The tumultuous nature of the crypto sector can make it difficult for investors to take a bullish perspective on even the top crypto picks for 2023. That said, despite its setbacks, many see crypto as an investment offering incredible upside over the long-term. By understanding underlying trends and conducting proper due diligence, investors can find attractive crypto picks that offer value beyond price appreciation.
The technological innovation provided by blockchain technology continues to draw curiosity from investors. Indeed, this sector offers a clear opportunity for investors to capitalize on a risk-on asset class that has outperformed in previous bull markets. Thus, a bet on top cryptos could be viewed as a bet on innovation, rather than a speculative gamble. That’s where I’m at right now.
Ultimately, investing in any cryptocurrency can be an exciting venture, but it is wise to examine all aspects of these projects before investing heavily in any single digital token. By doing proper due diligence, investors can make sound decisions when navigating such a volatile market. Having said that, here are my top crypto picks for 2023 that I think the market has overlooked.
Chainlink (LINK-USD) was developed to create a secure connection between various blockchains, allowing data to be transferred seamlessly to facilitate universal interoperability. It is an abstraction layer project that acts as a bridge that creates secure pathways through which information can pass. Consequently, the platform boasts massive potential in the realm of smart contract applications. Chainlink enables developers to create smart contracts with greater ease thanks to its ability to connect disparate blockchains securely and universally.
Ultimately, Chainlink is a powerful solution enabling new generations of DeFi products with higher levels of security than other crypto platforms. Moreover, its advisory team is essentially a who’s who of the tech world. Its board includes former CEO of Google Eric Schmidt, and former LinkedIn CEO, Jeff Weiner, to name a few. With such robust connections, Chainlink should have access to some of the best resources for developing a real-world utility for developers using its platform.
Investing in cryptocurrencies requires significant caution, but some tokens are undoubtedly safer options than others. Among the cryptos I’d put in the safer bucket is Polygon (MATIC-USD), which is essentially a scaling solution for the Ethereum network. Its “Layer 2” technology allows those on the Ethereum network to have their transaction processed quicker, and at lower fees than on the core network itself.
Investors in MATIC have shown concern around the platform’s fate following Ethereum’s massive Merge upgrade. However, given that the update has already happened, Polygon is likely to stay relevant for the foreseeable future. It will be interesting to see how Ethereum’s throughput improves following new updates in the coming years and how this impacts Polygon. Moreover, MATIC has lost a ton of value during this crypto winter, which makes it an excellent risk-reward bet at current levels.
Ultimately, Polygon is undeniably a safe investment option in the crypto world due to its immense utility and future sustainability.
While Polkadot (DOT-USD) has lost significant value in 2022, the project’s underlying technology remains strong. It is a versatile platform that connects disparate blockchains, allowing for efficient data transfer from multiple blockchains. This makes it an ideal foundation for creating highly secure and proficient applications that span several blockchains. Despite its recent difficulties, Polkadot’s fundamentals remain as strong as ever, with its DOT token providing some of the best returns in the crypto space (not really saying much, of late).
Polkadot has also been garnering strong corporate interest recently. Deutsch Telekom, Europe’s largest telecom business, bought a ton of DOT tokens late last year, with its subsidiary providing secure infrastructure for the platform’s users. Such corporate adopters signal a revolutionary new era of widespread acceptance and real-world use of blockchain technology by the top companies worldwide.
However, like other digital assets, DOT has taken a colossal beating this year. Thus, with strong indications that adoption will continue in the long-run, I like this token’s upside potential relative to its price right now.
On the date of publication, Muslim Farooque held a LONG position in Ethereum. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.