Looking to grow your net worth in 2023? Consider investing in cryptocurrency.
Research shows that 28% of people in Canada have portfolios containing cryptocurrencies.
What’s the best type of cryptocurrency to invest in, though? Let’s explore the best crypto to invest in (2023) to get the most bang for your buck.
What Is Crypto?
Cryptocurrency is a digital asset that uses a reliable encrypted network. This network helps with executing, verifying, and recording transactions. It does this independently of centralized authorities, like banks or governments.
This means cryptocurrency is a decentralized currency. Developers issue some cryptocurrencies. Meanwhile, network algorithms generate others.
The blockchain is the technology responsible for powering crypto. This tech disruptor records every crypto transaction.
The blockchain’s encryption makes every transaction secure. This means you don’t have to worry about falling victim to fraudulent transactions. Examples of these include counterfeit currency and tampering.
Cryptocurrencies have become an increasingly popular alternative to traditional currencies, like the Canadian dollar. Let’s take a look at the best cryptocurrency to invest in this year.
Best Crypto to Invest in (2023)
Ethereum has become one of the best cryptocurrencies to invest in.
Decentralized app developers, or dApp developers, especially embrace this blockchain. That’s because this type of crypto is scalable and fast. It is also easy to develop and has a broad user base.
The projects that have been built on Ethereum are valued at $30 billion–plus. This is several times the value of Ethereum’s nearest rival, Bitcoin. This is why Ethereum is the top choice for investors.
Ethereum has experienced immense growth since making its debut. Its price jumped from $11 to a record high of $4,800 from 2017 to 2021. The price dropped to about $1,000 in late 2022 amid the broader market crash.
Since early 2023, Ethereum’s price has shown excellent resilience. It jumped back up to close to $2,000 in May 2023.
Investors love Ethereum due to its long-term market performance so far. In addition, Ethereum has undergone improvements to give it a more secure future.
For instance, Ethereum switched to what’s called the “proof of stake” consensus model in 2022. This is an eco-friendly way of verifying new crypto transactions, allowing the blockchain to decrease its ecological footprint significantly.
In addition, a Shanghai upgrade recently began allowing investors to withdraw staked Ethereum.
Some analysts initially thought Ethereum would drop in value after flooding the market. However, the levels of deposits and withdrawals have been similar. This has kept Ethereum stable.
Why Ethereum Is the Best Cryptocurrency
Ethereum is superior to Bitcoin for several reasons.
First, unlike with Bitcoin, the total supply of Ethereum isn’t capped. Instead, Ethereum’s network adjusts new tokens’ issuance through consensus.
In addition, Ethereum supports smart contracts. This means a developer can create a smart contract on Ethereum’s blockchain. Testing and deploying these types of contracts is also possible with Ethereum.
Ethereum ensures decentralization by using nodes located across the globe. The nodes are used in place of central servers. This helps ensure that Ethereum is constantly online.
Let’s go over a few other benefits of Ethereum.
As we mentioned earlier, Ethereum is fast. The transaction time with Ethereum is just 10 seconds to 15 seconds. Meanwhile, Bitcoin’s transaction time can be between 10 minutes and 15 minutes.
Because Ethereum is fast, it is more convenient to use every day. Bitcoin transactions don’t offer this luxury.
We also mentioned earlier that Ethereum is environmentally friendly. It’s more eco-friendly than Bitcoin.
Bitcoin transactions require nearly 1,100 kilowatt hours of electricity each. However, Ethereum transactions require only 62 kilowatt hours of electricity each.
In addition, Ethereum 2.0, a new crypto, is expected to cause a 99% decrease in Ethereum’s energy consumption.
Bitcoin trades only in cryptocurrency. However, Ethereum offers investors various solutions. These include smart contracts and cryptocurrency as we discussed earlier.
These solutions also include Ethereum Virtual Machine. This machine reliably powers every application running on Ethereum’s network without reporting major downtime. It offers consistent results and doesn’t give away too much detailed information to nodes or clients.
This means Ethereum is more versatile than Bitcoin.
Finally, most Bitcoins have already been mined. This reduces Bitcoin’s future scope. However, there is more Ethereum to be mined.
This means Ethereum offers a larger scope and more range moving forward.
Value of Ethereum
Ethereum’s price goes up and down due to supply and demand. The price also fluctuates due to other variables, including the following:
- Media hype
- Public adoption of Ethereum
- Government regulations
- User sentiments
- Investor sentiments
Check out the price of Ethereum in Canadian dollars in real time by viewing the current ETH to CAD conversion.
Process for Buying Ethereum
An easy way to start buying and selling this crypto is to set up an account. This account should be on a trustworthy trading platform or cryptocurrency exchange, like VirgoCX.
With VirgoCX, you can sign up, get verified, and start funding your account without fees. Consider using Interac e-Transfer to fund the account. Alternatively, you can deposit a larger amount of money via a wire transfer.
You can later sell the Ethereum you’ve bought through the trading platform. In addition, you can quickly withdraw your money using Interac e-Transfer.
Buy Cryptocurrency with Confidence
Ethereum is the best crypto to invest in (2023) because it is fast and eco-friendly. Its transaction fees are also lower compared with Bitcoin. Ethereum has a higher total project value than Bitcoin, too.
Keep in mind the many above-listed benefits of Ethereum as you seek to grow your portfolio in the years ahead.
Also, if you enjoyed reading this article, check out the rest of our website for more great content.