What digital currency should i buy? If you’re considering investing in cryptocurrency, it’s important to do your research and carefully consider your options before making a purchase. In this article, we will delve into the different types of cryptocurrencies available and examine some of their advantages and disadvantages so that you can make an informed decision about which one is right for you.
What Digital Currency Should I Buy?
Investing in cryptocurrency can be an attractive option for those looking to diversify their portfolio or make long-term investments. With so many options available, it can be difficult to know which ones are the best to invest in.
Some of the top cryptocurrencies to consider investing in for 2023 include Bitcoin, Ethereum, Litecoin, Ripple, Cardano, Polkadot, Binance Coin and Chainlink. Each of these cryptocurrencies offer unique features and benefits that could potentially lead to significant returns over time. Before investing in any cryptocurrency it is important to do your own research and understand the risks associated with each one.
1. Bitcoin (BTC)
Bitcoin is the longest-running cryptocurrency and is popular due to its high price and market cap. Businesses accept it as a payment method and banks are now incorporating Bitcoin transactions into their services. Its advantages include being easy to use, secure, decentralized, not subject to government control or manipulation, and having fluctuating value that can lead to potential profits for investors.
2. Ethereum (ETH)
Ethereum is a blockchain-based network that has become the most popular of its kind. It recently underwent an upgrade called “The Merge”, which switched it to a proof-of-stake consensus and put an end to ethereum mining.
The Merge is a system designed to increase scalability, security and sustainability of Ethereum. It also provides users with more control by allowing them to stake coins to earn rewards when validating transactions on the network.
This will lead to faster transactions and lower fees, while enabling developers to build decentralized applications (dApps) on the Ethereum platform. This will ensure Ethereum remains one of the top blockchains in the world.
3. Binance Coin (BNB)
Binance Coin (BNB) is a cryptocurrency that has seen tremendous growth in 2021, rising from around $38 to an all-time high of $683. This makes it one of the more stable investments in the volatile world of cryptocurrencies.
BNB is the native token on Binance, the world’s largest cryptocurrency exchange, and its success has been bolstered by its extensive functionality and integration into various Binance sub-projects.
Despite its stability, BNB remains a highly volatile investment and investors should be aware of this before investing. One thing that works in favor of BNB is that Binance burns coins once per quarter, reducing the coin supply and creating scarcity which can have a positive effect over time. The most recent burn took place on October 13th 2022 and reduced the coin supply by over 2 million tokens, worth nearly $600 million.
4. Cardano (ADA)
Cardano (ADA) is a blockchain-based cryptocurrency that has experienced increasing popularity due to its faster, cheaper transactions. In 2021 and 2022, Cardano launched upgrades hard forks to improve scalability and launch AdaSwap, a decentralized finance app platform.
Cardano is an efficient and cost-effective network for transactions, making it a viable option for investors. AdaSwap and hard forks have further enhanced its attractiveness, building on its original energy efficiency.
5. Polygon (MATIC)
Polygon is a scaling and infrastructure development platform for Ethereum, supported by cryptocurrency exchange giants such as Binance and Coinbase. The team has launched the Polygon zkEVM, which improves transaction speed, verification and gas fees through the use of zero-knowledge proofs cryptography. MATIC tokens are used to pay for services and fees on the network.