For alternative coins (altcoins), 2023 was definitely a fantastic year, and the past few months were a rollercoaster ride for both these coins and Bitcoin. Since the market is so volatile, we’ll never know what the future holds in the cryptocurrency world. Crypto was established for people to invest in coins and blockchain technology without the requirement of having intermediaries; this makes crypto trading swift and hassle-free.
Before jumping into crypto trading, engaging with reliable websites that provide additional information about price predictions and brokers’ reviews is beneficial. Alternatively, you can keep reading to find out the best coins to invest in throughout 2023!
What Is Altcoin Season?
Altcoins refer to all cryptocurrency coins other than Bitcoin, and an Altcoin Season is when altcoins outperform Bitcoin at a steady pace. This is the perfect time for many investors, but especially beginner traders, to diversify their portfolios and potentially make huge profits off lower-cost coins.
But, do remember that even in Altcoin Season, you are not guaranteed to make a profit. Altcoins are typically quite unstable and with the volatile crypto market, losses can still be expected during Altcoin Season. Many traders often fall into the FOMO (fear of missing out) trap which causes them to make rash decisions that are based on emotion rather than logic.
It is not entirely known why Altcoin Season happens but it has been theorised that as Bitcoin becomes more stable, traders who are seeking more profitable investment opportunities will switch to altcoins, which can be a big contributing factor. You can find out whether it is currently Altcoin Season through various cryptocurrency websites.
It’s important to understand what Altcoin Season is and when to expect it as this can dramatically impact your crypto profits. Of course, it’s impossible to predict when an Altcoin Season will happen or determine how long it will last, but if you do thorough research and regularly analyse the market, then you’ll have a much better chance of profiting off altcoins.
The Top Ten Coins You Should Consider Investing In
With a seemingly endless list of crypto coins available, it can be daunting, especially for new traders, to choose a handful to help build up their portfolios. Although no one truly knows which cryptocurrencies will rise in value and which will fall, experts have gathered market data to make informed predictions and identify coins that have the most potential. Here are ten cryptocurrencies that could prove to be worthwhile investments in 2023:
1. Bitcoin
Bitcoin was first introduced to the public by an anonymous group of developers in 2009 and has since taken the crypto world by storm. With a market capitalisation of approximately $665 billion dollars, it is the most popular cryptocurrency in the world.
Due to its high acceptance rate, it is one of the most secure investments for newcomers to the crypto world. The Bitcoin network is one of the first blockchain networks to emerge, and it was created primarily to serve as a decentralised platform for money exchange. After becoming the first virtual currency to have worldwide success and popularity, Bitcoin has paved the way for other cryptocurrencies. Typically, new traders will invest in Bitcoin first as it is widely considered a reasonably ‘safe’ investment.
2. Ethereum
Ethereum is an open-source blockchain that was invented by Vitalik Buterin in 2014 and designed to be scalable and programmable. This cryptocurrency is extensively utilised for a wide range of decentralised applications. Moreover, it is the second most popular cryptocurrency in the world, and it’s often referred to as a “more adaptable and safe” alternative to Bitcoin, making it appealing to beginner traders.
Unlike Bitcoin, the Ethereum network is a more complicated blockchain ecosystem that handles much more than money exchanges. The Ethereum blockchain, for example, employs “smart contracts” to completely eliminate the need for centralised authority. As of September 2023, Ethereum switched from proof of work to proof of stake, making it a less energy-intensive option for traders.
3. Ripple
In terms of speed, Ripple is the most well-known cryptocurrency. The currency’s creators created the Ripple network as a mechanism to send money around the world quickly and securely. For transfers, they employ the RTXP protocol. Ripple is one of the few cryptocurrencies designed specifically for banks and other big financial organisations.
Ripple Labs, the Ripple coin’s developer, already has ties with hundreds of different institutions, allowing them to transmit cross-border payments without the need for expensive middlemen. Ripple enables these organisations to move funds more quickly and at a lower cost, making it another worthy coin to invest in.
4. Bitcoin Cash
First released in 2017, Bitcoin Cash is simply a fork of Bitcoin, the world’s most popular cryptocurrency. Bitcoin Cash has a number of advantages over the original coin, including the fact that transactions are quicker, cheaper, and more dependable. It’s also the most comparable cryptocurrency to Bitcoin. Many investors are seeking alternative investments in the crypto industry as the price of Bitcoin rises. The Bitcoin Cash blockchain is kept safe by regular network upgrades to satisfy demand.
Various BCH price predictions have even shown that Bitcoin Cash has a chance of surpassing $500 in 2023, so it can be suggested that this coin has a lot of potential that is yet to be reached.
5. Solana
Anatoly Yakovenko, a former Qualcomm employee, invented the Solana coin in 2017. Solana is a blockchain network that boasts one of the quickest transaction speeds in the industry and has a market cap of over $30 billion. It has a block time of 400ms and can handle 50,000 transactions per second.
The Solana currency is one of the probable Ethereum replacements, and it has a lot of promise in the future. Some experts have argued that it could even be better than Ethereum. This is because the network achieves agreement via a unique proof-of-stake and proof-of-history approach, which allows for improved overall efficiency. Additionally, Solana transactions are significantly cheaper than Ethereum, making it appealing to beginner traders in particular. Price predictions have anticipated Solana to reach a value of over $250 by 2025 and $350 by 2030.
6. Chainlink
The Chainlink network’s cryptocurrency is called Chainlink. The Chainlink network seeks to simplify smart contracts by providing businesses with high-quality and trustworthy data feeds so that they may utilise that data to establish contracts worth billions of dollars. These feeds can include everything from financial market data to weather reports and even sports scores. Smart contract applications in the blockchain realm frequently rely on multiple datasets for real-world data validation, and Oracle networks are commonly used for this.
7. Litecoin
Litecoin is a promising coin that has a supply cap of $84 million and has been dubbed as the “silver to bitcoin’s gold” due to its prominent similarities to the coin. However, it does differ in several ways and has a much faster target block time of 2.5 minutes (compared to Bitcoin’s 10-minute targeted block time).
Additionally, the devices used to mine Litecoin are much harder and more expensive to produce compared to Bitcoin. Despite this, Litecoin can still be considered a great investment for beginners (as well as advanced traders) since it has already proved itself to be resilient in the volatile crypto market.
8. Monero
Even if a user’s address is publicly known, the network on which it functions fundamentally covers information like the amount in crypto wallets or the type of transactions a user has been doing on the blockchain.
Established in 2014, Monero is widely used nowadays. The Monero network encrypts sender information via ring signatures, making it virtually hard to track down the original source of cash. There have been multiple alterations made to this coin since 2014 including an upgrade that will reduce wallet sync duration, speed up transaction times, and improve the network’s overall security.
“Congratulations on a successful network upgrade! 🎉 #Monero is now more private and efficient with ringsize 16, Bulletproofs+, and view tags!
Make sure your node/wallet is updated to continue using Monero. Privacy and fungibility matter, and it’s exciting to keep improving!”
– @Monero – August 13th 2022
9. Cardano
Cardano is a public blockchain ecosystem that has only recently begun to support smart contracts. The Cardano network is a fresh participant in the arena, compared to other well-known currencies that have had this ability for years.
The Cardano Foundation’s CEO, Frederik Gregaard, has stated that the foundation is focused on guaranteeing “maximum adoption and greatest value” to reach individuals in underdeveloped nations. As a result, Cardano is one of the first currencies designed specifically for the needs of underdeveloped countries.
10. Polkadot
Polkadot is a blockchain-based cryptocurrency that enables distributed computing. The Polkadot network operates because it has a core relay chain that coordinates parachains. Developers can use parachains to create chains for specific reasons, such as social networking, finance, and other jobs. These parachains are then connected to the central relay chain and are able to communicate with each other.
The Polkadot network also offers on-chain governance, which gives users more say in the network’s future evolution. Forkless updates are also available on the network. Despite being a lesser-known coin, Polkadot is another one of the best cryptocurrencies to invest in during this bear market.
To Conclude
So, there you have it! These are the best cryptocurrencies that we recommend for beginner traders to invest in during this bear market in 2023.
Many new and inexperienced traders make the common mistake of investing all their money into a single coin such as Bitcoin. Although this can be profitable, there is a larger chance of losing all your investments at once if that particular coin happens to crash.
By choosing a variety of different altcoins to invest in, you can minimise the overall price volatility of your portfolio. Our recommendations have their own set of unique attributes, market value, and user bases, making them perfect for traders who want to diversify their portfolios and potentially make a significant profit overall.
We highly recommend that you do your own research on various coins and digital assets before investing your own money and always remain vigilant when trading.
Please note that this article is not investment advice. The crypto market is incredibly volatile, and making a profit is never guaranteed, so proceed at your own risk. Always consult a professional and never invest any money that you aren’t willing to lose.