Profitable cryptocurrencies for investment in 2023
The fall in the BTC rate and the crypto market as a whole in the first half of 2022 forced many investors to adjust their behavior strategy and modify their asset portfolio. To understand which crypto to buy in 2022, you need to determine what exactly affects the growth of cryptocurrencies in price.
In this article, we will tell you what affects the growth of cryptocurrencies in price and also talk about 7 cryptocurrencies that are worth investing in 2023.
Why cryptocurrencies rise or fall in price
According to buidlbee, the growth of the cryptocurrency rate is influenced by a variety of seemingly insignificant reasons, such as tightening regulation of the cryptosphere in China or the statements of people who are an example for many, such as Mark Zuckerberg or Elon Musk.
There are so-called cryptocurrency cost factors, which are of 5 types:
- Network size and maturity – measures the size or maturity of a network;
- Financial factors are information about the inflow or outflow of currency, prices, and volumes of transactions;
- Network usage refers to how widely a particular protocol is used;
- Development activity – development activity of any blockchain protocol;
- Social media mention – denotes the presence of each protocol in social networks such as Twitter or search engine mentions.
The value factor of cryptocurrencies is in direct proportion to how the blockchain is used and how it is structured.
Bitcoin also affects the price of all cryptocurrencies. Many traders conducted an analysis that indicated that if the price of bitcoin changes, then the price of other cryptocurrencies also changes. Bitcoin appears to be driven by its stock-flow model.
*This analysis is not officially confirmed.
Before you start investing, it is important to understand that cryptocurrency is a high-risk asset. Therefore, a rapid rise in prices may be accompanied by a sharp fall. Price fluctuations from 5-15% per day are the norm.
Profitable cryptocurrencies for investment
Below we present 7 cryptocurrencies that are worth investing in 2023 and a little about them.
1. Bitcoin and Ethereum
We have combined these two cryptocurrencies in one paragraph because Bitcoin is the basis of all other coins. Accordingly, if the exchange rate of bitcoin changes, then the cost of other currencies begins to adjust as well. Current price fluctuations make it possible to consider the coin as a long-term investment. And Ethereum bears the honorary title of the second-largest cryptocurrency on the market.
The capitalization of the cryptocurrency is almost 9 billion dollars. It can also be noted that this cryptocurrency has a cross-chain extension, thanks to which other blockchains can connect to the project. The project has a great future, and many investors predict the growth of cryptocurrency in 2023.
3. Huobi Token
This cryptocurrency plans to become an alternative to Ethereum thanks to its blockchain. PancakeSwap and Uniswap are two decentralized exchanges that are behind Huobi.
This is the king of banking infrastructure. The project is the basis for the work of financial institutions. Optimistic analysts predict a significant rise at the end of the current – beginning of next year.
This is a digital currency that has reduced fees for conducting monetary transactions. But this was the main problem of Ethereum. With all this, the platform allows you to conduct transactions very quickly – it can be 50,000 transactions per second.
The coin was created based on Bitcoin, which is why it is often called its brother. At the same time, the coin is several times faster than Bitcoin and more convenient to use. Transactions on the platform will run at the speed of sending SMS on social networks. Capitalization is slightly above 12 billion dollars. And this factor has a positive effect on cryptocurrency.
This cryptocurrency is among the best options for short-term investments as well as for long-term investments. It is the token of the Tama Doge gaming platform. Thanks to the successful listing on such exchanges as LBank and MEXC, the crypt has attracted the attention of many investors.
Yes, these 7 cryptocurrencies are not the only cryptocurrencies worth investing in, the list is much longer. However, it is always better to focus on leaders who have already proven their safety. The choice of what to invest in is not always obvious, so always analyze the cryptocurrency market, social networks, forums, and blogs. Never invest in only one cryptocurrency, it is always better to diversify your portfolio. So you reduce the risk of going negative.