a significant impact on the mood of traders and investors.

The onset of “cryptozyma” does not bode well for the cryptocurrency market in the near future. And many experts believe that the negative period will continue not only in 2023, but also in the next few years.

What is the current outlook for most experts? Falling again – tentatively to $10000 per 1 Bitcoin. However, there are those in the community who disagree with this view.

For example, Tim Draper – a venture capitalist and billionaire – gives a favourable forecast for the coming year. He believes that in 2023, digital asset holders will be able to see the previous values of both the major cryptocurrency and the growth dynamics of young and promising cryptocurrencies.

Whether you should trust this expert’s predictions is up to you. Just to remind, he previously claimed that the main cryptocurrency BTC will grow to $250,000 by the end of 2023. Such rapid growth, according to Draper, will be facilitated by the widespread spread of digital money around the world.

The community does not give much credence to such optimistic forecasts, as negative trends are still prevalent and major cryptocurrency exchanges are suffering serious losses and even going bankrupt.

But if you’re determined to invest in cryptocurrency in 2023, here’s a look at which coins experts believe are the safest and most promising to grow.

Low-risk cryptocurrencies

This group includes “oldies” coins that are time-tested and highly regarded in digital investing. They are considered the most reliable in terms of earnings.

However, their stability also has a downside – don’t expect to see rapid upswings and multiple increases in value. Experts believe that no more than 60% of the capital invested in cryptocurrencies in this group is worth investing in.

Bitcoin (BTC)

The oldest digital asset that sets the tone for the rest of the crypto market. At the first trading session, the value of BTC did not reach 1 cent. Nowadays, one bitcoin is traded for $16500, and at the maximum moment, its price reached $68000.

It is safe to say that Bitcoin in 2023 and in the coming years will remain the most reliable and stable digital currency.

When betting on Bitcoin, remember that it is suitable for an investment of 5 years or more. Hoping for super profits from low-risk digital assets makes no sense. Ideally, BTC should be seen as a good tool for preservation and moderate capital appreciation.

Ethereum (ETH)

Ethereum (ETH) is the second most secure and popular cryptocurrency. It is considered to be quite promising in the community. This is because the altcoin is focused on innovation and digital development.

In addition, the technology is positioned not only as a currency, but also as a platform for digital developers. Cryptocurrency businesses are launching new assets and developing smart contracts on it.

Despite the cryptozyme, Etherium is actively trading, and developers have recently activated a major upgrade to version 2.0 on the main network.

In addition, the blockchain has been successfully migrated to PoS, which should, according to the project’s authors, speed up the blockchain and reduce the total power consumption of the Ethereum network.

As a result of the innovation, a rise in the value of the currency is natural. However, it is difficult to predict exactly what it will be amid the global decline in the value of cryptocurrencies in the digital marketplace. The ETH coin now trades around $1,100, leaving a high of $4,600 in the past.

Binance coin (BNB)

BNB was developed as a useful token for the Binance platform, the world’s largest cryptocurrency exchange by trading volume and number of active traders. The tool can be used for real-world payments.

For example, merchants accept the cryptocurrency to pay for certain online services, entertainment and travel bookings. BNB is also used for investing in ETFs, buying stocks and other assets, and even as collateral for loans.

Over the years, the Binance platform has evolved into a centralised ecosystem in which BNB has become an integral part of transactions and plays an important role on the Binance blockchain. The coin is currently worth around $300, having “fallen” from a high of $650.

When thinking about investing in BNB, one should take into account that the cryptocurrency is deflationary. In simple terms, it has a limited supply in circulation.

Every quarter, a certain percentage of coins are destroyed in order to reduce the supply of the cryptocurrency and thereby maintain its value.

Deflationary cryptocurrencies are considered promising for investment because they are resistant to spikes in inflation.

Cryptocurrencies with medium risk

This includes rapidly developing projects that aim to solve various problems both in blockchain and many other areas of digital business.

If the popularisation of such developments justifies itself, the value of cryptocurrency assets could jump many times over. If it fails, a significant drop is likely.

It is advisable to spend no more than 30% of the allocated capital on coins in this group.

Polkadot (DOT)

One of the major advantages of the DOT cryptocurrency is its seamless implementation of updates. The developers consider their project to be revolutionary, and some experts predict a promising future for it in the field of electronic investment.

At present, the authors of the technology are actively working to implement interoperability between blockchains and integrate them into a common ecosystem. In addition, DOT has few competitors in its niche, so it is a safe bet for investment.

On the other hand, the fact that many of its features have not yet been fully implemented is a disadvantage. And the transition of the Ethereum platform to version 2.0 could “kill” the Polkadot technology in the long run.

As for the cryptocurrency’s value, DOT is currently down from a high of $55 to $5.28.

Cardano (ADA)

Cardano is a relatively young coin, described as a hybrid of Bitcoin and Ether and predicted to grow in 2023. ADA is in development, but despite this, it easily overcomes problems of security, network scalability and digital decentralisation.

The developers will need to invest a lot of time and effort to overcome the crypto-zyme safely, but experts predict steady growth for the cryptocurrency in the long term. ADA currently stands at $0.31, compared to an earlier high of $3.1.

Avalanche (AVAX)

The secret of the project’s success is a new approach to network scaling, which makes the cryptocurrency AVAX a major competitor to ETN (Ethereum). The Avalanche platform provides customers around the world with the ability to make financial transactions using digital assets.

AVAX cryptocurrency serves as a useful token within the platform, used for internal payments and transaction fees.

The use of the coin in all applications deployed on the Avalanche platform makes the cryptocurrency valuable in perspective and attractive to digital investors.

It should be noted that in 2022, the platform was “storming” and developers had to address network performance issues. Some steps to improve the system have already been made, Avalanche is literally swimming in development grants and investments from well-known companies.

And that means, according to experts, that the cryptocurrency will continue to evolve. AVAX is currently trading at $12.65, down from a high of $147.

High-risk cryptocurrencies

The group includes cryptocurrencies with low capitalisation and little interest from large investors. If a project in this or that category “takes off” and attracts the attention of large companies, the digital assets can bring fabulous profits.

If the project “fails”, investors will incur serious losses. For this reason, experts recommend investing no more than 15% of the capital.

Filecoin (FIL)

The blockchain platform is focused on the decentralized storage and transmission of information. Under favourable conditions for the development of the digital market, experts predict a breakthrough future for FIL and tangible returns on investment.

The idea of the project is not new, so the main problem with Filecoin is the high competition in this area. Well-known major players such as Google, Apple, Amazon and others feel comfortable there. Before the crisis, FIL peaked at $238.2 and is currently worth $4.28.

Trust Wallet Token (TWT)

A very attractive digital asset when viewed over the long term. It is favoured by the customers of the Binance exchange and is actively supported by the cryptocurrency exchange.

In the cryptocurrency community, the token is considered one of the most useful, because it belongs to one of the most trusted cryptocurrency wallets Trust Wallet. The system objectively has high anti-hacking protection.

In 2022, the value of TWT was virtually unresponsive to market trends and weakly responsive to Bitcoin movements. Despite the high risks, experts recommend TWT as a long-term investment.

Going forward, the cryptocurrency’s value will rise thanks to support from major digital market players. As of today, TWT is trading at $2.17.

PancakeSwap (CAKE).

The cryptocurrency is developed on a platform designed for the exchange of digital assets. The project is actively supported by the Binance exchange and offers its customers lucrative tools to participate in the life of the platform. The system’s protocol has no obvious vulnerabilities.

Experts call CAKE an extremely risky tool for short-term earnings. Indeed, it is difficult to predict the price movement in this case.

However, the same experts predict the platform’s popularity to grow, which means CAKE’s value will definitely increase in the long run.

Currently, the cryptocurrency CAKE is worth $3.9, having fallen from a high of $44.3.

Cryptocurrency investing rules in 2023

Cryptocurrency investing comes with high risks. To be successful when investing in digital assets, there are a few simple rules to follow:

  1. When buying cryptocurrency, don’t spend all of your capital cleanly, but invest only the amount that you are prepared to lose in the unfortunate event of an unfavorable outcome.
  2. Don’t take out loans to buy digital assets, or you could get yourself into unsustainable debt.
  3. Be very thoughtful when investing in a digital instrument. Evaluate the pros and cons of the cryptocurrency and try to calculate its future prospects, depending on the platform’s future development plan.
  4. The old rule of thumb for the savvy investor: “Don’t put your eggs in one basket”. Funds must be allocated with the level of risk in mind.
  5. Traders believe there is no loss until the cryptocurrency is sold. If the digital market is “shaking”, don’t give in to the general panic, but stick to your chosen strategy.
  6. Do not fully trust any forecasts, experts and analysts. All can be wrong. All information should be questioned and double-checked. This also applies to our material.
  7. Do not be greedy and fix your planned profits in time. If the value of the cryptocurrency coincides with your target (you will make your planned profit), decisively dump the asset. Remember, in anticipation of super profits, the risks of losing everything increase manifold.

As you can see, despite the many challenges in the digital economy and the complexities of the digital business, the popularity of cryptocurrencies continues to be high.

To make money from crypto-assets in the long run, you need to be clear about which cryptocurrency is safe to invest in in 2023. Following the investor’s ground rules will help preserve and grow your capital