Top Picks for the Top Cryptocurrencies to Watch Out for in 2023

Cryptocurrency is one of the most dynamic markets in the world. It has grown exponentially over the past few years, with many new projects entering the market and gaining significant traction. With this ever-developing landscape, it can be challenging to keep up with all the latest projects, so it’s essential to stay informed about which cryptocurrencies are worth watching out for in 2023. This article provides an overview of five of the top cryptocurrencies to keep your eye on, and why they could have a bright future ahead.

What is cryptocurrency?

A cryptocurrency is a virtual or digital currency that uses cryptography for security. Cryptocurrencies use decentralized systems to record transactions on a public ledger, also known as a blockchain. Unlike traditional currencies, cryptocurrencies operate independently of a central bank or government.

The main key feature of cryptocurrencies is their use of blockchain technology. A blockchain is a distributed ledger that records every transaction that takes place on the network. Each block in the chain contains several transactions, and every block is linked to the previous one, creating a chain of blocks. This creates a tamper-proof record of all transactions on the network and ensures that the same digital token cannot be spent twice.

The use of blockchain technology also makes it possible for cryptocurrencies to operate in a trustless environment, where two parties can make a transaction without the need for a third-party intermediary. This can greatly reduce transaction costs and increase the speed of transactions, making it possible for cryptocurrencies to be used for a wide range of applications.

Cryptocurrencies have become increasingly popular in recent years, with many individuals and businesses starting to accept them as a form of payment. However, the value of cryptocurrencies is highly speculative and can be affected by a wide range of factors. It's always important to do your own research and invest only what you can afford to lose.

Top five Cryptocurrencies to pick and watch out for in 2023

1. Bitcoin

Bitcoin is the OG cryptocurrency. It was created in 2009 by Satoshi Nakamoto and it remains the most well-known digital asset. Bitcoin is often referred to as “digital gold” because it has many of the same characteristics as gold - it is scarce, durable, and portable. But unlike gold, Bitcoin is also divisible, fungible, and verifiable. These properties make Bitcoin an ideal store of value and medium of exchange.

Bitcoin’s price is notoriously volatile, but its long-term trend has been upward. Since its inception, Bitcoin has seen several boom-and-bust cycles, but it has always recovered from these corrections and gone on to new highs. 2020 was a banner year for Bitcoin, as its price surged to over $20,000 per coin. And 2021 is also off to a strong start, with Bitcoin trading above $40,000 per coin.

Investors bullish on Bitcoin believe this digital asset still has plenty of room to run. They point to the fact that Bitcoin’s market capitalization is still only a fraction of Gold’s market cap, and they believe that BTC will eventually usurp Gold as the world’s premier store of value. So if you’re looking for a cryptocurrency with staying power, Bitcoin is a good bet.

2. Ethereum

Ethereum is a cryptocurrency and smart contract platform with a wide range of potential uses. It is the second largest cryptocurrency by market capitalization after Bitcoin and has been described as "Bitcoin 2.0" due to its ambition to serve as a decentralized world computer.

Ethereum's token is called ether, and it is traded on cryptocurrency exchanges under the ticker symbol ETH. Ethereum's blockchain can be used to build decentralized applications (apps) and smart contracts. Ethereum has attracted a lot of attention from developers and investors due to its potential uses in the fields of distributed finance and Defi (decentralized finance), DAOs (decentralized autonomous organizations), NFTs (non-fungible tokens), gaming, and more.

Ethereum's price has been volatile in recent years, but it has seen significant growth since 2020. If you're considering investing in Ethereum, be sure to research before making any decisions.

3. Litecoin

Litecoin is Created by former Google engineer Charlie Lee in 2011, it is often referred to as the silver to Bitcoin’s gold. Litecoin has a faster block time of 2.5 minutes compared to Bitcoin’s 10 minutes which means that transactions are confirmed quicker on the Litecoin network. Secondly, Litecoin uses a different proof-of-work algorithm than Bitcoin which allows more people to mine the currency.

Litecoin has seen some adoption since its inception and is currently accepted by several online retailers as a form of payment. The price of Litecoin has also been on the rise in recent months reaching over $50 per coin at one point. With its low transaction fees and quick confirmation times, Litecoin is well-positioned to continue growing in popularity in the cryptocurrency space.

4. Binance Coin (BNB) 

Binance Coin (BNB) is the native cryptocurrency of the Binance exchange. Binance is one of the largest and most popular cryptocurrency exchanges in the world, with a wide range of trading pairs and a high trading volume. Binance exchange was launched in 2017 by Changpeng Zhao and has since grown to become one of the most popular exchanges in the world.

BNB was created to serve as a utility token for the Binance exchange. It can be used to pay trading fees on the platform, with a discount applied to those who use BNB to pay. Additionally, Binance has implemented a token burn mechanism, where a portion of the BNB supply is bought back and destroyed by the company. This helps to reduce the overall supply of BNB and can increase its value over time.

Binance has also expanded its platform to include a variety of other services, such as a decentralized exchange (Binance DEX), a margin trading platform (Binance Leverage), and a staking platform (Binance Staking). BNB can also be used to pay for fees on these services and can be used to participate in token sales on the Binance Launchpad platform.

BNB has also been widely adopted by other platforms and services. Many projects and platforms in the crypto ecosystem are now accepting BNB as a form of payment. This has helped to increase the utility and value of the token.

5. Ripple

Ripple is a distributed open-source digital currency, and its native token is XRP. Jed McCaleb, Arthur Britto, and David Schwartz are the founder of Ripple which was founded in 2012. It is built on the decentralized ledger of the XRP Ledger (formerly known as the "Ripple Consensus Ledger"). Transactions on the XRP Ledger are verified by consensus among nodes in the network, rather than by mining like Bitcoin or Ethereum. This means that transactions are much faster on Ripple since there is no need to wait for blocks to be mined.

The main use case for XRP is as a "bridge currency" for institutions that need to send money across borders quickly and cheaply. For example, a bank in the US could use XRP to send money to a bank in Europe almost instantly, and at a much lower cost than if they were using traditional methods such as SWIFT.

Ripple has partnerships with many major financial institutions including American Express, Santander, UBS, and more. In 2018, Ripple launched xRapid, a product that allows banks to use XRP to settle cross-border payments quickly and cheaply. So far xRapid has been piloted by several major banks including Western Union and MoneyGram.

How to invest in cryptocurrencies

There are many ways to invest in cryptocurrencies whenever you want to invest in cryptocurrencies following points will help you that how invest in cryptocurrencies:

1. Buy on a cryptocurrency exchange: You can buy cryptocurrencies on a variety of online exchanges, such as Binance, Coinbase, and Kraken. To buy on an exchange, you will need to create an account, verify your identity, and link a payment method, such as a bank account or credit card. Once your account is set up, you can buy and sell cryptocurrencies on the exchange.

2. Use a cryptocurrency broker: A cryptocurrency broker is similar to a traditional stockbroker, but instead of buying stocks, you can buy and sell cryptocurrencies. Some popular brokers include eToro, Robinhood, and Sofi.

3. Invest in a cryptocurrency fund: A cryptocurrency fund is a type of investment vehicle that holds a portfolio of different cryptocurrencies. These funds are managed by professional fund managers. They can be a good option for those who want to invest in a diversified portfolio of cryptocurrencies without the need to individually research and buy each coin.

4. Invest in a cryptocurrency-related stock: Some companies that are involved in the cryptocurrency industry, such as mining companies, payment processors, and blockchain technology companies, are listed on stock exchanges. Investing in such stocks can be a way to gain exposure to the cryptocurrency market without directly buying and holding digital currencies.

Regardless of the method chosen, it's important to remember that investing in cryptocurrencies is a speculative and high-risk investment. It's always important to do your own research and invest only what you can afford to lose. It's also important to keep your investments in a safe and secure wallet and to be aware of the tax implications of investing in cryptocurrencies in your country.

Conclusion

We have looked at the top 5 cryptocurrencies that you should keep an eye on in 2023. While it is impossible to predict which of these coins will be most successful, understanding the fundamentals and potential of each one can help you make informed decisions when investing in cryptocurrency. With blockchain technology continuing to evolve there could be some surprising entries into this list between now and 2023 so remember to stay up-to-date with industry news and developments as they happen.