The year began in pure celebration for cryptocurrencies, with rises that reached the 40% in dollars in January, news that impacted and recomposed this market due to to the lousy year 2022 who experienced this investment, after falling almost a 70% in that period.
Given this change in trend, analysts recommend 5 cryptocurrency alternatives to position for now.
It should be noted that, in addition to these significant increases, specialists warn that these are volatile assets and, therefore, represent a significant risk.
Especially in an international context quite economically complex.
“It will be a very difficult year for the world of cryptocurrencies, as global inflation will continue until 2023 and liquidity absorption by the world's major central banks will continue throughout the year. The increase will remain valid in these months, ”says economist Natalya Motyl
Guillermo Escudero, Head of Revenue at CryptoMarket, agrees: “All of this has an impact on the cryptocurrency market, because while Bitcoin is a new economy, it is not immune to the macro factors facing our world.” This has slowed down. low assets and cheap markets, which allows us to see a year full of opportunities in 2023, as long as the macroeconomic context continues and brings optimism to the markets”.
Currently, there are more than 10,000 cryptocurrencies around the world, notably Bitcoin, Ethereum and «stablecoins" as USDT and USDC, each equivalent to one dollar.
Most Recommended Cryptocurrencies
identifying 5 cryptocurrencies that show bad buying opportunities right now. experts warn that volatility could continue regardless of their own advice.
“Instead of starting to break out of the downtrend, we missed the 2020 highs. In fact, we missed that in a couple of years. I think that digital currencies will continue to show more volatility because this is a period of multi-year prudent monetary policy, not expansionary, so it will only lead to the adoption of cryptocurrencies ”, warns Motyl iProfessional.
Regarding the recommendations, as Escudero points out, within the world of cryptocurrencies, one can distinguish Bitcoin as a leader in this market, where on the ground we see a strong correlation between this cryptocurrency and the rest of the altcoins, which is also the extent to which the adoption of Bitcoin and/or if regulations beyond price are implemented, we could have momentum for the rest of the market.
Comprehensive: «We have several projects that remain niche and may be uncertain in the short time of their launch, such as NFTs, metaverse or web3″. Invest in Bitcoin, Ethereum, Pax Gold (Paxg), USDC stablecoin and DOT blockchain.
Bitcoin
Bitcoin (BTC) it's the first digital currency in the ecosystem. And it is also the most famous coin. In January, its price had already risen a 39% up to $23,000. It should be remembered that last year it reached a minimum of about US$ 15,600.
“It is a decentralized digital system that can be used as a peer-to-peer payment network and as an investment vehicle. This leads us to think that Bitcoin continues to be a good long-term option, especially at prices that the market may perceive as “cheap”, given its extreme prices,” explains Escudero.
ethereum
Ethereum is an open source platform used to run smart contracts. officially launched in July 2015 and has its own cryptocurrency called Ether, which is the second largest in the market after Bitcoin. Already in the first month of 2023 increased by 34%.
“There are great expectations around this cryptocurrency after its last update, which promises greater speed and less environmental impact, as well as tokenization, which allows you to manage projects other than Ether on your own,” Escudero told iProfessional.
Pax Gold (PAXG)
Pax Gold (PAXG) it is "digital gold" because it is backed by physical gold bars and its price is tied to the value of "1 troy ounce" of this metal, and the fluctuations that it will have will be the same as in the traditional one. market, where gold is one of the most stable and reliable assets.
“Each coupon is guaranteed by a fine ounce of London Good Delivery gold. When you buy PAXG, you own the underlying physical gold, which the Paxos Trust Company, a regulated financial institution, holds in escrow and is required to keep its assets safe at all times,” explains Escudero.
USDC
The USD currency (USDC) is a stablecoin whose price is pegged to a peg 1:1 with the US dollar, which avoids the volatility of its value.
It is backed by dollar cash reserves held in a bank account.
“A type of currency based on (traditional) fiat currencies. USDC is an Ethereum token, so it can be stored in an Ethereum-compatible wallet, as well as run on many other interoperable protocols,” Escudero limited to iProfessional.
DOT
DOT is a blockchain project that has as objective to create an interconnection infrastructure between different of these mathematical data storage structures, as well as improve scalability compared to other projects and new features for them.
“It is also often referred to as the blockchain of the blockchain, because the idea of DOT is for other projects to run on it with improvements in regards to building the blockchain itself, providing secure infrastructure. , programming languages and macros for project development”, argues Escudero.