5 Best Cryptocurrencies to Invest in 2023 Based on Market Capitalization
The Cryptocurrency market has been witnessing immense growth in 2023 and is looking for a huge gain in the future. The crypto market recovered from the FTX collapse and other scams last year. There was a slight dig at crypto prices after the Silicon Valley bank & Silvergate collapse but soon recovered from the loss.
The value of Bitcoin on Dec 31, 2022, was $16,547.50 and as of March 20, 2023, the value shot up to $27,519.30. Many investors are pouring their funds into the web3 market like cryptocurrencies, NFTs, Multiverse, and Decentralized Finance(DeFi).
Saudi Arabia is partnering with Sandbox in the development of Metaverse. Many countries are accepting cryptocurrencies and investing in the Web3 ecosystem. The Indian Finance minister has announced that the cryptocurrency transactions would come under the Prevention of Money Laundering Act (PMLA) which helps in monitoring crypto scams and keeping an eye on the bad actors.
What are Cryptocurrencies?
Cryptocurrency is a digital currency based on blockchain technology, where the transactions are stored in the form of blocks using cryptography. Blockchain is a decentralized network of distributed ledger, meaning it is not controlled by a single entity, the data is distributed among many networks.
As blockchain and digital currencies are evolving, you can witness better technologies and infrastructure in the development of the crypto market.
According to coinmarketcap, a popular crypto price listing platform, there are currently 22,971 cryptocurrencies with a global market capitalization of $1.22 trillion.
Here is the list of 5 best cryptocurrencies to invest in 2023 based on market cap:
- USD coin
- Bitcoin (BTC): Bitcoin is the foremost decentralized cryptocurrency in the world. Bitcoin is the current most popular digital currency and people came to know the existence of cryptocurrencies through Bitcoin, which was launched in 2009. It enables peer-to-peer transfer of funds using blockchain technology without the intermediaries like banks.
Bitcoins can be transferred through a publicly distributed ledger to anyone and anywhere in the world. The transactions are secure and fast with low processing fees wherein the data is recorded permanently. Bitcoin is secured by the SHA-256 algorithm (a cryptographic hash function).
The current value of Bitcoin is $28,414.01, with a market dominance of 46%. It has a market capitalization of $549,033,096,234. Bitcoin remains at the top of the crypto market list despite ups and downs.
The total supply of bitcoins is limited and it will never exceed 21 million coins and around 18 million bitcoins have been mined so far. New bitcoins are generated using mining where miners solve complex mathematical functions which use enormous power and time. Miners will be rewarded for their effort with 6.25 BTC.
- Ethereum(ETH): Ethereum is an ecosystem, which provides access to financial services, apps, games and social networks, whereas Bitcoin is only a payment network. With Ethereum, you can not only transfer peer-to-peer funds, but you can also create your platform on the Ethereum blockchain. Ethereum was launched in 2015 and is not controlled by a single entity but is maintained by the network community.
Ethereum is the house for artists, writers, Musicians, gamers, companies, developers, investors, and refugees. To perform actions in the Ethereum network, you need Ether(ETH), a decentralized native cryptocurrency to pay fees (the amount paid for computational power).
With Ethereum, you can:
- Have access to decentralized financial services.
- Be able to access the data anonymously without disclosing your personal details.
- Transfer money to anyone in the world without the need for intermediaries.
- Provides censorship-resistant as you can transfer the funds without the control of the government or companies.
- Have solo control over your funds.
- Build apps on the Ethereum network as it is programmable.
According to ethereum.org, almost 2970 projects are running on Ethereum with 71M+ accounts. 992.4K transactions are happening daily.
Decentralized apps (Dapps) which run on the Ethereum blockchain, use smart contracts. Smart contracts are like agreements that get executed automatically when contract terms are met. They can’t be altered and are programmed, which can also track information.
The current price of Ethereum is $1794.34 with a market capitalization of $219,579,760,929 and a market dominance of 18.56%.
- Tether (USDT): Tether is the pioneer and widely used stablecoins, which was launched in 2014. Stablecoins are cryptocurrencies that have price stability, as their value is pegged/tied to a fiat currency or commodity at 1-to-1 basis. Tether tokens provide stability and are backed 100% by Tether reserves.
Tether tokens are built on different blockchains like Algorand, Avalanche, Ethereum, EOS ,Solana and more. As per official Tether, they support fiat currencies including US dollars (USD), euros, Mexican peso, British Pound Sterling, offshore Chinese Yuan, and Gold.
The current value of Tether is $1.00 with a market capitalization of $76,330,430,232 and market dominance of 6.45%.
- BNB: BNB utility coin is issued by Binance, one of the largest cryptocurrency exchanges. It was launched in July 2017. BNB chain has its blockchain ecosystem where you can have access to different dapps and also you can stake your BNB for rewards.
BNB Chain ecosystem is enriched with various projects, dapps and multiverse. Binance burns coins (permanently removing coins from circulation) to maintain the sustainable value of the currency. The current price of BNB is $339.36 with a market capitalization of $53,582,271,448 and a market dominance of 4.55%.
- USD coin (USDC): USDC is a stablecoin that is pegged to the US dollar on a 1:1 basis, which is issued by Circle. With USDC, you will be able to withdraw 1 USDC and receive $1 in return with trouble.
Transactions can be processed 24/7 with no hassle and can be done from anywhere as USDC supports 190+ countries. USDC reserves are under the control of leading financial institutions, including Blackrock and BNY Mellon.
The crypto market is gaining popularity and almost every business is trying to enter the crypto space to create their mark in the industry. There are also lots of scams happening in the crypto industry. People with lesser knowledge of blockchain technology are falling prey to these fraudulent activities. The governments are trying to curb those activities by implementing stringent regulations.
Cryptocurrency rates are subject to high market risk and volatility. Do proper research before investing in the cryptocurrency market.