Peculiarity of the crypto market is that it is not under the control of central banks and governments. Neither price nor emission nor decisions on developing crypto coins belong to banks. So, crypto exists in its space where the balance between supply and demand prevails.
All crypto coins can be divided in the following way:
- Projects that help ease cross-border money transfers at low fees (for example, Ripple XRP)
- Platforms for smart contracts and decentralized applications (for example, Ethereum or Solana)
- Projects connecting the real sector with blockchain (Chainlink, Dash)
- Tokens released by large crypto trading platforms to facilitate transactions and add more benefits for users (WBT token, BNB coin)
- NFT, in-game tokens, etc.
Let’s see that it is the best cryptocurrency for trading.
How to Pick a Good Crypto for Trading?
When selecting a digital coin for trading, pay attention to its liquidity and trade volume. Liquidity is a market capitalisation, which shows the total amount of all the coins that are not in circulation. To get the market cap, you may multiply the total number of coins released by the price, or you may just check out the Coinmarketcap resource.
Trade volume shows the number of trades made with a specific asset during some exact period; usually, they take 24 hours. The trade volume shows how many times the coins moved from wallet to wallet during the day. And the higher this indicator, the bigger the demand.
What is the Best Cryptocurrency to Buy in 2023?
It is impossible to claim the best asset because successful investors usually buy many different coins, both large and small market cap. So the best idea would be to buy some popular coins such as BTC, SOL, XRP, and all some less known but promising assets such as the WhiteBIT token, for example. Digital coins with small market cap are especially sensitive to market volatility, so small coins have bigger chances to skyrocket during the next bull trend, which is expected to be in 2023, as some experts believe.