As the cryptocurrency space grows and its technologies continue to evolve, it’s easy to feel alienated from the market. However, choosing the top picks to buy the dip in a bear market might not be easy. Below we’ll list 5 of the best cryptocurrencies to buy the dip in 2023 and take advantage of the bear market.
We’ve handpicked 5 top cryptocurrencies for you to look at along with a brief overview of each coin and their pros and cons.
What are cryptocurrencies and why are they so important?
Cryptocurrencies are digital assets that utilize blockchain technology to create a digital ledger for decentralised transactions. A Proof of Work (PoW) blockchain consists of many computers around the world solving cryptographic puzzles to validate large lists of transitions which are grouped into “blocks.”
Blockchains are leaderless and no central authority controls any transaction. As a result, blockchains are decentralised ledgers. All data on the blockchain is publicly available but none of the data can be altered. All information shared or created on the blockchain is assigned and recognised by a unique cryptographic code to ensure immutability.
There are many cryptocurrencies on the market and each one has its own attributes and team working behind them to solve real world technological problems and more. Read on to find out more about some of the best cryptocurrencies available on the market.
Top 5 cryptocurrencies to invest in now
Below are five of the best cryptocurrencies on the market. Included are brief overviews of each coin’s fundamentals and what makes them distinctive in this ever-evolving space.
| # | COIN SYMBOL | COIN NAME | TRADE NOW |
|---|---|---|---|
| 1 | ETH | Ethereum | Buy ETH |
| 2 | BTC | Bitcoin | Buy BTC |
| 3 | FTM | Fantom | Buy FTM |
| 4 | SOL | Solana | Buy SOL |
| 5 | LINK | Chainlink | Buy LINK |
List selected by our team of analysts, updated January 21st 2022
1. Ethereum ($ETH)
Ethereum allows anybody to create and release unalterable decentralised applications (dApps). Ethereum nurtured the space that’s now known as decentralised finance (DeFi) and changed the crypto world forever.
When Ethereum’s consensus mechanism changes from PoW to Proof of Stake (PoS), also known as ETH2, transaction costs on the network will be reduced and Ethereum will become more environmentally friendly.
Ethereum’s attempts to adapt to the changing ethics of crypto is impressive. Whether you’re an investor or simply interested in the technology, it’s always a good idea to keep an eye on Ethereum.
2. Bitcoin ($BTC)
Created by the enigmatic Satoshi Nakamoto, Bitcoin is a response to the 2007 financial crisis and the state of the traditional financial system. Bitcoin is intended to be an alternative currency that is leaderless and cannot be manipulated or have its supply altered by centralised authorities or any individual/group.
Bitcoin has grown from its small beginnings into a powerful financial asset that has created tension, as well as common understanding, between the traditional financial world and decentralised finance. In September 2021, Cathie Wood, CEO of Ark Invest said:
Banks and hedge funds have added Bitcoin to their portfolios and the coin has earned its title as a “store of value,” and “digital gold.” One of Bitcoin’s strongest criticisms is it’s blockchain technology. As a PoW blockchain, large amounts of energy are required to keep the blockchain running. This poses questions for the future sustainability of Bitcoin.
3. Fantom ($FTM)
Fantom is a very different type of blockchain and is very much unlike its competitors. Fantom uses Directed Acyclic Graph (DAG) technology and its unique consensus algorithm, Lachesis, to create a blockchain that’s as close to being secure, scalable, and decentralised all at once.
DAG is a data structure that organises its information in a non-linear manner. Using DAG technology and Lachesis, data can skip spontaneously and freely through a network. If a part of the network suffered a halt, the rest of the network would still be able to work due to Lachesis’s technology. You can read more about how Fantom works and how to buy it on our website here.
It’s said that Fantom may have solved the Scalability Trilemma, making it the only blockchain to retain scalability, decentralisation and security all at once. This statement is debatable, but Fantom itself claims to have done the impossible.
4. Solana ($SOL)
Solana, launched in 2020, has become one of the most promising blockchains on the market. Solana’s original author, Anatoly Yakovenko, proposed a blockchain that ran on Proof of History (PoH) and PoS. The results are a super-fast blockchain with a myriad of capabilities.
PoH is used to deposit a comprehensive level of time tracking into a list of orders. Along with PoS, the combined technologies bring speed and atomic reliability to a public ledger. Solana is championed by a team of dedicated developers and FTX exchange founder, Sam Bankman-fried, who has inadvertently become one of the most prominent faces of Solana.
Solana’s ability to be both affordable and fast has allowed it to pocket a chunk of its competitors’ user base, especially Ethereum’s. Many investors who found Ethereum’s fees and sometimes sluggish transactions speeds a turn-off have jumped over to Solana and made it their new home. If you feel you are one of those, have a look at our updated article on how to start purchasing Solana.
5. Chainlink ($LINK)
Sergay Navarov and his team aim to solve blockchain’s oracle problem once and for all. Launched in 2015, Chainlink has come a long way and made partnerships and integrations with over 900 companies including AAVE, Amazon Web Services and Binance.
Blockchains do not have the built-in capability of sending or retrieving data from an external source. They are like isolated islands and need help communicating outside of itself. Oracles aim to aid in blockchain communication by bringing unalterable off-chain data from the outside world and transporting that data into on-chain smart contracts.
Although oracles may sound like they perform a simple enough job, Chainlink and its competitors are an essential piece of technology for DeFi and cryptocurrencies.
5 easy steps to buy cryptocurrencies
To purchase your first cryptocurrency simply follow the easy steps below.
- Choose an exchange. The best way to buy cryptocurrencies is through a cryptocurrency exchange. On an exchange you’ll be able to search for and trade a vast library of coins. Use the table above to see our suggested options or refer to our review section to get more information.
- Create an account. After choosing an exchange you must then create an account to use their services. You may need some contact information and your ID.
- Deposit funds. After creating an acocunt, you will need to deposit funds to your exchange wallet to start buying coins. To do this you can make a bank transfer or use your credit/debit card.
- Purchase a cryptocurrency. Search for the ticker of the cryptocurrency that you would like to buy then enter the number of coins that you want to purchase.
- Execute your order. To confirm the trade, click the buy button. The coins should be added to your exchange portfolio within seconds.
Before investing in cryptocurrencies
Below are some advantages and disadvantages of investing in cryptocurrencies.
Pros
- You’re investing in revolutionary technology that may change the financial world
- Cryptocurrencies are always trying to innovate. New breakthroughs are happening all the time
- The crypto world is growing each year. There is no time like the present to invest in this rapidly developing space
- You might make a very profitable investment
- The future for crypto seems very promising. The state of the market and its technologies are on an encouraging path
Cons
- Cryptocurrencies are prone to volatile price mocements
- Cryptocurrency technologies are relatively new.
- Blockchains bump into problems and issues all the time and these events can greatly affect the value of the price of coins
- Cryptocurrency projects can run out of funding or fail all together
- It’s not unusual for some cryptocurrency projects to end up being scams
Benefits of investing in cryptocurrencies
Cryptocurrencies are innovative technologies that are still largely being developed and improved upon. The crypto world is constantly moving 24/7, there are always new opportunities and news to process. The space is very exciting and it’s easy to find crypto communities to be a part of whether you’re investing or not.
Though nothing is guaranteed, many early investors in cryptocurrencies have made massive returns on their investments. As an investor, you would be neck and shoulder with investment firms and venture capitalist funds reading about crypto, researching crypto, buying crypto coins, and watching the development of your favourite projects.
Investing in cryptocurrencies can be a life changing experience and it’s very easy to become an active participant in this exciting industry.
Risks of investing in cryptocurrencies
Many investors have lost large amounts of money from buying cryptocurrencies. It’s known that the majority of investors are more likely to lose money than make money when trading assets, whether that be on the stock market or in the cryptocurrency market.
The cryptocurrency market is prone to rather devastating crashes and liquidations. On a single day in May 2021, a total of $2.38 billion in liquidations happened over 24 hours. In September 2018, it was estimated that all cryptocurrencies collapsed 80% from their peak in January of that same year, larger than the Dot-com bubble’s collapse of 78%.
It’s an exciting space but also a dangerous one. A digital wild west. It’s always important to do research on any coin before purchasing it and be aware of basic online safety principles to avoid getting scammed or taken advantage of.
How can I find the best cryptocurrency prospects?
Keeping up to date on crypto news by following Invezz, financial newspapers and occasionally checking the state of the cryptocurrency market are great ways to find investment opportunities.
It’s always good to research a cryptocurrency thoroughly and read its whitepaper or technological information. That way, you can easily find out if that cryptocurrency project has partnered with other crypto projects and whether those projects have cryptocurrencies of their own.
Another way to find new investment opportunities is by looking at which coins investment firms and venture capitalists are buying and follow the trail.
Final thoughts
The future for cryptocurrencies seems to be a very hopeful and prosperous one. In September 2021, Ecuador adopted Bitcoin as legal tender. It will take a while for other countries to make similar moves but the world’s openness to alternative forms of currency is gradually improving.
Original source: https://invezz.com/cryptocurrency/best/
