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In the ever-changing financial realm, a hidden revolution is taking center stage: cryptocurrency. This form of digital currency operates independently from governments and traditional financial institutions, relying instead on the innovative technology known as blockchain.
At the forefront of this digital financial frontier is Bitcoin, the unquestioned leader in cryptocurrencies.
As cryptocurrency continues to gain traction on Wall Street, it opens up a realm of possibilities. While it can be used for everyday transactions, many view it as more than just a currency; it's a long-term investment opportunity.
In this dynamic landscape, knowledge holds great power. One platform that has been garnering attention as an excellent choice for purchasing cryptocurrencies is Bisq – a decentralized and peer-to-peer platform.
So before you fully immerse yourself in this thrilling world, let's delve into what drives cryptocurrency and why embarking on the path to digital wealth may be an adventurous journey.
The realm of cryptocurrency is still relatively new, originating in 2009. As demonstrated in 2022, extreme fluctuations are commonplace, prompting investors to seek more established options to protect their investments from potential collapse.
One such well-established option is Bitcoin, the first and largest cryptocurrency by market capitalization. It currently holds an approximately $500 billion valuation, accounting for nearly 49% of the overall market.
Bitcoin boasts widespread acceptance compared to other top cryptocurrencies. Various publicly traded instruments track its performance, and it even appears on the balance sheets of publicly traded companies like MicroStrategy Inc. (ticker: MSTR) and Tesla Inc. (TSLA).
After experiencing a significant decline of 64% in 2022, Bitcoin has made an impressive comeback in 2023, with a remarkable rally of 56.1% as of September 10th. In the early months of 2023, BTC was already performing well.
However, in March, the leading cryptocurrency experienced an even more significant surge in value after the government assured depositors at Silicon Valley Bank that they would have full access to their funds despite the bank's failure.
The government's intervention and guarantee of liquidity for this tech- and startup-focused lender instilled confidence in the banking sector and cryptocurrencies.
Throughout 2023, crypto has proven to be the most profitable asset class thus far. A rebounding market combined with a lack of trust in traditional financial institutions has heightened confidence in assets like Bitcoin.
It's important to note that Bitcoin originated as a response to the global financial crisis and subsequent bank bailouts.
Ether, the second-largest cryptocurrency by market capitalization, is the native token utilized on the widely adopted Ethereum blockchain.
Commonly referred to as Ethereum in informal discussions, ETH currently holds a market cap of approximately $190 billion, accounting for around 19% of the overall cryptocurrency market.
In contrast to Bitcoin, Ether's underlying network serves a broader purpose beyond peer-to-peer transactions.
The Ethereum blockchain is specifically designed for smart contracts and decentralized finance tools. Additionally, it facilitates Web 3.0 applications and enables the trading of non-fungible tokens (NFTs).
Unlike Bitcoin, which primarily functions as a speculative asset and store of value, Ether possesses inherent utility as the native token within a viral network.
Furthermore, Ethereum's transition from the energy-intensive proof-of-work protocol to a significantly more efficient proof-of-stake system positions it favorably against BTC in an increasingly environmentally conscious world.
As of September 10th this year alone, ETH has witnessed an impressive increase of 35.1%.
In contrast, all other cryptocurrencies fall into a different category. AVAX and the alternative coins mentioned on this list carry a higher risk, which investors should consider when making decisions.
The disparity in quality between BTC/ETH and the rest of the market has been remarkably evident throughout 2023.
While Bitcoin and Ethereum have been performing admirably, other cryptocurrencies have needed help to keep pace with them. It's essential to regard AVAX and the coins above as purely speculative bets.
That being said, the AVAX token from Avalanche network has earned its place on this list due to Avalanche blockchain's ambitious objectives.
A notable feature within Avalanche's framework is its subnets capability. This enables users to establish their mini-blockchains atop the Avalanche network.
Ava Labs, the development team behind it, envisions a future where numerous mainstream commercial entities and individuals would desire their blockchains, thus, offering a practical solution through Avalanche subnets.
Should this vision come true someday, AVAX could emerge as a victorious contender over a more extended period – despite experiencing a significant decline of 90% during bearish conditions in 2022. Presently though (as of September 10th), AVAX has suffered a decrease of 13.1%.
Polygon, excluding stablecoins, currently holds the position of the 11th-largest cryptocurrency based on market capitalization.
With a total value of approximately $4.7 billion, it still represents less than 1% of the overall market size. However, this indicates that there is significant potential for growth.
The future success of Polygon largely depends on how widely accepted and utilized the Ethereum network becomes. As a scaling platform, Polygon aims to enhance Ethereum's capabilities by enabling it to support unlimited decentralized applications (dApps) in the long run.
Like many other tokens in 2022, MATIC experienced a decline in its price and lost 70% of its value throughout the year.
The token initially benefited from the overall recovery in crypto prices until early June, when it faced a setback due to a lawsuit filed by Coinbase Global Inc., which alleged that MATIC and several other altcoins were operating as unregistered securities.
As a result of this news, MATIC suffered a considerable blow and has seen its value decrease by 31% year-to-date as of September 10th.
Established in 2017 by Charles Hoskinson, one of the co-founders of Ethereum, Cardano is a blockchain that operates on a proof-of-stake mechanism and stands out as one of the largest blockchains to implement this energy-efficient protocol successfully.
The primary goal of Cardano is to create an ecosystem that encourages developers to build decentralized applications (dApps).
In contrast with Ethereum, Cardano has imposed a strict limit on the total number of coins that will ever be in circulation, capping it at 45 billion.
Fortunately for investors, approximately 78% (around 35 billion) of this supply is already in circulation. This means there's clarity regarding the remaining dilution potential and its impact.
Cardano holds its place among the top cryptocurrencies available for purchase currently. While it experienced an 81% decline in value during 2022, it has maintained stability throughout 2023 and achieved a modest year-to-date gain of 1% as of September 10th.
Regarding market capitalization among cryptocurrencies excluding stablecoins, Cardano holds fifth place with an approximate valuation totaling $8.6 billion.
ATOM, the native token of the Cosmos Hub blockchain, holds the lowest market cap value. It serves not only as a network security measure but also as a governance token. This means that ATOM holders have a voice in shaping the future of the Cosmos ecosystem.
One challenge in the world of cryptocurrencies is the existence of numerous independent blockchains. To address this, Cosmos aims to simplify and expedite inter-blockchain communication while reducing costs.
Cosmos has an ambitious goal: to make blockchain technology more accessible for developers and end-users alike. If this vision becomes reality and blockchain technology is widely adopted, it could benefit Cosmos.
In terms of its market performance, ATOM has a valuation of around $2.3 billion but experienced a 71% loss during the bear market in 2022.
Unfortunately, 2023 hasn't been favorable for speculative coins like ATOM either; its price has declined by 28.7% since September 10th.
Chainlink utilizes a decentralized network of oracles to facilitate secure interactions between blockchains and external data feeds, events, and payment methods. The goal is to establish smart contracts as the dominant form of digital payment, according to information from CoinMarketCap.
One advantage that Chainlink has is its strategic partnership with Google. According to a report by Benzinga, Google uses Chainlink's protocol to connect users with its cloud services.
Additionally, Chainlink has been selected as the preferred choice for Truflation's new inflation index. Truflation is a decentralized finance company that aims to provide an alternative measurement of inflation compared to the traditional Consumer Price Index (CPI).
While the CPI relies on survey data for measuring inflation, Truflation's index considers ten million data points from over 40 sources. This allows for a more dynamic, accurate, objective, and transparent measurement of inflation.
Noteworthy individuals serve as advisors for Chainlink Labs, including former Google CEO Eric Schmidt, DocuSign founder Tom Gonser, and former LinkedIn CEO Jeff Weiner.
Cryptocurrencies are digital currencies that employ encryption for security and operate on decentralized blockchain technology.
These currencies are not subject to control by governments or central banks and have limited supplies. Users store and oversee their cryptocurrencies in digital wallets.
The prices of cryptocurrencies are volatile, and they serve various purposes ranging from serving as digital stores of value to facilitating decentralized applications.
While they provide global accessibility, they encounter regulatory obstacles in numerous jurisdictions. Before engaging with them, individuals must comprehend the risks and advantages of the best cryptocurrencies.
Cryptocurrencies encompass different types of digital currency that typically rely on blockchain technology.
Utilizing blockchain technology enables most cryptocurrencies to function as decentralized transactions, removing the need for a central authority to oversee the transactions occurring on a cryptocurrency's blockchain.
In 2009, the pioneering cryptocurrency, Bitcoin, was developed by an anonymous computer programmer, Satoshi Nakamoto.
The cryptocurrency world is rapidly expanding, with over 22,000 crypto projects operating as of June 2023. While specific cryptocurrencies serve as traditional currencies, others have a primary function of establishing infrastructure.
When engaging in the buying and selling of coins, it's crucial to give due consideration to the regulations surrounding cryptocurrency taxes. Unlike cash, cryptocurrency is classified as a capital asset akin to stocks.
Consequently, if you decide to sell your cryptocurrency and make a profit from it, you will be required to pay capital gains taxes.
This holds regardless of whether you use your crypto as payment for a purchase. If the value you receive exceeds what you initially paid, taxes will be owed on the difference.
Cryptocurrency exchanges function as virtual marketplaces where people can purchase, sell, trade, and oversee cryptocurrencies. These platforms act as intermediaries, enabling the transfer of digital assets among users.
Here are a few of the best crypto exchange platforms for conducting trades:
One of the key factors that sets Bisq apart is its strong emphasis on privacy. The platform utilizes end-to-end encryption for communication purposes and does not require users to create accounts or provide personal information.
Additionally, unlike many exchanges in the market, Bisq does not impose Know Your Customer (KYC) verification. Despite prioritizing privacy and implementing robust measures to safeguard user data, Bisq maintains a user-friendly interface that caters to traders of all experience levels.
For individuals who place great importance on their privacy while engaging in cryptocurrency trading activities, Bisq emerges as an outstanding choice. It offers a decentralized environment that ensures security and provides an overall private trading experience.
What makes Cash App stand out is its seamless integration of Bitcoin functionality. This unique feature lets users directly buy, sell, and invest in cryptocurrency within the app.
One notable aspect of Cash App is its user-friendly interface. It has gained recognition for its straightforward design, making it accessible to a diverse audience that includes newcomers to the world of digital currencies.
Furthermore, the Cash App offers an additional convenience through the option to request and use a physical Cash Card linked to users' accounts. This card enables them to make purchases and withdraw cash from ATMs easily.
Cash App is an ideal choice for individuals seeking a versatile mobile payment app that provides easy access to Bitcoin. Its features combine simplicity and convenience for seamless financial transactions.
eToro is widely recognized as a comprehensive platform for online trading and investment. It offers a wide range of financial assets, including the best cryptocurrencies.
What distinguishes eToro is its innovative social trading feature, which allows users to follow and automatically replicate the strategies experienced investors employ.
This makes it an attractive choice for individuals seeking passive investment opportunities and the chance to learn from seasoned traders.
In addition to the best cryptocurrencies, eToro provides access to traditional asset classes such as stocks, commodities, and indices. This enables users to create well-diversified investment portfolios aligning with their goals.
Furthermore, the platform fosters an active user community where traders and investors can discuss, analyze, and exchange valuable insights.
Narrowing down the selection of the best cryptocurrencies from the vast array available can be daunting.
Our goal in compiling this list was to present a diverse range of cryptocurrency projects, encompassing established ventures and more speculative endeavors with significant growth potential.
These are the criteria we considered when determining which cryptocurrencies to highlight.
Availability
Ensuring widespread accessibility across a range of centralized and decentralized cryptocurrency exchanges is crucial for any digital currency.
Another aspect was the ability to trade the cryptocurrency directly with fiat currencies, significantly simplifying the buying and selling process.
Market capitalization
The cryptocurrencies highlighted in our compilation of top picks for 2023 are all part of the 100 most significant digital assets based on market capitalization.
Merely having a substantial market capitalization does not automatically imply that the project is highly reputable. Nonetheless, it's a reliable indicator of significant community enthusiasm surrounding the project.
Additionally, the best cryptocurrencies with larger market caps are more resistant to manipulating the market since such endeavors necessitate substantial amounts of capital.
Sector leadership
The world of cryptocurrencies can be categorized into various segments. One such division includes Proof-of-Work and Proof-of-Stake digital currencies, representing primary methods to establish decentralized agreements.
Additionally, there are other sectors like decentralized finance, non-fungible tokens (NFTs), layer two initiatives, meme coins, and more.
We aimed to showcase the diversity within the crypto and blockchain industry by featuring leading projects in each respective sector. This highlights the vast array of opportunities available in this space.
Working products
When featuring the best cryptocurrency, it's crucial that it already has a functional product and is not solely based on future promises. We generally avoid showcasing coins that have yet to establish a functioning mainnet in cryptocurrencies.
We emphasize tokens utilized as utility tokens within operational products or as governance tokens in actively employed decentralized protocols. Occasionally, we may showcase coins on the verge of launching their main net or key product.
However, we strive to limit this selection exclusively to top-tier projects with great anticipation within the crypto community.
Team and development
Most reputable cryptocurrency and blockchain initiatives are open and forthcoming about their team members and qualifications. We prioritize showcasing projects created and overseen by exceptionally skilled individuals.
Furthermore, we place great importance on the activity level surrounding a project. If a project is actively being developed, it's much more likely to receive our attention than one undergoing occasional improvements.
Of course, there are instances where a project's team or founders remaining anonymous does not automatically disqualify them. After all, the creators of Bitcoin remain unidentified.
When considering the best cryptocurrencies, Bitcoin is typically the first to come to mind. This is because Bitcoin accounts for over 45% of the cryptocurrency market.
Therefore, any cryptocurrencies other than Bitcoin are referred to as altcoins. Among these altcoins, Ethereum is widely recognized as the most popular choice.
The advent of blockchain technology has given rise to numerous utility cryptocurrencies, diverging from the original aim of addressing traditional currency issues.
This evolution emphasizes the search for the best cryptocurrency, now expanding beyond basic transactional purposes.
With the vast number of best cryptocurrencies available and their inherent volatility, seeking a diversified investment strategy is natural to mitigate the risk of financial loss.
While exchange-traded funds (ETFs) deal with Bitcoin futures, the current regulatory landscape does not directly allow ETFs to trade Bitcoin or other best cryptocurrencies.
BlackRock proposed a Bitcoin spot trading ETF in June 2023 but has yet to be given regulatory approval.
Determining the ideal cryptocurrency depends on your risk profile and investment objectives. If you're interested in cryptocurrencies with long-term potential, then established options like BTC and ETH are likely suitable for you.
For those with a higher risk appetite, exploring investments in cryptocurrencies valued below one cent or participating in the latest crypto presales may be more appealing.
Regardless of your choice, it's important to remember that the cryptocurrency market is highly volatile, and investing in this domain carries significant risks.
Before making any investment decisions, conduct thorough research and carefully assess your financial situation. It's advisable only to invest an amount you're comfortable potentially losing.
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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.
