Unlike most of the copy-and-paste “best cryptocurrencies to invest in” lists that seem to pop up everywhere these days, we’ve put some time and effort into exploring the latest trends in crypto and blockchain in order to determine which ones have the staying power both as short- and long-term investments.

If you’re like most crypto investors, then you have a lot of questions about the future of cryptocurrency, especially in light of the ongoing crypto winter. Which crypto is best for the future? What are the top cryptos right now? Which crypto has the most potential in 2023 and beyond? And with over 22,000 cryptocurrencies from which to choose, the ability to find new crypto coins as well as knowing the best time to buy crypto become crucial, especially since the market is open 24 hours a day, 7 days a week, 365 days a year.

While we’re not going to reveal our hand at the very outset of this article, we will say that we’re bullish on the future of DeFi and the many associated coins (more below).

Best Cryptocurrencies to Invest in This Year

Here’s a rundown of some of the top cryptocurrencies to consider when thinking about investing in the year ahead. While we’ve structured this list according to categories, bear in mind that there’s a fair degree of overlap with some of the coins, and so the categories themselves shouldn’t be understood as fixed and definitive, but rather fluid.

And now the moment we’ve all been waiting for—drumroll please...

Best DeFi Coins

If the “crime vibes” of centralized entities such as Terra, Celsius, and FTX have taught us anything, it’s that decentralization should be an essential element of the crypto space as it grows and matures. Previously, we looked into the history of DeFi, but now it’s time to look ahead to its future.

Cosmos (ATOM)

Launched in 2019, Cosmos (ATOM) is a blockchain platform that operates in a decentralized manner and dubs itself as “the internet of blockchains.” Its primary objective is to establish an interconnected network of blockchains that enable easy communication and asset exchange among diverse blockchain networks. The platform employs a distinctive consensus algorithm, Ignite, formerly known as Tendermint, which is a Byzantine fault-tolerant Proof-of-Stake consensus mechanism, which ensures the security and speed of transactions while also maintaining the network's decentralized nature and resilience to potential attacks.

One of the essential characteristics of Cosmos is its interoperability, which is facilitated by the Inter-Blockchain Communication (IBC) protocol. This feature enables different blockchain networks to interact and exchange data and assets with one another regardless of their underlying technology. Additionally, Cosmos makes it possible to create customized blockchains, known as zones, that can cater to specific use cases and needs. These zones can then be linked with other zones within the Cosmos ecosystem, allowing for the seamless transfer of assets and data.

In addition, Cosmos allows users to stake their ATOM tokens to support the network's security and earn rewards in return. Staking also empowers users to govern the network, as stakers can vote on proposals for network upgrades and modifications.

Hedera (HBAR)

Hedera Hashgraph, also known as Hedera, is a public distributed ledger or blockchain technology that was launched in 2018. Its consensus algorithm, Hashgraph, is a patented technology that claims to be faster, fairer, and more secure than traditional blockchain technologies. Hedera is designed to be a decentralized platform for building decentralized applications (dApps) that can be used across various industries, including finance, gaming, social media, and supply chain management. The platform enables developers to create smart contracts and dApps on top of its network.

One of the key advantages of Hedera is its speed and scalability. The Hashgraph consensus algorithm can process thousands of transactions per second, which is much faster than other blockchain technologies such as Bitcoin and Ethereum. Additionally, Hedera is designed to be highly secure and resistant to attacks, although the mainnet did suffer an exploit recently that led to the theft of service tokens. Hedera has its native cryptocurrency called HBAR, which is used as the fuel for transactions on the network. HBAR can be utilized to pay for transaction fees, storage, computation on the Hedera network, among other things.

The Hedera governing council is made up of various global organizations, including IBM, EDF, Google, Boeing, and LG. These council members are responsible for governing and maintaining the Hedera network, ensuring that it operates effectively and efficiently. The Hedera council is designed to be decentralized, allowing members to contribute to the development and evolution of the platform.

Fantom (FTM)

Fantom (FTM) is an EVM-compatible blockchain platform and cryptocurrency that aims to provide a highly scalable and secure platform for decentralized applications (dApps) and digital assets. It was launched in 2018 and is designed to offer fast, cheap, and scalable transactions. In fact, the first thing that you see on their landing page are the words “Performance matters.”

The Fantom network uses a unique consensus mechanism called Lachesis, which is designed to achieve high throughput and low transaction fees. As a result, Fantom can currently handle approximately 4,500 transactions per second (TPS), while results of their experiments suggest up to 10,000 TPS (!). It also supports smart contracts and interoperability with other blockchain platforms, allowing for the seamless transfer of assets between different networks.

According to its website, there are 200+ dApps that have already been deployed on Fantom ranging from DEXes, cross-chain bridges, lending and borrowing, and yield optimizers to NFT platforms, tools, and wallets. Fantom uses a directed acyclic graph or DAG, which looks more like a graph than a chain and is seen by many as a possible substitute for blockchains due to greater efficiency when processing online transactions or when handling data storage.

Fantom offers a range of developer tools and resources, including a virtual machine and a software development kit, to make it easy for developers to build and deploy dApps on the platform. It also supports the creation of custom tokens and the issuance of digital assets.

One of the main advantages of Fantom is its high scalability and fast transaction speeds, which make it well-suited for high-volume and mission-critical applications. It also offers low

Avalanche (AVAX)

Avalanche (AVAX) is a blockchain and cryptocurrency project that aims to provide a highly scalable and decentralized platform for building decentralized applications (dApps) and deploying blockchain-based solutions. It was created by Ava Labs and launched in 2020.

The Avalanche network uses a unique consensus mechanism called Avalanche Consensus, which is designed to provide fast and secure transactions with high throughput and low fees. It allows multiple subnets to operate in parallel, each with its own rules and governance structures, providing flexibility and scalability for a wide range of use cases.

Touting 6,500 transactions per second, Avalanche uses three separate blockchains, its exchange chain (X-Chain), contract chain (C-Chain), and platform chain (P-Chain), with each one having its own specific role to play in the Avalanche ecosystem. And as you might have guessed, AVAX attempts to solve the blockchain trilemma (fast, secure, scalable). Users might also be interested in “Core” non-custodial browser extension, which enables users to interact with Web3 powered by Avalanche.

Fast, low-cost, eco-friendly, and with NFTs gaining traction on its marketplace Joepegs, AVAX has significant potential as a smart contracts platform for decentralized applications, earning it a spot on our list of best cryptocurrencies in which to invest.

One of the main advantages of Avalanche is its high scalability and speed, which make it well-suited for high-volume and mission-critical applications. It also offers low transaction fees, making it accessible for a wide range of users and use cases.

Best Layer 2 Coins

If scalability is your thing, then you’ll definitely be interested in layer 2 coins, which are designed to enhance the speed and reduce the cost of performing transactions on a blockchain. Below are a few of our top picks.

Polygon (MATIC)

Polygon (MATIC) is a blockchain platform and cryptocurrency that aims to provide a highly scalable and secure infrastructure for building decentralized applications (dApps) and facilitating transactions. It was originally launched in 2017 as the Matic Network, but rebranded to Polygon in 2021 to reflect its broader vision and expanded functionality.

For those interested in scaling Ethereum/Web3 apps, Polygon offers some impressive numbers. According to its website, Polygon boasts 1.3 billion recorded transactions, 130 million wallets, and just under 3 million active monthly users. Its native token, MATIC, is an ERC-20 token and is used within the Polygon ecosystem to settle payments as well as for governance.

It’s also an EVM-compatible sidechain with a long-term vision of becoming Ethereum’s “internet of blockchains” as well as a Layer-2 aggregator, which will allow it to leverage Ethereum’s security while providing faster speeds and lower costs for developers to use independent yet interoperable blockchains.

As their website indicates, “Polygon is developing a suite of zero-knowledge rollups (ZK rollups) to increase throughput on Ethereum without sacrificing decentralization or security. ZK rollups process transactions off-chain and reduce computation on the base layer to achieve scalability.” Promising features include Polygon Zero (designed to reduce the computational cost of generating validity proofs), Polygon Hermez (a ZK rollup project with decentralization as the main objective), Polygon Miden (a general-purpose, STARK-based ZK rollup with EVM compatibility), and Polygon Nightfall (an enterprise rollup solution developed to facilitate private transactions for institutions that launched on the Ethereum Mainnet on May 17th, 2022).

Arbitrum (ARB)

Offchain Labs launched Arbitrum in 2021 as a Layer 2 scaling solution that aims to improve the efficiency and speed of transactions on the Ethereum blockchain. Its optimistic rollups are used to reduce the burden on the Ethereum network by batching numerous transactions into a single transaction and verifying them off-chain. By doing this, Arbitrum enables the Ethereum network to handle more transactions at a faster rate and lower cost.

Arbitrum's interoperability with the Ethereum blockchain is one of its main advantages. The platform is fully compatible with Ethereum, enabling users to move their assets and data effortlessly between the two networks. This feature makes it easier for developers to build decentralized applications that operate on both networks.

Moreover, Arbitrum provides additional features, such as a user-friendly toolkit for developers, support for smart contracts, and a high level of security. To ensure the transactions' integrity and prevent network attacks, it employs a combination of cryptographic proofs and game theory. With its innovative technology and compatibility with Ethereum, Arbitrum has the potential to transform the decentralized finance industry and change the way people interact with blockchain technology.

Best Web3 Coins

The use of Web3 coins within dApps allows for a more decentralized and democratic system, where users can have more control over their data and the applications they use. Web3 coins can also be used as a means of payment within these decentralized applications, allowing for faster and cheaper transactions. The jury is still out on whether “Web3'' is revolutionary technology or merely the latest buzzword. While we wait to see if it can live up to the hype, the following are a few coins to consider.

Polkadot (DOT)

Polkadot (DOT) is a next-generation blockchain protocol designed to enable interoperability between different blockchain networks. Developed by the Web3 Foundation, Polkadot allows multiple specialized blockchains, known as "parachains," to operate within a single unified network. This allows for greater scalability, security, and flexibility compared to traditional blockchain architectures.

Polkadot also features a unique consensus mechanism called "Nominated Proof-of-Stake" (NPoS), which enables token holders to participate in the network's governance and earn rewards for staking their tokens. In addition, the platform supports smart contracts and allows for the creation of decentralized applications (dApps) using popular programming languages like Rust and Solidity.

The DOT token is the native cryptocurrency of the Polkadot network and is used for staking, transaction fees, and as a unit of account within the ecosystem. As of April 2023, Polkadot is one of the largest cryptocurrencies by market capitalization, and it continues to attract interest from developers and investors in the blockchain space.

Polkadot wants to be synonymous with future-proof interoperability, with the token itself serving three primary purposes: governance, staking, and bonding. As its team states on their website, “Polkadot is built to connect private and consortium chains, public and permissionless networks, oracles, and future technologies that are yet to be created.” Blockchain interoperability is often a source of frustration for developers, particularly as the number of DeFi and NFT-driven apps increases (i.e., multiple protocols and chains), which is where Polkadot aims to make its mark.

Chainlink (LINK)

Chainlink is a decentralized oracle network that aims to connect smart contracts on the blockchain with real-world data and events. In other words, Chainlink is a middleware technology that facilitates communication between blockchain-based smart contracts and external data sources, APIs, and off-chain systems. It achieves this through the use of "oracles," which are trusted third-party systems that provide data and services to the blockchain.

Chainlink was created in 2017 by Sergey Nazarov and Steve Ellis and is built on the Ethereum blockchain. The Chainlink network uses a unique consensus mechanism called "decentralized oracle networks" (DONs) to ensure the accuracy and reliability of the data provided by oracles. The network also uses a cryptocurrency token called LINK, which is used to pay for services on the network and to incentivize oracle operators.

Chainlink has become increasingly popular, as it enables the creation of more complex and sophisticated smart contracts that can interact with external systems and data sources. It has been adopted by various blockchain projects and enterprises, including SWIFT, Google, and Oracle, and has gained a reputation as a reliable and secure solution for decentralized oracle networks.

The Graph (GRT)

The Graph is a decentralized protocol that allows developers to build and deploy decentralized applications (dApps) on the blockchain. It provides a simple and efficient way to query and index data from blockchain networks and store it in a graph database. The Graph aims to solve the problem of data fragmentation and inconsistency that often arises in decentralized systems by providing a decentralized indexing and query infrastructure that is open, interoperable, and scalable.

The Graph is built on top of Ethereum and other blockchain networks and uses a network of "indexers" to index and query data from these networks. These indexers are incentivized by a cryptocurrency token called GRT, which is used to pay for indexing and query services on the network. The Graph also includes a set of developer tools, including subgraphs, which are modular, composable, and reusable building blocks that can be used to create dApps on the blockchain.

The Graph has gained popularity in the blockchain and cryptocurrency communities as a reliable and efficient solution for indexing and querying data on the blockchain. It has been adopted by various blockchain projects and enterprises, including Uniswap, Aave, and Aragon, and has been used to build a wide range of decentralized applications, including decentralized exchanges, prediction markets, and gaming platforms.

Best NFT/Metaverse Coins

Truth be told, we’re not big fans of NFTs (meh), but they are part of the crypto space and many crypto enthusiasts have an interest in them, which is why we’ve included a section on the best NFT/metaverse coins.

Internet Computer (ICP)

Internet Computer (ICP) is a blockchain-based platform that aims to provide a decentralized alternative to the traditional internet infrastructure. It was created by the DFINITY Foundation and launched in May 2021. The platform is designed to allow developers to build and deploy decentralized applications (dApps) and smart contracts that run directly on the Internet Computer network, without the need for intermediaries such as web hosting companies or cloud providers.

Internet Computer uses a unique consensus mechanism called "Chain Key Technology" that allows the network to achieve high levels of scalability and efficiency. The platform also includes a cryptocurrency token called ICP, which is used to pay for services on the network and to incentivize node operators.

One of the main advantages of Internet Computer is that it allows developers to build dApps that can scale to handle large amounts of traffic and data without compromising on speed or security. This makes it a potentially attractive option for developers who want to build decentralized alternatives to centralized web services such as social media platforms, e-commerce sites, and cloud-based software applications.

Stacks (STX)

Stacks (STX) is a cryptocurrency token and blockchain project that aims to bring smart contracts and decentralized applications (dApps) to the Bitcoin network. It was created by the Stacks Foundation (formerly known as Blockstack), and launched in 2019.

Stacks uses a unique consensus mechanism called "Proof of Transfer" (PoX), which allows it to secure transactions and create new blocks on the Bitcoin blockchain while also providing a scalable and efficient platform for building dApps. The Stacks blockchain also supports the Clarity smart contract language, which is designed to be more secure and predictable than other smart contract languages.

The Stacks project has become particularly attractive since it offers a potential solution for bringing decentralized applications to the Bitcoin network, which has historically lacked support for smart contracts. It has been adopted by various blockchain projects and enterprises, including MicroStrategy and Square, and has been used to build a wide range of decentralized applications, including social networks, decentralized exchanges, and prediction markets.

ApeCoin (APE)

This one is a bit of a wild card and might prove controversial in some quarters, but we’ll drop it here anyway. While we’re not saying it’s a “best” coin, it should be interesting to watch its development (or devolution), depending on how things turn out.

ApeCoin (APE) was designed as a utility and governance token to empower the community surrounding the APE ecosystem, which was established based on the Bored Ape Yacht Club (BAYC).

BAYC is a famous NFT collection consisting of 10,000 unique cartoon ape images that were highly sought after during the NFT craze in 2021. Rare apes were sold for millions of dollars, and famous personalities, such as athletes, musicians, and actors, purchased them to use as profile pictures on social media, cementing Bored Apes' profile picture (PFP) NFT status.

APE was introduced by the APE Foundation as an ERC-20 token on March 17, 2022. Token holders can use ApeCoin as currency within the ecosystem, access exclusive services, games, merchandise, and take part in the APE ecosystem's decision-making process through the ApeCoin DAO. Moreover, ApeCoin serves as an incentive for third-party developers to engage in the APE ecosystem by creating applications that integrate ApeCoin.

The Best Overall Cryptocurrencies

If we’re talking about the best cryptocurrencies, then there are still only two tried and tested ones. Any list without Bitcoin and Ethereum would be incomplete.

Bitcoin (BTC)

The first mover. The OG of cryptos. The A1 from day one.

Whether you frequently ride the BTC Express or prefer alternatives, you can’t deny its enviable staying power, market dominance, and continued importance to the cryptocurrency ecosystem, which are just a few reasons among many why Bitcoin is referred to as “the King of Crypto.”

Developed in 2011 by the pseudonymous Satoshi Nakamoto, Bitcoin has moved from cypherpunk outlier to increasingly widespread acceptability. No self-respecting cryptocurrency ranking would be complete without mentioning it, especially since it accounted for roughly 65% of 2021’s market cap. In November 2021, Bitcoin reached its all-time high of $69,000. It also outperformed both gold and the S&P 500 for the third straight year, even performing ten times better than gold in 2020. And despite the current challenging market, Bitcoin maximalists remain steadfastly loyal to it, committed in their belief that BTC will eventually transform the financial system.

But you don’t have to be a Bitcoin maximalist to see the writing on the wall. Bitcoin’s latest slump is a golden opportunity to buy the dip through dollar-cost averaging (DCA) in order to add to your bag. As a matter of fact, that’s exactly what El Salvador’s President Nayib Bukele has been doing since November 2021. Just remember to safeguard your key. After all, you don’t want to end up like this guy with half a billion in Bitcoin lost somewhere in a garbage dump.

Ethereum (ETH)

Last but not least is the silver to Bitcoin’s gold—or is it?

Ethereum is a decentralized, open-source blockchain with smart contract functionality, and its native coin is Ether. Among the thousands of cryptocurrencies out there, Ether is the second largest cryptocurrency only to Bitcoin in terms of market cap and is the brainchild of programmer Vitalik Buterin.

Ethereum’s long-awaited Ethereum 2.0 (or “the Merge”), enabled users to validate transactions and mint new ETH based on their ether holdings, while its recent “Shanghai upgrade” has resulted in a record inflow of staked ETH, to say nothing of Ethereum Virtual Machine as well as the ability to build decentralized applications, smart contracts, and mak regular peer-to-peer payments with Ethereum.

Many consider Ethereum as a smart investment option, especially for those just getting started in the cryptocurrency market. The strength of Ethereum’s token correlates with the scale of the network, which means ETH is expected to increase in value as more dApps and projects are launched on the network. Even the likes of J.P. Morgan has begun to take notice, publishing a report on the future outlook of crypto markets. Included in the report are Ethereum’s upgrades, decentralized finance (DeFi), and non-fungible tokens (NFTs), which it sees as increasingly relevant to financial services.

The real question is whether ETH will eventually overtake BTC as crypto’s prime mover (no offense, Bitcoin maxis). Only time will tell, but in the meantime Team Trality will continue to remain bullish on ETH.

Final Thoughts on the Best Crypto in 2023

Bulls, bears and even the odd wolf in sheep’s clothing. Crypto trading can be exhilarating, but it can also test your mettle.

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Ultimately, though, in order to choose the best cryptocurrency and get the best value for your money, you need to do your homework by considering a range of issues, including market capitalization, the best crypto exchanges (and their commission fees), past performance, market value, volatility, and even taxes.

But even the most comprehensive list of the best cryptocurrencies to invest in won’t guarantee profits if you’re still manually trading by trying to time the market, which is why it’s crucial to leverage the power of automated trading by using crypto trading bots to ensure consistency, objectivity, reliability, and, more importantly, profitability.