Our way of payment in human history has constantly altered through the ages. Sometimes it was meteorites and beads, whereas later on, our ancestors used silver, gold, and even amber. From Mesopotamian Shekel to the very first United States Note issue, our kind utilized myriad diverse forms. Yes! It has been a long path until we reached the times of the Mighty Internet today! Being borderless, global, and autonomous shifted our point of view in monetary terms as well. On 31 October 2008, Satoshi Nakamoto published his game-changer manifesto, “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was a spin-off for crypto coins, and nothing would be the same again.
Reducing the long-lasting power of regulatory authorities through decentralization and liberalism, cryptocurrencies would be avant-garde as none of the payment methods has ever been before. In contrast with 180 fiat currencies worldwide, cryptocurrencies are not under the reign of any emperor or authority. There is no one who can control them, and this is the formula for how a currency may act independently.
Although crypto investments were regarded as a “Ponzi Scheme” by many conservatives, today, cryptocurrencies are one of the most widespread assets. There are manifold grounds why they evolved into a sine qua non-part of investor portfolios. First of all, their volatility makes them worthwhile for buy/sell positions whilst the new generation, Gen Z, is drained from suffocating regulations, nonsense limitations, greedy authorities, and restrictions. Another plus is the low transaction fees compared to pricey ones in the traditional banking system.
What is Cryptocurrency?
To clear the clouds, we better draw the lines of cryptocurrency portrayal. Also known as crypto is a digital currency that can be transferred with no need for an issuer such as a government or bank. They are based on cryptography to secure the entire environment and confidentiality. This is an impressive characteristic of cryptos for those who want to be invisible in the age of alerts for transactions.
With their pleasing advantages, the daily trading volume in the crypto market is forecasted to be worth more than $95 billion as of 2022. This amount is outrageous when we think there are numerous countries with lesser GNPs (Gross national product) around the globe. Today, there are approximately 10,000 crypto coins, including altcoins and tokens. At this point, we would like to clarify the difference between altcoins and tokens. Shortly, altcoins are distinguishable currencies, while tokens feature on a blockchain.
Should you invest in cryptos in 2023?
To be frank, 2022 was a challenging year for cryptocurrencies. Just Bitcoin was down by 75% from its all-time high in 2021. Most of the investors are dragged to pessimism and sold theirs at a lower price, whereas some proficient analysts’ cryptocurrency forecasts still claim that the market will rise sooner or later. Since the market is like a multibranched tree, various determiners affect its value. Do you think it was just a simple coincidence that the crypto rally spun off in Covid-19? We do not think so!
People lose their trust in higher authorities in times of chaos like pandemics or wars and are keen to invest in gold. Bitcoin and many popular cryptos are much more tradable than any gold bar. Therefore, it is not surprising to witness people driven to decentralization and invisibility in this whirling span. Today, we have a severe recession approaching and a war going on in the Ukraine-Russia zone. A whole new problematic time awaits all of us. Even the most wealthy countries considered to have stable economies are foreseen to have challenging winters and springs. So the majority of crypto investment guides usher potential investors to safer ports like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Cardano (ADA), Binance Coin (BNB), Polkadot (DOT), and XRP (XRP).
In conclusion, cryptocurrencies are new perspectives for financial transactions after all those times that governments and conventional banking systems suppressed us. However, we have learned a different path to keep our assets. Even those who were against Bitcoin once upon a time became devoted fans. With institutional giants adding cryptos into their investments and comprehensive portfolio, tomorrow paints a more optimistic future for these innovative mediums.
Crypto investment for 2023 is expected to rise when we think of the current situation in politics and market tendencies. On the other hand, the market is also open to speculations and aftershocks of noteworthy incidents. We cannot point out which crypto will be highlighted in the new year, yet we recommend you read about the technologies in the background and founder teams. Because, in basics, a cryptocurrency is a project with a future or without an unsure one. When you search enough in analysts and forums, you can have a contextualized opinion of which crypto has a brighter future than others. Another good piece of advice would be to construct your portfolio by preferring various cryptos instead of putting all eggs into the same basket.
Please note that every type of investment carries risk, even if it is a cryptocurrency, an estate, a stock or a fiat currency! “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” states Warren Buffet. We cannot agree more!