To determine which cryptocurrencies may be the best investments in 2023, market participants and crypto enthusiasts are analyzing the likelihood of numerous future scenarios. In recent weeks, meanwhile, crypto prices have rallied. That has made investors hopeful and left many of them looking for cryptos to watch and eventually buy.
With innovative new blockchain projects continuing to pop up, this nascent sector has plenty of positive catalysts to be excited about. Indeed, new ways of using cryptos are emerging every day, and many cryptos are attractive because of they are innovative and growing rapidly.
Even though corporate and institutional adoption of cryptos appears to be slowing and the sector could be hurt by increased regulations in 2023, there’s still a great deal of innovation in the sector. Moreover, there are reasons why plenty of smart individuals have bought cryptos.
Here are three, high-quality cryptos to watch. All of them have considerable track records. For those looking to capture the next wave higher in crypto, these are the three tokens I think are worth considering.
The world’s first and largest cryptocurrency by market capitalization, Bitcoin (BTC-USD) deserves a place in every investor’s portfolio. While many investors may not be bullish on Bitcoin, I think there’s plenty of reason to consider buying it on dips.
But Bitcoin hasn’t been falling recently. Instead, it has been rallying off its lows, eclipsing the $20,000 mark for the first time in two months. Thus, as far as momentum is concerned, there’s a lot to like about this crypto’s path.
Bitcoin’s distributed ledger technology is powered by a proof-of-work consensus. While Bitcoin’s network has come under scrutiny for its heavy energy usage, proof-of-work is more secure than competing systems. Thus, those who are bullish on cryptos’ long-term outlook tend to view Bitcoin as one of the safer tokens available.
Accordingly, for those looking for a less volatile crypto that will still enable them to benefit from the sector’s rallies, Bitcoin is the way to go.
The foundation for most decentralized applications in the crypto world, Ethereum (ETH-USD) is certainly among the cryptos to watch for investors looking for exposure to this asset class. Indeed, most functional crypto projects are based on Ethereum.
Because of its potential applications, including so-called “smart contracts” and non-fungible tokens, Ethereum’s cryptocurrency and blockchain platform are beloved by programmers of NFTs and other crypto-related tokens and applications.
ETH has risen incredibly fast. Its price increased by more than 27,000% from roughly $11 to over $3,000 between April 2016 and the beginning of March 2022. Ethereum, however, fell to a 52-weeklow of $1,091 on Nov. 9, 2022, as a result of the general market meltdown, and it had recovered to about $1,400 by Jan. 10, 2023. Today it’s changing hands for slightly more than $1,500.
A few months before Ethereum’s Shanghai upgrade, Ethereum’s positive momentum is increasing. This upgrade will enable the staked ETH that has been sitting on the Beacon Chain for almost two years to be gradually withdrawn, providing Ethereum with a key, positive catalyst.
BNB Coin (BNB-USD)
The native token of the largest centralized crypto exchange globally, BNB Coin (BNB-USD) is a mega-cap token worth considering. Currently the fourth-largest token by market capitalization, BNB Coin is owned by many investors, for good reason
The coin, which is linked to the Binance exchange, has grown since it was introduced in 2017, and it now does more than just enable transactions on Binance’s platform. At this point, you can use it to trade, process payments, and to plan trips. Additionally, BNB can be traded or converted into other cryptocurrencies like Ethereum or Bitcoin.
Impressively, BNB traded around the 10 cent level in 2017, and its price increased to nearly $413 by the start of March 2022. Even during the crypto collapse, BNB didn’t drop much, and now it’s trading for about $283.
Many think that BNB may pose the greatest threat to Ethereum’s value and user base. Because of the success of the Binance exchange, BNB’s has become much more widely used in recent years. If, despite the failure of FTX, many investors resume buying tokens that are linked to exchanges, BNB could rally tremendously going forward.
On the date of publication, Chris MacDonald has a position in ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.