The types of cryptocurrency available on exchanges across the internet are growing in popularity in the United States of America. An estimated 16 percent of adults in the US have invested in one form of crypto or another. You should take advantage of the opportunity to invest in cryptocurrency if you want massive returns.
The key to a good investment in cryptocurrency is knowing the market trends and exploring the different coins you can invest in. Investing in a currency that plummets in value could ruin your finances, while the right investment could set you up for the next decade.
The good news is that you’ve found the perfect guide to finding the best cryptocurrency to purchase in 2023 for your portfolio. Keep reading this article to capitalize on your investment opportunity today!
The years pass, yet Bitcoin remains the pinnacle of the cryptocurrency world in 2023. It’s the oldest of the cryptocurrencies on the market, and it has a track record as a safe investment with significant growth potential. It has a higher price and market cap than any other form of crypto in 2023.
A significant reason it makes sense to invest in Bitcoin is that many vendors accept it as a form of payment. You can walk into many brick-and-mortar stores across the United States and purchase using Bitcoin. Visa allows transactions with Bitcoin, while you can also invest in a Bitcoin debit card.
Stripe also allows small businesses to convert Bitcoin and other types of cryptocurrency into dollars. The primary risk you face when investing in Bitcoin is price fluctuation. Cryptocurrencies, as a whole, are more volatile than fiat currencies.
Your Bitcoins could go up or down by thousands of dollars each month. It’s a stressful investment you should avoid if you have a low-risk tolerance. Wild fluctuations are part of owning Bitcoin, so hold onto your seat and brace for a wild (but lucrative) ride when you decide to invest in cryptocurrency.
The price is another hang-up that many investors face with Bitcoin. You’ll need help to purchase an entire Bitcoin since the cost is nearly $30,000. Consider the Bitcoin ATM Pros/Cons before investing in Bitcoin.
If Bitcoin is the most famous type of cryptocurrency, Ethereum finishes in a solid second place. Ethereum is the network used to allow developers to build or create their own cryptocurrencies. It’s also the perfect network for establishing and using smart contracts for construction projects, legal issues, etc.
It’s not entirely on par with Bitcoin, but Ethereum is far ahead of any other type of cryptocurrency. The unique technology that Ethereum uses allows it to stand out from other forms of crypto and provide a different kind of value. It offers the most efficient and popular blockchain and the second-most popular cryptocurrency.
The Merge is another factor worth considering if you’re interested in Ethereum. This involved a proof-of-stake idea that would reduce the number of Ethereum coins on the market while rendering the process of mining for Ethereum obsolete. It results in much lower energy consumption and a decreased carbon footprint.
Ethereum might lack Bitcoin’s widespread acceptance from vendors, but it’s starting to catch up. Many traditional companies are beginning to get on board with Ethereum, making it a much safer investment.
The primary risk with Ethereum is that it faces slow transaction times and needs to be energy efficient. Your transactions could take much longer if the blockchain is overloaded with transactions. You’ll also face high transaction fees when you invest in Ethereum.
BNB, often called Binance Coin, is another excellent option if you’re dipping your toes in investing in crypto. It’s one of the most stable types of cryptocurrency on the market, making it much safer if you have a low risk tolerance. BNB is the primary coin available on Binance.US, one of the top crypto exchanges in the United States.
It’s a highly functional coin, but it still carries significant risk. One thing that works in BNB’s favor is that Binance burns a specified number of coins each quarter. Binance burnt more than 2 million coins in January of 2023, which didn’t impact prices.
It’s a wise strategy since it allows prices to remain strong due to scarcity. You should also note that BNB is one of the stabilizing forces within the crypto industry. It donated more than $1 billion to keep the crypto market afloat and help struggling players manage the FTX collapse.
The primary risk of investing in BNB is the regulations imposed on it. The SEC investigated Binance Coin in 2021, which resulted in a severe drop in value.
Cardano is a newer crypto option that you should consider investing in to build a strong portfolio. The network is much smaller than Ethereum and Bitcoin, which provides several advantages for your investment opportunity. The energy required to complete a transaction is much lower than other cryptocurrencies like Ethereum.
Your transactions will proceed faster, and they’ll cost less. It’s a win-win situation for investors looking for a new coin to purchase. Cardano also implemented smart contract capabilities onto their blockchain, opening the door to increased value and flexibility with your coins.
Another neat idea that Cardano implemented is the ability for users to create decentralized currency apps using their blockchain. The goal is to move Cardano forward as one of the top Web3 options on the market. You’ll love the perks of having Cardano in your digital wallet as an investor.
The main risk you’ll face with Cardano is that it lacks the resources to compete with the larger cryptocurrencies, like Bitcoin and Ethereum. They lack the developers that the larger coins have, making it difficult to guarantee growth and profit with Cardano. Investors want to see a high adoption rate with a coin before purchasing more of it.
Polygon was developed by many of the same developers that built Ethereum into the power it is today. The goal of Polygon is to allow for Ethereum scaling, making it an excellent potential investment opportunity. You can expand Ethereum into a multi-channel blockchain when you have Polygon at your disposal.
The benefits of switching to a multi-chain system are faster transaction speeds and lower processing fees. Your smart contracts will also run much smoother when you’re using Polygon for your crypto needs. The zero-knowledge proofs speed up all your crypto transactions and make things simpler for all users.
You can also enjoy the peace of mind that comes with investing in a carbon-neutral coin with Polygon. It stands apart from bigger coins like Bitcoin and Ethereum, which are more harmful to the environment.
The risk you face with Polygon is that it could become obsolete due to Ethereum’s Merger. Most of the value of Polygon comes from its ability to speed up Ethereum transactions and smart contracts. The Merger could wipe that advantage out, causing Polygon’s value to plummet.
Terra 2.0 is an improvement on the original Terra coin, which crashed and burned in 2022. The Terra blockchain relies on stablecoins to work, and stablecoins are tied to fiat currencies, like the US dollar.
The crash did some significant damage to multiple cryptocurrencies, but Terra has built back and produced Terra 2.0 for investors. It features a new blockchain that does away with stablecoins in the hope that Terra will gain more stability and help investors recoup their lost money.
Keep in mind that Terra 2.0 (LUNA) coins trade separately from the original Terra coins, referred to as LUNC. Avoid investing in LUNC coins if you want to grow your wealth and invest in the future.
The primary risk of investing in Terra 2.0 is the long-term viability of the coin. Pivoting to the new Terra coin was a controversial move in the crypto world, and many are still unsure about the future of this new coin. It’s a risky proposition, but Terra has some amazing projects on the horizon.
If those projects are successes, your investment in Terra 2.0 could gain an incredible boost in value. It can potentially be one of the best ways to invest in cryptocurrency for your portfolio. If you have a high risk tolerance, you should definitely keep a close watch on Terra 2.0 as an investment opportunity.
Start Investing in Different Types of Cryptocurrency Today
Learning your options for investing in the various types of cryptocurrency is vital with how volatile the crypto market is. Investing in the wrong coins could result in bankruptcy and serious debt. Capitalizing on your investment opportunity could result in untold riches.
Bitcoin and Ethereum are your safest bets if you’re risk-averse with your investment portfolio. You’ll earn a nice return on your investment and experience minimal stress. Terra 2.0 is a high-potential cryptocurrency, and Cardano also offers an excellent chance to invest in cryptocurrency since it improves the Ethereum blockchain.
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None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.