Top Cryptocurrencies That Students Can Buy As Investment In 2023
The latest trading instrument that’s caused a lot of buzz in markets is cryptocurrency. The unique selling point of cryptocurrency is that it is decentralized and uses cryptography as the security mode. This effectively puts a stop to counterfeiting operations. Before we dive into top cryptocurrencies, let’s learn a little bit more about them. We will also discuss which cryptocurrencies are best for investment if you are a student.
Cryptocurrencies Explained
Cryptocurrency is mined using computer power to solve complex problems of mathematical nature. It works using Blockchain technology, a public ledger of sorts that records and updates every transaction made for every currency holder. This security confers crypto with the special ability to be traded without a trusted third party’s approval. Indeed, it is a valuable and growing instrument.
Best Cryptocurrencies for Investing
Several currencies, starting with Bitcoin, Ethereum and Tether, are now used as a transaction medium as they are supposed to be more secure than traditional government-sanctioned currency. But that’s not their only use. Several people are investing in these digital currencies, thus greatly boosting their value. According to an optimistic report by Statista, revenue from cryptocurrency is expected to show an annual growth rate (CAGR 2023-2027) of 14.72% resulting in a projected total amount of US$5.49bn by 2027.
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To a student with not much income, trading in crypto seems daunting. To help you out, here is a list of top cryptocurrencies that students can trade in during their early investing stages.
Bitcoin
The undisputed and oldest currency of them all, Bitcoin, was released in 2009 by an elusive Satosi Nakamoto. It has gained popularity ever since, with its current valuation standing at 16,509 USD per BTC. It is a great currency to invest in as a student.
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Ethereum
Ethereum is a close second to Bitcoin. With its market cap at USD 146 billion, one unit of ETH costs 1990 US dollars. The issuance of ETH is limited although not as hard as Bitcoin. Its ability to carry out smart contracts apart from being a mere mode of transaction makes it appealing to investors. With ETH one can purchase non-fungible tokens and perform a number of functions on decentralized apps (DApps). Non-fungible tokens enable artists to sell their art and buyers to purchase them using smart contracts.
Tether
If you are not fully sold on unbacked cryptocurrencies, your next best bet is Tether. Termed as a “stablecoin” whose value does not fluctuate independent of the dollar, one USDT is exactly one dollar. However, Tether is not backed by US dollar reserves and instead creates an unsecured debt - one that is not backed by any collateral.
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USD Coin (The Digital version of the US dollar)
Unlike Tether, The US dollar coin is fully backed by the Federal reserves of the actual US dollar. Valued at 1 USD per coin, the market cap for USDC is 44 billion USD, notably 22 billion less than the Tether. If you are a stickler for secure transactions and collateral backed currencies, this is a must invest currency. Do note that USD is no longer backed by gold reserves. This raises a rather important question of whether a collateral is really necessary for a currency to hold value.
BNB (by Binance)
BNB by Binance is the last currency this article will cover. Binance is a cryptocurrency exchange platform and handles the largest flow of Bitcoins and Altcoin by volume, in the world. It was a token originally used to carry out discounted trades. However, it is now used as a cryptocurrency and can be used to buy goods and services in real life. It is, although predictable, valued at 244.54 USD per BNB - giving it the 5th position among all the currencies.
To Sum It Up
Cryptocurrency has been proven to give exorbitant returns on investment with one caveat - extreme market volatility. One mustn't forget how Dogecoin soared and dipped in response to two tweets from Elon Musk. This calls for smart investment decisions over abstinence. People still invest in crypto daily, which you can leverage if you play your cards right. Hopefully, now you are more knowledgeable about the cryptocurrencies you can invest in this year.
