2023, just like any other year, comes with its opportunities and challenges as regards the crypto industry. But it’s better to know what to expect rather than be shocked by an unforeseen crash.
As the new year unfolds, investors wonder which crypto to keep holding and which to wave goodbye to. The truth is that it’s hard to come up with precise forecasts concerning the crypto’s status in 2023, as there’s still a bear market to be mindful of. The fact that the previous year was a tough one for crypto is nothing new under the sun, but it’s out of the question that virtual currencies will ever be out of the picture. People investing in Bitcoin or buying Ethereum haven’t gone anywhere; moreover, there’s an avid interest in looking at the ETH price that somehow assures that this digital currency will be all the rage in 2023 and probably the coming years, too. Especially since the Merge happened, traders and developers seem to make the most of the Ethereum platform.
So, let’s see what experts have to say about crypto in 2023 and discover ways to approach this sometimes-unpredictable market.
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Is it all about “differentiate or die”?
There’s an ever-emerging question among crypto enthusiasts – is it all about “differentiate or die”? Investors were seriously affected by the crashes and dramatic price moves in 2022, but 2023 is a rather opportunistic year for this market than an exhausting repetition of the previous one. Besides, it’s the perfect time to learn from last year’s disasters – remember the Terra Luna and FTX catastrophes? CEO of Gotbit in Portugal, Alex Andryunin, is of the opinion that 2023, the first half of the year more exactly, is an ideal time to enter the crypto market. He further adds that they have more than 700 cryptocurrencies in their hedge fund portfolio, but none surpasses 2 per cent of the total capital. That’s because, as he says, you either differentiate or die in 2023.
This statement might contradict the previously mentioned one regarding investment opportunities, but trust us – it doesn’t. If you have a clear plan ahead and think about a strategy to organize your portfolio, your chance of succeeding in the market is higher than you imagine. Consider, for example, Gotbit’s approach to cryptocurrency investment – 15 per cent Bitcoin and 15 per cent Ethereum, 10 per cent Polygon, and the remaining percentage to be divided in such a manner that you include cryptocurrencies like Polkadot, Cosmos, and Cardano. Experts warn against investing in virtual currencies like Monero, EOS, and Litecoin.
The fixer-upper
If 2022 was a total disaster, 2023 could be a window of opportunity for investors. The crypto sector has repeatedly been branded as incredibly volatile, and the last year only proved this. But there’s hope that it will win back the trust of the individuals this new year. According to experts, the attention could be directed toward a more sustainable model and long-term profit. Therefore, projects such as EOS, Solana, and Avalanche could experience a gradual decline in 2023. Others, on the other hand, are likely to see a significant rise, including Dash and Zcash. Some will probably not even survive by the end of this year, but that’s the industry.
Crypto is still in the early stages, so it’s better not to act blindly and balance your options very carefully before making any move. In the sea of more than 20,000 cryptocurrencies, Bitcoin and Ethereum have managed to stand out and are very likely to maintain their value for a long time to come. Therefore, if you’re craving more safety in crypto investments, you should consider these coins first.
Insist on self-regulation and transparency
There has been regulatory pressure regarding cryptocurrency ever since the get-go, but now it seems to intensify as crypto has become increasingly adopted. Bitcoin, for example, acts not only as a form of payment for a range of products and services but also as a legal tender in the Central African Republic and El Salvador. Well, the possibility of more regulation in the industry becomes more certain starting this year. Market experts believe this can reinstate some parity and lead to more confidence among people who are willing to invest but fearful of their digital assets.
Besides, customers call for more transparency from a compliance and security point of view. This could change the landscape, resulting in more crypto exchanges adopting higher standards and pushing for more self-regulation. This is encouraging news, all the more so since crypto scams have reached such a high percentage lately. With more regulation on the horizon, the path will be cleaned for more serious players who are aware of promoting trust in their businesses.
An event that could make a big difference in this sense is the 2023 Union Budget in India. The country’s Finance Minister, Nirmala Sitharam, is supportive of crypto regulation, and 2023 might take India to the top countries to introduce a clear regulatory system for virtual currencies.
Is it a “trustless” ecosystem?
The crypto ecosystem is far from being trustless; it’s rather unpredictable. But there’s a constant push on self-regulation, transparency, and sustainability, so we think better days are coming. The ecosystem is still in its development stages, so investors should expect maturity in the future, as well as a prominent shift to DeFi protocols and a change in market liquidity conditions.
Furthermore, blockchain, the technology underlying cryptocurrency, has found its way into various industries and fields. Thus, it has come to play a huge role in healthcare, entertainment, supply chain management, education, logistics, etc., contributing to the evolution of many businesses across the globe. It’s no longer a fantasy that blockchain can ease the burden of corporate life, and this has further increased the importance of cryptocurrency. More and more organizations and individuals are anticipated to enter the market and dive deeper into the crypto pool. Digital currencies like Bitcoin, Ethereum, Tamadoge, RobotEra, and IMPT are currently favored, but who knows, 2023 will be full of surprises.