Popular cryptos, trending cryptos, and hot cryptos are all terms used to describe the most in-demand digital currencies in the market. These terms refer to cryptocurrencies experiencing a surge in price or adoption or those that have captured the attention of investors and traders alike.
There are very few assets that can make you a multimillionaire in weeks. However, these high-potential and popular cryptos can work this magic for you in 2023 and deliver outsized returns.
Early investing in these digital assets could provide significant gains, as their adoption and demand increase. Additionally, pouring capital into these popular cryptos can help diversify an investment portfolio. It will also lead to growth and stability.
To sum up, the world of cryptocurrency is in a constant state of evolution. A handful of popular cryptos rule the roost. However, we are also seeing trending cryptos emerge that are now threatening to challenge the status quo. Meanwhile, hot cryptos have garnered much attention from the media and the public, partly thanks to their meme-inspired origins.
However, investors must research extensively and meticulously evaluate the risks before investing in cryptocurrency. It remains a highly volatile market where wrong moves can quickly result in significant losses. In such a situation, investing only what one can afford to lose and not more is advisable.
Keeping this in mind, let’s explore three cryptocurrencies that have promising potential and are worth considering as investments.
Bitcoin (BTC-USD) is undoubtedly one of the most popular cryptocurrencies in the world. It has consistently remained a top player in the crypto market, with a high valuation and trading volume.
Bitcoin remains a stable and reliable investment option. Many investors see this token as a store of value and a hedge against inflation. Despite the occasional market fluctuations and price volatility, Bitcoin has proven a resilient asset attracting individual and institutional investors.
Bitcoin’s market cap has surged to $578 billion this year, surpassing the value of some major corporations, highlighting its dominant position.
However, at its current price of under $30,000 per coin, Bitcoin is still almost 60% off its peak price of nearly $69,000 from November 2021. The Federal Reserve’s aggressive interest rate hikes in response to the highest inflation in decades, which persists today, caused a significant decline in Bitcoin’s price and other digital assets throughout 2022.
Despite its recent price increase, Bitcoin still has a long way to go to recover its losses and achieve new highs. Nonetheless, with its current discounted price and potential for massive upside, investors, particularly those waiting on the sidelines, may find buying the top crypto in April attractive.
Bitcoin’s upcoming “halving” in April 2024 could cut its inflation rate in half, and potentially drive up its price, making it an excellent time to invest. Additionally, in light of recent financial industry turmoil, Bitcoin’s decentralized nature and lack of central authority could make it an attractive hedge against economic catastrophe.
With current macroeconomic uncertainty, Bitcoin could see more significant investment, making it a top cryptocurrency to buy in April.
Cardano (ADA-USD) has had a solid start to 2023, with a year-to-date increase of over 55%. Despite this, Cardano’s current trading price is just $0.41, and has not surpassed $1 since April 2022.
To reach the $1 milestone, Cardano needs to discover new catalysts for growth. One possible catalyst is the growth of the decentralized finance (DeFi) sector, which is now a priority for the blockchain.
Cardano’s DeFi ecosystem is experiencing steady growth. Additionally, Cardano has finally embraced stablecoins, integral to decentralized finance.
Another avenue for growth could be emerging markets, particularly Africa, where traditional finance is underdeveloped. Millions of people in these markets are underbanked or unbanked, presenting a significant opportunity for the cryptocurrency industry.
Cardano has always had a focus on the underbanked and unbanked populations. This narrative of growth in emerging markets has the potential to impact the price of Cardano significantly. According to Cardano founder Charles Hoskinson, Kenya will be a priority market for the blockchain in 2023.
However, Cardano has not been a significant player in any crypto market segment that investors track and analyze. During the recent NFT craze, Cardano was ranked third in average daily NFT trading volume. However, Ethereum remains the primary focus of investor attention, with projects like the Bored Ape Yacht Club and the CryptoPunks generating significant buzz.
While Cardano has growth potential, it needs to generate more attention and buzz in the market. Thus, this token may not be recommended as a solid long-term buy until it moves up the TVL chart and enters the top 10. Investors may want to hold Cardano, but not accumulate more until it grows.
Ethereum (ETH-USD) has seen a lifetime increase of over 60,000%, despite the ongoing crypto winter. With its potential for developing decentralized applications, Ethereum remains a promising investment. However, it faces stiff competition and has a complex development plan.
Ethereum’s innovation in enabling the use of smart contracts has the potential to disrupt various industries. Ethereum ranks highly for developer activity, and is home to thousands of dApps. Decentralized finance and NFTs are promising growth areas for Ethereum. A rebound in the crypto market will likely lead to increased Ethereum network activity and higher demand for Ether.
Moreover, Ethereum’s development process is thorough, with a recent transition to a proof-of-stake consensus mechanism. This system is far less energy-intensive, and better-suited for scaling. The combination of Ethereum’s innovation and its vital development process has made it a preferred choice for developers and investors alike, highlighting its potential to grow in the long term. As Ethereum expands and improves, it will likely remain a dominant player in the cryptocurrency market.
Despite its potential, the crypto market remains highly volatile and complex, and Ethereum faces significant competition. As with any investment, careful consideration is necessary before investing in Ethereum.
Done with this list? Have no fear! Check out this more expansive list of cryptos to buy.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.