From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies. This can quickly make entering the world of cryptocurrencies confusing. But what’s the best best cryptocurrency to invest on in 2023?
To make it easier to find your way around, you will find the ten most important cryptocurrencies measured by their market capitalization, i.e., the total value of all coins currently in circulation.
What’s the Best Cryptocurrency to Invest on in 2023?(Top 10 of this Year)
From Bitcoin to Terra, here’s a list of top cryptocurrencies to put your money on this year:
1. Bitcoin (BTC) – Biggest Capitalization
- Market capitalization: Over $549.02 billion
Bitcoin (BTC) was created in 2009 by someone using the pen name Satoshi Nakamoto.
It is the first in the cryptocurrency industry. However, like most cryptocurrencies, BTC works on what is known as a blockchain. This is a decentralized database (“ledger”) that records transactions across a network of thousands of computers. Since additions to the decentralized ledgers must be verified by solving a cryptographic puzzle called Proof of Work, Bitcoin is safe and secure from scammers.
Bitcoin’s price has skyrocketed since it became the talk of the town. In May 2016, you could buy a bitcoin for about $500. At the beginning of March 2023, the price of a single bitcoin was over $23,421. This is growth of around 4,584 percent.
On the topic: How to Get Started Trading Bitcoin
2. Ethereum (ETH) – Best Cryptocurrency for NFTs and Smart Contracts
- Market capitalization: Over $217.03 billion
Ethereum is both a cryptocurrency and a blockchain platform and is favored by software developers for its potential uses, such as non-fungible tokens ( NFTs ) and smart contracts. These digital contracts are executed automatically when certain conditions are met.
Ethereum has also experienced tremendous growth. From April 2016 to early March 2023, the price rose from around $11 to over $1,634, an increase of almost 14,754 percent.
3. Tether (USDT) – Best Stablecoin
- Market capitalization: Over $79.5 billion
Unlike other cryptocurrencies, Tether is a so-called stablecoin, which means it is backed by legal tender (fiat currencies) such as the US dollar and euro and hypothetically retains the value of one of these currencies. In theory, this means that Tether’s value is more stable than other cryptocurrencies and is favored by investors who fear the extreme volatility of other coins.
4. Binance Coin (BNB) – Best Cryptocurrency for Payments
- Market capitalization: Over $50.15 billion
Binance Coin is a form of cryptocurrency that allows you to trade and pay fees on Binance, one of the largest crypto exchanges in the world.
Since its inception in 2017, Binance Coin has evolved and is no longer just used to facilitate trading on the Binance exchange platform. It can now be used for sales, payment processing, and booking travel. It can also be traded or exchanged for other cryptocurrencies, such as Ethereum or Bitcoin.
The price of BNB was as low as $0.10 in 2017. By early March 2023, the price had risen to around $303, an increase of about 303,157 percent.
5. US Dollar Coin (USDC) – Best Stablecoin Alternative
- Market capitalization: Over $33.24 billion
Like Tether, USD Coin (USDC) is a stablecoin, meaning the US dollar backs it and targets a USD 1 to USD 1 ratio. Ethereum powers USDC, and you can use USD Coin to make global transactions.
6. XRP (XRP) – Best Cryptocurrency for Exchanges
- Market capitalization: $28.417 billion
Some of the founders of Ripple, a digital technology and payment processing company, developed the cryptocurrency XRP. It can be used on the Ripple network to exchange currencies, including fiat and major cryptocurrencies.
At the beginning of 2017, XRP was priced at $0.006. At the beginning of March 2023, the price was $0.38, an increase of 6,204 percent.
7. Cardano (ADA) – Best Ethereum Alternative
- Market capitalization: $13.58 billion
Cardano has only recently entered the crypto scene and is notable for its early introduction of what is known as proof-of-stake validation. This method speeds up transaction times and reduces energy consumption and environmental impact. It does this by removing the crucial, problem-solving aspect of transaction verification that is present with platforms like Bitcoin. Cardano’s transaction time is faster than Bitcoin and Ethereum. Cardano also works like Ethereum to enable smart contracts and decentralized applications – powered by ADA, its native coin.
Cardano’s ADA token has seen relatively modest growth compared to other significant crypto coins. In 2017, the price of ADA was $0.02. In early March 2023, its price was $0.36. That’s an increase of 1,712 percent.
8. Solana (SOL) – Best Cryptocurrency with Fastest Transaction Time
- Market capitalization: $8.17 billion
Solana was built to support decentralized finance applications ( DeFi ), decentralized apps (DApps), and smart contracts. The platform is based on a unique hybrid blockchain process – with a so-called proof-of-stake and proof-of-history mechanism – with which transactions can be processed quickly and securely. It is faster than Ethereum and Cardano, including Bitcoin, in terms of transaction time.
SOL, Solana’s native token, powers the platform.
When it launched in 2020, SOL was priced at $0.77. In early March 2023, the price was $22.73, up more than 2,851 percent.
9. Avalanches (AVAX) – Fastest Smart Contract Platform
- Market capitalization: $5.64 billion
Like Ethereum and Cardano, Avalanche offers blockchain software that can create and execute smart contracts powered by a native token (AVAX in this case). Since launching in 2020, Avalanche has grown rapidly, thanks in no small part to its comparatively low fees and fast transaction speeds.
From July 12, 2020, to early March 2023, AVAX’s price has increased by approximately 282 percent, from $4.63 to $17.72.
10. Terra (LUNA) – Lowest transaction costs and network scalability
- Market capitalization: $731.83 million
Terra is a stablecoin blockchain payment platform that aims to maintain a balance between two types of cryptocurrencies. Terra-backed stablecoins, like TerraUSD, are tied to the value of physical currencies. Its counterbalance, Luna, powers the Terra platform and is used to mint more Terra stablecoins.
Terra stablecoins and Luna work together on the principle of supply and demand. When the price of a stablecoin rises above the value of the linked currency, investors have an incentive to use Luna to create more of the Terra stablecoin. If the stablecoin falls in value relative to its base currency, investors are encouraged to use their Terra stablecoins to mint more Luna. The more the Terra platforms are accepted, the more the value of Luna increases.
From January 3, 2021, when the price was $0.64, to early March 2023, Luna has fallen 99.97 percent to $0.000165.
