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Which Cryptocurrency To Buy?

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Which Cryptocurrency To Buy?

First Published date: 27. October, 2022
Last Updated: 23. November, 2022
Fact-checked by Adrian Müller

After the crypto market crash of late July 2022, novice investors have reconsidered investing in crypto. However, the more experienced ones know this is nothing new in the crypto-verse. The market has always been volatile. You can navigate this uncertainty and profit significantly from your investments with the proper training and information.

Bitcoin, Ethereum, Binance Coin, Litecoin, Solana, Cardano, and ApeCoin are some old and new crypto coins you can consider buying this year and next. The older coins are pricier. So, beginners can try their hand at crypto by investing in newer and more affordable coins.

Are you planning on investing in crypto? There are so many coins in circulation now that the whole thing can get confusing. Hopefully, the following discussion can clear things up.

Which Cryptocurrencies Have The Most Potential?

The crypto market is an unpredictable one. Still, some cryptocurrencies have held their own and come out victorious amid all the crashes and disasters. Such as Bitcoin, Ether, and Binance Coin. So, you can consider these coins a safe investment in the short and long term. Let’s learn about them in detail.

Bitcoin

Bitcoin has been the number one cryptocoin since it first emerged. In cryptocurrency, Bitcoin is similar to what Coca-Cola is for carbonated drinks. It has become synonymous with cryptocurrency, and people who don’t know anything about coins would still have heard about Bitcoin.

All cryptocurrencies decreased in value after the recent crypto market crash. For Bitcoin, the current value (October 2022) is around $19000. This might seem heartbreaking compared to the November 2021 price of 65000$/coin. But still, this is a 2.7 percent increase from recent months.

If Bitcoin continues its trend, you might soon expect a dramatic price rise. Plus, the post-crash low values are also an opportunity to buy these coins. So, if you have to invest in one cryptocurrency, choose Bitcoin.

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Ether

Ether is a cryptocurrency based on the Ethereum Blockchain. It is considered more technologically advanced than other blockchains and is expected to become the leader in establishing decentralized finance. Ether is the major currency for trading NFTs, as most of these digital assets are built on the Ethereum Blockchain.

During the November 2021 Crypto Boom, Ether was priced at its all-time high value of $4800. Since then, it has seen some decline, and following the crash, it holds a price of 1300$/coin. However, the price is expected to reach around $2200 at the end of 2022 and rise to $4600 by the end of 2023.

So it seems like Ethereum could be a good short-term investment. Plus, the price is within reach now compared to its history.

According to the latest Ethereum price forecast, the price of ETH will reach $2,280 by the end of 2022, rising to $4,679 by the end of 2023 and $7,450 by the end of 2025. Ethereum will increase to $8,650 in 2027 and $9,567 in 2030.

Binance Coin

The Binance coin started its journey from the Ethereum blockchain before adopting its blockchain, the Binance chain. One of the distinguishing features of the Binance coin is its quarterly burns. Binance invests its profits every three months to purchase its coins and permanently destroy them. As a result, the scarcity of the Binance coin and, thus, its value is always ensured.

In November 2021, Binance Coin achieved its highest value of $580. As of October 2022, the price is around $270 per coin. According to expert predictions , this will increase to $340 by the end of the year. Within 2023, you can expect the value to be as high as $1200. That seems like an excellent short-term investment.

Should I Invest In Bitcoin Or Ethereum?

There isn’t an easy answer to whether you should invest in Bitcoin or Ethereum because it depends entirely on your preferences and affordability.

For instance, Bitcoin is more expensive than Ethereum. So, if you are not comfortable risking a lot of money, then Ethereum seems the smarter choice. On the other hand, Bitcoin has the potential to reach massive evaluations. From that aspect, Bitcoin is the better investment.

Concept

You should also consider the concept behind these cryptocurrencies. For example, Bitcoin is designed to be a replacement for fiat currency. However, unlike fiat, it is subject to regulations by a central authority.

Meanwhile, Ether is not only a replacement for centralized finance but also provides an entire platform to build a world based on crypto and blockchains. It allows you to create smart contracts and decentralized applications. As a result, Ethereum enables you to deal in other financial assets besides money. Such as real estate, share, and many others.

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Proof Of Work Vs. Proof Of Stake

Another significant difference between Bitcoin and Ethereum is how you mine (or initially acquire) them. Not so long ago, both of them relied on proof-of-work. But after the recent merge in September 2022, Ethereum mining will be based on proof-of-stake.

In proof-of-work, crypto miners compete to solve complex mathematical problems and get crypto coins (such as Bitcoins) for their effort. However, the downside is that this process demands a lot of computing power, and the fees become incredibly high for small transactions.

Meanwhile, proof-of-stake requires the miners (in this case, ‘validators’) to stake their collection of ether tokens. In return, they get the chance to approve transactions and gain rewards from them. Plus, the Ether on stake will accumulate interest.

This significantly reduces the energy consumption associated with mining Ethereum. Thus, making it much more environmentally friendly compared to Bitcoin. Additionally, small-scale transactions have become more affordable on the Ethereum blockchain.

Store-of-Value

If you are going to invest in cryptocurrency as a store of value, you need to invest in a coin with scarcity. Currently, the number of Ether in circulation is around 122 million. In contrast, there are only 19 million Bitcoins in circulation.

Therefore, Bitcoins are scarcer than Ether. So, in theory, it has a better potential to reach a higher value and is a good store of value. However, you still have to consider the unpredictability of the crypto market and the vast sum of money you would be putting at risk.

Which Cryptocurrencies Are The Safest?

In 2022, Bitcoin, Ether, and Binance Coins are some of the safest coins to invest in. They have been around long enough to develop security systems against various fraudulent attempts. Experts also predict that these currencies have the potential for significant growth in the coming years.

Apart from the main ones mentioned above, you can also consider some of these other safe cryptocurrencies –

Litecoin

If you are looking for a safe and steady cryptocurrency, Litecoin is the one you should consider. Litecoin was created from Bitcoin’s source code and emerged shortly after its predecessor. It is one of the first alt-coins (crypto coins other than bitcoins) and is considered ‘silver’ compared to Bitcoin’s ‘gold’ standard.

A significant advantage of investing in Litecoin is its wide range of acceptability. With most alt-coins, your currency is invalid outside certain circles and communities. Litecoin is in huge supply and has been adopted on numerous platforms. An excellent advantage is that transactions with Litecoin take less time.

Polkadot

Polkadot is a reasonably new addition to the world of cryptocurrency. Unlike other currencies, it doesn’t operate on a single blockchain. Instead, Polkadot offers Parachains or parallel chains. This series of connected blockchains provides multiple lanes for the cryptocurrency to operate. As a result, the network isn’t overloaded, making transactions speedier.

The interactive nature of Polkadot is attracting more and more investors. Developers are increasingly interested in Polkadot because it allows for linking and creating new blockchains.

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Moreover, Polkadot is an affordable coin at 6$/coin. But back when it started in August 2020, it had a value of just $2. It has roughly increased 140% within two years of coming to the market. Not to mention, during the November 2021 boom, it was valued at 53$.

Tether

‘Tether’ can be considered a safe cryptocurrency because it’s a stablecoin. It is tied to the US dollar, and various financial institutions hold treasury bills and other financial assets as collateral for Tether. This means it surpasses the volatility of the crypto market and provides adequate liquidity.

Transactions using Tether are more accessible, faster, and cheaper. Usually, people don’t show much interest in exchanging everyday goods using cryptocurrency. But as Tether is pegged to the American dollar, there is no such obstacle to using it like real money.

Which Cryptocurrencies Have The Highest ROI (Return On Investment)?

The short answer is that Bitcoin and Ether have the best return on investment. However, other new cryptocurrencies you can consider that are much more affordable include Cardano, Solana, and Ripple’s XRP.

Cardano

Cardano was founded by Charles Hoskinson, also a co-founder of Ethereum. Many of his ideas regarding Ethereum weren’t welcomed on Ethereum. So, Charles left the platform to establish his vision of the perfect coin, Cardano. The coin launched on 27th September 2017.

This cryptocurrency uses a proof-of-stake mechanism. So, holders pledge their Cardano coins or ADA tokens to the blockchain to become validators. The more coins someone puts at stake, the higher the chances of becoming a validator. When a validator approves and adds a transaction block to the blockchain, they receive rewards in ADA tokens. This provides an opportunity for passive income for ADA holders.

Experts recognize Cardano as a high ROI token. Currently, the price of Cardano is approximately 0.37$ per coin. According to expert expectations , it can reach a value of $3 within the next 12 months. Some parties are as hopeful as predicting the value will be $12 before going up to $18 in the following years!

Solana

Solana has one of the fastest blockchains in the crypto world. It can process 2000 transactions per second. Therefore, it can easily compete with giants like Ethereum. The reason for this speed and efficiency is Solana’s mining method. It uses neither proof-of-work nor proof-of-stake. Instead, it uses a proof-of-history algorithm.

Currently, Solana coins (SOL) sell for only 29$. At this value is an affordable investment and ideal for those experimenting with their luck in crypto. According to optimistic experts , SOL can reach a price of 51$ within the next 12 months. By 2030, Solana tokens can attain a value of 173$. Some AI-based analyses predict that the price could reach as high as 661$.

Ripple XRP

XRP is the native token of the Ripple Blockchain. The arrangement of Ripple is a bit different compared to other blockchains. The transactions on Ripple happen on RippleNet, which uses API technology to settle new transactions. RippleNet is a decentralized network made up of various financial institutions.

The native token of Ripple, XRP, follows a Federated Consensus to approve new blocks. As a result, it processes transactions much faster than blockchains that follow the proof-of-work protocol. According to Ripple, XRP is the most practical cryptocurrency ever.

Currently, XRP is priced at 0.5$. However, predictors anticipate an 80 percent increase in value by 2023. They also believe that the price will rise steadily over the years.

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Which Cryptocurrency Will Be The Next Big Thing In 2023?

ApeCoin is likely to be the biggest thing in crypto in 2023. If you have been navigating the world of cryptocurrency for a while, you will be acquainted with the Bored Ape Yacht Club. The famous collection of APE NFTs has gained astonishing popularity and fame among the dwellers of the digital world. ApeCoin is the digital currency introduced by those same developers.

The creators of BAYC, Yuga Labs, released ApeCoin in March 2022. It will be the coin of choice for the BAYC-related Metaverse, which is currently under construction. In that new ecosystem, ApeCoin can buy you entry into events, purchase merchandise, and let you access various games.

ApeCoin is available on all the major crypto exchanges. Since its release, prices have had crazy fluctuations. It started at 40$. However, as all cryptos have plummeted in price since July, ApeCoin is valued at just 4$.

Optimistic predictions hope to see the coin rise to 50$ by the end of this year.By the end of 2023, ApeCoin might be valued at 73$ per coin. In the following years, ApeCoin could steadily rise in value and reach $100 per coin by 2030.

However, the hype surrounding ApeCoin is more significant than these predictions. You can expect a dramatic rise in the price of the coin. In other words, ApeCoin has the potential to be a crypto asset that makes its owners overnight millionaires. None of the other crypto coins or assets have this possibility in 2023.

Will Central Banks Launch Their Own Cryptocurrencies?

Cryptocurrencies have an objective to decentralize the regulation of money. In other words, they have been trying to dismiss central banks’ power over a country’s finances. So, the banks are gearing up with their digital currencies to win the battle of decentralization.

Although cryptocurrencies have not yet been able to dominate the world market, primarily due to their volatility, the underlying technology makes experts rethink the concept of money in the new age. There’s no denying that cryptocurrencies make money organization and distribution more innovative and transparent. That’s what motivates central banks to release their crypto coins.

The first country to lead this race has been China. China’s central bank released an experimental digital Yuan at the end of 2019. Afterward, the Bahamas introduced a nationwide Central Bank Digital Currency in 2020. Following these developments, the world has seen digital versions of the Jamaican, Nigerian, and Caribbean dollars.

Some countries, such as El Salvador, have made Bitcoin and other popular alt-coins legal tender in their countries. According to reports from the Atlantic Council, 50-plus countries are in the process of making CBDCs a reality in their countries. President Biden, too, has advised the US. Treasury Dept. to explore the possibility of creating a digital dollar.

Which Cryptocurrency To Buy In 2023?

If you intend to invest in only one cryptocurrency in 2023, it should undoubtedly be Bitcoin. Regardless of the crazy ups and downs and the associated risks with the coin, Bitcoin is still the oldest coin and is the leader of all cryptocurrencies. Additionally, its scarcity makes it an ideal store of value.

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Bitcoin Is Classic

The revolutionary idea of two strangers exchanging value over the internet without interference from a central authority- wouldn’t have been a reality if not for Bitcoin. It wouldn’t be an overstatement to say that cryptocurrency is what it is today primarily because of Bitcoin.

As a result, despite the market’s volatility, various financial organizations and individuals trust Bitcoin over any other alt-coin. Despite its ups and downs, Bitcoin has given investors a 700 percent return over the last five years. In light of this track record, Bitcoin is still the best crypto for long-term investment.

Bitcoin has been operating since 2009. As a result, it was the first crypto that most people and institutions learned to adopt. Therefore, Bitcoin has occupied more space than any other coin and accounts for more than 40% of the cryptocurrency market.

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Scarcity

The scarcer an asset is, the greater its potential to rise in price. No other coin maintains its scarcity like Bitcoin. The total supply of Bitcoin can never be more than 21 million. If you compare this to normal money, which governments can print anytime they want, Bitcoin will always have more purchasing power than traditional fiat currency.

The scarcity of Bitcoin occurs because it becomes harder to obtain the coin over time. A process called halving makes bitcoin mining increasingly difficult with the passage of each second. For instance, 19 million bitcoins have already been mined. So there are two million left. According to expert calculations, the last bitcoin will be mined in 2140.

Major Influencer Of The Crypto world

Proportion-wise, Bitcoin dominates the crypto asset world. Due to the overwhelming value and space it holds, Bitcoin greatly influences the rise and fall of other cryptocurrencies or alt-coins.

In 2017, Bitcoin made up 90 percent of the market. That position has dropped by 40 percent in modern times. However, it still plays a crucial role in various crypto trends. This correlation or dependency of other crypto coins on Bitcoin is another powerful reason to invest in it in 2023.

Which Cryptocurrencies Will Be Around In 5 Years?

All the major coins like Bitcoin, Ethereum, and Binance coins will still be around in five years. According to expert predictions, they all have the potential for significant growth within this period. Plus, you can expect to see many newer developments and additional returns from these coins in five years.

Among them, Ether seems to have the greatest potential. Its fast and low-fee transactions and offering of the main blockchain for NFT development will play important roles in establishing it as one of the most dominant crypto coins. Ether is currently priced at around $2200; experts expect to see the price rise to $8600 per coin in the next 5 years.