Cryptocurrency Investments With Lucrative Potentials for 2023
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Cryptocurrency investment requires that one carry out his or her research. Some cryptocurrencies have shown themselves to be worthwhile investments. Below are examples of some of the very best of such cryptocurrencies, as earlier mentioned for this year (2023).
Bitcoin (BTC) (+79%)
Bitcoin has the highest market valuation of any cryptocurrency at the moment, and its yearly gains are approaching 80%, putting it on track to have its best year since 2020. The token also has various applications because many companies currently accept Bitcoin as payment.
Additionally, due to its limited supply – 21 million units are the absolute maximum that may ever be issue – Bitcoin has high liquidity and trading volume, as well as a competitive edge.
Ethereum (ETH) (+57%)
Ethereum has a competitive edge over all the other cryptos because its chain allows developers to design dApps and also execute smart contracts on it.
Presently, ETH is the second-largest cryptocurrency by market capitalization. Its market capitalization may grow further after its upgrade is implemented. This upgrade saw the Ethereum blockchain migrate to the proof-of-stake architecture. Consequently, this will offer the network better scalability, and increase the speed at which transactions are processed.
Solana (+161%)
Solana was created for high-volume, high-speed transactions, and it is now the location of several initiatives, such as NFT apps and markets, that make use of these capabilities.
It can process an amazing 50,000 transactions per second and has millions of users, all for a pitiful cost ($0.01).
Bitcoin Cash (BCH) (+151%)
Bitcoin Cash provides less expensive and faster transactions on the BTC blockchain. A BTC transaction will cost $59, but a BCH transaction is worth less than a penny.
In addition, unlike other unpopular rivals, BCH can be bought via most of the key exchanges, with each coin costing about $246. This technically makes it much more affordable than buying Bitcoin.
Ripple (XRP) (+125%)
The Ripple blockchain provides a very fast transaction settlement period of about 4-5 seconds. Also, its charges are quite affordable since they are very much below a penny.
Big institutions such as Santander and Bank of America make use of the Ripple blockchain as the platform for their transactions.
Stellar (XLM) (+119%)
The ability to send one currency and have the recipient get another is a key benefit of Stellar. Additionally, it provides quick settlement times, with most transactions being finished in 2.5 to 5 seconds.
How to Decide Which Cryptocurrency Is Best for Investments
Cryptocurrency investment is one way to diversify your investment portfolio. However, choosing which cryptocurrency to invest in can be very challenging.
One must consider the fundamentals of a project to make wise decisions about cryptocurrency investments. Doing this will require that one read the whitepaper of the token under consideration. The whitepaper contains crypto’s technical aspects and its aims.
You may learn more about the project’s objectives and the technology the team is using to accomplish them by reading the whitepaper. While whitepapers may be filled with technical speeches, a successful one will include an issue that is understood and a solution that is offered. If the whitepaper is filled with a lot of general language and no substance, you should probably steer clear of investing.
It will prove to be very helpful if one also researches the project’s development team. It is recommended to check the team members’ professional experiences and the previous projects that they have worked on and started. Once you discover that the team behind the project consists of members whose identities are unknown, it is advisable to stay away from such projects.
Conclusion
Although Bitcoin offers a significantly better rate of return than conventional investment options, this does not imply that you should switch your whole portfolio to cryptocurrencies. It is better to invest not more than 10% of our total portfolio in cryptocurrencies, with the other funds being heavily spread across the entire bond and stock markets. (Again, view our Portfolio of Blockchain Believers.).
Risk is frequently reduced, and rewards are increased by a diverse portfolio. Because the aforementioned assets do not have a strong correlation to one another, some assets will probably increase while others will probably decline.
