Within the rising popularity of paperless funds, the world of cryptocurrency may seem so confusing to newcomers. This is especially true when seeking to find the best cryptocurrency to invest in now. As many experienced crypto-earners know, the answer is transient. Crypto has a refined way of changing, and sometimes these changes can come out of nowhere. But hopefully, this article will shed a little more light on the subject. Below is a basic guide to finding the best cheap cryptocurrency to buy now.
How To Choose The Best Cryptocurrency?
The answer depends on a number of factors. These should be the main reasons for investing in any type. Keep in mind, this is not financial advice. We are simply pointing out things we look for when researching a a coin and mentioning a few coins that fall within that category.
Volatility
When it comes to choosing the right cryptocurrency to invest in, volatility is extremely important. The term “volatility” is used in finance to represent the way stocks can fall at the drop of a hat. Often, they can rapidly drop and take a turn for the worse. Implied volatility can be utilized to predict when stocks will take a plummet. When applying this concept to cryptocurrency, it is important to invest in one that will hold on to your money while mining or performing exchanges.
Security
Although cryptocurrency is well known for being “unhackable” and “unbreakable,” this is not always true. When deciding which cryptocurrencies to invest in, it is always better to choose the safest client, even if it means investing a bit more coin to do so. Because cryptocurrency is almost completely online, your assets and account information cannot be recovered if they get lost. Secure, safe cryptocurrency systems, such as Bitcoin, are backed by blockchain technologies that make it almost impossible to hack into.
Volume and Reputation
In the business world, reputation speaks volumes. For example, if you logged into your Amazon account in hopes of finding a new camera, is the one-stars (those with only bad reviews) going to catch your eye? Perhaps only for satirical purposes. Cryptocurrency operates in a parallel fashion to this metaphor. Although cryptocurrencies aren’t typically rated with stars, the reputation it holds is just as important as a five-star review.
If no one wants to trade a certain cryptocurrency, there is probably a good reason why they aren’t interested. This directly correlates to volume — if persons aren’t interested in investing in a strand of cryptocurrency, there will be a low volume. Cryptocurrencies with low volumes and bad reputations are definitely the ones you want to stay away from.
Your Goals
If you haven’t already, it is important to ask yourself the following questions:
- What do you want to do with your financial investments?
- Why are you investing in the first place?
- What do you want to get out of this?
The answer to these questions will help you decide which cryptocurrency is right for you, investment-wise. Because many of the cryptocurrencies have different features and capabilities, it is ultimately up to you to decide which one works best for your financial goals.
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Top 6 Cryptos to Invest in 2023 Ranked According to their Categories
Bitcoin (BTC) The original and largest payment token with long-term potential
Market Cap: $US429 billion
It is impossible to talk about the top ten cryptocurrencies without Bitcoin at the top of the list. Bitcoin is the original cryptocurrency with a market capitalization of over $429 billion. The digital currency was launched by Satoshi Nakamoto in 2009. This harbinger payment token runs on its own blockchain and serves as a popular means of payment. The creation of Bitcoin and cryptocurrency has been a major turning point for the financial world.
Like most of the cryptocurrencies, Bitcoin also operates on a blockchain or ledger logging transactions which are spread across different networks on a number of computers. The addition of the distributed ledger or blockchain is authenticated by a process called proof of work where the miners are expected to solve a crypto puzzle. In this way, the digital asset is protected from fraudsters and hackers.
Owing to the popularity of Bitcoin, the currency has experienced tremendous growth. The price of one Bitcoin reached $500 in May 2016. Currently, the price of a single Bitcoin is $22,000, which means the digital currency experienced 4,340% growth.
Ethereum (ETH) Established Web.30 Smart Contract Platform with a bright future
Market Cap: $US188 billion
If you are a program developer and looking for the best option for yourself, Ethereum fits the bill for you. Its implications including smart contracts that automatically executed once its requirements met and non-fungible tokens (NFTS) are particularly popular among investors and program developers. The network is operating other decentralized applications and major financial institutions including banks and insurance companies are potential customers of the network.
The incredible growth and popularity the platform has achieved has also given tough competition to Bitcoin. The currency has shown steady increase in its market value since its launch in 2015. The current value of the currency stands at $3220 and is projected to reach $15000 by 2025.
XRP (XRP) Green and scalable payment coin for cross-border payments
Market cap: $US19 billion
The digital currency was launched by the same founders as Ripple which is a popular digital exchange company which facilitates digital transactions of both cryptocurrencies and fiat currencies.
At the inception of 2017, the price of XRP was at $0.006. However, the digital tokens showed an increase of 6400 percent with its price touching $0.39 threshold. Once the SEC vs Ripple lawsuit resolves and if Ripple emerges successful, XRP might experience another surge in its value. Therefore, investors are waiting with a bated breath for the final outcome of the legal brawl.
Cardano (ADA) Energy-efficient payment coin with largest PoS consensus
Market cap: $US12 billion
Cardano (ADA) was founded in 2015 and is powered by its native token ADA. Often regarded as the third-generation currency, Cardano has been popular for its secure proof-of-stake (PoS) validation procedure. With this method, it accelerates the transaction time and reduces energy usage. It also decreases the environmental impact by eliminating the highly competitive and problem-solving factors that emerge during transaction verification in other crypto platforms like Bitcoin.
Cardano might not be on the same page as Bitcoin or Ethereum in terms of market capitalization, but its native tokens have seen significant growth in the last few years as compared to other major coins in the market. ADA’s value was at $0.02 in 2017 and as of March 2023, it stands at $0.35 which means a 1,639 increase.
The platform has several additional elements which makes it an enticing proposition for investors like the latest upgrade which further enhanced its scalability in 2022 and launch of its own stablecoins. With a steady growth, unique features and focus on security and complete decentralization, Cardano is an attractive and lucrative option for potential investors in the years to come.
Decentraland (MANA) Gaming crypto coin that combines virtual reality and gaming
Market cap: US$1.89 billion
Decentraland is a popular browser-based gaming cryptocurrency platform which is powered by native currencies called MANA and run by a non-profit organization called Decentraland Foundation.
This unique 3D virtual reality platform which allows creators to share and monetize their work while interacting with one another. It is an Ethereum-based platform which was particularly designed for creators, artists, companies, and all those individuals looking for a creative outlet to share their content. You can enter the virtual world by customizing your character and also connect with other players. Users on Decentraland can also invest in virtual plots of lands as NFTs, vote on land policies and earn rewards on the platform.
MANA ranks as one of the top gaming coins which might offer you a massive return on your investment. It has shown significant growth since its inception and could offer an exciting opportunity to invest for all those who believe in its long-term growth.
Axie Infinity (AXS) Emerging gaming coin with huge upside potential
Market Cap: $985.0M
Axie Infinity was created by Vietnam-based developer Sky Mavis in 2018. It is a NFT-based pet community where you can buy creatures called Axie, and battle, breed and explore the virtual pet community with other Axies.
Players can play Axie Infinity in any of the two modes including Adventure or Arena modes. Both of these modes allow players to win two tokens called Axie Infinity Shards (AXS) and Small Love Potions (SLP). AXS functions as a governance token that gives token holders the ability to decide how the gaming experience will evolve in the future. It can also be sold on platforms like coinbase. On the other hand, SLP is the virtual currency that is used to breed Axie and players earn after SLP after spending time on game.
In August 2021, Axie became the largest application on Ethereum with over 1 million daily players. As the acceptance of cryptocurrency is increasing worldwide, Axie offers a great earning potential. It is projected to reach an all-time high value of $82.49.
Each of these altcoins offers unique features for less than a buck. Although Altcoin Fantasy is more of a game, it can give newbies a chance to learn and experience what the world of cryptocurrency is like. Because of its priceless value and educational mechanics, I couldn’t help but include it in this list. As for IOTA and Siacoin, both of them really stand out when placed beside their altcoin competitors.
How to invest?
Most of these coins can be found on Uphold, a reputable and trusted exchange that is now available in the US markets. Register with Uphold
Takeaway
When investing in something that has the potential to be risky, like stocks or cryptocurrency, it is always good to stay informed and up-to-date with the flow of the “market.” With the proper strategies, information, and online resources, you can pave your way to having a profitable crypto-investment.
Although the planet of cryptocurrency can seem confusing at first glance, it becomes easier to understand once you start your digital journey. By investing in the cryptocurrencies listed above and applying them to your overarching goals, it doesn’t have to be a challenge. Investing is as easy as 1, 2, 3 — picking your coin, creating your account, and watching the magic happen.
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