6 Best Cryptocurrencies to Invest in 2023: Based on Market Capitalization
Cryptocurrencies have always been a popular and trending topic in the market. Along with angel investors, the common man is also looking to create their mark and test their luck in the crypto market. The main reason is that the crypto space is expanding and occupying a larger market share day by day.
Investing in cryptos is riskier than the stock market due to its volatile nature. Even though the market is unpredictable, investors are flooding in to invest in these assets to be in the crypto race. Since the release of Bitcoin, crypto technology has seen significant advancement and innovations in the industry.
As of January 2023, there are 22,357 cryptocurrencies in existence. The global cryptocurrency market cap is $1.05 trillion, with Bitcoin holding 42.4% and Ethereum holding 18.6%. There are almost 537 crypto exchanges operating in the market.
Cryptocurrencies are not just for investing; they can be utilized in many other ways,
1. Trading
2. Staking
3. Lending
4. Mining
5. Playing crypto games
Before looking into the top cryptocurrencies, let’s understand:
What is a Cryptocurrency?
A cryptocurrency is a digital currency used to make transactions using a peer-to-peer system with the help of blockchain technology. The transactions are encrypted and is decentralized, which means there are no intermediaries such as banks while transferring funds. You need a crypto wallet to store your public and private keys (like passwords). There are fraudulent wallets and exchanges in the market, so do proper research before choosing one.
How to buy Cryptocurrency?
To purchase a cryptocurrency, first, you need a Crypto Exchange. With nearly 530+ exchanges available in the market, picking one is a difficult task. Four main factors to consider while selecting your exchange are:
· Liquidity
· Security
· Transaction Fees
· Payment method
After selecting your crypto exchange, create and verify your account and deposit your cash to buy cryptocurrencies.
Some of the best cryptocurrency exchanges are:
1. Binance
2. Coinbase
3. BitMex
4. Kraken
5. Kucoin
You then need a Crypto Wallet to store your keys and facilitate secure transactions. There are two types of wallets:
Hot Wallets: These wallets store your keys online, which are convenient to use but can be at risk of being stolen. Some of the best hot wallets are Mycelium and Metamask.
Cold Wallets: They are stored offline using a physical device and can prevent your data from being stolen by hackers. Ledger Nano X and Trezor Model T are some of the best cold wallets.
Now comes our main topic: which cryptocurrency to buy?
There are almost 22,000 cryptocurrencies in the market, but don’t get overwhelmed by the count. First, we need to learn about the crypto sphere and how the market works. There are a few metrics to keep in mind while selecting a cryptocurrency. They are:
· Market Capitalization
· White Paper- an informational document
· Trading Volume
· Supply of coins and their circulation
· Trading history
· Major investors
· Use cases
Check their official websites for more info about their goals, team members, contributors, and timelines.
Below are the 6 best cryptocurrencies to invest in based on their market capitalization:
1. Bitcoin
2. Ethereum
3. Tether
4. Binance coin
5. USD coin
6. XRP
1.
Seaside Coin. The one that is not to shabby on the shore
General information
Seaside Coin is a utility token within the Seaside ecosystem. It will be stored to distribute rewards from real-life business operations of the Seaside Club.
Total supply: 2.000.000.000
Decimals:18
Round allocations:
Total target to raise: $117 mln
The sale rounds
As we already mentioned in the previous articles, the Seaside Club is planning to hold 3 sale rounds.
- Seaside Coin Seed Sale.
Funds to raise: $21 mln.
Price per token: $0.15 price.
Vesting period: 30 months.
The coins will be released during the vesting period month by month.
Bonus: 17% additional coin allocation to the total amount locked.
- Seaside Coin Private Sale.
Funds to raise: $48 mln.
Price per token: $0.30 price.
Vesting period: 18 months.
The coins will be released during the vesting period month by month.
Bonus: 10% additional coin allocation bonus to the total amount locked.
- Seaside Coin Public Sale.
Funds to raise: $48 mln.
Price per token: $0.6 price.
Vesting period: 18 months.
The coins will be released during the vesting period month by month.
The coin price during the first unlock is expected to be approximately $3, so the yield will be X5.
The team of the project has also developed an Investor Staking Program with special conditions:
Price per token: market price.
Vesting period: 60 months.
Total allocation release: 60 months after the end of Seed Sale.
2. BITCOIN (BTC): Bitcoin needs no introduction because it is the foundation of the entire crypto universe. It is the first and most famous cryptocurrency in the market. To be brief, Bitcoin is a decentralized cryptocurrency launched in Jan 2009 and is the first cryptocurrency to list on the market. The primary goal of bitcoin is to enable peer-to-peer digital transactions without the use of intermediaries using blockchain technology.
Bitcoin was initially launched at $0, and now it is the largest cryptocurrency with a market capitalization of $440.12 Bn. As per the data published on the coin market cap website as of 27 Jan 2023, the circulating supply of bitcoin is 19.27 M with a market dominance of 42.37%. The value of bitcoin transactions per day is $25.83 Bn. The current value is $22,830(which flatulates based on the market) and reached an all-time high of $68,789.62.
The smallest unit of Bitcoin is called satoshis which is 0.00000001 BTC. The maximum number of bitcoins that can be mined is 21 million. As per the Buy Bitcoin Worldwide website,19,274,393.75 bitcoins have been mined till now, which is almost 91.78 % (the number changes every 10 min as new blocks are mined), and there are 1,725,606.3 bitcoins left to be mined.
You can purchase bitcoins using your fiat currency with your credit card or other payment methods or using other cryptocurrencies if you have any.
3. ETHEREUM (ETH): Ethereum is an open-source blockchain platform that enables developers to build decentralized apps (dapps). It has its own native cryptocurrency called Ether. Ethereum executes smart contracts, a computer program to verify a contract between two or more parties without the need for any third-party authority.
Smart contracts are designed to run without any possibility of fraud, censorship, or downtime. Ethereum has diversified its services to include hosting other cryptocurrencies called “Tokens”.
Ethereum has a wide range of products and services like Decentralized Finance (DeFi), an open-source technology where you can borrow, trade, and invest in their financial products without any third-party interference. With the Ethereum platform, you can trade anything you own using Non-fungible tokens (NFT) for your art, collectibles, and real estate.
As per the data published on the coin market cap website as of 27 Jan 2023, the market capitalization of Ethereum is $193.54 Bn and a daily volume of $8.78 Bn. The circulating supply is 122.37 M with a market dominance of 18.56%.
The current value of Ethereum is $1,579.58 and has recorded an all-time high of $4,891.70. 1 ETH is broken down into small units called Gwei (0.000000001 ETH). Gwei is used to pay transaction fees (Gas) to validators/miners on the Ethereum network.
4. TETHER (USDT): USDT is a stablecoin (the value is tied to that of another currency), making crypto investments more suitable for normal transactions and used by investors who prefer a stable investment without volatility. USDT is pegged to the US dollar and backed by collateral reserves. Tether was launched in 2014 and was owned by iFinex, a Hong Kong-registered company.
As per the data published on the coin market cap website as of 27 Jan 2023, Tether is the largest stablecoin with a market capitalization of $67.339 Bn with a daily volume of $34.88 Bn. It has a circulating supply of 67.32 billion and a 6.44% market share. The current value of Tether is $1.0002 and its all-time high is $1.215.
5. BINANCE COIN (BNB): Binance is the biggest cryptocurrency exchange globally. BNB is the native coin of Binance and is used in the BNB chain ecosystem, which was launched through Initial Coin Offering (ICO). Apart from cryptocurrency, BNB has many uses:
· Pay for transaction fees on the BNB beacon chain.
· Pay for goods and services for online purchases.
· Book hotels, and flights at Travala.com
· Provide liquidity
· Create smart contracts
BNB uses an Auto-Burn system by reducing its total supply to 100,000,000 BNB to offer transparency and predictability. As per the data published on the coin market cap website as of 27 Jan 2023, the market capitalization was $48.17 Bn with a daily volume of $505.65 M. The circulation supply is 157.90 M with a market dominance of 4.61%. BNB’s current value is $305.09 and its all-time high is $690.93.
5. USD COIN (USDC): USDC is a stablecoin that is pegged (tied) to the US dollar on a 1:1 basis. USDC was launched in 2018 and backed by reserved assets to maintain price stability, which can be used as a hedge against inflation. The users can sell 1 USDC and receive $1 in return easily. One of the drawbacks is that there will be no price appreciation.
As of January 27, 2023, the market capitalization was $43.400 billion, with a daily volume of $3.5058 billion, according to data published on the coin market cap website. The circulating supply is 43.4070 Bn with a market dominance of 4.15%. The current value is $0.9999 and has recorded an all-time high of $2.349.
6. XRP/ XRP Ledger: XRP ledger is an open-source, decentralized technology launched in 2012. XRP (Ripple) is the native cryptocurrency of XRP Ledger. The XRP ledger is widely used to make payments, build applications, and banking services. XRP ledger is carbon-neutral and processes transactions at high speed with low cost and low energy consumption. The XRP Ledger can process 1500 transactions per second,24/7.
As per the data published on the coin market cap website as of 27 Jan 2023, the market capitalization of XRP is $20.748 Bn with a daily volume of $847.41 Bn. Its circulating supply is 50.79 Bn with a market dominance of 1.98%. The current value of XRP is $0.4082 and its all-time high is $3.841.
There are many cryptocurrencies in the market that are undervalued and overvalued, along with fraudulent sites and brokers promising fake profits. So, keep an eye on it and research the growth possibilities and trends in the crypto market before putting your foot into the crypto universe.
The crypto industry has been evolving and thriving with improved technology and secure platforms to provide a better user experience. The crypto market has seen a slump in recent years, but it has great potential to rebound in the near future.