As the world becomes more digitally inclined, cryptocurrencies continue to gain popularity and recognition. With the crypto market becoming a hot topic on various social media platforms and news sites, it’s no surprise that more and more people are taking an interest in it. However, with the volatility of the market, it’s crucial to invest in the right cryptocurrencies to get bigger returns.
This guide will help beginners navigate the complex world of cryptocurrencies and choose the best ones to invest in for 2023. We will provide you with a recap of the crypto market in 2022 and share insights on which coins will explode in 2023.
Recap of the Crypto Market in 2022
The crypto market saw both highs and lows in 2022, with several cryptocurrencies experiencing significant growth, while others faced challenges. The market’s volatility was evident, with prices fluctuating dramatically throughout the year. Despite this, the industry managed to garner more interest and acceptance from both individuals and corporations worldwide.
Crypto Achievements and Challenges in 2022: A Comprehensive Overview
The world of cryptocurrency has been evolving at an exponential pace, and it has opened doors of possibilities in financial technology. Crypto’s continuous growth has made it an indispensable part of modern society. Let’s delve into some of the notable achievements and challenges that happened in the crypto industry in 2022.
Crypto has made a significant impact on the Russia-Ukraine war, where it became a valuable commodity to Ukrainian refugees who couldn’t withdraw fiat money. Instead, they relied on digital currencies sent by relatives and donors abroad to purchase goods and services during the ongoing conflict.
Central banks are also embracing crypto as an alternative to fiat, with countries such as Nigeria, The Bahamas, Jamaica, and the Eastern Caribbean region successfully launching their Central Bank Digital Currencies (CBDCs) to accommodate more crypto users. Moreover, over 114 countries are exploring the possibilities of CBDCs, signaling a paradigm shift in the global financial system.
Ethereum has successfully launched its Ethereum Merge, which marks the network’s shift from proof-of-work (PoW) to proof-of-stake. This move puts an end to Ether mining and large power consumption. It is a significant milestone for the network, which aims to transition to a more energy-efficient model.
The Metaverse has taken its first few steps in 2022, shifting users’ reality to the Web3 platform. Although it hasn’t been a profitable year in Metaverse, it has sparked innovation in the digital asset ecosystem. This innovation has led to the creation of unique and valuable digital assets that can be traded for millions of dollars.
NFTs have been around for a few years, but the birth of the Bored Ape Yacht Club (BAYC) happened in 2022. This specific brand gained popularity during this time, with its NFTs traded for millions of dollars. Yuga Labs, the team behind BAYC, expanded in the same year as it acquired platforms like CryptoPunks, Meebits, and Weenew lab.
Despite the good things that have happened in the crypto industry, there are still a few challenges that it encountered along the way.
In March of 2022, the North Korea-linked Lazarus Group attacked the Ronin Network, resulting in the largest DeFi hack in history, with stolen crypto funds amounting to roughly $500 to $600 million. The funds were reported to be laundered through decentralized exchanges and crypto mixers, posing a significant threat to the security of the crypto industry.
May 2022 signaled the collapse of the Terra Luna ecosystem, wiping at least $60 billion off the market. This led to a domino effect across the crypto industry and resulted in the downfall of several high-profile crypto firms, including Three Arrows Capital, Voyager Digital, and Celcius Network. Moreover, UST, Terra’s stablecoin pegged to the US dollar, careened towards zero because of increased sell-offs.
The collapse of the FTX exchange was the biggest crypto challenge in 2022. In November, the platform experienced mass withdrawals from its users that it could not sustain, thus defaulting to bankruptcy. Allegations were made that founder and CEO Sam Bankman-Fried had lent FTX’s sister company Alameda Research FTT customer funds.
The Top Cryptocurrencies to Invest in for 2023
Investing in cryptocurrencies is becoming more and more popular each day, especially with the emergence of new coins in the market. As an investor, it’s important to stay up-to-date with the latest trends and understand which cryptocurrencies are the best to invest in. Let’s explore the top cryptocurrencies to invest in for 2023.
BTC – A Good Investment Choice
BTC has the highest market capitalisation among all cryptocurrencies, making it the most notable token in the market. Most people start trading BTC before trying out other coins, making it more popular and further increasing its market capitalisation. As a long-term investment, BTC is an excellent choice as it has the potential to generate high returns.
BTC is slowly gaining mainstream acceptance, with various countries worldwide beginning to accept it. El Salvador has made BTC its national currency, and other nations like the United States and Australia have legalised using BTC for trading purposes. As more countries begin to accept BTC, its value will likely increase, making it a smart investment option.
Price Predicted to Increase
While BTC has experienced ups and downs in the past, experts predict that its price will rally in 2023. TechNewsLeader predicts that Bitcoin could reach $43,664 this year alone. Knowing how to protect your Bitcoin from volatility is important, but with the predicted increase in value, investing in BTC could yield significant returns.
ETH – A Good Investment Choice
ETH is the largest blockchain network for decentralised applications (dApps) that function without being controlled by a single entity. Its system allows the creation and use of Ethereum request for comment (ERC-20) tokens, paving the way for improving various coins and letting them interact seamlessly. This makes ETH an attractive investment option for those looking for both short-term and long-term gains.
Continues to Upgrade
ETH’s potential continues to grow because of its ETH2.0 upgrade, making it the best choice for crypto investment. Its efficient and fast transactions, as it uses a Proof of Stake (PoS) mechanism, which uses less energy than BTC’s Proof of Work (PoW) protocol, is another reason why ETH is an attractive investment option.
Better Option for Business-related Transactions
ETH is used in business-related transactions because of its smart contract functionality that allows various industries to improve their processes and enhance transparency. Many places also accept ETH as a form of payment, which makes the ETH token continue to thrive and is predicted to surpass BTC.
Polkadot is a blockchain platform that allows users to build decentralized applications (dApps) and use smart contracts. It was created by Gavin Wood and is part of the Parachain blockchain network that connects different blockchains, making it easy for users to transfer their assets across various platforms. Currently, Polkadot has a market capitalization of $6 billion, making it one of the top 10 cryptocurrencies in the market.
Large and Growing Programmer Base
One of the main reasons why Polkadot is a good investment is its growing programmer base. According to Keith Bliss, the President of Capital2Markets, Polkadot is considered a safer option by most programmers, and it rivals Ethereum in terms of functionality. This has led to the growth of the Polkadot programmer community, which is vital to the development and success of any blockchain platform.
Scalability is a common issue in blockchain, affecting the speed of transactions. Polkadot addresses this problem with its Parachains, which reduce the chances of congestion, making transactions faster and more efficient. This is a significant advantage for Polkadot, especially in a market where transaction speed and efficiency are essential for user satisfaction.
Expected Rise in Value
According to Coinpedia, Polkadot is predicted to increase by $7.6845 by 2023. This is due to the series of post-launch updates that are currently under development, such as the release of XCM, Polkadot’s cross-consensus communication standard, and the launch of parathreads, an alternative to parachains, which lowers the barrier for security and connectivity of numerous projects. This expected increase in value makes Polkadot an attractive investment opportunity.
Binance Coin (BNB)
Binance Coin is the native coin of the Binance exchange, the largest cryptocurrency exchange site in the world. It was created in 2017 to allow exchange users to transact at a lower price. Currently, Binance Coin has a market capitalization of $45 billion, making it the fourth-highest crypto asset in the market.
Range of Applications
Initially, Binance Coin was only used for trading purposes in the Binance exchange. However, it is now utilized in several ways, such as paying for goods, services, and transaction fees on the Binance Smart Chain (BSC). This increased utility has made Binance Coin a prime investment opportunity, especially for those who use the Binance exchange regularly.
Expected Price Movement
BNB has an auto-burn system that reduces its total supply, making it a deflationary cryptocurrency. This mechanism adjusts the amount of BNB to be burned based on the price and the number of blocks generated on the Smart Chain, providing great transparency and predictability to its ecosystem. According to Coinpedia’s report, Binance Coin is expected to rally to $340.65 by the end of 2023, especially if no negative sentiments affect the market. This is a promising outlook for investors looking for long-term investment opportunities.
Cardano (ADA) is known as a third-generation cryptocurrency and was released in 2017 by Charles Hoskinson, the co-founder of Ethereum. Unlike other cryptocurrencies, ADA features more environmentally-friendly methods, faster transactions, and a more secure system. Here are some reasons why ADA is a good investment:
Solves Energy Usage Problems
One of the biggest challenges facing cryptocurrencies is their high energy consumption. However, ADA is one of the few cryptocurrencies that have solved this issue. It only uses six gigawatt-hours when mining, which is significantly lower than Bitcoin’s 130 terawatt-hours and Ethereum’s 50 terawatt-hours (before the launch of the ETH2.0 version). As a result, ADA offers a more sustainable and eco-friendly option for cryptocurrency enthusiasts.
Another advantage of ADA is its faster transaction speed. It can process up to 257 transactions per second (TPS), which is significantly quicker than most cryptos like Bitcoin, which only has 7 TPS. This means that users can transact with ADA faster and more efficiently.
Utilized in Various Industries
ADA’s versatility is another reason why it’s a good investment. It’s used in various industries, including finance, healthcare, and agriculture. This proves its ability to stay in the market for a long time and makes it a viable investment option for those looking for long-term growth potential.
Tether (USDT) was founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. It’s a stablecoin pegged 1:1 to the US dollar, which makes it a more stable option compared to other cryptocurrencies that are prone to volatility. Here are some reasons why USDT is a good investment:
Plenty of Use Cases
USDT has a variety of uses, making it a versatile cryptocurrency. It can be used to send digital assets to other people across the globe, transfer funds between crypto exchanges, store funds that can be quickly traded for other cryptocurrencies, and even lend to earn high-interest rates. This makes USDT a viable investment option for those looking for a cryptocurrency that can serve multiple purposes.
Offers Liquidity for Exchanges
USDT also offers liquidity for exchanges. Swapping any cryptocurrencies with USDT is easy, making exchanges more liquid. This creates no-cost exit strategies for investors and adds flexibility and stability to investor portfolios. Moreover, it’s easier to exchange crypto for fiat using USDT, as opposed to converting crypto to cash, which can take time and cost fees.
Can be Used for Purchases
USDT’s price is pegged to the US dollar, which means it’s a stable option for making purchases. Unlike Bitcoin or other altcoins, which are prone to price fluctuations, USDT’s value remains constant, making it a reliable option for making transactions.
Crypto Predictions 2023: Top Cryptocurrencies to Explode in the Upcoming Year
Are you looking to invest in cryptocurrencies in 2023? After a challenging 2022, the crypto market is expected to rebound and experience a surge in growth. Here are some of the top cryptocurrencies predicted to explode in 2023.
- FightOut (FGHT)
Move-to-earn (M2E) crypto projects are on the rise in 2023, as they allow people to earn money while being active and learning about the crypto market. FightOut is an M2E fitness app that rewards users for being active, tracking movements like jogging, cycling, weight lifting, and diet changes. The app features a native coin called FGHT, which is available on presale. With its promising use case and popularity, experts predict that FGHT will boom in 2023.
- Dash 2 Trade (D2T)
Dash 2 Trade is an analytic platform that provides users with in-depth knowledge about cryptocurrencies. It features crypto signals charts, social metrics and risk profiles, and automated trade and cross-chain data, which is beneficial for investors. The asset is rapidly selling out, and experts predict it will continue to grow in popularity in 2023.
- RobotEra (TARO)
RobotEra is a play-to-earn game similar to SandBox, allowing users to rebuild and explore a virtual planet called Taro, featuring NFTs that provide users an advantage in the game. Currently, TARO, its native coin, is on presale at a low price, offering investors worldwide a chance to be part of the project. Given its potential, experts predict that TARO will explode in 2023.
Predictions for Crypto in 2023
Apart from the potential rise of individual cryptocurrencies, the crypto industry is expected to experience significant changes in 2023. Here are some predictions from experts:
- Clashes over regulations on cryptocurrencies
Given the predicament of exchanges failing left and right, there will be proposed harsh crypto regulations and battles by the community to fight parts of it that threaten decentralisation.
- Increase in Bitcoin adoption
By the end of 2023, more than 500 million people worldwide will own Bitcoin, as predicted by Ric Edelman, founder of the Digital Assets Council of Financial Professionals.
- NFTs return to the forefront
Given major NFT investments from major Web2 brands like Starbucks and Disney, NFTs are predicted to return in 2023, with brands continuing to flock to them.
- End of the bear market
Experts say the industry is experiencing a crypto decline, which was predicted to hit bottom by the end of 2022. In the next three months of 2023, the bear market will end, as suggested by past performances by the crypto market.
New Developments in the Crypto Industry
Apart from these predictions, the crypto industry is also seeing significant developments that could impact the community. Here are some of them:
- Addressing environmental concerns
In 2022, lawmakers in the United States and Europe began cracking down on mining activities, calling for more transparency in Bitcoin mining operations. Additionally, Ethereum shifted from PoW to PoS consensus through the Merge to help reduce its carbon emissions. This move has ushered in the possibility that the crypto industry could lessen its carbon footprint if given a chance.
- Central Bank Digital Currencies (CBDCs)
Over 11 countries have fully launched their digital currencies, led by Nigeria, The Bahamas, and Jamaica in 2022. Aside from that, 33 countries are now developing their CBDCs, including Canada, the United States, Brazil, Japan, and many more.