Ways by which Cryptocurrencies Can Triple Your Money will be explained in this article. Last year, the total worth of cryptocurrencies fell by $1.4 trillion. A substantial decline in the price of cryptocurrencies could provide the ideal opening for investors to seize. These four virtual currencies are equipped to increase their owners’ wealth in the coming year.
The views expressed in this free article may not reflect those of The Motley Fool’s premium investing services. Become a member of The Motley Fool today for immediate access to our top analyst picks, in-depth analysis, investing tools, and more. Study More These digital currencies possess the differentiation, innovation, and economic advantages required to stand out in a very crowded market.
How Cryptocurrencies Can Triple Your Money In 2023
In this article, you can know about How Cryptocurrencies Can Triple Your Money In 2023 here are the details below;
All three of the main U.S. stock indexes entered a bear market in 2018, which was a bad year for Wall Street. However, those difficulties pale in comparison to those faced by the cryptocurrency industry, which lost about $1.4 trillion of market value last year and well over $2 trillion after reaching its all-time peak in November 2021. But just as significant drops in the stock market are seen as buying chances, significant drops in the cryptocurrency market might be the perfect opportunity for investors to seize.
The secret to discovering deals in an asset class where concrete data can be hard to come by is to look for initiatives that truly differentiate themselves and offer competitive advantages. The potential to stand out among the more than 21,100 cryptocurrencies listed on CoinMarketCap.com is where real value is created. A toy rocket preparing to launch is perched atop disorganized coin piles and financial data documents.
1. Avalanche
Ethereum (ETH -1.71%) frequently leads the field in terms of innovation and practical outcomes. The majority of decentralized application (dApp) creation takes place on the Ethereum network. According to statistics from TokenTerminal.com, Ethereum generated $3.8 billion in dApp protocol revenue over the previous year, which is seven times more than its closest rival.
But what if Ethereum weren’t the only option for developing dApps? Greetings from Avalanche (AVAX -2.10%).
The pace of its network is one of Avalanche’s key points of differentiation. The top two cryptocurrencies, Bitcoin (BTC -1.58%) and Ethereum, can handle up to 7 and 14 transactions per second, respectively. (TPS). According to Avalanche’s developers, the network can handle at a rate of more than 4,500 TPS.
Avalanche can succeed while Ethereum’s fame may cause network lag.
The interoperability of Avalanche’s network with the Ethereum Virtual Machine is another crucial factor in the project’s success. (EVM). The software that programmers use to make dApps is called the EVM. Because Avalanche runs the EVM on its blockchain, it can provide dApp developers with access to a tool they are accustomed to, but with significantly cheaper transaction fees and faster transaction processing than Ethereum.
The $96.1 million in dApp protocol income generated by Avalanche over the past year pales in comparison to what Ethereum has made. However, if it keeps luring developers to its faster and less expensive network, a tripling in its worth in 2023 is not implausible.
2. Algorand
Algorand (ALGO -4.17%) is the second coin that, if everything goes according to plan, will be able to pay investors 200% returns in 2023. Algorand is a clever play on dApp development, similar to Avalanche, with a strong emphasis on decentralized money. (DeFi).
Algorand doesn’t skimp on speed because competitive advantages are essential for sticking out in the digital currency market. If you thought Avalanche’s throughput of 4,500 TPS and block finality of a few seconds was impressive, you’re going to adore Algorand’s throughput of about 6,000 TPS and block finality of a few seconds. It is, in other words, a sizable layer-1 database that is capable of processing numerous transactions and validating them almost instantly.
The emphasis on interoperability placed on the initiative by Algorand may be its biggest point of differentiation. The creators of Algorand are aware that there are numerous distinct blockchain networks, many of which are incompatible with one another. Algorand is utilizing its layer-1 blockchain to serve as a link between these initiatives within the financial sector.
Algorand has also abandoned the conventional proof-of-stake consensus mechanism in lieu of pure proof of stake. (PPoS). With PPoS, participants are chosen at random to vote on different proposals and build new blocks. These participants must own ALGO tokens. PPoS is built to be scalable and decentralized while keeping security in mind. This is another cryptocurrencies can triple your money.
Algorand is a project with the competitive advantages required to stand out, even though we haven’t seen a lot of concrete data from it to back a significant move higher.
A person clutching a golden lock that is glowing and is encircled by latticework that looks like blockchain nodes.
3. IOTA
IOTA is a third cryptocurrency that, compared to Avalanche and Algorand, has the potential to triple your money in 2023. It is unheard of. (CRYPTO: MIOTA). This less well-known digital money has the potential to play a significant role in the acceptance of payments from Internet of Things (IoT) gadgets. This is another cryptocurrencies can triple your money.
Prospective investors don’t need to look far to discover IOTA’s distinct differentiator. That’s because IOTA doesn’t make use of blockchain technology, in contrast to countless other cryptocurrency initiatives. Instead, IOTA’s developers use a decentralized acyclic graph consensus algorithm they call the “Tangle” to verify transactions.
There are drawbacks to conventional blockchain technology. For instance, it has been observed that many of the most well-liked networks are slowed down by the approvals necessary to establish new blocks, validate transactions, and/or vote on proposals. These limitations are not present in the IOTA network, so deal finality happens quickly.
Additionally, the Tangle is made to become more effective over time. Theoretically, the network grows more scalable and efficient with each payment because fresh transfers support the confirmation of older ones.
The ability to conduct feeless trades is another innovative feature that IOTA offers. As IoT devices permeate our homes, roads, and workplaces, its capacity to provide no-fee payments as well as scaling that doesn’t negatively impact the network may be exactly what makes it a well-liked payment network.
4. Stellar
Stellar (XLM -0.85%) is the fourth and concluding cryptocurrency that can triple your cash in 2023. A blockchain-based payment network would not typically be considered important. The Lumen token (XLM) from Stellar, however, may soar to the moon this year given its relative benefits over other payment networks.
The elimination or avoidance of the current traditional payments’ cumbersome and expensive process is one of the main goals of blockchain technology, even though this list has mainly focused on dApp development (at least from a financial standpoint).
You might need to spend a not insignificant fee if you want to send money abroad. Worst of all, it could take up to a week for your money to validate and settle. However, payments sent using Stellar’s Lumen cryptocurrency can finish this international journey and resolve in five seconds or less. This is another cryptocurrencies can triple your money.
The typical transaction fee is 0.00001 XLM, which is even better. The typical transaction costs only $0.00000072 at the current price of Stellar Lumen, which is $0.0718. In other words, you could use the Stellar network to complete almost 1.4 million deals before paying a single fee. Try doing that with the bank or credit union in your community.
Should you invest $1,000 in Avalanche right now?
However, just because Stellar’s network costs less than other networks doesn’t mean that it sacrifices usefulness or throughput. It can produce well in excess of 1,000 TPS. Additionally, a 2022 study report by ForexSuggest.com discovered that it was the top network in terms of daily transactions. According to data from ForexSuggest.com, Stellar processes more than 32 times as many transactions everyday as Bitcoin and almost six times as many as Ethereum.
This verifiable information indicates that the Stellar network has a path to eventually becoming a commonplace method of payment. A 200% or greater gain for investors might be possible if Stellar were to secure new partnerships in 2023.