Cryptocurrencies have seen massive growth in recent years. In 2021, the total crypto market capitalization exceeded $3 trillion.
Due to the current bear market conditions the total crypto market cap has retracted and is currently just over $1 trillion. While your portfolio may be looking a little sad at the moment, it won’t stay like that forever. Bear markets are typically seen as fantastic investment opportunities because they allow investors to get in at considerably lower prices. After all, buying during a bear market can pay off in the next bull market, especially if you buy the right coins and get a good entry point.
Trying to search for the right coins to invest in can be difficult. Let’s explore some of the top trending cryptocurrency coins for 2023:
Bitcoin (BTC)
How could the list not start with Bitcoin, the world’s first and largest crypto by market cap? Bitcoin will always earn a position at the top of the list. Ever since the launch of Bitcoin in 2009, the cryptocurrency has seen tremendous growth. Many investors and crypto enthusiasts refer to Bitcoin as digital gold. Bitcoin is generally said to be one of the safer options in the crypto world, largely because it is the most established coin.
Bitcoin is often considered to be a good starting point for newbies. Many argue that you should always include a small percentage of Bitcoin in your portfolio, even if it’s a small amount.
Bitcoin is currently trading at $21,300 (US Dollar), around 70% below previous All-Time-Highs (ATHs).
Ethereum (ETH)
Ethereum, which is currently the second largest cryptocurrency, has unquestionably earned a spot on the list of trending coins. This alternative cryptocurrency has gained attention for a variety of different reasons. Ethereum provides a wide range of real-life applications that make it a popular investment choice.
Furthermore, the Ethereum Merge is set to make the crypto more eco-friendly by transitioning away from mining to a Proof-of-Stake (PoS) consensus mechanism, which could cause the price to spike.
Polygon (MATIC)
Polygon was developed in 2019 to alleviate a number of issues hindering the Ethereum blockchain, including poor transaction speeds and excessive gas fees. MATIC is an ERC-20 token and is the Polygon network’s native cryptocurrency that is mainly used for transaction fees and staking. Polygon enables developers to build scalable user-friendly decentralized apps (dApps) with low transaction fees without ever sacrificing on security. Many investors believe that Matic will benefit from the hype around the Ethereum Merge.
Solana (SOL)
Solana (SOL) is the native token of the Solana network. SOL is powered by a combination of Proof-of-History and Proof-of-Stake algorithms. The main problem Solana was attempting to solve was Ethereum’s scalability issues. Solana has smart contract capability. It is, therefore, popular amongst developers who use it to build dApps.
Decentraland (MANA)
Play-to-Earn (P2E) games have been a hot topic in the news lately. Decentraland is said to be one the most popular, if not the most popular Play-to-Earn (P2E) game in the world. The decentralized virtual reality platform is powered by the Ethereum blockchain. Within the Decentraland platform, users can buy, sell and trade land and other assets using MANA, Decentraland’s cryptocurrency token.
Algorand (ALGO)
Algorand is a blockchain cryptocurrency protocol that is based on a POS consensus mechanism. The Algorand blockchain is a public, decentralized, Proof-of-Stake blockchain that allows for customized layer-1 blockchains. The network can be used to make blockchains to be used for specific purposes. The project says that its technology is especially useful for financial services, institutions, Decentralized Finance (DeFi), and fintech.
BNB
BNB is the cryptocurrency coin that powers the BNB chain ecosystem.
As one of the worlds most popular utility tokens, not only can you trade BNB like any other major cryptocurrency, you can also use BNB in a wide range of applications and use cases.
Some features example:
- Reduced trading fees on the Binance Exchange
- Pay for trading fees on Binance DEX (Decentralized Exchange)
- Pay for transaction fees on the BNB smart chain
- Pay for goods and services for both on-line and instore purchases (using Binance Pay)
- Participate in token sales hosted by the Binance Launchpad
Polkadot (DOT)
Polkadot is a blockchain that is open source and provides interconnectivity and interoperability between other blockchains. It does this by enabling independent blockchains to securely exchange messages and perform transactions with each other without the need for a trusted third party. This enables cross-chain transfers of data or assets, between several blockchains, as well as the construction of cross-chain dApps utilizing the Polkadot Network.
ApeCoin (APE)
ApeCoin (APE) is an Ethereum-based cryptocurrency linked to the Bored Ape Yacht Club NFTs, one of the most successful NFT projects to date. Bored Ape Yacht Club is a collection of non-fungible tokens (NFTs) that consists of 10,000 NFTs. The token was created to support the evolution of art, gaming, music, entertainment, digital and physical events, storytelling, and everything else web3.
Avalanche (AVAX)
Avalanche is an open, programmable smart contracts platform for dApps. Avalanche is committed to providing a blockchain solution that is scalable while preserving decentralization and security. The AVAX utility token serves as the Avalanche ecosystem’s medium of exchange, meaning that the token is used as native currency within the Avalanche network.
Where Should I Buy Crypto?
You won’t be able to purchase cryptocurrency via your neighborhood bank, stock exchange, or investment firm; rather, you will have to do so through a specialized marketplace.
A cryptocurrency exchange is a specialized marketplace that offers the ability to buy, sell, and even swap cryptocurrencies such as Bitcoin, Ether, and XRP.
Read our article here to find the best, most secure crypto exchange to purchase your crypto.
How Much Should I Invest In Crypto?
It goes without saying: You should never invest more than you are willing to lose in any investment. The cryptocurrency market is still very new and highly speculative in its youth. There is no way to predict whether the price of a cryptocurrency will go up or down in the short-term or even at all.
Additionally, in contrast to fiat currencies, which are supported by governments or other legal bodies, there is no centralized authority that ‘protects’ the value of cryptocurrencies in the event of a crisis. It is possible to sustain significant losses when trading cryptocurrencies or holding an interest in them.
At the end of the day, losses can exceed your initial investment, which is why you should never risk more than you can afford.
Avoid taking advice from influencers
Always try to avoid listening to the words of wisdom or taking advice from any person on Twitter or other social media platforms, many of these people are heavily invested in a particular coin and will often provide false hope.
Don’t make trading decisions based solely on the news
Many traders recommend sticking to charts, technicals and fundamentals instead of relying solely on the news for making decisions. Experienced traders have plenty of technical tools at their disposal to generate profits regardless of how the news unfolds.
If you do your own research and only risk what you can afford to lose, you’ll likely save yourself from a ton of unnecessary money and stress down the line.
Always be sure to keep an eye on volatility and make sure you are responsible and do not risk more than you are willing to lose. Don’t forget the old trading adage: Buy low, sell high.
About RR² Capital
RR² Capital is a Lisbon-based Venture Capital (VC) firm empowering the ‘new internet’. RR² specializes in disruptive technology spaces such as decentralized ledger technology, Artificial Intelligence (AI), machine learning and virtual assets. They believe that many traditional businesses and organizations will implement these technologies, adding immense value to the core of those businesses.
RR² Capital’s mission is to capture value by investing in early stage projects and teams who are leading innovation and disruption within the Web 3.0 space. The team operates a strategy centered on a long-term vision, developing long standing relationships, utilizing trusted advisors in decision-making, building an integrated network of first-movers and instilling the trait of flexibility in its team.
This has positioned RR² Capital as experts in value creation, reporting 1,011% returns across a portfolio of 140+ investments in 2022.
For more information about RR² Capital and our expansive disruptive technology-focussed investment portfolio, visit our website here or send us a mail here.
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