As most cryptocurrency enthusiasts know, Bitcoin was the very first digital currency. The controversial coin got its start in 2009. It’s been creating shock waves within the global economic order ever since! Between December 2021 and December 2022, Bitcoin trading prices increased by 40%. Other types of crypto have spiked up an incredible 18,000%!
With fluctuations like that, this year might be the perfect time to invest.
Are you considering investing in crypto in 2023? If so, then you’ll want to know about the most popular crypto types and their potential for growth.
Read on to discover what types of crypto are popular right now.
Also Read:
- Trading in Crypto: How Risky Is It?
- Why Does BlackRock Provide Crypto To Institutional Investors via Coinbase Prime?
Bitcoin
As mentioned above, Bitcoin was the first cryptocurrency ever created. Considering it’s the oldest crypto, it’s not too much of a shock to learn it’s also the most popular.
Due to these factors, BTC is often the most valuable crypto. It’s the most widely traded, too.
When looking where to buy crypto, be sure to vet each potential marketplace. Do your due diligence to ensure you understand what a digital wallet is and how it works.
If you’re a beginner, then Bitcoin might be a good initial investment for you. Bitcoin’s value varies daily, but it’s currently hovering around $19,143 USD per coin.
Ethereum
The second most popular type of crypto is Ethereum. ETH is more than just a cryptocurrency, though. It’s also an entire platform.
Many investors use ETH to invest in other digital currencies, but that’s not the only use. ETH also acts as a vehicle for developers running apps inside the platform.
ETH falls far behind Bitcoin when it comes to value and market capitalization. Despite that, it’s still the most popular crypto.
While values change daily, one Ethereum coin is valued at around $1,414 US dollars.
Dogecoin
Never underestimate the power of an internet joke. If you do, then you’ll miss out on opportunities like Dogecoin.
Dogecoin got its start back in 2013. Jackson Palmer and Billy Markus created it in honor of the popular Shiba Inu meme.
After creating the crypto, Markus went on to explain how the community should use it. After a slow start, the notion really took off when Elon Musk got involved.
When Musk uttered “Dogecoin to the moon” on Twitter, the crypto exploded. Now, it’s among one of the most mainstream and recognizable digital currencies.
One Dogecoin is worth about $0.08 US dollars, but the price varies wildly.
USD Coin
USD coin is a type of crypto that seeks to become a mainstream form of currency. It touts itself as the “world’s digital dollar.”
There are some factors that back up this bold claim. For one thing, Circle, a respectable global financial firm, created the crypto. For another, it has the following big-name investors:
- Goldman Sachs
- IDG Capital
- Baidu
The US dollar backs this crypto, making it a stable option for investors. One USD coin is worth $1 US dollar.
XRP
XRP is a type of crypto that helps users make payments in real-world global currencies. While XRP is a well-recognized name, so is its original name: Ripple.
If you’re making cross-border payments, then this crypto cuts out the extra fees.
Cardano
Cardano (ADA) uses a peer-reviewed blockchain protocol to maintain decentralization. By doing so, it touts itself as being more secure and scalable than other cryptos.
Recent estimates suggest the market cap for ADA is about $11 billion. That puts it in the same category as cryptos like Dogecoin.
One Cardano coin is worth about $0.3275 US dollars.
Tether
When the idea of crypto was first created, decentralization was a main tenant. Being free from the middleman banker was a huge draw.
This same touted benefit, however, does keep a lot of investors from going digital.
Tether was the first digital currency to tie itself to a fiat currency (the US dollar). Like the name suggests, Tether derives much of its value from the dollar.
Many people use Tether as a medium to transfer from one crypto to another.
Chainlink
Chainlink is a type of cryptocurrency that secures a global smart contract network. The network uses real-world data to ensure safety and reliability for transactions.
BNB
BNB, or Binance Coin, is a utility crypto that’s used for digital payments. It’s issued by Binance, which is one of the biggest crypto exchanges.
For the most part, users use BNB for payments or purchasing goods and services.
At first, this token operated on the Ethereum blockchain. Later on, Binance created its own crypto exchange.
Binance USD
It operates on the Binance Exchange.
Binance USD is usually used as a payment method. It’s preferable to other cryptos for this purpose because it’s backed by the dollar. It’s also regulated.
The New York State Department of Financial Services has approved this coin.
Also read:
Popular Types of Crypto to Watch in 2023
Unless you follow the crypto market, you may not have known how many types of crypto actually exist. When buying crypto, you’ll want to look at all your options, as each one can provide something new.
Some cryptos, like Bitcoin, are well-established and a bit more stable. Others are new to the scene, which means you’ll want to expect more ups and downs.
So, where will you be putting your money this year? Are you ready to start buying crypto to hedge against the instability in the global market?
Whatever you decide, we’ll be here for the ride! Keep checking back on our blog on a regular basis to see more of our best content, tips, and advice.
