Cryptocurrency has been a trending topic in India for the past few years. Despite experiencing an investment decline within the country of up to 75% in 2022, discussions of an impending cryptocurrency bill signal that it is here to stay among investor portfolios. Furthermore, experts are hopeful as they predict that there will be an upsurge in the value of certain digital assets, as well as the number of crypto users in the near future, given the introduction of disruptive new platforms like the Metaverse. In line with this, it may be wise for investors to start reinvesting in cryptos now.
Of course, considering how prevalent cryptocurrencies are, it can be challenging to keep track of which ones to watch out for. As such, this article explores why it’ll be beneficial to start investing in cryptocurrencies again and which digital assets you should know about.
Why should you invest in cryptocurrency in 2023?
Unlike many countries that remain anti-crypto, India has begun holding sessions regarding the regulation of Web3 elements, specifically regarding the use of blockchain and investments in cryptocurrencies. Government officials, along with other lawmakers, have expressed their approval of digital assets, citing that these may be part of the biggest push needed by the country to reach a 500,000-crore economy. However, apprehensions are still present, considering its volatile nature. The country’s leaders continue to warn citizens to approach cryptocurrencies with caution in order to maximize benefits and reduce risks.
How are viable cryptocurrencies determined?
As of today, there are around 25 to 30 million virtual digital assets (VDA) investors in India. The majority of those engaged in cryptocurrency trading choose cryptocurrencies based on a range of factors. This includes a cryptocurrency’s liquidity, volatility, market capitalization, and technological features. Several digital assets show a high level of liquidity, making them the preferred choice for investors. Additionally, through fundamental and technical analysis, there are assets that remain stable over numerous time frames, making them “safer” choices for entry. With these factors in mind, here is a quick guide on 10 of the best cryptocurrencies in 2023, listed according to their value.
Which cryptocurrencies should you invest in for 2023?
Bitcoin is the most recognizable cryptocurrency worldwide, making it the most stable and the most expensive. It is also the most secure due to encryption that discourages fraud. With the general public already accepting it as a form of payment, investors can expect to see an increase in its value in the long run. As of today, one Bitcoin is worth ₹24,51,835.
Ethereum is the second most popular asset, being the coin used in the blockchain of a similar name. Unlike Bitcoin, which is much more straightforward as a payment method, Ethereum is used for smart contracts, which are commonly used by program developers to trade non-fungible tokens (NFTs) and other applications. Due to this technology, its usage is swiftly rising. As of today, one Ethereum is worth ₹1,53,647.
Binance Coin rose to popularity as the token used to pay fees on the platform Binance. Due to a large number of platform users, Binance coin is now considered one of the more stable cryptocurrencies available. Its functionality has also expanded beyond trading, as it can now be used to pay for booking travel arrangements. As of today, one Binance coin is worth ₹19,863.
Solana was created to assist in smart contracts, decentralized apps, and decentralized finance. It has innovative “proof of history” and “proof stake” mechanisms, allowing it to handle transactions at high speed without sacrificing security and decentralization. It is often used in creating NFT applications. As of today, one Solana is worth ₹2,022.64.
Avalance was created to rival Ethereum as a coin for smart contracts. It sets itself apart by allowing blockchain users to scale infinitely, meaning that its transactions, regardless of the volume, can be finalized in less than a second. As a coin that’s relatively new, it doesn’t enjoy the same stability as Ethereum just yet, but its unique set-up has attracted many users so far. As of today, one avalanche is worth ₹1,109.98.
Cosmos is a cryptocurrency that serves as a bridge for various blockchains to transfer values with one another. It connects Web3 projects, allowing them to scale and operate with one another. Using a “proof of stake” algorithm, it can handle thousands of transactions in one second, making it ideal for developers. As of today, one cosmos is worth ₹763.98.
Polygon was initially created to assist in the high demand for Ethereum. It improves Ethereum’s transaction speed by allowing it to expand into a multi-chain system. Although deeply linked to Ethereum, its usage as a token has also increased over the years. Since various cryptocurrency exchange platforms have supported it, it can be used for payment, transaction processing, and as a settlement token. As of today, one polygon is worth ₹61.97.
Cardano first became an in-demand asset back when it was first introduced in 2018 due to its unique setup. Namely, Cardano’s transaction methods take less energy than other cryptocurrencies, making it cheaper and faster for trading. It is also used for smart contracts and is the third most popular coin used for NFTs. As of today, one Cardano continues to be a popular choice among traders, worth ₹25.79 per coin.
Tron powers a decentralized blockchain-based system that directly oversees digital asset transactions from content creators. It utilizes blockchain technology’s peer-to-peer (P2P) network to help the direct selling of content to consumers, eliminating the need for intermediary platforms. It covers the sales of media, such as videos, photos, music, and in-game currency. As of today, one Tron is worth ₹6.82.
Dogecoin notably rose to prominence as an internet joke in the early 2010s. Despite this, its popularity has led to its widespread acceptance. Up to now, it has a dedicated community that still uses it for various transactions. That said, Dogecoin can be riskier than the other currencies on this list as there’s currently no limit as to how many Dogecoins can be made, making it susceptible to inflation. As of today, one Dogecoin is worth ₹5.91.