4 Cryptocurrencies to Check Out in 2023
The year 2022 was not good for Wall Street. The three main U.S stock indexes were hit with a bear market living them in a bad state. But not as bad as cryptocurrency which was hit the most. Its market value declined by $1.4 trillion last year.
But not all declines are viewed as bad for business. In the stock market, declines can be the time for buying stocks. If you are a crypto investor, this can be the time to look for investments.
When looking for an investment, choose the one with a good track record (it should be competitive and deliver profits in the long run). There are more than 21,000 cryptocurrencies listed on CoinMarketCap.com. Look for the one that will achieve positive results.
Having ushered a new year, below is a list of four cryptocurrencies that can be a good investment this year.
We all know that Ethereum (ETH 2.72) is the king of results and innovations. Over the last twelve months, it has recorded an increase in revenue of $ 3.8 billion which is seven times more than its competitor. This is according to data given by TokenTerminal.com.
One cryptocurrency that is giving other cryptocurrencies a run for their money is Avalanche. Known for its speed, it has come a long way to be a competitor of both Bitcoin and Ethereum which can process 7 and 14 transactions per second (TPS) respectively while Avalanche is capable of processing 4,500 TPS, an area that is a challenge for Ethereum.
The other advantage of Avalanche is its compatibility with Ethereum Virtual Machine (EVM). EVM is what developers use to come up with dApps (decentralized applications). Avalanche users can have access to tools they are familiar with when Avalanche EVM runs through blockchain. The other good thing is that the transaction cost is cheaper and faster compared to Ethereum.
Although in terms of numbers, Ethereum is still leading, don’t rule out Avalanche yet. If it continues offering its users a fast and affordable network, chances are it’s soon going to be among the top two crypto (Bitcoin and Ethereum).
Like Avalanche, Algorand has also shown positive results in the past year and with each day, its value is increasing. If all goes well, it might bring 200% returns to investors this 2023. Algorand developers have made sure to put more effort into dApp development which is a crucial part of crypto. It emphasizes more on decentralized finance (DeFi).
Now that we have seen the only way for a cryptocurrency to stand out is to have a competitive advantage, like Avalanche, Algorand does not disappoint. Avalanche with a 4,500 TPS does not come close to Algorand in speed. It has 6,000 TPS with its finality in a block of only a few seconds. Meaning, the Layer-1 blockchain can handle multiple transactions and validate them almost immediately.
The main difference that can be noted in Algorand with other cryptocurrencies is the fact that the developers have paid more attention to interoperability. According to them, many different blockchain networks are not compatible. So, Algorand uses its Layer-1 blockchain which acts as a bridge between the projects.
Instead of using proof of stake consensus, they have adopted pure proof of stake (PPoS.) With PPoS, users are randomly chosen to take part in the decision-making of the crypto such as creating a new block. However, you need to have ALGO tokens to participate.
In terms of security, PPoS adheres to all security measures put in place to ensure it is safe, keeping in mind its decentralization and scalability standards.
Though there is not much data regarding Algorand, it is one cryptocurrency that is growing fast and has the potential to do very well this 2023.
In third place came the IOTA (CRYPTO: MIOTA). Like its competitors Avalanche and Algorand, IOTA can change your life this year. First, not minding its value, it has the potential of being among the known cryptocurrencies that aid in payment from internet of things (IoT) devices.
As an investor, it is easier to find differentiation in IOTA. For example, while other markets use blockchain technology, IOTA uses decentralized acyclic graph consensus algorithms referred to as Tangle. Their main purpose is for validation.
Traditional blockchain technology has many disadvantages. One is noted in speed. For instance, before a new block is created, in validation, or maybe when voting on projects is required, this technology is known to reduce the speed of several networks.
IOTA does not have this limitation which is why transactions happen fast and within seconds. With more transactions, the efficiency and reliability of IOTA increase, therefore, helping in conforming to previous transactions.
Another amazing feature of IOTA is the transaction fee. Unlike many cryptocurrencies, they do not charge transaction fees. Offering no transaction fee and proper scaling that does not harm the network have played a role in making IOTA grow to its level. This can be your year with IOTA!
Finally, we have Stellar (XLM 1.63). This crypto has a lot of potential this 2023. Users are looking for unique crypto that offer various services. Here is where Stellar comes in.
Currently, few people would go for a blockchain-based payment network. Since Stellar not only offers a blockchain-based payment network but also comparative advantages to other networks, you should check it out.
If you have noticed, this guide focuses on cryptocurrencies that are mainly about dApp development. All-in-all, the main purpose of blockchain from a financial point of view has always been to do away with the costly traditional payment methods.
Transaction of money that takes up to a week to be validated has been made easier by Stellar where the process takes minutes if not seconds with Lumen token.
With the transaction fee being an average of 0.00001 XLM, not long ago, the transaction was $ 0.00000072 which means you can transact more than 1.4 million before getting to the $1 fee. Now try calculating with your bank and see the charges, you will be surprised how cost-effective Stellar is.
Setting aside the financial part of it, when it comes to its functionality, it is capable of reaching and passing 1,000 TPS. Research that was conducted by ForexSuggest.com noted it had the highest number of transactions in a day.
Far from that, the report stated that its transaction was six times more than Ethereum and thirty-two times more than Bitcoin daily. This is an indication that Stellar has great capabilities. If it gets good sponsors, who know, it might be the payment solution everyone has been looking for.