There are new cryptocurrencies being pumped out every day, so deciding which one to invest your hard-earned money in can be tough. That’s why we aim to shine a light on some of the best-performing cryptocurrencies, including some new opportunities, as well as some publicly traded companies deeply involved in the market.
The best cryptos investments in 2023 include Ethereum, XRP, XLM, LUNA2, SOL, UNI, Riot Blockchain, Block, IBM, and Coinbase Global. Investing in both cryptocurrencies and the companies behind crypto is a good way to ensure a diverse portfolio, which can decrease your overall risk.
Just remember that the volatile nature of virtual currencies puts your capital at risk.
Ethereum (ETH)
There are several reasons to invest in crypto stocks soon. The first is the potential to gain exposure to digital assets. In the years ahead, the use of crypto as a form of money will likely increase in popularity.
While the market for cryptocurrencies is highly volatile, an excellent way to get exposure is by purchasing crypto stocks.
One of the most important benefits of investing in cryptocurrencies is the potential for huge gains. For example, Ethereum has recently seen an unprecedented price hike. At $10, it rose to over $3,550 in early 2022.
This represents an increase of over 300%. Analysts estimate that the price of Ethereum has room to increase further, especially when you consider the current Ethereum upgrade that is going to reduce the total supply of ETH in circulation, meaning the price of the asset could skyrocket if the demand keeps up.
If there’s one cryptocurrency you need to keep a close eye on, it’s ETH.
Ripple (XRP)
Ripple is a popular cryptocurrency that allows banks to make cross-border transfers instantly. Its protocol enables investors and traders to trade the currency.
You can buy XRP through a broker or a cryptocurrency exchange. This currency has contacts with major financial institutions, such as the World Bank and the European Central Bank.
For investors, Ripple is a promising investment. It is a competitor to the SWIFT banking system, a complicated and costly system used for international money transfers.
As a result, Ripple’s trading potential is significant. In addition, hundreds of institutions in 55 countries use the Ripple network to transfer funds. They are already well-positioned to capitalize on its growth.
Stellar (XLM)
When considering which cryptocurrencies to buy, consider Stellar (XLM). This decentralized protocol facilitates low-cost cross-border payments. Its market capitalization currently ranks sixth among cryptocurrencies.
Its growing popularity has attracted big players like Deloitte and Tempo Money Transfer. Despite its early struggles, Stellar is poised for growth.
Terra 2.0 (LUNA2)
We are all aware of the Terra crash that affected the entire crypto market. But, is Terra still a good investment?
Although the original LUNA token is probably not your best bet, the new Terra 2.0 blockchain token, LUNA2, was launched on May 28 as the result of a hard fork in an attempt to recover from the crash. The co-founder and parent company of Terra 2.0, Terraform Labs, is facing lawsuits and investigations in South Korea as a result of the collapse.
That being said, major crypto exchanges such as Binance and FTX have announced support for the new and improved Terra 2.0 chain. Take it for what it is, LUNA2 could potentially be the investment of a lifetime or it could just be a repeat of its past.
LUNA2 is currently sitting right around $4.33 at the time of writing this, meaning now might be a good time to get in. But, approach this new crypto with extreme caution as it presents increased volatility and poses a higher risk compared to other investment options.
Solana (SOL)
This cryptocurrency is poised for massive growth in 2023, as it’s been setting new records for several months. Despite the sell-off and decline in the past few weeks, this coin is likely to reach new highs in the years to come.
These record highs are partly due to the increased NFT activity on the blockchain. Recently, Solana has surpassed $2 billion in all-time NFT sales. As a result, the price of SOL has been increasing. If this trend continues, the value of SOL is destined to keep climbing.
If you’re interested in investing in this cryptocurrency, it’s best to check the top-rated stock market websites before deciding.
Uniswap (UNI)
Uniswap is a decentralized finance exchange that allows users to buy and sell crypto assets without the need for professional market makers. Its success is proving to be an attractive opportunity for investors.
The company is currently the largest decentralized cryptocurrency exchange globally, and it has its own native crypto asset. Since its establishment, it has increased its market cap and has more potential to grow.
Riot Blockchain (NASDAQ: RIOT)
If you want to invest in a high-growth cryptocurrency, Riot Blockchain is the one to watch.
It has been undervalued for the past couple of months but has recently turned around and is now correlated to Bitcoin. In addition, it has hit an ascending support line several times, and it is experiencing significant momentum due to the earnings season.
That’s good news for investors and traders. While most people are trying to figure out which crypto stocks to buy right now, Riot has emerged as one of the top picks.
The company recently acquired Logical Brokerage Corp., a Miami-based company registered with the Commodity Futures Trading Commission.
Block (NYSE: SQ)
Currently, one of the most promising cryptocurrencies, Block (NYSE: SQ) is engineering a fintech behemoth and designing a revolution in financial services.
The company has crafted its strategy with the long term in mind and does not worry much about short-term problems.
Although the Block ecosystem is young and still in its infancy, it has already received significant investor attention. However, the stock price has not gone up nearly as much as its competitors.
Even though Block was previously known as Square, the company has several lines of business that relate to Bitcoin and blockchain technology.
One of these lines is the Block Cash App, which lets users buy and sell Bitcoins and other cryptocurrencies. Block also offers financial services to cryptocurrencies like Afterpay, allowing consumers to finance their purchases over time.
Moreover, the company is actively researching and implementing blockchain technologies to help businesses improve their bottom line.
IBM (NYSE: IBM)
This tech giant has been one of the best performers during the recent market meltdown, and it has held up very well.
Though it has been slow to turn the tide, the company is finally starting to see results.
Its stock price has been up 45% since the pandemic began, and it is ready to make the most of the growing blockchain market. In fact, IBM shares ended the first quarter of 2023 at the same price as they had started the year.
This is an excellent opportunity for investors who are not new to the crypto market.
Coinbase Global (NASDAQ: COIN)
When it comes to investing in crypto assets, Coinbase Global (NASDAQ: COIN) might be one of the best choices.
Its recent earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.5 billion is a good benchmark to use. This figure also provides a good sense of profitability compared to other similar companies.
Moreover, a recent news story said that the United Wholesale Mortgage will accept Bitcoin as a mortgage payment.
Coinbase Global is a leading cryptocurrency exchange and recently made its first IPO.
With more than 160 altcoins on its platform, Coinbase is an excellent choice for investors.
It has been in the crypto industry for quite some time and is well-established in the business. With its impressive growth in recent years, this company is on the verge of becoming a Fortune 500 company.
Should You Invest in Cryptocurrency Stocks?
The question is, should you invest in cryptocurrency stocks? And how much should you risk? You should carefully consider your investment strategy before purchasing any crypto assets if you’re a new investor.
Ivory Johnson, a certified financial planner from Washington, D.C., recommends taking a holistic approach to cryptocurrency. This means understanding the technology behind the currency and analyzing companies’ fundamentals before investing.
Although cryptocurrency prices are wildly fluctuating, they have a low correlation with other assets. This means that they can fall dramatically on a rumor or sudden drop in value. This volatility can benefit sophisticated investors who understand the markets and can make decisions quickly.
But, on the other hand, even new investors can get crushed by it. So, the answer is: that it depends on your investment strategy and risk tolerance.