Unlike traditional financial markets, the digital currency arena has come on the scene as a promising space from the beginning due to the high returns several tokens have generated, outperforming traditional sectors like the stock market and investment assets well-known for their reliability and stability. Some of the mentioned digital currencies are Bitcoin, Ethereum, Ripple, and other popular ones that captured the public’s attention.
Individuals gain access to a new class of assets by investing in virtual money that has the potential to change the nature of the investment landscape forever. Regardless of the sum one chooses to invest in cryptocurrencies, there’s no denying that they offer exciting opportunities for profit and portfolio diversification no other sector offers.
However, it’s worth mentioning that the cryptocurrency market is more volatile than its competitors and often has bear phases that can wipe out projects and significant amounts of value. For example, the present bear market has already shut down over 70% of crypto projects. However, bear markets often offer great investment opportunities because they bring front row well-established coins that will perform once the market enters the bull phase.
Those looking for ways to maximise their returns on crypto investments should check the following list of digital currencies expected to be profitable in 2023.
Bitcoin was the first digital currency introduced on the market and was created to record financial transactions on a decentralised blockchain. It’s still the number one choice of seasoned and new crypto investors because it has the largest market capitalization and is considered a reliable asset. Satoshi Nakamoto aimed to develop a virtual currency that would revolutionise the traditional financial system and eliminate the need for an intermediary. Even if it has had several ups and downs over the years, its value is still higher than that of altcoins. If you want to know what is the price of Bitcoin, access an online exchange platform that provides information about cryptocurrency evolution.
Over time, investors added Bitcoin to their portfolios because it had a promising future. At present, Bitcoin remains a fairly stable digital currency, which makes it a safe option for those entering the crypto space for the first time. Once the bear market is over, Bitcoin could generate higher value.
Crypto enthusiasts recommend buying Uniswap if you want to invest in crypto in 2023. It’s well-known on the market because it’s a great DeFi solution that connects buyers and sellers directly if they want to exchange digital assets. One of the reasons why you should consider adding it to your portfolio is that it continually makes improvements that impact its performance and usability. Its latest upgrade, Optimism, has been in the making for two years, and it’s still in the Alpha stage, meaning that the developers are still testing it.
Investors think this might be the ideal moment to buy Uniswap before it implements the final version of Optimism and its value skyrockets.
Shiba Inu stands out among meme coins because it’s one of the most profitable cryptocurrencies to invest in. It was launched in late 2020 to capitalise on the increasing popularity of meme coins like Dogecoin. Even if it was created as a joke, it surprised everyone when it surged in popularity and made steady gains. Shiba Inu is listed among the best-performing digital tokens in 2021.
Currently, it has momentum on its side, so it most likely won’t slow down anytime soon. Recently the Shiba Inu developers have launched a layer-2 solution to create a metaverse, improve the shib scale, and integrate a pay and burn feature that limits the number of coins available in circulation.
ApeCoin is the ideal crypto to buy if you have a small budget and want to start investing in digital currencies. ApeCoin is the native token for the Ape DAO, which runs the Bored Ape Yacht Club line of NFTs and one of the tokens that drew hype the moment it entered the market. The rumours that Bored Ape Yacht Club will create a Metaverse where ApeCoin can be used as a currency for transactions gained momentum for the token.
APE was designed as an ERC-20 token that incentives and empowers decentralised community building on Web3. It facilitates community participation, dealing with one of the main problems DAOs experience nowadays.
ApeCoin is predicted to grow in value in 2023 because it intends to integrate pay-to-earn games into the blockchain.
Cardano is one of the most technically advanced blockchains in the sector, and crypto enthusiasts list it among the most profitable digital currencies to invest in in 2023. One of the reasons that make it a great asset to add to your portfolio is the proof-of-stake algorithm with no market rival. Not even Ethereum’s new proof-of-stake protocol can match Cardano’s efficiency.
Cardano’s algorithm is secure, scalable, and decentralised, a combination not often found on the market but vital as blockchain adoption grows. Considering its features and evolution, it can be regarded as a cryptocurrency found on a growth trajectory. The ecosystem introduced smart contracts in 2021 and allows for the creation of metaverse projects, a pointer that will grow in value in the long run.
We cannot make a list of profitable cryptocurrencies and leave Ethereum aside. Due to the rollout of ETH 2.0, it will definitely perform better than other altcoins in the crypto universe. Ethereum is the second-largest cryptocurrency according to market cap and the main environment for NFT creation. Among the pros of investing in Ethereum is the transition from the proof-of-work to the proof-of-stake protocols that make it more efficient and eco-friendlier. And that’s not all; well-known companies like Amazon integrated Ethereum’s blockchain technology to gain a competitive edge.
Even if Ethereum is still far from reaching Bitcoin’s success, it’s expected to reach a new price high once the bear market is over.
As said above, these are the industry’s favourites when it comes to cryptocurrencies expected to drive profitability in 2023.