Cryptocurrency, the digital revolution that operates independently of governments and financial institutions, has become a prominent force in the ever-changing financial landscape. Powered by blockchain technology, this form of digital money is spearheaded by Bitcoin, which holds an unrivaled position in the world of cryptocurrencies. While cryptocurrency can be used for everyday transactions, it’s also a lucrative long-term investment.
In this rapidly evolving environment, staying informed is crucial. When entering the world of cryptocurrencies, Bisq stands out as a decentralized and peer-to-peer platform gaining recognition as one of the top choices for purchasing these digital assets.
So before you embark on your thrilling journey into this realm, let's delve into what drives cryptocurrency and why navigating its path may be more exhilarating than anticipated. Remember to use the best crypto exchanges when embarking on your crypto journey.
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7 Best Cryptocurrencies
Bitcoin (BTC)
Cryptocurrency is a relatively new type of asset class that emerged in 2009. The year 2022 demonstrated the high volatility associated with this form of investment, so individuals seeking to safeguard their holdings from catastrophic losses may prefer to invest in more established cryptocurrencies.
Among these, the best cryptocurrency Bitcoin stands out as the most well-known and widely accepted option. With a market capitalization of approximately $500 billion.
Bitcoin's popularity is evident in its integration into various publicly traded financial instruments. Notable companies like MicroStrategy Inc. (ticker: MSTR) and Tesla Inc. (TSLA) hold Bitcoin on their balance sheets alongside traditional stocks, further solidifying its mainstream acceptance.
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Despite experiencing a significant decline of 64% in value in 2022, Bitcoin has made an impressive recovery throughout 2023 by rallying to 56.1% as of September 10th.
In the early months of 2023, BTC was already performing well. However, it experienced a surge in gains in March when the government assured depositors at Silicon Valley Bank that they would have full access to their funds despite the bank's failure.
This decision by the federal government to guarantee liquidity for the tech and startup-focused lender positively impacted confidence levels not only in the banking sector but also in cryptocurrencies.
As we progress through 2023, crypto has proven to be an incredibly profitable asset class. The overall market upswing combined with decreased trust in traditional financial institutions has increased confidence in assets like Bitcoin.
Bitcoin emerged as a response to the global financial crisis and subsequent bank bailouts, positioning it as an attractive investment option for many individuals seeking stability and security during uncertain times.
Ether (ETH)
Ether , the second-best cryptocurrency by market capitalization, is the primary token utilized on the Ethereum blockchain, a widely adopted platform. Referred to colloquially as Ethereum, ETH currently holds a market cap of approximately $190 billion and represents around 19% of the total cryptocurrency market.
Diverging from Bitcoin's singular function as a tool for peer-to-peer payments, Ether operates within an expansive network designed specifically for smart contracts and decentralized finance instruments. It caters to Web 3.0 applications and enables trading of Non-Fungible Tokens (NFTs).
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In contrast to Bitcoin's limited utility as a speculative asset and store of value, Ether possesses inherent usefulness due to its role as the native currency within a prevalent ecosystem.
Ethereum's transition from an energy-inefficient proof-of-work protocol to a more efficient proof-of-stake system positions it favorably against BTC in an increasingly environmentally conscious world. As of September 10th, 2023 alone, Ether has experienced growth of 35.1%.
Avalanche (AVAX)
When venturing into the realm of best cryptocurrency investment, it’s crucial for investors to grasp the distinction between Bitcoin and Ether. While the cryptocurrency AVAX and the alternative coins listed here offer potential opportunities, investors need to acknowledge their increased risk before making any decisions.
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The divergent performance between BTC, ETH, and the broader market in 2023 has been evident, while Bitcoin and Ethereum have fared quite well, other cryptocurrencies have struggled to keep pace. Consequently, AVAX and its counterparts should be viewed as purely speculative bets.
That being said, AVAX's presence on this list is justified by Avalanche Network's ambitious aspirations. The introduction of Avalanche's subnets feature allows users to establish their mini-blockchains atop this network.
Ava Labs envisions a future where numerous mainstream businesses and individuals will seek independent blockchains. Avalanche subnets provide an efficient solution to this need. Should this vision come to fruition in reality, AVAX could potentially emerge as a winner over time.
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Polygon (MATIC)
Polygon's native best cryptocurrency, MATIC, has emerged as the 11th-largest digital asset by market capitalization, excluding stablecoins. With a current market cap of approximately $4.7 billion, MATIC holds less than 1% of the total crypto market size. However, this scaling platform, Polygon, still has significant growth potential. Its success in the future largely hinges on how widely accepted and utilized the Ethereum network becomes.
The primary objective of Polygon is to enhance Ethereum's capabilities by serving as a scaling solution. This allows for an increased capacity to support countless decentralized applications (dApps) in due course.
Like most other tokens in 2022, MATIC experienced a price decline throughout the year, with its value plummeting by 70%. The token initially benefited from the overall recovery observed in crypto prices until early June, when it encountered setbacks related to regulatory issues.
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The Securities and Exchange Commission's lawsuit against Coinbase Global Inc. (COIN) claimed that MATIC and several other altcoins were unauthorized securities operating within legal boundaries.
Cardano (ADA)
Established in 2017 by Charles Hoskinson, one of the co-founders of Ethereum, Cardano is a proof-of-stake blockchain that utilizes a more energy-efficient protocol. It’s renowned as one of the largest blockchains successfully implementing this system. The primary objective of Cardano is to create an ecosystem that promotes the development and adoption of decentralized applications (dApps).
In contrast to Ethereum, Cardano has imposed a strict limit on the number of coins circulated. This cap stands at 45 billion coins. Fortunately for investors, around 35 billion coins, which account for approximately 78% of the supply, have already been circulated. The dilution moving forward is quantifiable and relatively restrained.
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Cardano has garnered recognition as one of the top cryptocurrencies to invest in. Although it experienced an 81% decline throughout 2022, its performance stabilized in 2023 with a year-to-date gain standing at an impressive rate of 1% as observed until September 10th.
When excluding stablecoins from consideration, Cardano currently holds fifth place among all cryptocurrencies based on market capitalization, with its valuation estimated at about $8.6 billion.
Cosmos (ATOM)
ATOM , the native token of the Cosmos Hub blockchain, holds the lowest market cap value. Apart from securing the network, ATOM also serves as a governance token that allows holders to contribute to shaping the future of the Cosmos ecosystem. One significant challenge in the cryptocurrency space is the existence of multiple independent blockchains.
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Cosmos aims to address this challenge by facilitating seamless and cost-effective communication between blockchains. The ultimate goal of Cosmos is to enhance accessibility to blockchain technology for developers and end-users. This objective may prove beneficial if blockchain technology becomes as widespread as some enthusiasts predict.
Despite being valued at around $2.3 billion, ATOM experienced a 71% decline during the bear market in 2022. Unfortunately, things haven’t improved for speculative investors holding ATOM coins in 2023, with prices dropping by 28.7% as of September 10th.
Chainlink (LINK)
Chainlink employs a decentralized oracle network to enable secure interactions between blockchains and external data feeds, events, and payment methods. The developers aim to establish smart contracts as the primary form of digital payment. This information is according to CoinMarketCap.
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One advantageous aspect of Chainlink is its strategic collaboration with Google. As reported by Benzinga, Google utilizes Chainlink's protocol to connect users with its cloud services.
Chainlink has been chosen as the preferred option for Truflation's new inflation index. Truflation is a decentralized finance company that aims to provide an alternative to the Consumer Price Index (CPI).
Unlike CPI, which relies on survey data, Truflation's index utilizes over 40 different sources and 10 million data points to measure inflation dynamically, accurately, objectively, and transparently.
Chainlink Labs benefits from guidance from prominent advisors such as former CEO of Google Eric Schmidt, Tom Gonser, who founded DocuSign, and Jeff Weiner, who served as CEO of LinkedIn.
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Best Crypto to Buy Now – Buyer’s Guide
What Are Cryptocurrencies?
Digital currencies known as cryptocurrencies utilize encryption for security purposes and operate using decentralized blockchain technology. Governments or central banks don’t control these currencies, and their availability is limited. Users store and manage their cryptocurrencies in digital wallets.
The prices of cryptocurrencies experience significant volatility, and they serve a range of purposes, from acting as digital stores of value to supporting decentralized applications. While they provide global accessibility, they face regulatory obstacles in numerous jurisdictions. Individuals must comprehend the potential risks and advantages before engaging with cryptocurrencies.
How Does Cryptocurrency Work?
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Cryptocurrencies encompass diverse types of digital currency that typically rely on blockchain technology. Blockchain technology facilitates the existence of most cryptocurrencies as decentralized transactions, eliminating the need for a central authority to oversee them.
In 2009, an individual known as Satoshi Nakamoto, widely believed to be a pseudonymous computer programmer, developed Bitcoin - the first cryptocurrency in the world.
Why Are There So Many Cryptocurrencies?
The realm of best cryptocurrencies is rapidly growing, boasting over 22,000 crypto projects as of June 2023.
While specific cryptocurrencies serve as actual currencies, others play a vital role in infrastructure development. Take Ethereum or Solana, for example, developers utilize these platform currencies to build additional cryptos, opening up many possibilities and expanding the crypto landscape further.
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How to Report Crypto on Taxes?
If you engage in the buying and selling of coins, take into consideration the regulations regarding cryptocurrency taxes.
Cryptocurrency is a capital asset, similar to stocks, rather than actual cash. This implies that you must pay capital gains taxes if you sell cryptocurrency and profit from it. This applies even if you use your crypto to make a purchase. If the value you receive for your crypto exceeds what you originally paid, then you will be liable for taxes on the difference.
Where to Buy, Sell, and Trade Crypto?
Cryptocurrency exchanges function as virtual marketplaces where individuals can purchase, sell, trade, and oversee cryptocurrencies. These platforms act as intermediaries, facilitating the transfer of digital assets among users. Below are a few top-notch crypto exchange platforms for trading:
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Bisq , an innovative cryptocurrency exchange, differentiates itself by prioritizing privacy and security. Unlike traditional exchanges, Bisq operates decentralized without a central authority. This unique approach ensures heightened security and resistance to censorship.
What truly sets Bisq apart is its unwavering commitment to privacy. It employs state-of-the-art end-to-end encryption for all communications and doesn’t require users to create accounts or provide personal information. Bisq doesn’t enforce the Know Your Customer (KYC) verification process.
Despite its robust privacy measures, Bisq remains user-friendly and accessible to traders of all experience levels. Whether you're a seasoned pro or just starting on your cryptocurrency journey, Bisq offers a decentralized trading platform that prioritizes security and privacy. If you value these qualities in your trading experience, look no further than Bisq as your top choice for secure and private cryptocurrency trading.
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Cash App , a mobile payment application developed by Square Inc., offers various financial services. With its efficient money transfer feature, Cash App simplifies everyday transactions, allowing users to send and receive funds quickly. What makes Cash App stand out is its seamless integration of Bitcoin functionality, enabling users to directly buy, sell, and invest in the cryptocurrency through the app.
Known for its user-friendly interface, Cash App appeals to a diverse audience, including those new to digital currencies. Cash App provides users with the convenience of requesting and using a physical Cash Card that’s linked to their account for making purchases and ATM withdrawals.
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Cash App is an excellent choice if you're looking for an easy-to-use mobile payment app that provides seamless access to Bitcoin. Its straightforward design and versatile features make it an ideal option for individuals seeking simplicity combined with the benefits of digital currency integration.
eToro is a well-known online trading and investment platform that offers a wide range of financial assets, including cryptocurrencies. eToro stands out from the crowd thanks to its unique social trading feature, which allows users to follow and automatically copy the strategies of experienced investors. This makes it an attractive choice for those seeking passive investment opportunities and the chance to learn from seasoned traders.
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In addition to cryptocurrencies, eToro provides access to more traditional asset classes like stocks, commodities, and indices. This allows users to build diversified investment portfolios tailored to their specific goals. eToro fosters an active user community that encourages discussions, analysis, and the exchange of valuable insights among traders and investors alike.
How We Choose the Best Cryptocurrencies to Buy
Narrowing down the extensive range of cryptocurrencies to just a handful can be quite daunting. In compiling this list, we aimed to highlight a diverse array of cryptocurrency ventures, encompassing established and more speculative projects with great growth potential. Here are the key criteria we considered when selecting which cryptocurrencies to include.
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Availability
A cryptocurrency's accessibility on multiple centralized or decentralized exchanges is crucial. Directly trading cryptocurrency with fiat currencies simplifies the buying and selling process.
Market Capitalization
All the cryptocurrencies mentioned in our compilation of the top picks for investing in 2023 fall within the 100 most valuable digital assets based on market capitalization. It's important to note that a high market capitalization alone doesn't guarantee the project's excellence.
Nevertheless, it indicate significant community engagement and makes these coins less susceptible to manipulation since influencing their prices would demand substantial amounts of money. This selection prioritizes cryptocurrencies with established popularity and stability in an ever-changing market landscape.
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Sector Leadership
The best cryptocurrency market encompasses various sectors, including Proof-of-Work and Proof-of-Stake cryptocurrencies. These two approaches play a significant role in establishing decentralized consensus. Other sectors are to consider, such as decentralized finance, Non-Fungible Tokens (NFTs), layer two projects, meme coins, and more.
Our objective was to showcase leading projects within each sector to demonstrate the diverse nature of the crypto and blockchain space.
Working Products
To ensure the authenticity of the cryptocurrency we’re showcasing, it must already have a functional product in place and not solely reliant on future promises. In cryptocurrencies, we generally avoid promoting coins that have yet to establish a working mainnet. As for tokens, we focus on those utilized as utility tokens within an operational product or as governance tokens in an actively used decentralized protocol.
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On rare occasions, we may feature coins that are soon to launch their mainnet or key product. However, this is limited to top-tier projects highly anticipated by the crypto community.
Team and Development
Most reputable crypto and blockchain projects are open and honest about their team members and qualifications. We prioritize showcasing projects that have been created and overseen by highly skilled individuals. We place great importance on a project's level of activity. If a project is actively being developed, it’s far more likely to be featured compared to one that only sees occasional improvements.
However, it's worth noting that anonymity regarding a project's team or founders isn’t necessarily a dealbreaker in every instance. After all, the creator(s) of Bitcoin still remains unknown to this day.
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Best Crypto to Buy Now – FAQs
What Are Altcoins?
When considering cryptocurrency, our initial thought typically revolves around Bitcoin. This is mainly because Bitcoin holds a majority stake in the overall cryptocurrency market. Hence, when discussing any other cryptocurrencies apart from Bitcoin, they’re commonly referred to as altcoins. One notable example of an altcoin is Ethereum, which holds a prominent position as one of the most widely recognized alternatives to Bitcoin.
Why Are Cryptocurrencies Important?
The original intention behind cryptocurrency was to address the issues present in conventional currencies. However, due to the development of blockchain technology, numerous utility cryptocurrencies have emerged.
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Are There Cryptocurrency Exchange-Traded Funds (ETFs)?
With the vast number of digital currencies available and their tendency to fluctuate greatly in value, it’s natural to seek a diversified strategy when investing in cryptocurrency. This approach aims to reduce the risk of financial loss.
While there are Exchange-Traded Funds (ETFs) that deal with Bitcoin futures, direct trading ETFs for Bitcoin or other cryptocurrencies are currently not available due to regulatory obstacles. In June 2023, BlackRock put forth a proposal for an ETF focused on spot trading of Bitcoin. However, it still awaits approval from regulators.
Final Thoughts – Best Crypto to Buy Now
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Determining the best cryptocurrency to invest in largely depends on your personal risk tolerance and investment objectives. If you’re seeking cryptocurrencies with long-term growth potential, established options such as BTC and ETH would likely suit you.
For those with a higher appetite for risk, exploring investments in cryptocurrencies valued below one cent or participating in the latest crypto presales might be tempting.
Acknowledge that the cryptocurrency market experiences significant volatility, making investments inherently risky. Conduct thorough research and evaluate your financial circumstances before committing any funds. Never investing more than what you’re prepared to lose is essential.
Please note that these recommendations are general guidelines. Individual factors should always inform investment decisions regarding cryptocurrencies.
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Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.
