Cryptocurrencies have made a remarkable transformation in the last decade and a half, becoming a major part of the financial landscape. But one thing hasn’t changed – their extreme volatility. The crypto market saw a 63% drop in value in 2022 due to several high profile frauds, bankruptcies, and failures. On the flip side, prices have bounced back with a 34.5% surge in the first two months of 2023.
If you are not prepared for wild swings in the market, then investing in digital currencies is not for you. But if you are ready to accept the risks, there are many coins to choose from. Here are six of the best cryptocurrencies to invest in now.
| Cryptocurrency | Returns Through Feb. 28 |
| Bitcoin (BTC) | 39.9% |
| Ether (ETH) | 34.2% |
| Avalanche (AVAX) | 56.7% |
| Polygon (MATIC) | 58.2% |
| Cardano (ADA) | 43% |
| Cosmos (ATOM) | 31.1% |
Bitcoin (BTC)
The first cryptocurrency, Bitcoin, is the largest by market capitalization, valued at around $450 billion or 42% of the total crypto market. It is the most widely accepted, with many publicly traded instruments tracking its performance alongside stocks like MicroStrategy Inc. (ticker MSTR) and Tesla Inc. (TSLA). After a 64% drop in 2022, Bitcoin has had an incredible comeback, with a 39.9% rally in the first two months of 2023.
Ether (ETH)
Ether is the second largest cryptocurrency by market capitalization and the native token of the Ethereum blockchain. Its market cap is around $200 billion, accounting for almost 19% of the total crypto market. Unlike Bitcoin, Ethereum is much more than a tool for peer-to-peer payments. It can be used to create smart contracts, Web 3.0 applications, and trade non-fungible tokens (NFTs). ETH has a utility as a native token, and its switch from the energy-inefficient proof-of-work protocol to the more efficient proof-of-stake system will give it an edge in an increasingly eco-friendly world. ETH is up by 34.2% as of February 2021.
Avalanche (AVAX)
AVAX, along with the other altcoins listed below, are more speculative investments than Bitcoin and Ether. The Avalanche network’s AVAX token earns its place on this list for its ambitious goals. Avalanche Subnets enable users to create their own mini-blockchains on top of its network. Ava Labs imagines a future where most major companies, and even individuals, have their own blockchains. If that happens, AVAX, which plunged 90% in the bear market of 2022, could be a major winner, with a 56.7% increase in the first two months of 2023.
Investing in cryptocurrencies can be a great way to make a long-term return, and there are many different options available. AVAX has had an impressive start to the year, with a 56.7% increase in February.
Polygon (MATIC)
MATIC is currently the seventh most valuable cryptocurrency, with a market cap of over $10 billion. This is still a tiny percentage of the total market size, suggesting there is plenty of room for growth. The success of the program is closely linked to the popularity of the Ethereum network, as Polygon is a scaling platform designed to improve the capabilities of Ethereum and allow for the running of potentially unlimited numbers of decentralized applications.
As with most other tokens, MATIC took a hit in 2022, losing 70% of its value. However, the coin has seen a resurgence in the 2023 bull market, increasing by 58.2% in the first two months of the year.
Cardano (ADA)
Cardano was founded in 2017 by Ethereum co-founder Charles Hoskinson, and is a proof-of-stake blockchain. The total supply of ADA is limited to 45 billion coins, with 77% of this already in circulation. This means the remaining dilution is both known and limited, which is a positive for investors.
Despite the potential, Cardano lost 81% in 2022. However, it has since recovered, increasing by 43% year-to-date. It is now the fifth most valuable cryptocurrency, with a valuation of more than $12 billion.
Cosmos (ATOM)
ATOM is the native token for the Cosmos Hub blockchain and is the least valuable cryptocurrency by market capitalization. The token is not only used to secure the network, but it also serves as a governance token, giving holders a say in how the Cosmos ecosystem evolves.
The project aims to reduce the costs of inter-blockchain communication by making it easier, quicker, and more affordable. This could be a game changer if blockchain technology becomes as widespread and ubiquitous as some optimists in the space expect. ATOM lost 71% in the 2022 bear market, but has since increased by more than double from its June 2022 lows, and an additional 31.1% in the first two months of 2023.
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Update 03/02/23: This The story was published earlier and has been updated to include new information.