Crypto as an asset class emerged with Bitcoin back in 2009, and as proven historically, it can give returns and provide investment protection far surpassing traditional financial instruments. This was proven most recently during the Covid crisis of 2020-21, when the top cryptos led the market into a bull run while traditional markets crashed. If you are new to the crypto space, right now is high time to find out the top 10 cryptos you can trade and enter the market!
In this blog, we’ll learn the fundamentals of crypto trading and then look at the top 10 crypto you can trade!
Importance of choosing the top cryptocurrencies
The cryptocurrency market is known for its volatility, with prices either soaring to new heights or plunging dramatically within a short period. As such, selecting the top cryptocurrencies for trading becomes critical in navigating this volatile landscape.
Here’s why it matters-
Experience
As a beginner trader with little experience, you can not go wrong with the top cryptocurrencies. While newer projects may require some technical and market knowledge on your end to understand how profitable they would be, the top cryptocurrencies are already established as investment instruments, giving you confidence as a starter in the realm.
Profit potential
Choosing the top cryptocurrencies at any moment can result in substantial profits. For instance, Bitcoin and Ethereum have consistently grown over the years, making them attractive options for long-term investors.
Risk mitigation
The crypto market is rife with new and speculative projects with higher risks. Opting for established and reputable top cryptocurrencies with solid fundamentals can provide a more stable and less risky investment.
Diverse use cases
Cryptocurrencies serve diverse purposes, from storing value (like Bitcoin) to enabling decentralized applications and smart contracts (like Ethereum), and you can understand their true impact with the established, top cryptocurrencies. Knowing each cryptocurrency’s use case and potential helps align crypto trading strategies accordingly.
Liquidity and trading volume
High liquidity and trading volume ensure smoother transactions and better price discovery. Top cryptocurrencies tend to have more liquidity, making them easier to trade and exit positions.
Regulatory considerations and security
Different countries and jurisdictions have varying regulations regarding cryptocurrencies. However, with the top cryptocurrencies that have been around for a while, you can rest assured regarding the security of your investments, since they would never turn out to be bubbles.
Market knowledge
In-depth research about each cryptocurrency’s team, technology, partnerships, and community support is crucial for informed decision-making. Again, with the top cryptocurrencies, all of this knowledge is easily available, so you have an easier time crypto trading.
Success in this volatile market relies on selecting suitable cryptocurrencies, considering their profit potential, risk level, use case, liquidity, and regulatory implications. Thorough research and analysis empower traders to make prudent choices and embark on a rewarding crypto trading journey.
Methodology for selecting top 10 cryptos
The methodology for selecting the top 10 crypto to trade can involve a meticulous and comprehensive approach. To ensure a well-rounded evaluation, you can choose to apply a multi-faceted framework, considering various crucial factors that influence the performance and viability of cryptocurrencies in the market.
Some of the factors to consider would be:
Market capitalization
Market capitalization serves as a foundational metric for assessing the size and prominence of a cryptocurrency within the overall market. The top 10 cryptos by market capitalization often exhibit excellent stability and liquidity.
Trading volume
Trading volume signifies the level of activity and interest in a particular cryptocurrency. Higher trading volumes for certain crypto in a market indicate a more active trader base, leading to improved price discovery and smoother crypto trading.
Liquidity
Liquidity enables traders to enter and exit positions at desired prices without significantly impacting the market. Cryptocurrencies with higher liquidity provide enhanced crypto trading opportunities.
Fundamental Analysis
Study the fundamentals of each cryptocurrency, including its use case, team, partnerships, and technology. Assess whether the project has real-world utility and adoption.
Technical Analysis
Use technical analysis tools and indicators to evaluate price trends, support and resistance levels, and potential entry and exit points.
Top 10 crypto to trade
While you can use the above mentioned factors to root out the top cryptocurrencies for yourself, Millionero is here to make the job easier for you. Below we have listed the top 10 crypto you can trade in 2023, all available on Millionero!
Bitcoin (BTC)
As the pioneering cryptocurrency, Bitcoin has the largest market capitalization and is widely accepted as a store of value. Bitcoin’s strong brand recognition and first-mover advantage continue to attract investors seeking a safe-haven asset. However, its high transaction fees and slow confirmation times are challenges.
Many consider Bitcoin a long-term investment. Its price movement should be monitored closely for favorable entry points.
Ethereum (ETH)
Ethereum is a decentralized platform that introduced the use of smart contracts and decentralized applications (dApps) to the world of blockchain. The Ethereum network’s scalability issues have led to high gas fees during periods of heavy network usage. Ethereum 2.0, a major upgrade, aims to address these concerns and transition to a proof-of-stake consensus mechanism.
With the growing demand of DeFi and NFTs, Ethereum’s price is likely to be influenced by developments in these sectors.
Polygon (MATIC)
Polygon is a layer 2 scaling solution for Ethereum which addresses its scalability issues and reduces transaction costs. Polygon’s integration with Ethereum makes it an attractive layer 2 solution, allowing faster and cheaper transactions. Its expanding ecosystem and partnerships with established projects strengthen its position in the market.
Keep an eye on Polygon’s partnerships and integrations, as they can impact its price significantly.
XRP (XRP)
XRP is a digital asset developed by Ripple Labs, aiming to revolutionize cross-border payments. XRP’s use case in facilitating cross-border payments could lead to increased adoption by financial institutions.
Ripple’s recent dispute with the US regulatory body SEC (Securities and Exchanges Commission) has highlighted a lack of proper crypto regulation in the US, while other jurisdictions like Hong Kong and the US run ahead. The support for Ripple from crypto enthusiasts around the world can positively influence the price of XRP.
1INCH
1inch is a decentralized exchange aggregator and liquidity protocol. It aims to offer users the best trading rates by scanning multiple decentralized exchanges.
1INCH employs an algorithm to discover the most favorable rates across decentralized exchanges. It optimizes trade execution by splitting orders, accessing a wide range of liquidity pools, and minimizing gas costs. The 1INCH token (1INCH) is used for governance and staking within the ecosystem. The protocol aggregates and executes trades for users while aiming to reduce slippage and transaction costs.
AAVE (AAVE)
Source | AAVE as one of the top 10 cryptos
AAVE is a decentralized lending and borrowing platform that makes users earn interest on their crypto holdings. AAVE’s decentralized lending and borrowing platform has gained significant popularity within the DeFi space. Its tokenomics and governance model contribute to its growing demand.
Monitor AAVE’s platform activity and the demand for decentralized finance services.
Cardano (ADA)
Cardano is a blockchain platform focusing on sustainability, scalability, and interoperability. Cardano’s focus on sustainability and academic research sets it apart from other blockchain platforms. The successful implementation of its smart contract capabilities with the Alonzo upgrade worked wonders for Cardano too.
SingularityNET (AGIX)
SingularityNET is an AI-based blockchain platform that facilitates the creation and monetisation of AI services. As AI technology continues evolving, SingularityNET’s platform promises to enable decentralized AI services. However, competition from other AI-focused projects remains a challenge.
Avalanche (AVAX)
Avalanche is a fast and highly scalable blockchain platform aiming to improve DeFi and enterprise use cases. Avalanche’s unique consensus mechanism and high throughput position it as a strong competitor in the blockchain space. Its ability to cater to various use cases attracts interest from investors.
AVAX’s price may correlate with the success of projects built on its platform.
Axie Infinity (AXS)
Axie Infinity is a game using blockchain technology for players to collect, breed, and battle fantasy creatures called Axis.
Axie Infinity’s play-to-earn model and engaging gameplay have created a thriving community of players and investors. The growth of the NFT and blockchain gaming sector can positively impact AXS’s value.
Future outlook for the top 10 crypto
The future outlook for the aforementioned top 10 crypto is promising, driven by ongoing technological advancements and increasing mainstream adoption.
Bitcoin’s role as a digital store of value and Ethereum’s potential for decentralized applications continues solidifying their market positions. Scalability solutions like Polygon address key challenges, while XRP’s potential in cross-border payments remains intriguing. DeFi protocols like AAVE and blockchain platforms like Cardano and Avalanche are shaping the future of finance and decentralized applications. SingularityNET’s fusion of AI and blockchain technology holds significant potential, and Axie Infinity’s immersive blockchain gaming experience continues to attract a thriving community!
Risk assessment and potential challenges
We know about the top 10 cryptos to trade right now, but let’s not forget the challenges involved in crypto trading before you start your journey!
Market volatility
Cryptocurrencies are highly volatile assets, and their prices can experience rapid fluctuations.
Regulatory risks
Regulatory changes and legal disputes can impact cryptocurrencies’ value and crypto trading opportunities.
Security risks
Trading on crypto exchanges carries the risk of security breaches and hacking incidents.
Project risks
The success of cryptocurrencies is closely tied to the projects and teams behind them. Unforeseen developments may affect their viability.
Now, you can prepare to face all these challenges by choosing a crypto exchange that adheres to regulatory mandates like KYC/AML measures implementation, and researching every crypto project individually before investing into them. As for volatility, a robust crypto trading strategy would allow you to engage in crypto trading effortlessly!
Secure and compliant crypto trading with Millionero
Millionero, with our user-friendly interface and diverse range of cryptocurrencies, presents an excellent platform for crypto traders. With us, you can trade the aforementioned top 10 cryptos of 2023, and you can even avail the copy trading feature to learn from Millionero’s top crypto traders while you earn!
Visit our website today to learn more about our services, and kickstart your crypto trading journey!