Recently the term ‘cryptocurrency’ has been the talk of the town. Whether it is for investing or mining, the term has been a hot topic for discussion. But if you are late to the party and don’t really know what the word means, here it is.
A cryptocurrency is a digital currency that is secured by cryptography and is powered by blockchain technology. Blockchains are peer-to-peer networks that act as secure transaction ledgers while also keeping track of and organizing transactions like buying, selling, and transferring. Cryptocurrencies can have a monetary value and an accounting system by using encryption technology. It resembles real money quite a bit, with the exception that it uses encryption instead of having a tangible form.
Since there is no central bank or authority controlling how cryptocurrencies operate. New units can only be added once certain requirements have been satisfied. For instance, with Bitcoin, new bitcoins can only be created when a block is added to the blockchain, at which point the miner is paid in bitcoins. After the 21 millionth bitcoin has been mined, no more Bitcoins can be mined.
Best Cryptocurrencies To Watch Out for in 2023
Since Bitcoin’s introduction in 2009, more than 5,000 different types of cryptocurrencies have been created. Each of these virtual coins has unique features and applications. Examples of popular digital currencies include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), Cardano (ADA), etc. That being said, here are some of the top cryptocurrencies that you can buy in 2022.
Note: None of this is Financial Advice and this article is just for information.
1. Bitcoin ($BTC)
You probably won’t be surprised to learn that Bitcoin is among the top names in our list of the best crypto coins to invest in right now. And there are valid justifications for it. We think it’s the most significant cryptocurrency to invest in right now because it has historically excelled, rising by more than 100000% over the past decade.
Second, it is supported by one of the most decentralized and practical blockchain technologies, whose adoption rate is certain to soar in the next few years. We also think it’s a great addition to any cryptocurrency portfolio with an eye toward the future. And with Bitcoin Halving scheduled in 2024, it generally results in increased prices for the cryptocurrency due to reduced supply and surging demand.
Finally, we believe it is worthwhile to invest in Bitcoin because it is widely available and extremely liquid, having been listed on almost all crypto exchanges and trading platforms worldwide. Plus, Bitcoin rules the crypto market and all other coins follow the price action.
2. Ethereum ($ETH)
Ethereum is an open-source blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using a network of public nodes. The native token on the Ethereum blockchain is “Ether (ETH)”, which can be transferred between accounts and used to compensate participant nodes for computations performed.
The purpose of Ethereum is to use distributed ledger technology to empower its users. This is done using trustful execution of stored digital contracts without the need for central authorities like banks or governments. Thanks to this novel system, people can create and deploy decentralized applications (Dapps). An example being: Decentralized Finance (DeFi) where users can participate in financial markets while bypassing institutions altogether by taking advantage of cryptocurrencies.
With the full deployment of an upgrade known as “The Merge,” it stands to advance even further. The September upgrade changed Ethereum’s consensus mechanism to a proof-of-stake. This which will result in fewer coins being created and has made mining obsolete. The Merge has drastically reduced Ethereum’s energy consumption. This is the reason why ETH prices increased by almost 50% during the last few months.
3. Chainlink ($LINK)
Chain Link ($LINK) is a decentralized blockchain application platform designed to connect real-world data with smart contracts. Chainlink enables developers to create custom blockchain applications that interact directly with external input sources. This includes stock prices, weather reports, and other data sets.
We included Chainlink in the list because of its practical utility. One of the few blockchain initiatives with the infrastructure to entice conventional users to use blockchain is this one. Consider creating a decentralized insurance protocol for farmers as an example. To offer users timely insurance, you must incorporate accurate weather and harvest data. The decentralized oracle networks offered by Chainlink can be used for this. It encourages blockchain technology developers to present fresh use cases for the technology.
LINK is the native currency of the Chainlink network and is an integral part of decentralized applications (dApps), oracles, wallets and other services that are connected within its blockchain ecosystem. This $LINK is something that you should consider keeping in your portfolio.
4. Binance Coin ($BNB)
Even though Binance Coin has only existed for five years, and has seen a massive increase in its price over the years. At its peak in 2021, the $BNB token was about 450000% up from its ICO price.
BNB serves both as a utility token for Binance exchange and the native token for the rapidly expanding Binance Smart Chain. Additionally, the popularity of BNB coins has been greatly aided by the exchange and smart chain, which has a direct bearing on their price movement.
Binance has made the commitment to regularly burn BNB tokens used to cover transaction fees on their exchange. This makes BNB deflationary which means the supply of BNB would decrease and the price should gradually increase with the increase in demand.
Recently Binance has launched a Binance Recovery Fund to revive distressed crypto Assets after FTX Collapse. This action will undoubtedly increase the use cases for BNB tokens and broaden the Binance ecosystem, both of which will increase the token’s value.
Also Read: How To Invest In Metaverse? A Complete Guide
5. Polygon ($MATIC)
Polygon is the largest layer-2 scaling method for the Ethereum network. It is the most effective and efficient layer-2 scaling method. Because of its remarkable price action, demonstrated endurance, general upward price trend, and promising future, it is listed among the best cryptocurrency to invest in.
It is important to note that although the Ethereum merge is intended to address scalability, which is Polygon’s key feature. This is not expected to have a substantial or long-lasting negative impact on MATIC pricing. First off, the merge only slightly improves the ETH network’s scalability, indicating that companies using the network will still need to employ Polygon to supplement ETH’s scalability. Second Polygon, a multi-chain L2 scaling solution, is expected to launch on additional blockchains. This will only result in higher MATIC token prices and demand.
All of this further demonstrates how underutilized the Polygon token and network are. However, the crypto community is confident that MATIC token prices will soar to new heights as it debuts on more blockchain platforms and blockchain use increases.
As per some analysts, it is expected that $MATIC prices will soon adjust upward, therefore it is listed as one of the best cryptocurrencies to invest in.
Also Read: 5 Best Apps To Buy Cryptocurrency In India!