Best Cryptocurrency to Invest in 2023
Here is a List of Cryptocurrencies we like for 2023. It is difficult to predict at the moment that they will all deliver positive returns but it is clear that many of these tokens will outperform the rest.
2023 is likely to be a challenging year given the uncertainties in the European and Chinese economies. We started 2022 with more certainty and assurance but the year completely unraveled on account of rising gas prices which in turn is linked to the Russian invasion of Ukraine. The COVID crisis in china for most of the year also kept the global economy down. We will start 2023 with much lower expectations given the bad news all around though one could also argue that the US economy is on much sounder footing than most of the world. In short, the beginning of the year is likely to be quite uncertain but things could change depending on the newsflow whether in Russia, the Interest rate, or China.
Best Cryptocurrency to Invest in 2023: The Big 2
We like Bitcoin because it is different in many ways – Limited supply, some properties of Gold (like mining), and payment utility (Including money transfers). How Bitcoin evolves over time is difficult to predict. Prominent investors and intellectuals like Charlie Munger and Nassim Taleb have called it a fraud. Many others think it is a storage of value and a counter to Fiat. What we know for sure is that while Bitcoin has entered our living rooms, they are actually not present in our wallets (Cold or Hot). Also, unlike Gold, Bitcoin isn’t jewelry. Bitcoin’s success so far has been built on the excess liquidity after the GFC of 2008. In fact, Bitcoin prices have been closely correlated with the Fed’s monetary policy, a loose policy contributing to many of Bitcoin’s runs to a new all-time high.
The negative commentary makes Bitcoin a highly volatile and risky asset while the potential positives make Bitcoin part of every portfolio (even if the smallest proportion).
Ethereum is different from Bitcoin in many ways. On the negative side, Ethereum was inflationary until recently (supply increased every year), it also now operates on a proof of consensus model (which is potentially more risky than POW). However, there are many positives – Ethereum has scaled up smart contracts (eg ERC 20 and ERC 721)) leading to a boom in Altcoins (many of which are based on the Ethereum blockchain) and NFTs. As a consequence, Ethereum is a leading player in both DeFi and NFT. Ethereum also solved its speed problem via strong layer-2 blockchains like Matic and Immutable.
The problem for Ethereum remains the same as Bitcoin, with limited real-world uses but the potential remains high even as it shares many of the familiar risks with Bitcoin (Highly volatile and Fed liquidity dependent).
Best Cryptocurrency to Invest in 2023: Gaming and Metaverse Champions
3. Decentraland Mana
Decentraland Mana is the third-largest gaming cryptocurrency in terms of market capitalization. Mana is the preferred token on the Metaverse game Decentraland.
One cannot argue against Gaming tokens on the issue of utility. One can buy a whole host of in-game assets using Gaming tokens The main challenge for Decentraland is the gaming dropped as Mana crashed suggesting economic incentives were driving game use. In other words, ‘fun’ which is usually a big driver for gaming does not exist on Decentraland. Decentraland is not your typical Activision kind of game and so it needs better technology to succeed. VR/IR technology and funding could have a huge impact on the sector and Decentraland could be the biggest beneficiary given its early mover advantage.
Decentraland has reported greater than 56,000 monthly active users (as of October 2022).
There is no assurance that Mana will deliver positive returns in 2023. But any technology advances in VR/IR as well as processing technology (Track NVDA) will certainly drive Mana higher again. That of course is most dependent on the state of the economy in 2023.
4. Axie Infinity
Axie Infinity is a trading and gaming platform based on blockchain, which is partially operated by its players only. The platform allows its players to collect, raise, breed, and battle the creatures called Axies. Every Axie here is an NFT having different strengths and attributes.
What makes Axie Infinity unique is that each of its creatures possesses six out of hundreds of potential body parts, providing an endless variety of Axies to produce. Also, Axie token holders can stake their AXS tokens to receive regular rewards. This platform is one of the pioneers of the P2E concept where the players can earn non-fungible tokens and cryptocurrencies while playing.
Axie has reported greater than 680,144 monthly active users (as of October 2022) which is a lot higher than any of its competitors (including Decentraland’s 56,000 and Sandbox’s 200,000 monthly active players). Therefore, Axie Infinity is a splendid opportunity in the gaming space.
Best Cryptocurrency to Invest in 2023: Community Power
Shiba Inu Coin has one of the largest communities in the Cryptocurrency world. Shiba Inu’s leadership too is fairly responsive. These two make Shiba Inu Coin an interesting prospect. Shib started as a ‘meme’ coin but is increasingly evolving into a token with potentially numerous use cases. It is accepted as a payment in numerous places, Shiba Eternity is an interesting game while Shibaswap is an excellent DEX platform. There are more innovations coming. The problem for Shiba Inu is the over-engineering and slow pace of development. But the potential remains high both in 2023 to 2024 subject of course to the economy and whether the development pace is sustained.
Best Cryptocurrency to Invest in 2023: 2022 Performers
Cryptocurrencies (with more than 100m market cap) that have performed well in 2022 include – NEST Protocol, Trust Wallet Token.
TRUST Wallet Token
Trust Wallet Token took after a loss of confidence in exchanges soon after the FTX crash and Binance FUD. The Token can be used as a payment method for various services accepting TWT. Being a BEP-20 asset, TWT can be used to swap with (or to buy) other crypto assets.
Nest Protocol is a pricing oracle network based on the Ethereum blockchain to ensure that off-chain data is synced to on-chain prices (Like Chainlink). A distributed pricing oracle network provides price information outside of the blockchain in a decentralized way, without a single point of entry or a governing body.
Tokens with a high market cap that have performed relatively well include OKB, UNUS SED LEO, and Tron
Tron is a blockchain-based operating system that aims to provide complete ownership to digital content creators. Tron primarily aims to revolutionize digital content sharing and entertainment. In other words, its motive is to create a digital content entertainment platform that can help users to share their digital content easily and cost-effectively. With Tron, artists can completely own their content and share that without worrying about transaction fees. It is indeed a plus point for Tron Blockchain.
Tron and Cardano both are great projects, but Tron is inexpensive compared to Cardano. Also, Tron’s governance is very much similar to EOS’s making it decentralized and progressing.
UNUS SED LEO
LEO is a token for iFinex, the parent company of the crypto exchange Bifinex. The token is used to pay exchange fees. Token holders also receive trading discounts on iFinex platforms. The company buys back tokens and destroys them until they are removed from the market.
OKB token is for use on OKX Exchange and is somewhat similar to LEO and BNB. It can be used for payments on the OKX exchange. Other benefits include – Trading Fee Discounts, Investing in OKC Buyback, OKX Earn feature to earn more OKB tokens, and OKX Jumpstart to start investing in early crypto projects which are of high quality.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.