By Rajagopal Menon
Cryptocurrency has become a worldwide phenomenon, with an increasing number of people investing in digital assets every day. With the crypto markets at lows, it becomes an interesting time for people who are on the sidelines to dip their toes into this crazy world which is on 24X7, 365 days a year. Investing in cryptocurrency has the potential to provide a number of benefits, including the ability to participate in a new and rapidly growing market, the potential for high returns, and the ability to diversify one’s investment portfolio.
The potential for high returns is one of the main reasons why people invest in cryptocurrency. Many cryptocurrencies have grown at an exponential rate in recent years. For example, the value of Bitcoin, the first and most best-known cryptocurrency, has increased by over 1,000% in the last few years. Another reason to invest in cryptocurrency is the possibility of diversification. Cryptocurrency is a new and volatile asset class that has the potential to give your portofolio a boost. Furthermore, investing in cryptocurrency allows individuals to participate in a new and rapidly expanding market. Early investors have the opportunity to get in on the ground floor of this revolutionary technology, which has the potential to disrupt traditional financial systems and the way we conduct transactions.
However, keep in mind that the cryptocurrency market is highly volatile and speculative in nature. As a result, it is critical to do your own research and invest only what you can afford to lose. It is also important to have a long-term time horizon. Systematic crypto investing is the way to go. By putting in fixed amounts over time, you will be able to buy at both low and high prices. This helps to smooth out the average cost. It is also important to note that this is not advice to invest in cryptocurrency; instead, you should always consult with a financial advisor before doing so.
BTC (Bitcoin) – The first and most well-known cryptocurrency is called Bitcoin. The world’s biggest and most valuable digital asset, it. Despite its volatility, Bitcoin has long been shown to be a reliable investment. The value of Bitcoin, according to many analysts, will keep increasing in the years to come.
Ethereum (ETH) – By market capitalization, Ethereum is the second-largest cryptocurrency. Developers can create and distribute decentralised applications using the Ethereum Blockchain. Its smart contract capability has drawn a sizable and expanding developer community, which is propelling its development and uptake.
Binance (BNB) – The native coin of the Binance cryptocurrency exchange is called Binance Coin (BNB). With Binance’s swift rise to prominence as one of the most widely used exchanges in the world, its token has profited. Binance accepts Binance Coin as payment for trading fees, and it also offers its holders a number of other advantages.
Cardano (ADA) – Cardano is a platform for smart contracts that seeks to outperform other blockchain networks in terms of security and sustainability. It is based on a consensus algorithm called proof-of-stake (PoS), which uses less energy than Bitcoin’s proof-of-work (PoW) algorithm.
Polkadot (DOT) – Polkadot is a multi-chain platform that aims to connect different blockchain networks. It allows for the interoperability of different blockchain networks, enabling the transfer of assets and data between them. This opens up a wide range of possibilities for decentralized applications and DeFi projects.
Chainlink (LINK) – Chainlink is a decentralized oracle network that connects smart contracts to real-world data. It is used to provide accurate and reliable data to smart contracts, which is essential for the functioning of decentralized applications and DeFi projects.
Cosmos (ATOM) – Cosmos is a decentralized network of independent, scalable, and interoperable blockchains. It aims to create an ecosystem of interconnected blockchains that can communicate and transact with each other, enabling the development of a wide range of decentralized applications and DeFi projects.
Uniswap (UNI) – Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain. It is a liquidity protocol that allows users to trade cryptocurrencies without the need for a centralized intermediary. It has quickly become one of the most popular DEXs in the world and its token UNI has gained significant attention and value.
Polygon (MAT) – Polygon is a layer 2 scaling solution that works to increase the scalability of Ethereum’s scalability. This enables businesses and developers to build advanced dApps and DeFi solutions on Ethereum’s blockchain while taking advantage of increased security, rapid transaction speeds, and lowered costs. With Polygon’s ground-breaking PoS consensus algorithms bringing security, reliability, and reduced costs to Ethereum’s blockchain, it has become a hugely popular option for dApps and DeFi project developers.
In conclusion, these are some of the top cryptocurrencies to look out for in for 2023. While the cryptocurrency market is inherently volatile, these coins have a strong track record of growth and a bright future ahead. However, it’s important to remember that cryptocurrency investing is a high-risk, high-reward endeavor and as such, investors should conduct their due diligence and invest only what they can afford to lose.
The author is vice-president, WazirX