Ever since cryptocurrency became a thing in 2008, it has upended numerous financial theories and made many other people millionaires and billionaires. The first cryptocurrency, Bitcoin, surely took everyone by surprise and paved the way for many other coins to come in and make their mark. Every coin different from Bitcoin is called an “alternative” cryptocurrency coin, or, to be more specific, altcoins. There are now over 5,000 altcoins in the cryptocurrency market.
Just like investment in every other field, for your cryptocurrency investing to be safe and profitable, you should diversify your crypto portfolio. Putting funds into diverse investments helps you balance your profit and loss and play it safe during rough times. You are in the right place if you do not know which altcoins to invest in in 2023.
This article outlines the best altcoins based on careful research of different market indices of traders. When you buy and keep or trade any of these altcoins, you can maximize profit.
What Are the Best Altcoins You Should Buy in 2023?
If you are new to crypto trading, you may not know which altcoin to buy. If this is you, then here are the best altcoins you should look to purchase in 2023:
1. Ethereum (ETH)
Launched in 2015, Ethereum was one of the first altcoins, if not the first after Bitcoin, to gain much popularity among cryptocurrency enthusiasts and investors. Finding a crypto enthusiast who has not or is not currently investing in Ethereum is almost impossible. In fact, to date, it is the most valuable altcoin, making up about 19% of the world’s entire cryptocurrency market.
This altcoin’s blockchain was the first to employ smart contracts (Smart contracts are codes used to operate apps or decentralized applications). Smart contracts ensure a more transparent and accountable structure that many crypto traders desire.
In 2022, the Ethereum network transitioned from a proof-of-work model to a proof-of-stake transaction verification system due to the less energy the latter uses. This makes Ethereum greener and more scalable.
If you have some Shiba Inu to exchange into Ethereum, here is a Shiba Inu calculator you can use.
2. BNB (BNB)
Developed and utilized by the biggest crypto exchange in the world, Binance, for transactions, BNB is a utility token based on the Ethereum network. However, after a while, Binance took the altcoin off Ethereum to its blockchain and attracted many users, traders, and investors who used the platform.
BNB is helpful for many use cases, including accessing discounted trading fees on Binance. Also, BNB is automatically burned every time you verify a block of transactions to reduce its total supply. However, a recent June investigation by the U.S. Securities and Exchange Commission on Binance took a toll on the coin and sent it tumbling down the charts.
3. XRP (XRP)
Ripple is a global payment network designed to be an alternative to the SWIFT (Society for Worldwide Interbank Financial Telecommunications) network. The latter is a payment network system that global banks and numerous other financial institutions utilize for transferring funds between themselves.
Ripple states that its patented tech is quicker, more affordable, and more transparent than its predecessor. Its native cryptocurrency is XRP.
4. ADA (ADA)
Cardano is a decentralized proof-of-stake (remember Ethereum) blockchain developed in 2017 to challenge the uninterrupted rule of Bitcoin and other proof-of-work blockchains (Ethereum was operating on the proof-of-work model then). Ethereum co-founder Charles Hoskinson developed it. Cardano focuses on functionality and aims to be the preferred platform for verifiable smart contracts and dApp development.
ADA is the main cryptocurrency used on the Cardano network to facilitate transactions and run dApps. As a Cardano user, you can use your ADA to acquire tokens through token staking. This helps verify transactions on the network and generally secures the blockchain.
5. Solana (SOL)
Launched in 2020, Solana is a blockchain network that supports smart contracts, dApps, and non-fungible tokens, commonly called by its abbreviation NFTs. However, Solana’s unique and hybrid proof-of-history and proof-of-stake verification system makes it faster and more affordable than Ether. It is also more scalable, making the Solana network the preferred option for investors and users.
Surprisingly, the Solana network has suffered several outages since its launch, reducing its appeal in the crypto world. For instance, the Solana network crashed for about 20 hours in February 2023. This is one thing that could stem its adoption around the world.
6. Tron (TRX)
The Tron network was launched in 2017 to decentralize the internet using blockchain technology and dApps. The network has over 165 million user accounts, almost 12 billion dollars in total value locked, and the largest stablecoin circulation supply.
Tron uses a delegated proof-of-stake verification system, and its native cryptocurrency is Tronix, called TRX. It belonged to the Ethereum chain before moving to its blockchain in 2018. Most decentralized multimedia and entertainment apps are also on Tron, which allows content creators to market their products to their consumers, and the network facilitates blockchain-based gaming along with casino gambling.
7. Polygon (MATIC)
Polygon was launched as a platform in 2017 to connect and develop Ethereum-compatible blockchains and other related projects. Polygon was developed to address the scalability problems of the Ethereum network. This is done by handling all transactions on a distinctive Ethereum-compatible blockchain and returning all those transactions to the primary Ethereum blockchain.
Polygon uses a modified proof-of-stake model to verify transactions. Developers also use the network to build projects on the Ether blockchain without encountering scalability issues. MATIC is the native cryptocurrency for the network, and users get MATIC in rewards for validating transactions and staking holdings.
While Bitcoin can be unpredictable, altcoins are even less so due to limited visibility and low liquidity. Knowing the best altcoins to buy and when to make that purchase is key. You must do your homework to know which altcoins you should put your funds into. With the ones in this article, you will surely increase your portfolio and become your force in the cryptocurrency market.