The Crypto market is going abuzz amidst a bear market. In October, the cryptocurrency asset class rose more than 8%, again breaking $1 trillion in market capitalization [1].
Due to crypto’s impressive ROI, many people prefer to hold it as a long-term investment.
Are you looking to join the crypto bandwagon? Perhaps you’re wondering how to find the best cryptocurrencies to buy and invest in 2023.
We know wading through over 21,000 cryptocurrencies to select the best coins can be daunting.
Thus, to help you decide and avoid risk, we have summed up the best 10 cryptocurrencies to buy in 2023. Before we proceed, let’s breeze through what Blockchain and cryptocurrency are;
What is a Blockchain
Blockchain is a ledger of a distributed network of computers. The ledger stores each transaction that happens across the computers. However, the trades must correlate and be verified across the networks before they are recorded. Depending on the Blockchain model, transactions are verified via the proof-of-work (PoW) or Proof-of-stake (PoS) model.
What are Cryptocurrencies?
Cryptocurrencies are digital currencies that run on the Blockchain. Cryptocurrencies boycott third-party interventions such as governments, banks, and financial institutions. The crypto market currently has approximately 21,697 crypto coins contributing to the $1 trillion worth of the crypto ecosystem.
Now, how do you sniff out cryptocurrencies worth investing in? Here’s how;
How to Find the Best Cryptos to Buy
Imagine buying and holding Bitcoin in its earliest phase when it was just a few dollars. You’d probably be retired by now, reaping the reward of your foresight. That’s the perk of being an early investor.
Since that didn’t happen, how will you know the crypto with great potential? When it comes to investing in crypto, there are a few factors you should look out for. Such as;
- Price
- Volume
- Supply
- Traction
1. Price
Believe it or not, cryptocurrency is still evolving and gradually gaining attention. As such, there are many low-priced coins. If you’re new to crypto, this could be in your favor as you can find many low-priced coins to invest in.
Low-priced coins allow you to spread your portfolio, which is a great way to reap massive ROI in the future.
2. Volume
You should consider cryptocurrencies with increasing prices and trading volumes. Even though it’s not a guarantee, such coins will likely maintain momentum over the years.
You can get all crypto updates and information readily available on the internet.
3. Supply
Typically most digital currencies have a fixed number that’ll circulate. No new cryptos will be produced once the maximum predetermined supply is mined. For instance, 80 percent of total bitcoins have been mined.
Thus, prices will skyrocket if the demand is higher than the supply. Ensure to note the total supply and amount in circulation before you invest in any coin.
4. Traction/Adoption
Be sure to check the adoption potential of a digital asset before you invest. An example is the growth and adoption rate of XRP. Even though XRP’s price dropped, it still maintains a significant potential adoption.
Crypto coins that have mainstream adoption may be excellent long-term investments. That’s why Bitcoin and Ethereum are leaders.
The 10 Best Cryptocurrencies To Buy
We handpicked digital coins based on established reputation, resilient track record, market cap, high ROI, etc.
1. Bitcoin (BTC)
Bitcoin is the first-generation Blockchain with a market cap of $392.4 billion. Bitcoin (BTC) is the native coin of the Bitcoin blockchain, used to pay for transactions on the Blockchain.
The currency has withstood volatile markets since it came to life in 2008. In October, Bitcoin’s “20-day rolling volatility [2] fell below both the Nasdaq S&P 500 for the first time since 2020,” according to Matt Senter, the co-founder of Lolli, a Bitcoin rewards app.
The Bitcoin blockchain uses the proof-of-work consensus mechanism. Meanwhile, Bitcoin’s price started at $0.09 in July 2010 and to an all-time high of $68,789 on November 10, 2021. And as of November 11, 2022, one Bitcoin is $17,379.30 [3].
Bitcoin tops the list for a long-term investment with high ROI because of its potential to be added to corporate balance sheets, as Tesla Inc had done [4].
>>> Related How to invest in Bitcoin
2. Ethereum (ETH)
The powerhouse of most NFTs and Dapps (decentralized applications), the Ethereum network is the second-largest and second-generation Blockchain. With a market cap of $192.5 billion, Ethereum has come a long way since it officially launched on July 30, 2015, by creating its “genesis block [5].”
Created as a proof-of-work Blockchain, Ethereum has evolved through the years. In September 2022, the Ethereum network underwent a Merge — a transition to the eco-friendly and energy-efficient Proof-of-stake (PoS) model.
The Ethereum blockchain has a native coin called Ether (ETH), which is used for payment across the Ethereum network. Having gone through the volatile rollercoaster market, Ether has grown. Its price was less than $1 in 2015, to an all-time high of $4,815 on November 9, 2021. As of November 11, 2022, Ether goes for $1,271.07 [6] apiece.
3. Binance Coin (BNB)
The next significant crypto after Bitcoin and Ether (aside from stable coins) is Binance BNB, with a market cap of $51.7 billion.
Launched in 2017, Binance Coin (BNB) is another top crypto with an excellent track record. The currency (BNB) is a native coin on the Binance network — the world’s largest crypto exchange.
If you want to invest in low-entry, low-risk crypto, BNB may be your choice. In 2017, BNB’s price began at $0.10, shooting to its highest price in May 2021 at $669.35. As of November 11, 2022, BNB is $295.17 [7].
4. Dogecoin (DOGE)
Consider Dogecoin if you’re looking to 100× your investment in 2023. Launched in 2013 as a meme, Dogecoin soon gained traction thanks to its community. With a market cap of $18.0 billion, Dogecoin is one of the top-performing cryptocurrencies.
Between January 28 and January 29, Dogecoin’s value grew by around 216 percent [8] to 0.023535 after comments from Tesla CEO Elon Musk. In 2017, Dogecoin’s price was a mere $0.0002. However, at the time of writing in November 2022, Dogecoin’s price was $0.08772 [9].
5. Cardano (ADA)
Like the Ethereum network, Cardano [10] enables smart contracts and Dapps on its network. Cardano is the first third-generation cryptocurrency with moderate growth, with a market cap of $13.8 billion.
Developed to solve Bitcoin and Ethereum’s scalability and interoperability issues, Cardano uses the PoS model. The network became live in 2017.
Cardano’s starting price was $0.2, and its all-time high was $3.10 in Sept. 2021. As of Nov. 11, one ADA is $0.3607 [11].
6. Polkadot (DOT)
Gavin Wood, the Ethereum co-founder, created Polkadot [12] on May 26, 2016, to resolve Blockchain interoperability. Blockchain promises decentralization and security. Its underlying currency for payment is DOT. Like Ethereum, Polkadot uses a proof of stake consensus mechanism.
Polkadot has a market cap of $22 billion. In May 2020, the crypto coin hit a high price of $6.30. However, in May 2021, the token was at an all-time high of $55.11. As of November 11, 2022, one DOT goes for $5.63 [13].
7. Solana (SOL)
Solana is another third-generation blockchain that supports decentralized applications (Dapps), decentralized finance (DeFi), and smart contracts. The Solana network, which uses the Proof-of-stake mechanism, was launched on March 16, 2020.
The network boasts steady growth with a Market cap of $11.6 billion. SOL’s price took off from $0.04 to $0.77 in 2020. The currency reached the height of $259.96 on November 6, 2021. Its price was $18.04 [14] as of November 11, 2022.
8. Polygon (MATIC)
The digital coin was designed in 2017 to create a multi-chain blockchain ecosystem compatible with Ethereum. Polygon and its underlying currency, MATIC, is one of the high-performing cryptocurrencies. Networks like Ethereum use the PoS model, which supports Dapps, NFTs, DAO, etc.
With a market cap of $10 billion, the polygon’s lowest price was $0.00314 on May 10, 2019. The Indian Cryptocurrency attained its highest price of $2.92 on December 27, 2021. The cost is $1.06 [15] as of November 11, 2022.
9. Shiba Inu
Another top-performing crypto you should consider is Shiba Inu [16]. The meme coin, founded in Aug. 2020, initially started as a fun token. Surprisingly, the coin gained traction because it offered low prices and entry.
In October 2021, the Shiba coin topped the chart as one of the biggest cryptos in the world based on trading volume [17].
Shiba is among the 100 cheapest cryptos, with an all-time high of $0.000032. As of November 11, 2022, one Shiba Inu was $0.000009719 [18].
10. Ripple (XRP)
The XRP is undoubtedly one of the undervalued cryptos that can give you significant returns in the coming year. XRP is the native coin of XRP Blockchain, which takes pride in faster and cheaper transactions.
Founded in June 2012, XRP boasts a market cap of over $37 billion. XRP’s price as of 2017 was $0.006. In March 2022, it rose to $0.080. And as of November 11, 2022, XRP’s price was $0.3751 [19].
Crypto coins comparison: accurate as of November 11, 2022
| S/N | Cryptocurrency | Unit price ($) | Market Cap ($) | Consensus mechanism |
| 1) | Bitcoin (BTC) | 17,379.30 | 392.4 billion | PoW |
| 2) | Ethereum (ETH) | 1,271.07 | 192.5 billion | PoS |
| 3) | Binance Coin (BNB) | 295.17 | 51.7 billion | PoS |
| 4) | Dogecoin (DOGE) | 0.08772 | 18.0 billion | PoW |
| 5) | Cardano (ADA) | 0.3607 | 13.8 billion | PoS |
| 6) | Polkadot (DOT) | 5.63 | 22 billion | PoS |
| 7) | Solana (SOL) | 18.04 | 11.6 billion | PoS |
| 8) | Polygon (MATIC) | 1.06 | 10 billion | PoS |
| 9) | Shiba Inu | 0.000009719 | 5.34 billion | PoW transitioning to PoS |
| 10) | Ripple (XRP) | 0.3751 | 37 billion | proof-of-consensus algorithms |
Are Cryptocurrencies Worth Investing in 2023?
Crypto enthusiasts will scream a yes. However, whether or not crypto is a good investment depends on perception.
Cryptocurrencies are highly speculative and volatile assets. As with other speculative investments, they are investing in crypto can yield positive returns. In the same vein, it can result in loss.
To increase your chances of high returns, diversify your investment and avoid investing in anything that seems too good to be true.
Guess what? If any project looks too good to be true, it probably is. If you’re considering testing crypto waters, do the following:
- Be abreast of crypto news and updates.
- Read the crypto project’s history.
- Check whether the creators are verifiable.
- Look out for the crypto’s prospects.
- Beware of scammy projects, rug pulls, etc.
- And lastly, do not invest beyond what you’re willing to lose.
What are the Risks Involved in Buying Cryptos?
1. Price Volatility
Cryptocurrencies are incredibly volatile. As we saw with Terra Luna, a crypto asset worth thousands of dollars may bleed the next day. A Luna coin at the peak of $116 in April plummeted to a fraction of a penny before being delisted within a month.
In addition, crypto winter could affect the general crypto market, causing prices to crash. An example is the two-year crypto market crash (2018 to 2020). Therefore, only invest according to your risk tolerance level.
2. Crypto Coins Are an Easy Target for Scams
Because cryptocurrencies involve mouth-watering sums, they are easy targets for cyber thieves. In 2021 alone, cryptocurrencies worth $14 billion were lost to hackers. In 2022, over $3 billion has been lost so far.
How to Avoid Scam Projects
1. Check the Community
The power of communities resonates within crypto projects. The size of a project’s community determines its success. However, beware of the hype that oversells projects. You don’t want to decide on a project solely because of its community size or hype. Consider other factors, which include:
2. Who are the Major Investors
Who are the pioneers of the project? If there are investors, who are they? What’s their reputation? It’s always a good omen if reputable investors champion a project. It means the project’s long-term vision aligns with the investors’.
3. Read the White Paper and Road Map
It would help if you understood how they work and what long-term value the project aims for via the project’s white paper and road map. A worthwhile project will have a clearly defined, well-written white paper and roadmap.
The white paper contains detailed, intricate, and technical information about the project’s concept. It clearly states what real-world problem it’s solving. This helps you decide if you want a part of it or not.
On the other hand, a roadmap shows the blueprint of how a project plans to grow and evolve while driving adoption.
4. Stalk the Project’s Website and Social Handles
Ensure the project is socially active across social media. In addition, confirm whether they have a website. The project’s website must be user-friendly and have an easy and functional interface. Check out the about us and contact us sections to ensure you aren’t dealing with faceless people.
Why Should You Consider Buying Cryptocurrencies?
1. Massive Potential
Crypto offers you stable huge potential the more it gains use cases, which allows your portfolio to grow over a short span.
2. Lower Entry
You can start your crypto journey with low capital by buying several low-priced crypto assets to diversify your portfolio. It’ll help you mitigate the risk of losing large sums.
3. Flexibility
Cryptocurrencies are often niche-specific. While some are focused on Web3, some are on NFTs, while others center on dApps and DeFi. You can pick and invest in any niche assets with colossal potential.
Conclusions
Although investing in crypto assets is risky, it can be an excellent long-term investment if you follow due diligence. Also, like trading stock, you must persevere to earn the rewards.
Meanwhile, if you’re looking for the best places to buy low-entry and high-reward cryptocurrencies, check the list here.
Crypto FAQs
Do You Have To Pay Taxes On Cryptocurrency?
Crypto coins are digital currencies. Thus, you may be required to pay taxes depending on your crypto use. The following activities are classified as taxable and non-taxable events when it comes to taxes:
Taxable Event
According to the Internal Revenue Service (IRS), you owe tax once you realize a gain from your crypto through sale, trade, or exchange. For a more precise picture, read this below:
1. If you sell your crypto assets in exchange for cash, you owe taxes on the profit. Say you bought a crypto coin at $750 and sold it at $1000. Then you have to pay a tax on the additional $250 gained.
2. If you exchange your cryptocurrency for another, you must pay a tax. This is because to exchange your DOT for SOL; you have to sell your DOT. You’d pay taxes if you sold the DOT higher than you bought it.
3. You must pay taxes if you spend your crypto earnings on goods and services. For instance, when you pay for food with SOL. The IRS believes you must have sold your crypto to pay for the transaction, hence the tax.
Non-taxable Events
Transactions that do not directly bring profit are non-taxable events, and you don’t owe tax in such instances:
1. You don’t owe tax when you buy or hold cryptos.
2. You don’t owe tax when you donate cryptos to charity or non-profit organizations.
3. Accepting or receiving, or giving out crypto gifts doesn’t incur tax.
4. You don’t have to pay tax when you move your crypto assets from one of your addresses or wallets to another.
Best Crypto Exchanges 2022
Crypto exchanges offer a platform to buy, trade, sell and exchange digital coins like BTC, Ether, SOL, DOT, etc.
Before you select an exchange, consider the following:
● The exchange security and reliability
● Transactions fees— are they high or low?
● Listed assets — the trading pair they support
● Payment method
● Flexibility, etc
The following are the best crypto exchanges of 2022 that raised the bar a notch higher.
● CashApp
● Coinbase
● Binance.US
● Bisq;
● Bitfinex
● BitMart Exchange
● Bitstamp
● Houbi Global
● Gemini
● Kraken
● Kucoin
Why are Cryptocurrencies Important?
Cryptocurrencies are important because they remove power and control from intermediaries such as governments and banks and revert them to asset owners.
Thus, cryptocurrencies promise decentralization of power and trustless, transparent, and secured transactions.
With the help of Blockchain and crypto technology, your funds are in your control instead of being at the mercy of the government. Thus, ensuring you have faster and more reliable transactions.
Due to the decentralized nature of Blockchain technology, there is no single point of failure.