In a world where digital currencies are now an integral part of the modern economy, cryptocurrency forecasts are becoming indispensable for choosing the best investment in the short, medium and long term.
Altcoins are generally higher-risk investments than bitcoins, but they also often offer higher returns in a bull market; Conversely, altcoins generally depreciate more in bear markets. In general, cryptocurrencies with a small market cap are more volatile than larger established cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Here, we will talk about the best cryptocurrency in the world among those with a market capitalization of more than $ 1 billion and which according to statistics will be able to grow in the coming years (2022/2023).
Unsurprisingly, it is Bitcoin that we considered wise to continue investing. To understand our choice, continue reading this article.
How does crypto technology work?
We often hear about crypto tokens and cryptocurrencies as if they were two synonyms for virtual coins. In reality, tokens and cryptocurrencies are not terms that can be traded, as there are differences between the two.
On the one hand, there are cryptocurrencies, the virtual currency that is supported by its own blockchain from which they can be mined, such as Bitcoin or Ethereum.
On the other hand, there are cryptographic tokens or tokens, i.e. cryptocurrencies that are built on existing blockchains. A kind of token that cannot be mined.
Here’s what tokens are, how they are used, and the difference with cryptocurrencies.
To fully understand the difference between virtual currency and tokens, let’s start with the definition of cryptocurrencies.
It is a digital currency system independent of government institutions – a virtual currency that uses cryptography to secure and verify transactions between two parties.
These transactions are recorded in a database called blockchain, from which they can be extracted through the computer technique of mining, that is, “mined” by the processing of data via computers.
Cryptocurrencies, just like regular money, are used to buy and exchange goods and services of all kinds. The best known and most used virtual currencies to date are Bitcoins, now recognized as a means of payment also by various websites and virtual shops, and Ether, the currency used on the blockchain platform of the Ethereum network.
In addition, crypto wallets are an essential tool that allows you to buy, facilitate the exchange and sell cryptocurrencies. Merchants need it to store crypto securely, as well as to protect and validate transaction information. What is the best cryptocurrency?
The best cryptocurrency for 2022-2023 is not only a currency, it is also an asset that is among the most promising in the financial world; Mark Cuban and Andreessen Horowitz are both investing heavily in altcoins, especially decentralized finance (DeFi), which were very popular crypto investments in 2021. So we advise you to continue your investments in the Bitcoin.La best cryptocurrency ready to explode: Bitcoin
It is the most well-known cryptocurrency and it has the highest trading volume, non-stable coin. Despite intensifying competition, Bitcoin continues to be the absolute master of the digital currency market in terms of market capitalization.
Bitcoin’s value growth has been remarkable, with a six-year average of over 300% and cryptocurrency growth of more than 80% in 2021.
Some events, such as the acceptance of Bitcoin as fiat currency in El Salvador, have increased the popularity and recognition of this asset. This is sometimes called “digital gold”.
In addition, there are several reasons why Bitcoin’s rise could accelerate over the next few years. For example, nearly 90% of bitcoins have already been mined.
So what happens to Bitcoin if demand continues to grow and supply falls?
The statistics below clearly show us the performance of Bitcoin in recent years and months.
Source: Admirals MetaTrader 5, BTCUSD, D1 – Data range: July 17, 2021 to January 25, 2022, performed on January 25, 2022 at 9:30 a.m. This is not an indicator of constant value and may vary at any time.
The evolution of bitcoin over the last five years:
- 2021 = + 59.74 %
- 2020 = + 302.28%
- 2019 = + 94.01%
- 2018 = – 73.22%
- 2017 = + 1337.66%
The best crypto as a store of value: Bitcoin (BTC)
The queen of all cryptocurrencies, Bitcoin, was the first and best known cryptocurrency on the market.
Bitcoin has the largest market capitalization in the world and is one of the most traded digital assets in circulation, an element that guarantees liquidity to investors; Bitcoin dominates both in adoption by retail and institutional investors.
Most altcoins follow Bitcoin’s price trends, so if Bitcoin malfunctions, altcoins are also likely to lose ground.
Considering that Bitcoin’s price is still down from its all-time high of over $64,000, buying now could be a good investment for the future.
There will only be 21 million Bitcoins, and about 15% of that amount has already been lost. So, as long as Bitcoin’s user base continues to grow, the price of the asset will also rise. Bitcoin currently has an inflation rate of 1.7%, and it is halved every 4 years thanks to the phenomenon known as bitcoin “halving”.
Best Cryptocurrencies: Alternatives to Bitcoin
So, if you tell yourself that it is already too late to have a considerable return on investment on bitcoin, there are a multitude of tokens. For example, you can invest in binance coin (bnb), cardano (ada), solana (sol), dogecoin (doge).
Cryptocurrency: What to remember
If you have an investment project on a particular cryptocurrency, I will advise you to always seek the advice of experts because they can better help you trade (exchange) your cryptocurrency and accompany you on other future projects.
Like any good investment, start with small amounts first and look at the trends of the current year’s time.
I hope this article was able to help you, A plus!