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In this article, we discuss the top 10 best altcoins to invest in 2023.
Altcoins refer to cryptocurrencies other than Bitcoin, i.e. Bitcoin alternatives. Of the 19,000+ altcoins listed on CoinMarketCap, investors have plenty of options when it comes to choosing suitable digital assets for their portfolio.
In this guide, we discuss the 10 best altcoins to buy right now – all of which offer an attractive upside potential. They range from upcoming altcoins on presale now, to new altcoin projects launched this year, to some well-established assets with a high market cap.
Below is our top list of the 10 best altcoins to buy this year. Keep a diversified portfolio as while the potential gains are higher on altcoins, so is the potential downside.
Virtual currencies are highly volatile. Your capital is at risk.
Considering just how many digital currencies are now in circulation – choosing the best altcoins for your portfolio is no easy feat. You'll also need to choose the best altcoin exchange with the lowest fees.
You'll need to research key metrics surrounding the goals of the project, its historical price action, current market capitalization, and more. With this in mind, the sections below offer a full analysis of the overall best altcoins to invest in this year:
Ethereum is overall the best altcoin to buy today. Ethereum needs no introduction, as the blockchain network has become the go-to for decentralized application (dApp) developers worldwide. Ethereum's network provides the foundation for these apps, thanks to its smart contract functionality. These smart contracts remove the middleman from certain transactions, making the process entirely decentralized. Considering Ethereum's use cases and massive rallies it's done, it definitely is one of the hottest cryptocurrency to buy right now.
Ethereum is the second-largest cryptocurrency by market capitalization. It's the biggest altcoin, and went on a massive bull run in 2021, reaching its current all-time high (ATH) of $4,840. The coin has made new lows since then, but the project's future has given investors hope of another price spike.
Some analysts predict that Ethereum will reach $12,000 by 2025. That will mean that the Ethereum bull run will last for at least four years, since it started in 2021. Anything is possible, but we have to use the history of the crypto market to base our decision. And the crypto market has never been in a four-year bull run and without massive crashes.
Virtual currencies are highly volatile. Your capital is at risk.
Many investors believe that ApeCoin is the hottest cryptocurrency for 2023, thanks to the coin's link to the super-popular Bored Ape Yacht Club (BAYC) NFT collection. BAYC is undoubtedly one of the best NFTs to buy and has achieved cult status within the market. This status has aided ApeCoin, helping its price surge over 270% in the weeks following its listing.
ApeCoin could be the hottest cryptocurrency to buy due to its price potential, which will be heavily influenced by its 'meme' status. However, ApeCoin also has various use cases, such as being used in 'the Otherside'. This is the BAYC creators' latest project and looks set to be one of the best metaverse platforms of 2023.
APE has also been integrated into several blockchain-based games, such as the popular Benji Bananas platform. Furthermore, since ApeCoin is structured as a DAO, the token holders have the final say regarding governance. Although its price has fallen recently, ApeCoin remains one of the hottest altcoins of the year.
Virtual currencies are highly volatile. Your capital is at risk.
Did you know that Theta is one of the most undervalued altcoin and best utility cases in 2023?
Those who invest in cryptocurrency regularly may have heard of Theta, which has burst onto the scene over the past year. Theta is considered one of the best new crypto coins because it aims to revolutionize how video streaming works. This is accomplished by making the process decentralized rather than centralized (as is the case with YouTube).
Content creators will get paid for sharing videos in TFUEL – one of the Theta network's native tokens. The network uses the THETA token for governance, although it can also be used for staking, which exchanges it into TFUEL. Finally, Theta has already garnered investment from leading companies like Sony and Samsung, highlighting why it is the top crypto altcoin on our list.
Virtual currencies are highly volatile. Your capital is at risk.
Another one of the best new altcoin to consider adding to your portfolio is FTX token. FTX has emerged as one of the best crypto exchanges in the last few years, offering over 300 cryptocurrencies for users to trade. Like other exchanges, FTX has its own native cryptocurrency called 'FTX Token', which is used to enhance the user experience.
It's a top altcoin to buy and has various use cases within the FTX ecosystem, such as being used to reduce trading fees and staking. FTX Token is also used as collateral for futures positions since the platform focuses heavily on derivatives.
However, those looking to buy cryptocurrency for speculative reasons can also purchase FTT to gain exposure to the FTX platform's growth. FTT's price rose a staggering 2,290% between November 2020 and September 2021, reaching an all-time high of $85. Although the price is well below that now, this highlights the token's potential if a rebound were to occur.
Virtual currencies are highly volatile. Your capital is at risk.
The next digital currency to consider from our list of the best altcoins to buy in 2023 is the Sandbox. In a nutshell, this project specializes in the Metaverse, whereby players from all over the world can explore the Sandbox ecosystem while communicating and networking.
Within the Sandbox Metaverse, users can create and personalize their own character, which can then be used to compete in play to earn games. This means that when certain tasks are accomplished, users can earn the platform's in-game currency – SAND. What we also like about the Sandbox is that it is home to an abundance of NFTs.
For instance, the Sandbox allows you to use your SAND tokens to buy plots of land. You can then build property on this land and attempt to sell the respective NFT on the open marketplace. As a prime example of how lucrative this can be, a Sandbox user recently sold 100 virtual islands for the crypto-equivalent of $4.2 million.
In terms of how SAND has performed in the market itself, this altcoin has generated huge returns since it was launched. According to CoinMarketCap, the Sandbox was initially priced at $0.05 in mid-2020. This altcoin last peaked in November 2021, whereby a price of over $8.40 was breached.
And as such, this translates into gains of over 16,000%. Not bad for just over one year of trading. With that being said, and like most altcoins in this industry, SAND has since retreated in value. As of writing, you can buy this top-rated altcoin at a heavily discounted price of under $3 per token.
Virtual currencies are highly volatile. Your capital is at risk.
We are huge proponents of the business model employed by Yearn.finance – which specializes in decentralized financial services. Put simply, the platform connects borrowers and investors – meaning that there is no longer a requirement for a third-party intermediary. Instead, crypto loans at Yearn.finance are facilitated loans via automated smart contracts.
In its basic form, borrowers are required to put up a certain amount of collateral in the form of digital tokens. In return, the smart contract will then allow the user to borrow an amount of capital against the said collateral. And, in addition to returning the funds back within an agreed timeframe, the borrower will also be required to pay interest.
At the other end of the transaction, you have investors. Said investors will deposit funds into the Yearn.finance ecosystem, which is then used to facilitate loans. In turn, investors will be paid a yield on their capital outlay – with the specific APY design on a variety of factors – such as the respective token and lending terms.
If you like the sound of this top-rated DeFi coin project, you can easily buy Yearn.finance from the comfort of your home. This is the case even though Yearn.finance is one of the most expensive altcoins in the market. For instance, the digital currency hit highs of over $90,000 in 2021 – making it even more valuable than Bitcoin in token terms.
With that said, you can invest from just $10 into Yearn.finance when using eToro. Nevertheless, in terms of its performance, Yearn.finance and its YTI token were initially priced at just under $1,000 in 2020 – as per CoinMarketCap. Moving into 2022, the same altcoin is trading at less than $19,000. This means that since it was launched, this altcoin has grown by over 1,800%.
Virtual currencies are highly volatile. Your capital is at risk.
If you haven't previously come across the term interoperability, in the traditional computing industry this refers to two or more systems having the capacity to communicate with one another. In the cryptocurrency arena, interoperability, therefore, refers to the challenges faced by different blockchain networks that may have the need to share data.
These challenges have, however, since been allocated with the growth of Cosmos and its ATOM token. In a nutshell, Cosmos provides the required technology for the likes of Bitcoin and Cardano or EOS and Ripple to collect and share data. This means that in theory, Ethereum smart contracts can make decisions based on specific Bitcoin transactions.
And, in order for competing blockchains to use this innovative technology, the ATOM token is required. And as such, this is why ATOM is one of the best-performing altcoins of recent years. As per CoinMarketCap, ATOM was priced at just $7.50 back in early 2019. As of early 2022, ATOM breached a price of $43 per token.
And as such, this represents very healthy gains of over 480% in just under three years of trading activity. With that being said, Cosmos and its native ATOM token have since dropped in value in line with the wider altcoin marketplace. As such, you can now get your hands on this altcoin at a bargain price of under $30 per token.
Virtual currencies are highly volatile. Your capital is at risk.
Another top-rated project that makes our list of the best altcoins to buy in 2023 is Uniswap. Founded in 2018, Uniswap was one of the first exchanges to introduce the concept of decentralized trading. In a nutshell, this means that people can now buy and sell altcoins without needing to go through a centralized exchange.
If you're wondering how this is possible, there are certain innovative factors at play. First and foremost, Uniswap does not rely on traditional bid/ask order books to create a safe and fair trading space for the generation of sufficient levels of liquidity. On the contrary, Uniswap uses an AMM – or automated market maker model.
Put simply, the AMM model determines altcoin prices based on a variety of factors – such as demand, volume, and market capitalization. In addition to decentralized trading services, Uniswap also gives you the opportunity to earn a yield on your idle altcoins.
This is because you can provide the Uniswap AMM with liquidity, which in turn, will generate interest in your deposit. Moreover, you can invest in the broader Uniswap ecosystem by purchasing its UNI token – which is one of the most popular altcoins to buy right now.
According to CoinMarketCap, the UNI token was trading at just under $7 in late 2020. After going through a somewhat rocky ride in the following few months, Uniswap then went on a rapid upside trend. In fact, the UNI token hit highs of just over $44 in mid-2021 – which translates into gains of more than 500%.
Virtual currencies are highly volatile. Your capital is at risk.
If you have an interest in the future of Metaverse coins, then you might have liked the sound of the Sandbox – which we analyzed above. With that said, Decentraland is also one of the best altcoins to buy in 2023 if this niche marketplace is something you wish to gain exposure to.
This super-popular project – which was founded in 2017, is now used by thousands of people each and every day. These numbers continue to grow and perhaps, most importantly, so does the number of transactions being conducted in the Decentraland ecosystem. More specifically, Decentraland has facilitated some huge digital real estate trades in recent months.
For example, in late 2021, an area within the Decentraland Metaverse known as Fashion Street Estate, sold for a reported $2.4 million. Crucially, Decentraland allows users of all budgets to buy plots of land, which then can be used to build real estate projects. And in turn, each project can then be sold on the Decentraland NFT marketplace.
Each and every transaction executed within the Decentraland ecosystem is conducted in the platform's native altcoin – MANA. And with this in mind, it goes without saying that MANA has performed extremely well since it was launched in late 2017. As per stats extracted from CoinMarketCap, you would have originally paid just $0.025 per MANA token.
When the project last peaked in late 2021 with the wider Metaverse scene, MANA was trading at over $5.90. This means that those buying into this project in late 2017 would have been looking at end-to-end profits in excess of 23,000%. As such, a mere investment of just $500 would have translated into a portfolio worth over $115,000.
Virtual currencies are highly volatile. Your capital is at risk.
Solana, alongside a number of other altcoins, is often referred to as an Ethereum Killer. This means that many market commentators believe that Solana could one day overtake Ethereum as the leading smart contract platform. But is Solana a good investment? The main reason for this is that the Solana blockchain is significantly more efficient in terms of speed, scalability, and fees.
For example, in its current form, Ethereum is only able to facilitate an average of 16 transactions per second. In comparison, the Solana blockchain can reportedly handle over 65,000 transactions per second. Moreover, you might be aware of the ongoing issues that Ethereum has with respect to high fees.
In a nutshell, transactions taking place on the Ethereum blockchain – no matter how small, average $4 as of writing. This means that Ethereum is not suitable for processing micro-transactions – which is crucial in the smart contract scene. In comparison, Solana is able to process transactions at less than 1/1000th of a cent, making it one of the greenest cryptocurrency.
The aforementioned capabilities of the Solana blockchain has resulted in its native altcoin – SOL, becoming a top-10 cryptocurrency project in terms of market capitalization. Looking at the price performance of SOL, CoinMarketCap notes that it was priced at just $0.78 in early 2020.
Since then, Solana has breached highs of over $260. To put this rapid growth into perspective, this represents gains of over 33,000% in just under two years of trading. Moving into 2023, however, Solana has since hit lows of $80-ish, which means that now could be a great time to enter the market. There's no doubt that Solana is one of the hottest cryptocurrency to buy right now.
Virtual currencies are highly volatile. Your capital is at risk.
The term altcoin is an abbreviated way of discussing alternative coins to Bitcoin. This means that of the 18,000+ digital tokens listed on CoinMarketCap, each and every project can be classified as an altcoin – apart from BTC.
And as such, this means that you have a significant number of altcoins to consider for your cryptocurrency portfolio. It is important to note that altcoins will vary considerably in terms of the project and roadmap targets, market capitalization, historical performance, and legitimacy.
As a result, knowing which altcoins to buy can be challenging. For instance, while the likes of Shiba Inu and BNB have generated life-changing returns since being launched, many altcoins have since lost over 95% in value. Therefore, when deciding on which altcoins to buy for 2023, you will need to do lots of homework.
Virtual currencies are highly volatile. Your capital is at risk.
If you're wondering whether you should buy altcoins or just stick with Bitcoin, this section is for you. Within it, we discuss some of the main reasons why you might consider investing in a selection of top-rated altcoins today.
First and foremost, perhaps the main reason why you might consider buying a selection of altcoins today is that many projects have generated life-changing returns.
We gave some examples earlier in our analysis of the best altcoins for 2023, but allow us to elaborate further.
With that said, and as we covered earlier, not all altcoins will perform as well as the likes of BNB and Decentraland – so it's important that you set yourself realistic expectations before you make a purchase.
It is not only altcoins that have generated life-changing returns since launching. After all, it is important to remember that when Bitcoin was first launched in 2009, it was worth just a small fraction of $0.01 per token. And, when you consider that Bitcoin has since hit highs of over $68,000 – this represents end-to-end gains in the millions of percentage points.
However, Bitcoin has since become a multi-trillion dollar asset class, so it goes without saying that the upside potential will be limited from hereon. In fact, when you compare the performance of Bitcoin over the prior few years with that of top-rated altcoins, BTC isn't as attractive as it once was.
For example, in the prior 12 months since writing this page, the price of Bitcoin has decreased by over 20%. In comparison, Ethereum has increased by nearly 50%. Over a 5-year period, Bitcoin has increased by 3,600%, while Ethereum has witnessed gains of more than 7,000%.
As such, if your main priority is to target high-performing crypto assets, then altcoins might be more suitable for your risk appetite when compared with Bitcoin.
Another major benefit of adding the best altcoins to your portfolio is that you can easily diversify to help mitigate the risk of loss. This is something that most traders and investors adhere to when learning how to trade cryptocurrency.
Sure, on the one hand, the cryptocurrencies market often moves in sync with one another, meaning that when Bitcoin does well, so do altcoins. However, it also goes without saying that some altcoins have performed considerably better than others.
And as such, you can give yourself the best chance possible of choosing the best-performing altcoins by adding a wide selection of tokens to your portfolio.
This can be achieved easily when you use an online broker that not only offers small minimum investment requirements, but also a large number of supported markets.
For instance, at the SEC-regulated broker eToro, you will have access to dozens of leading altcoins at a minimum trade value of just $10 per token.
Another reason why Bitcoin – or even Ethereum for that matter, is somewhat unattractive to value investors is that these tokens are now trading for a huge amount of money.
After all, Bitcoin and Ethereum have since breached highs of approximately $68,000 and $5,000 respectively. This means that by investing a modest amount of money, you will likely only be able to purchase a tiny fraction of one token.
However, when researching the best altcoins for 2023, we came across a number of notable projects that still carry a low entry price.
Crucially, although the price of an altcoin doesn't dictate its total valuation alone, it can be a lot more attractive to invest in a cryptocurrency project that allows you to own a large number of tokens – as opposed to a small fraction.
Many experienced investors will also seek out the best altcoins in the market because in many cases, the upside potential can be huge.
For example, once you skip through the first few hundred projects in terms of market capitalization, you will come across thousands of altcoins that carry a valuation of less than $10 million. And as such, this means that the upside potential on these altcoins is going to be much higher than those that already have a large-cap status.
For instance:
Another thing to be aware of when buying low-cap altcoins is that those with a considerably small market valuation will be a lot more volatile. This is because of the fundamentals of market depth, which means that smaller-cap assets are easier to move in the market.
We also like altcoins for the innovation that some projects have since introduced to the cryptocurrency sector. Sure, Bitcoin itself is revolutionary. But, the network is only able to facilitate global payments.
In the case of the best altcoins that we came across, some of the most notable projects offer the following:
The above examples are just a few of many. The key point is that by investing in an altcoin that offers something different from the status quo, there is every chance that the respective token will perform well.
Virtual currencies are highly volatile. Your capital is at risk.
Now that we have covered the benefits of buying altcoins for your portfolio, it is only right that you also consider the risks. Some of the best altcoins to buy right now include APE, AAVE, BNB, and ETH.
You likely know that crypto assets are volatile anyway – but the risk of loss can be significantly higher in the case of altcoins – especially those with a small market capitalization.
We briefly mentioned earlier that the broader cryptocurrency markets often move in sync. And, at the forefront of this trend is Bitcoin – which dictates the performance of the wider altcoin scene.
For example, when many altcoins experienced represented gains in 2021, this was in conjunction with Bitcoin hitting new all-time highs. But, since Bitcoin has entered a bearish cycle, this has had a major impact on altcoins.
As such, no matter how good the objectives and roadmap targets you believe your chosen project offers, the performance of altcoins is often hindered by the sentiment of Bitcoin.
As noted above, all digital currencies carry a high level of volatility – especially when compared to the traditional stock markets.
However, if you invest in altcoins with a small or medium market capitalization, the volatility that you experience can be extremely wild.
For instance, some of the altcoins that we came across initially experienced a rapid upward swing, before crashing back down to a price below the project's launch valuation.
In fact, many altcoins are now worth over 95% less than when compared to their prior all-time high. Ultimately, if you buy altcoins that experience similar depreciation levels, this can wipe out the vast bulk of your investment.
Another huge risk to consider before you buy altcoins for your portfolio is that of scams and rugpulls. The latter term refers to projects that are created with one sole intention – to scam early investors.
What often happens with rugpulls is that the project will collect funds during a presale launch, before pumping the respective altcoin artificially. In turn, this results in new investors jumping on board which further pumps the price northwards.
Eventually, altcoins that are looking to rugpull a project will dump their entire token allocation, which results in the value of the crypto asset dropping to near-zero levels.
This is becoming more and more popular in the altcoin space – so it is absolutely crucial that you do your research before proceeding.
This is one of the reasons why we think that top altcoins like Solana or Ethereum are one of the best altcoins to watch in 2023, not least because the projects are backed by a transparent and experienced team.
When deciding on where to buy altcoins for your portfolio, we would suggest exploring the following metrics before you open an account with your chosen exchange or broker:
Taking the above metrics into account, we found that eToro is the overall best place to buy altcoins in 2023. We explain why in the section below.
Virtual currencies are highly volatile. Your capital is at risk.
eToro is our pick for the best crypto exchange that is ideal for investors of all skill sets. Opening an account here takes minutes – and the KYC verification process can be completed instantly. We like the fact that eToro is regulated by multiple bodies – including the SEC, ASIC, FCA, and CySEC.
This means that you can buy altcoins without needing to worry about the safety of your funds – which can't be said for many exchanges in this space. US clients can deposit funds in USD without paying any fees. Crucially, this is the case not only with ACH and domestic bank wires but e-wallets like Paypal and even debit/credit cards.
And, if you're a new customer from the US, you only need to deposit $10 to get started. In terms of supported altcoins, eToro lists dozens of leading crypto assets. For example, you can buy Dogecoin on eToro with a fee of just 1% which is then added to the tight bid-ask spread. This includes everything from Yearn.finance, Uniswap, Tron, and the Sandbox to Decentraland, BNB, and Compound coin. When you buy altcoins at this brokerage, the minimum stake is a mere $10.
You will also save on traditional trading commissions when you buy altcoins via the eToro website, as you only need to cover the spread. This starts at 0.75% on Bitcoin but will be ever-so-slightly higher when trading altcoins. We also like eToro for its diversification tools, which include professionally-managed portfolios that contain a wide range of altcoins. For example, you could invest in Ethereum with competitive fees.
This particular investment product will suit time-starved investors or those with little to no experience in performing technical analysis. eToro is also home to copy trading tools, so again, this will appeal to those seeking a passive investment experience. When it comes to customer service, eToro offers a live chat facility – so there is no need to wait around for an email reply.
We also like eToro as the best crypto app for the free virtual portfolios that it offers to both new and existing clients. This comes pre-loaded with $100,000, which you can then use to trade altcoins in a risk-free environment. Once you have registered an eToro account, you might also consider downloading the iOS/Android app.
Looking to buy altcoins or the best crypto alternative to Bitcoin for the very first time? If so, you might need some guidance on how to complete your altcoin investment in a safe manner.
Virtual currencies are highly volatile. Your capital is at risk.
The other altcoins that we discussed on this page can be purchased from eToro at just $10 per trade. The investment process at eToro takes less than five minutes from start to finish – here's what you need to do.
Virtual currencies are highly volatile. Your capital is at risk.
Altcoins offer the potential to make attractive returns on your cryptocurrency investments – especially when you consider that you've likely missed the boat on Bitcoin.
After all, Bitcoin has already surpassed a total market valuation of over $1 trillion, so returns will be somewhat limited when compared to smaller-cap altcoins.
To start building your portfolio today, we found that Solana and Ethereum are the best altcoins to consider for 2023.
Virtual currencies are highly volatile. Your capital is at risk.
For upside potential, we like the look of Ethereim as the overall best altcoin to buy for 2023. We also like the look of Solana, Decentraland, the Graph, and yearn.finance.
Our research findings concluded that Solana offers an attractive upside potential. This project is building an innovative ecosystem that will be backed by smart contract technology.
You can buy altcoins from a regulated online exchange like eToro in just five minutes when using a debit/credit card.
Virtual currencies are highly volatile. Your capital is at risk.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
