Investors and traders aggressively pursue prospects outside Bitcoin and Ethereum as the cryptocurrency market matures. Alternative cryptocurrencies, often known as altcoins, have emerged as a viable option for growth and profitability. Several altcoins are primed for significant gains in 2023, with experts estimating possible returns of up to 30 times the initial investment. These cryptocurrencies stand out because of their compelling use cases, cutting-edge technology, and dependable project teams.
In this post, we will look at the top ten altcoins that are expected to grow significantly in 2023. Our goal is to provide insightful explanations for why these altcoins have the potential to be rewarding investments. However, it is critical to recognize that cryptocurrency investing carries inherent dangers, and investors should conduct their research rigorously while carefully examining their risk tolerance before making any investment decisions.
What is an Altcoin?
Altcoins, derived from alternative coins, refer to any cryptocurrency that is not Bitcoin (BTC). Yet, some still interpret the term altcoins as encompassing all digital currencies apart from Bitcoin and Ethereum. True, most other coins originate from these two. They can apply different consensus protocols for transaction verification and block generation, or they may set themselves apart from Bitcoin by offering unique or better features and functions.
These coins fulfill specific roles within their respective blockchain. Ethereum, for instance, uses its native coin, Ether, to handle transaction fees. Developers have produced forks of Bitcoin to challenge its dominance, as seen with Bitcoin Cash. Some altcoins act as fundraising instruments for specific projects.
Usually, the aim of alternative cryptocurrencies is to enhance the shortcomings of the cryptocurrencies and blockchains they stem from or compete against. Litecoin, the first-ever altcoin, was a fork from Bitcoin in 2011. It utilizes a different Proof-of-Work (PoW) consensus mechanism, Scrypt, which is quicker and less energy-demanding than Bitcoin's SHA-256 PoW mechanism.
There are several different types of altcoins:
- Security Tokens - Tokenized security assets
- Payment Tokens - Used as currency
- Stablecoins - Peg their value to fiat currency or other cryptocurrencies
- Utility tokens - Offer services within a network
- Meme coins - Coins that were made as a joke
Factors to Consider When Investing in Altcoins
There are several key considerations when investing in altcoins. In addition to market capitalization and past performance, the team behind the altcoin is also essential. A skilled and capable project team can make a big difference. Investigate their background, experience, and previous achievements. Examine their capacity to keep their promises and overcome any possible obstacles. A devoted and experienced team can create faith in an altcoin's long-term prospects. So, before you go into the world of altcoin investments, remember to conduct your research and consider these issues.
Market Capitalization of Altcoins
First and foremost, you must analyze the altcoin's market cap. It indicates a cryptocurrency's overall value and can be used to gauge its stability and development potential. Altcoins with a more significant market capitalization are often more established and less prone to excessive volatility.
Historical Performance of Altcoins
Another element to consider is the altcoin's previous performance. While prior performance does not guarantee future outcomes, it can provide significant insights into how the altcoin has performed. Examine its price charts to see whether there have been any substantial changes or continuous growth trends. Of course, it is critical to delve deeper and comprehend the reasons for these trends. Partnerships, technological developments, and community engagement can all impact an altcoin's performance.
Top 10 Altcoins for Long-Term Investment
Some altcoins are suitable for short-term investment, such as day trading or 'scalping,' but we'll focus on the ones you need to HODL to get the most returns on your investments. Let's look at the top 10 alternative coins ranked by market value, excluding stablecoins from the list. The purpose of stablecoins is to maintain price stability. They aren't typically seen as speculative investments because they are usually employed for a different kind of investing plan. Therefore, we'll concentrate on the cryptocurrencies that can cause intriguing market expansion and transformation.
1. Ethereum
Ethereum has a market capitalization of approximately $210 billion, securing a second position just behind Bitcoin.
While most people know Bitcoin as a "decentralized currency," Ethereum stands out as a distributed computing network. It provides users with a platform to run decentralized applications (dApps) and host smart contracts, effectively acting as a catalyst for innovation in blockchain technology.
Detractors of Ethereum often highlight the issue of high transaction fees. However, considering the extensive range of applications and other altcoins that rely on its blockchain, Ethereum has firmly established itself as a formidable presence within the cryptocurrency space, indicating its resilience and long-term viability.
Its robust infrastructure, growing adoption, and upcoming upgrades like Ethereum 2.0 that saw it migrate from a Proof-of-Work to a Proof-of-Stake consensus algorithm make it a promising investment option. Ethereum's ability to facilitate the development of various applications and its vibrant ecosystem make it a favorite among developers and investors.
- Initial release: July 30, 2015
- Original Authors: Vitalik Buterin (Additional founders: Gavin Wood, Charles Hoskinson, Anthony Di Iorio, and Joseph Lubin)
- Ticker: ETH
- Current Price: $1,914
- Current Market Cap: $229,734,638,553
- Circulating supply: 120,199,213 ETH
- Total supply: 120,199,213 ETH
- All-time high: $4,891.7 (Nov 16, 2021)
- All-time low: $0.4209 (Oct 22, 2015)
2. Cardano (ADA)
With a market capitalization of $11 billion, Cardano has emerged as an early advocate of the proof-of-stake consensus mechanism. Unlike Bitcoin, which relies on competitive and energy-intensive problem-solving approaches, Cardano's proof-of-stake mechanism accelerates transaction processing time.
Cardano holds a prominent position in the industry, serving as a thought leader in implementing proof of stake consensus mechanisms. ADA, the native cryptocurrency of Cardano, offers a blockchain solution that boasts low fees and heightened security compared to many of its counterparts.
- Initial release: 2015
- Original Authors: Charles Hoskinson & Jeremy Wood
- Ticker: ADA
- Current Price: $0.3244
- Current Market Cap: $11,350,786,188
- Circulating supply: 34,986,784,284 ADA
- Total supply: 35,983,607,756 ADA
- All-time high: $3.1 (Sep 02, 2021)
- All-time low: $0.01735 (Oct 2, 2017)
3. Binance Coin (BNB)
Binance Coin is the native cryptocurrency of the Binance exchange – the biggest crypto exchange. With a market capitalization of $37 billion, Binance Coin (BNB) has gained significant popularity due to its multiple use cases. Primarily, it can be utilized to pay trading fees on the Binance exchange, offering users the advantage of discounted trades. Surprisingly, BNB extends its functionality beyond the boundaries of the Binance crypto exchange and can be employed for payment processing in various contexts, such as booking travel arrangements.
Nevertheless, critics argue that BNB lacks the same level of decentralization observed in other altcoins. Additionally, concerns have arisen due to an ongoing investigation by the Securities and Exchange Commission (SEC). This investigation aims to determine whether Binance should have registered BNB as a security during its initial coin offering, potentially posing a regulatory risk to the future of the cryptocurrency.
- Initial release: 30 July 2015
- Original Authors: Changpeng Zhao
- Ticker: BNB
- Current Price: $244.2
- Current Market Cap: $37,263,493,830
- Circulating supply: 153,857,113 BNB
- Total supply: 153,857,113 BNB
- All-time high: $690.93 (May 10, 2021)
- All-time low: $0.09611 (Aug 01, 2017)
4. Polkadot (DOT)
Polkadot is a multi-chain platform that enables interoperability between different blockchains. Its ability to facilitate seamless communication and data transfer between various networks makes it an attractive long-term investment, especially as the blockchain industry evolves. Polkadot's focus on scalability, security, and interoperability positions it well for potential long-term growth.
- Initial release: May 2020
- Original Authors: Gavin Wood, Robert Habermeier, and Peter Czaban
- Ticker: DOT
- Current Price: $5.40
- Current Market Cap: $6,31,365,336
- Circulating supply: 1,206,715,835 DOT
- Total supply: 1,336,194,712 DOT
- All-time high: $55 (Nov 04, 2021)
- All-time low: $2.69 (Aug 20, 2020)
5. Dogecoin (DOGE)
Dogecoin has achieved cult status among the global crypto community due to its rapid rise to fame and endorsem*nts by Elon Musk. It is the first crypto coin to have risen out of an Internet meme but has since earned a reputation as a "tipping" currency. Users started tipping content creators on Twitch and Youtube instantly using Dogecoins instead of valueless upvotes, likes, and re-tweets.
- Initial release: December 6, 2013
- Original Authors: Billy Markus & Jackson Palmer
- Ticker: DOGE
- Current Price: $0.072
- Current Market Cap: $9,949,527,270
- Circulating supply: 140,239,566,384 DOGE
- Total supply: 140,239,566,384 DOGE
- All-time high: $0.7376 (May 08, 2021)
- All-time low: $0.00008547 (May 07, 2015)
6. Litecoin (LTC)
Litecoin stands as one of the pioneering altcoins, specifically crafted to address the perceived limitations of Bitcoin. With a market capitalization of $6.9 billion, Litecoin achieves better transaction processing speed, aiming to provide faster and more efficient transactions than its predecessor. Additionally, Litecoin seeks to counter concerns regarding mining monopolies associated with Bitcoin.
While Bitcoin has gradually transformed into a digital "store of value," Litecoin retains its focus on facilitating everyday transactions. This differentiation between the two cryptocurrencies underscores Litecoin's intention to serve as a practical medium of exchange in daily economic activities.
Moreover, Litecoin diverges from Bitcoin in terms of its supply structure. While Bitcoin has a maximum supply limit of 21 million coins, Litecoin sets a cap of 84 million coins, which inherently affects factors like scarcity and potential price dynamics in the long run.
- Initial release: 7 October 2011
- Original Authors: Charlie Lee
- Ticker: LTC
- Current Price: $93.69
- Current Market Cap: $6,824,124,954
- Circulating supply: 84,000,000 LTC
- Total supply: 84,000,000 LTC
- All-time high: $412.96 (May 10, 2021)
- All-time low: $1.11 (Jan 15, 2015)
7. Chainlink (LINK)
Chainlink is a decentralized oracle network connecting smart contracts with real-world data and external APIs. Its unique approach to bridging the gap between blockchain and real-world applications has garnered attention from major enterprises, positioning it as a solid long-term investment option. As development on top of L1 and L2 blockchains increases, developers increasingly rely on Chainlink to pull data from the outside world.
LINK is Chainlink's native token. It has amarket capof $3.7B.
- Initial release: 2017
- Original Authors: Sergey Nazarov, Steve Ellis, Dr. Ari Juels
- Ticker: LINK
- Current Price: $8.22
- Current Market Cap: $4,423,181,045
- Circulating supply: 1,000,000,000 LINK
- Total supply: 1,000,000,000 LINK
- All-time high: $52.88 (May 10, 2021)
- All-time low: $0.1263 (Sep 23, 2017)
8. Stellar (XLM)
Stellar is a blockchain platform designed to facilitate fast and low-cost cross-border transactions. Stellar aims to provide affordable financial services to the unbanked and underbanked populations globally, making it a socially impactful investment option. Its partnerships with prominent financial institutions and focus on financial inclusion make it a compelling altcoin for long-term investment.
- Initial release: July 31, 2014
- Original Authors: Jed McCaleb & Joyce Kim
- Ticker: XLM
- Current Price: $0.1665
- Current Market Cap: $4,527,457,818
- Circulating supply: 27,156,306,743 XLM
- Total supply: 50,001,787,272 XLM
- All-time high: $0.9381 (Jan 04, 2018)
- All-time low: $0.001227 (Nov 18, 2014)
9. Solana (SOL)
Solana is a high-performance blockchain platform known for its fast transaction speeds and scalability. Its growing ecosystem, developer-friendly infrastructure, and increasing adoption make it an altcoin worth considering for long-term investment.
Solana emerged as a blockchain for decentralized finance, applications, and smart contracts. Its underlying infrastructure relies on a distinctive combination of hybrid proof-of-stake and proof-of-history mechanisms, facilitating swift and secure transaction processing.
Renowned for its impressive speed, Solana stands out among other blockchains in terms of efficiency. Its level of centralization has attracted criticism but has yet to stop it from reaching a market cap of $8.3 billion.
- Initial release: 2020
- Original Authors: Anatoly Yakovenko & Raj Gokal
- Ticker: SOL
- Current Price: $26.78
- Current Market Cap: $10,785,427,825
- Circulating supply: 402,764,461 SOL
- Total supply: 552,798,486 SOL
- All-time high: $260.06 (Nov 6, 2021)
- All-time low: $0.5052 (May 11, 2020)
10. Polygon (MATIC)
Ethereum is a blockchain known for its compatibility with smart contracts and various applications. However, the increasing popularity of these applications has led to rising transaction fees on the Ethereum network. Polygon emerged as a Layer 2 scaling solution or sidechain to address this issue, providing faster transactions and lower costs.
Polygon operates as a parallel blockchain alongside Ethereum, allowing users to bridge their crypto assets to Polygon and access various popular crypto apps. Polygon's cryptocurrency is called MATIC, is used for paying fees, staking, and governance. MATIC holders have voting rights for Polygon's changes. MATIC can be bought and sold on exchanges, including Coinbase. Polygon was previously known as Matic Network before rebranding in early 2021.
- Initial release: 2017
- Original Authors: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic
- Ticker: MATIC
- Current Price: $0.788
- Current Market Cap: $7,017,996,104
- Circulating supply: 9,319,469,069 MATIC
- Total supply: 10,000,000,000 MATIC
- All-time high: $2.92 (Dec 27, 2021)
- All-time low: $0.003 (May 09, 2019)
Conclusion
Investing in altcoins can be lucrative but requires careful consideration and research. The top 10 altcoins mentioned in this listicle, including Ethereum, Cardano, Binance Coin, Polkadot, Dogecoin, Litecoin, Chainlink, Stellar, Solana, and Polygon, have been selected based on their potential for long-term growth and unique features. To buy, exchange, or store one or several of those altcoins, feel free to download:
- Ethereum (ETH) wallet
- Cardano (ADA)wallet
- Binance Coin (BNB)wallet
- Polkadot (DOT) wallet
- Dogecoin (DOGE) wallet
- Litecoin (LTC) wallet
- Chainlink (LINK)wallet
- Stellar (XLM) wallet
- Solana (SOL)wallet
- Polygon (MATIC) wallet
Investing in altcoins carries inherent risks, and thorough research is necessary to make informed investment decisions. However, investors must conduct due diligence, assess the risks, and stay updated with the dynamic cryptocurrency market. Investors can make better long-term investments in altcoins by considering the factors discussed and remaining informed about the latest developments in the altcoin market.
