What coins are a good investment right now? Today, almost any Internet user has heard at least once about the opportunity to make money on cryptocurrencies. Theoretically, it looks easy: buy on a dip, sell on a peak. Moreover, buying crypto for fiat is no longer a problem, as well as exchanging USDC to ETH or another coin. The question is different: how to choose the right moment to invest and which coin to buy now.
Should you buy cryptocurrency now?
According to financial experts, the best time to buy cryptocurrencies for investment purposes has not yet expired. In 2022, the quotes of many digital currencies have noticeably decreased, and this was a good period for buying. At the beginning of 2023, there were noticeable signs of recovery in the market.
The market crash in the summer of 2022 was caused by various factors, including:
- Military operations in Ukraine
- Anxiety about economic recession
- Rising inflation in the world
- Raising interest rates by central banks
Political instability in Europe and the disruption of global economic processes caused a massive drop in cryptocurrency quotes. Over the summer, Bitcoin teetered on the brink of falling below $16,000 per coin, while Ethereum tested the $900 level. Market processes are cyclical, a fall is always followed by a period of growth, and 2023 began quite optimistically.
The task of the investor is to determine the moment of a reversal in the direction of growth when prices are still close enough to the minimum. The main difficulty lies in the high volatility of the crypto market and its excessive sensitivity to too many factors, ranging from objectively existing economic problems to the emotional statements of influential people. That is, a coin can rise in price and become cheaper at times in a matter of days.
Top 5 cryptocurrencies to invest in right now
During January 2023, the cryptocurrency market began to grow and more and more technical signals about a trend change are being formed every day. Despite optimistic expectations, it should be borne in mind that quotes may still decline and you should not panic about this. Consider a rather conservative version of the list of cryptocurrencies with long-term growth prospects.
When it comes to long-term investments, Bitcoin remains unrivaled. Since the beginning of 2023, coin number one has already gained over 40% in price. In the long term, further growth is expected. A lot of expectations are associated with the upcoming halving, which will take place in late spring 2024. In the long run, a decrease in supply contributes to an increase in the price of an asset. It is also important that large investors, financial organizations, and even the governments of some countries are increasingly using Bitcoin to diversify risks and receive passive income.
Ethereum is an equally attractive option for long-term investments. The effect of the launch of Ethereum 2.0. has not yet manifested itself in full, but this is already a matter of the foreseeable future. The updated blockchain can process up to 100,000 transactions per second, which significantly increases the throughput of the blockchain compared to the previous version.
The growth of Ethereum is also facilitated by the development of metaverses. Interest in the metaverse attracts new users and expands the possibilities of using smart contracts. In the long term, the quotes of the coin will grow. Experts predict further growth in the value of Ethereum in the coming years.
The XRP token is quite stable in the TOP-10 most capitalized cryptocurrencies and lists recommended for long-term investments. The project was originally created as a tool to improve the existing banking system, and over 50 leading players in the global financial industry are already using the network’s services.
The Solana blockchain is not yet very popular, and repeated technical failures of the network have significantly damaged the reputation of the project. However, the platform uses very promising technologies and has the potential to become one of the big players in the dApps segment in the future. Analysts believe that in the next few years, multiple increases in the price of the coin are quite possible.
Polkadot is a fairly developed ecosystem. The project is aimed at solving one of the most acute problems of the crypto world – the problem of fragmentation of blockchains. As long as the user occasionally swap HNT to USDC as part of an investment strategy, this is not very noticeable. However, the possibility of blockchain integration and the possibility of fast and secure cross-chain data exchange will significantly speed up the adoption of cryptocurrencies. According to cryptanalysts, this ecosystem has huge potential, and token quotes can grow very quickly in the near future.
Photo credit: The feature image is symbolic and has been done by Seng Kui Lim.