What crypto to buy

Investing in crypto has undoubtedly become popular in recent times, but for many novice investors it is even more attractive to know which cryptocurrency will rise in the near future. Of course, it is obvious to point directly to the most well-known digital currency, bitcoin.

However, this currency is not the only one of importance in the world of cryptocurrencies. In general, the phenomenon we know as digital currency is becoming more and more trusted.

By delving into the possibilities of cryptocurrencies and different cryptocurrencies, you will get many opportunities to make excellent returns.

What are cryptocurrencies

Cryptocurrencies are digital assets that are managed using cryptographic algorithms. Therefore, cryptocurrencies do not have a physical form like a euro coin, but rather an encrypted code like a password. There are different types of cryptos. Bitcoin is probably the most well-known crypto, but hundreds of others have emerged. For example, ether, litecoin and Ripple. There are also stablecoins. These are cryptocurrencies whose value is linked to another value of, for example, a normal currency or gold. Tether and the crypto libra launched by Facebook are examples of this. The goal of stablecoins is to make cryptocurrencies suitable as a means of everyday payment.

Cryptocurrencies have advantages and disadvantages. The most important advantage is accessibility. With cryptocurrencies you can pay or collect without the intervention of third parties, such as banks. One downside is that most cryptocurrencies have a volatile value. Therefore, cryptocurrencies can quickly lose their value. Therefore, it is not suitable as a means of payment. You could pay with a stablecoin. But then the stablecoin provider must counter risks in the area of ​​money laundering, tax evasion, privacy violation and consumer protection. They are risks because cryptocurrencies lend themselves to illegal use due to their accessibility and anonymity.

Central banks issue money notes. For example, the European Central Bank (ECB) does it for the euro and the Federal Reserve for the US dollar. Today, most of the money is digital, like the money in your bank account. That money comes from commercial banks. But central banks keep watch by supervising these banks. The only other way to be sure of credit is to have cash. But many people find this uncomfortable today. In addition, the money is used much less. For this reason, some people find cryptocurrencies interesting.

The value of cryptocurrencies is not guaranteed in any way. Cryptocurrencies are independent of a commercial or central bank. As a result, you are at higher risk with crypto. Because if cryptocurrencies lose value and you lose a lot of money, you will not be helped by the central bank. A central bank digital currency (CBDC) or central bank money can be a good solution because it is held by a central bank. But there is no such CBDC yet. The ECB and DNB are investigating whether such a multi-central bank digital currency is possible.

What are the top 10 cryptocurrencies to invest

Bitcoin – Major Cryptocurrencies

The reason why innovative and now institutional investors want to buy bitcoin as cheaply as possible has to do with the following idea: bitcoins are the new digital gold of our digital information age. Bitcoin is a groundbreaking new technological breakthrough in 21st century financial technology. Bitcoin dematerializes, decentralizes and perfects the operation of gold based on mathematics, cryptography and computing. Bitcoins can be considered as a superior iteration of non-counterfeited gold that functions as digitally divisible and easily exchangeable hard money.

It is decentralized digital sound money. It works independently, without banks, outside of the current centralized monetary system of banks. Bitcoin is the money of the free market. In a free market, people store their wealth in hard money, which is the most difficult to counterfeit and manipulate. In the past, that was gold. However, gold was centralized and usurped by the banking system and withdrawn from circulation by governments. This gave the banking system, under the direction of the central bank, the monopoly on unlimited money creation. Money is no longer backed by gold (property). It is unsecured fiat money (debt).

Bitcoin competes with this central bank fiat money. Bitcoin disintermediates the money market in the hands of the banking system over which central banks have a monopoly. This monopoly was abused, causing the value of all unsecured money (fiat currency) to erode more and more through financial repression. The purchasing power of each currency decreases each year; the accumulated wealth of citizens is falling, and saving has ceased to make sense. Bitcoin is a solution to this problem.

Bitcoin separates the state/bank/human being and the corrupting power over the functioning of money. This global Internet and information age is an objective decentralized monetary base that is not falsifiable, not objectionable, and not corruptible. It is the most significant economic invention since the precious metal was introduced as an intermediate scarce financial commodity that can serve as an objective and apolitical monetary base for international trade.

Bitcoin is scarce. A maximum of 21 million bitcoins can be put into circulation. They are the absolutely scarce and largest monetary units of the Bitcoin network. Bitcoin is divisible. There are enough bitcoins for everyone. 1 Bitcoin consists of 100 million Satoshis (SATs). It is the minor digital monetary asset and the fundamental unit of account of the Bitcoin network. When bitcoin is purchased on an exchange or used in transactions, calculations are made in this minor bitcoin unit of account. Bitcoins can also be used as digital money with a Bitcoin app on your

smartphone within an indestructible, decentralized computer network. This network is based on a public protocol similar to the Internet protocol stack.

In the same way that the Internet works with a protocol to exchange information, Bitcoin exchanges monetary value. Hence Bitcoin's English nickname: "the Internet of money". Bitcoin can be considered the newest layer and addition within the internet protocol. It is also known as “Money over IP (MOIP)”; however, “Gold over IP (GOIP)” is more appropriate.

Transactions are securely encrypted and recorded on a distributed digital cashbook (the blockchain), a cashbook that is co-protected by a globally distributed Bitcoin mining sector. This sector converts the surplus of cheap energy into bitcoins, as well as the inviolable security of the network. Bitcoins cannot be cracked, seized, censored or printed.

Bitcoin's value proposition as a new superior iteration of rulerless gold, as an essential digital form of hard money on the internet, is often misunderstood. However, with more and more investors, it is being understood. Even so, it will take time for Bitcoin to gain a larger market share than gold. As a result, Bitcoin will increasingly act as a stable store of value in the future. To do this, Bitcoin must first match the market capitalization of gold and earn a rate of $500,000 per Bitcoin. The market capitalization of Bitcoins is minuscule compared to all other money markets. After all, the market capitalization of gold is about $10 trillion,

Ethereum – Crypto to buy now

Ethereum is the most popular blockchain platform with the most adoption and users. It works as a distributed supercomputer to program distributed applications and organizations using smart contracts. To use the network and be able to program, ETH is required to pay transaction costs. Ethereum should be considered an experiment. It is a risky investment as the current version of Ethereum 1.0 is not scalable and is not sufficient in code and protocol to provide a secure foundation for the global adoption of the current DeFi movement. Network scalability and capacity issues will be resolved with the release of Ethereum 2.0.

Many investors buy Ethereum because they believe in the future of the project. They invest with risk capital that they are willing to lose. They hold Ethereum for the long term, as if they were passively earning a reward in ETH by betting on Ethereum 2.0. Leaving Ethereum is a way to make the initial investment profitable automatically. If the Ethereum 2.0 implementation is successful, it will be a much better experiment with good prospects for making a decisive technological turnaround in today's world of finance.

Cardano – The best crypto to buy right now

First of all, it must be borne in mind that there is no Cardano cryptocurrency. Cardano is a modular blockchain development platform with an independent payment network for the internal ADA cryptocurrency. ADA is Cardano's cryptocurrency. Cardano is a development project under the direction of Charles Hoskinson based on proven scientific principles. His team, the company and the community are working to realize a new (third) generation of blockchain technology.

It is important to underline that the project has suffered many delays and is not yet fully ready for use and operation. This makes buying ADA a speculative investment, even though the project is potentially very promising. The most successful and fully operational blockchain project at the moment is Ethereum. In case the Ethereum community fails to make Ethereum scalable by upgrading to Ethereum 2.0, the Cardano project will benefit.

Cardano has recently successfully implemented the major update to Shelly which now allows ADA holders to stake ADA and start and manage a stake pool themselves for reward. Perhaps the patient investor will finally be rewarded.

Ripple – The best cryptocurrency to buy now

More and more investors are buying Ripple or instead Ripple's in-house cryptocurrency, XRP. Investors are increasingly buying into XRP as more and more banks and financial institutions use Ripple's software and Ripple's globally distributed payment network (RippleNet). Banks can significantly reduce transaction processing costs, streamline cross-border payments, and increase competitiveness by leveraging Ripple's cryptocurrency and blockchain technology. RippleNet competes with the outdated and controversial SWIFT network. Ripple could play an important role in modernizing international payments. Ripple has also established significant partnerships and relationships with banks and financial institutions around the world.

Therefore, many investors have a very positive outlook for the Ripple company and therefore buy the XRP cryptocurrency as a speculative investment. However, there are risks associated with buying XRP as a speculative investment. Ripple is a fintech company, and XRP is not comparable to Bitcoin's value proposition from a monetary perspective.

Polkadot – Best Crypto to Invest

Polkadot is an ambitious project led by Gavin Wood. Operated by the Web3 Foundation, the project enables the development of scalable p2p applications, organizations, businesses, economies – entire digital societies – without central institutions in which we are forced to place our trust. Polkadot's architecture and design offer many advantages over legacy blockchain networks.

Aside from technological prospects and a bright prospect for Polkadot, the DOT cryptocurrency is simply essential for the network:

The Polkadot protocol relies on a Nominated Proof of Stake consensus algorithm to update and secure the Polkadot relay chain. DOT tokens are required to secure the network. Staking allows DOT holders to earn compensation using staking pools within a single nominator-validator staking model.

In addition, TOD must be used to build and maintain Polkadot chains of parks linked to the Polkadot Relay Chain. This is called binding.

The DOT is also required to be able to transact on the network.

Finally, the DOT plays an important role in the Polkadot governance model.

Therefore, the DOT is an essential component for the proper functioning of the Polkadot network. The more developers and companies join the network, the greater the network effect and the demand for TOD. If Polkadot succeeds and becomes a big hit, the price of DOT could rise considerably in the future.

There are about a billion TODs available with an annual inflation rate of 10%. Just like Bitcoin is divisible up to 100 million sats, DOT is divisible up to 10 basis points after the decimal point. The smallest unit of a DOT is called a Planck. 1 DOT consists of 1 billion Plancks. Do you want to stop using DOT and earn extra automatically? First you will have to buy DOT.

Polkadot is a new technology, and buying DOT is a speculative investment. The price is volatile, and cryptocurrency trading is risky. Always start with a good knowledge of Bitcoin first. Always start with bitcoin before you start speculating in other riskier cryptocurrencies like DOT.

Uniswap – The best crypto to invest in 2023

In total, 1 billion UNI tokens will be distributed over four years, of which 60% will be given to the user community for free. 21.51% of all UNI tokens will go to the development team and new employees, 17.80% of UNI tokens will go to investors, and 0.069% of UNI tokens will go to project advisors. Uniswap users who have provided liquidity to Uniswap in the past are entitled to free UNI tokens based on a snapshot of September 1, 2020. 15% of all UNI tokens were provided to loyal liquidity providers. After four years, the subsequent distribution of new UNI tokens will be continuous with an inflation rate of 2% per year. UNI tokens are based on Ethereum's ERC-20 token standard.

Litecoin – The best cryptocurrency to invest

The first Litecoin LTC ETP has been launched on the Nordic Growth Market (NMG), a subsidiary of Borse Stuttgart. This LTC ETP has been developed in collaboration with XBT Provider. LTC ETPs will be available to clients who have an investment account with Nordnet or Avanza.

An LTC ETP is an open-ended investment that is publicly traded and listed and settled like a stock. It is a passive investment in which Litecoin returns are tracked by following an underlying Litecoin price index. In this way, investors with a traditional investment account can speculate on the price of Litecoin without buying the underlying Litecoins on a cryptocurrency trading exchange.

Chainlink – Top crypto

ChainLink is an up-and-coming DeFi project that aims to build a good oracle network involving many collaborative partners. LINK is the internal token of the ChainLink oracle network under construction. More and more investors are buying LINK as a speculative investment on the success of a new DeFi sector in which the ChainLink project as an oracle network will play an important role. The DeFi sector needs Chainlink, and there are few alternatives. Chainlink has more than 200 collaborations, and 30 projects are already using the technology.

The 1 billion LINK tokens were put into circulation following the ChainLink ICO in 2017. In total, 350 million of the 1 billion LINK tokens have been distributed to investors. Three hundred million LINK tokens will be held in the treasury of SmartContract ChainLink, Ltd. (“SCCL”) reserved for development costs, and 350 million LINK tokens will be distributed to node operators launching API oracles on the ChainLink network. The LINK token is used within ChainLink to compensate oracle developers. When a smart contract uses a predictor for external data input, it will have to be paid for in LINK. As the network grows, the demand for LINK tokens will increase. One downside is that it is not clear if LINK tokens are hard capped. In principle, SmartContract ChainLink, Ltd. (“SCCL”) to issue new LINK tokens. The LINK token is built on the basis of the Ethereum ERC-20 token protocol. The Chainlink organization directly or indirectly manages most of the LINK tokens to develop the network and pay the nodes.

Chainlink nodes within the network must be paid in LINK. Additionally, LINK is required for staking, collateral, and endorsements in a smart contract. The nodes have LINK as a share, which makes them more critical. Nodes are not limited to selling LINK. Also, nodes will have to buy additional LINK if the value of their stake is less than $100. Consequently, the Chainlink node network mainly owns the LINK and can only sell the LINK that it earns as a transaction fee for the service provided. As long as the Chainlink network thrives, is put to use, and LINK is not poured into the market by the organization, there is a scarcity effect that encourages price increases. Especially during a bull market in the valuation of DeFi tokens. However, the extent to which nodes and the organization will hold LINK during bad times and a bear market. During a bear market, many DeFi projects will have to sell their LINK tokens. LINK holders are expected to diversify their portfolio between bitcoin, ethereum and USD stablecoins. Keep this in mind. Don't forget to take profit on time with speculative investment in LINK.

Conclusion – Which crypto to buy 2023

Investing in cryptocurrencies such as bitcoin, ether and other altcoins is becoming more and more popular. This is a favorable development, but it also raises the barrier to entry.

If you are a novice investor or investor, do not get carried away by a sudden rise in prices, but first study the possibilities and possible pitfalls.

It is difficult to say which cryptocurrency will go up because several factors usually determine the final price. By the way, don't let the use of technical terms like smart contracts and leverage stop you from investing.

Investing in bitcoin or altcoins can be very lucrative, but it is not for everyone.