Сryptocurrencies today are an integral part of the global economy. These digital assets allow you to earn on trading and passive investment and serve as an effective tool for increasing capital.
When planning to make money on crypto coins, you need to know the top promising cryptocurrencies. After all, there are thousands of them, but it is reasonable to invest in only a few. To determine the top cryptocurrencies of 2023, you can analyze the market yourself or refer to this article — here is a brief description of the coins that are best to buy in 2023. Let’s get started!
The digital currency Bitcoin (BTC) appeared in 2009 and is used as a payment unit in the peer-to-peer payment system of the same name. BTC is a reference cryptocurrency that is not regulated by anyone and provides users with absolute anonymity while all transactions are transparent. It works on the SHA-256 algorithm, which was developed by the US National Security Agency.
The BTC’s rate is highly volatile. Still, the coin is extremely liquid — it is constantly sold and bought on the largest exchanges. BTC mining is carried out on graphics cards and special equipment (ASIC). Bitcoin staking is not possible as the coin does not use the PoS algorithm.
Read Next: What Is Bitcoin (BTC): A Complete Beginner’s Guide in 2023
The Ethereum network was launched in 2015, and since then, its native coin, ETH, has held leading positions in crypto ratings. Unlike Bitcoin, Ethereum was developed not as a payment network but as a platform for creating blockchain projects. In 2022, Ethereum switched to a Proof-of-Stake (PoS) consensus mechanism as a more secure and energy-efficient way to validate transactions and add new blocks to the blockchain.
At the start, Ethereum cost $2.77 and reached an all-time high (ATH) of $4,858 in 2021. ETH is the 2nd-rated crypto by market cap, which is traded on the vast majority of crypto exchanges and is considered a more versatile coin than the ‘big brother.’
Read Next: How to Buy Ethereum (ETH): A Step-by-Step Guide 2023
The network appeared in 2017 and immediately became the main competitor of Ethereum. Solana is a platform for developing decentralized applications (dApps), which are now at the peak of popularity. It works on the PoS protocol, meaning the SOL coin can be mined by staking.
The peculiarity of Solana is that it also uses the PoH protocol, which provides it with a throughput of 50,000 transactions per second — this is 1,000 times more than Bitcoin.
SOL is among the top cryptocurrencies to invest in because it has become one of the fastest-growing ecosystems, and its token has grown in value by 3,000% — it is used for hundreds of DeFi, NFT, and web3 projects.
Read Next: What Is Solana (SOL): How to Buy Solana Crypto Instantly in 2023
Binance Coin (BNB)
The BNB coin was issued in 2017, the same year when the Binance crypto exchange was launched. The token was originally used and continues to be used to support the exchange ecosystem. Considering that Binance is the world leader in its segment, the platform’s digital asset has always had high liquidity. At the moment, BNB is the 4th-ranked crypto by market cap.
Initially, BNB was an ERC-20 token based on the Ethereum network. But with the launch of Binance Chain, the coin switched to BEP2 BNB and thus became completely independent. The prospects for investing in BNB are related to the scale of the Binance ecosystem, which is currently the largest crypto exchange in its segment.
Read Next: How to Buy BNB (BNB) Crypto: A Step-by-Step Guide 2023
The network was launched in 2014 as a blockchain platform for decentralized applications and smart contracts. Cardano uses the PoS protocol, so the platform’s native coin ADA is available for staking. Since 2021, the Cardano network has been fully decentralized and highly resilient. We included Cardano in our list of the top cryptocurrencies of 2023 since it is one of the fastest-growing projects, highly demanded in the IT and industrial sectors.
Read Next: What Is Cardano (ADA): Everything You Need to Know in 2023
Ripple is a cryptocurrency network for payment systems with an internal digital asset. Launched in 2012, Ripple (XRP) was issued at the start — that is, XRP cannot be mined either by mining or staking. Therefore, investing is reduced to the purchase and sale of an asset or to direct contributions to blockchain projects developed based on Ripple.
Read Next: How to Buy Ripple Crypto (XRP): A Step-by-Step Guide 2023
Polygon is a dedicated project and a so-called second-level sidechain launched in 2020 to work on the scalability of the Ethereum network. It works on the PoS protocol; therefore, MATIC staking is available. The main differences between Polygon and the original Ethereum network are that Polygon processes transactions faster and has lower fees.
On January 1, 2021, one MATIC coin cost $0.02, and on May 18, the rate reached its ATH of $2.45. The popularity of the network and its coin is due to the fact that it is compatible with all Ethereum projects. That is, Polygon does not compete with the parent project but helps to develop it and progresses along with it.
Read Next: How to Buy Polygon (MATIC) Crypto: A Step-by-Step Guide 2023
Another decentralized cryptocurrency app development platform that competes with Ethereum. The token is called DOT and is widely demanded and actively traded along with other coins from our top promising cryptocurrencies.
The peculiarity of the Polkadot network is that it is multi-chain — it uses several blockchains at once. This, in turn, increases the speed of transactions and the network’s protection from hacks. The emission was carried out at the start, so DOT mining and staking are not available.
Today, the coin is included in all top cryptocurrency ratings. Dogecoin appeared in 2013 and is based on another cryptocurrency Litecoin. The coin is mined in the traditional way on graphics cards and processors — it differs from most competitors by a rather high mining speed. This is due, among other things, to the mechanics of building blocks in the blockchain — Dogecoin transactions are processed 10 times faster than Bitcoin.
In 2021, the value of the cryptocurrency increased by 20,000%. In the same year, Space-X announced a partnership with Dogecoin: the flight to the moon, which Elon Musk planned, would be fully funded by this cryptocurrency. After Musk’s statement, interest in the asset increased significantly, which made investing in it even more promising.
We took a detailed look at the top promising cryptocurrencies for 2023. These are Bitcoin, Ethereum, Solana, Binance Coin, Cardano, Ripple, Polkadot, Dogecoin, and Polygon (MATIC). Each of these digital assets has its own pros, cons, and unique features. All of the coins are in demand and actively used in trading, mining, or staking.
This information is provided for informational purposes only. Such information is not intended as and may not be relied upon as trading advice. Before deciding to trade cryptocurrencies, you should carefully consider your objectives, level of experience, and risk appetite. Please do your own research and due diligence on the services provided by online cryptocurrency trading platforms.
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