Cryptocurrency (illustrative)
Cryptocurrency (illustrative)iStock

Despite high volatility, digital assets remain popular to this day. Traders and investors continue to earn on them, even in the current difficult conditions, when even fiat currencies can surprise. Currently, there are many convenient tools for tracking the dynamics of fiat currencies, in particular

https://www.rates.fm/. In this article, we will tell you about the features of investing in cryptocurrencies in 2023.

Cryptocurrencies With Low Risk

Cryptocurrency is an interesting means of payment that has attracted the attention of literally every person in the world. There are 45 million crypto users in the USA alone. These are people from California and Texas who also use the traditional services of such companies as PMorgan Chase, Citigroup Inc, Aflac, and others.

Our list of cryptocurrencies with low risk includes the oldest and time-tested digital assets. They have already established themselves in the community, so they are the most reliable way to invest. But there is also a negative side to this - one cannot count on rapid growth and multiple increases in value. To invest in this category, it is worth providing up to 60% of the allocated capital.

Bitcoin.

This is the oldest and time-tested cryptocurrency. Bitcoin sets the trend for the rest of the crypto market. At the start of trading, its value was less than 1 cent. Today, 1 BTC is equal to about $16,500, and the maximum price reached $68,000. Without a doubt, Bitcoin is the most stable currency. This trend will be relevant in the near future.

When investing in BTC, you need to remember that this is an investment for 5 or more years. It will not work to extract large profits from low-risk assets in the short term. Bitcoin should be viewed as a tool for saving investments. You can buy Bitcoin with Visa, PayPal, and other solutions.

Ethereum.

ETH was recently upgraded to version 2.0 and made the transition to PoS. According to the developers, this should reduce the load on the network and speed up the blockchain. In the end, this should have a positive impact on the value of the coin, but it is difficult to judge this in the context of the global “crypto winter” - a decrease in the value of digital assets.

Binance coin.

This coin was developed and introduced by the Binance crypto exchange (cryptocurrency ranks 1st in the world in terms of trading volumes and the number of active users). The tool is deflationary. A certain percentage of coins are “burned” quarterly, which allows the developer to maintain the value, and in the future ensure the growth of the coin.

Medium Risk Cryptocurrencies

Assets from this category are promising projects aimed at solving various problems both in the crypto-sphere and in other areas. If such developments become popular, then the cost of coins can increase many times over. Otherwise, a strong fall is possible. For this category, no more than 30% of the total capital should be allocated.

Polkadot.

This project is developing rapidly, and developers are actively solving compatibility problems between blockchains. In this area, DOT technology has few competitors, which makes the coin a very good investment tool. However, the transition of Ethereum to version 2.0 may make the project unpromising in the long run.

Cardano.

This is a relatively young cryptocurrency that has all the potential for growth in 2023. ADA handles security, network scalability, and decentralization issues with ease. Cardano is called a hybrid of Ethereum and Bitcoin. To solve all the problems, developers will need to spend a lot of time and effort, but the coin has prospects for growth.

Avalanche.

This project allows people from New York, Toronto, and all over the world to conduct financial transactions using digital assets. AVAX is used as a fee for completed transactions, which makes it valuable in the long run. In 2022, developers faced network performance issues, but now steps are being taken to improve the system. A large number of received grants and investments from large companies make it clear that Avalanche will continue to actively develop.

High-Risk Cryptocurrencies

This category of cryptocurrencies has a low capitalization and little interest from large companies. Such assets can bring both multiple profits and large losses. The recommended amount of capital is up to 10-15%.

Filecoin.

This system is designed to store and transmit information. In the long term, it can become a breakthrough, and investing will bring tangible profits. The main problem is high competition from large and well-known players in this market - Apple, Google, Amazon, and other companies.

Trust Wallet Token.

Another crypto asset is actively supported by the Binance exchange. This is a token of one of the best (according to the crypto community) Trust Wallet cryptocurrency wallets. This system has high protection against hacker attacks. In 2022, the value of the token practically did not succumb to market trends and did not react to the movement of Bitcoin.

Experts recommend buying TWT and keeping it for the long term, despite the high risks. Support from major players in the crypto market will have a positive effect on the cost.

Investment Rules

To successfully invest in cryptocurrencies in 2023, experts recommend following a number of simple rules:

Before investing in a certain instrument, it is important to evaluate its prospects and further plan for the development of the platform.

You can't put everything in one basket. Allocate funds according to riskiness.

Traders assure as long as the cryptocurrency is not sold, there are no losses. Stick to your strategy and don't panic.

Lock in profits. If the price reached the set goals and made a profit, then feel free to sell the asset, as the risk of losing everything increases.

Conclusion

Investing in cryptocurrencies is an interesting, but high-risk business. It is important for an investor to distribute funds across several assets in order to avoid losing investments, as well as regularly monitor the dynamics of cryptocurrencies and fiat currencies. To track dollar and euro quotes, you can use the reliable Rates service.