My best cryptocurrency to buy right now

The crypto market is at a crossroads right now. The total value of all cryptocurrencies stands at $857 billion today, down from $2.8 trillion in November 2021. The sector was rocked by scandals and financial meltdowns in 2022, many of which are ongoing stories with unknown consequences in 2023 and beyond. At the same time, there are some positive notes in the air. These crypto scandals may inspire lawmakers to accelerate progress toward a fully functional system of crypto trading laws and regulations. Decentralized economy and Web3 apps are masterful. Institutional investors have begun to accept Bitcoin (BTC 0.36%) as an investable asset.

It is difficult to say where the crypto market will go next, but the long-term trend seems obvious. I expect a full recovery followed by new growth for many years to come. Crypto investors just have to get over this speed bump first (and likely many more in the future).

From that perspective, it would be easy to recommend buying some Bitcoin or Ethereum (ETH -0.16%) while the biggest names in crypto are trading near multi-year lows. However, most altcoins are less robust and thousands of ill-fated cryptocurrencies should go to zero in this downturn. It’s time to clean the house.

However, I have my eye on a smaller name with a clear path to even bigger gains than Ethereum and Bitcoin over the next few years – and a stable platform for the long term. So let’s take a closer look at the Polkadot blockchain network and its DOT (DOT -2.31%) token, also often referred to as Polkadot.

Polkadot’s token price is spring-loaded for a massive return

Polkadot’s price has plunged 82% lower in the past year, harder and faster than the roughly 60% price cuts seen in Ethereum and Bitcoin. Many people do not see a future for this much smaller asset with a total market value of just $6 billion today. For reference, Ethereum is worth $164 billion and Bitcoin’s market footprint is $334 billion.

The small market capitalization gives Polkadot big gains as the token and network gain more attention from decentralized app developers who put Polkadot-powered systems in front of businesses and consumers.

The upcoming Web3 sea change

And the long-term endgame for Polkadot could be truly impressive. This is literally the “flagship protocol” of the Web 3 Foundation, launched by people who are rethinking how business is done on the Internet. In a fully functional Web3 world, today’s hub-and-spoke system of centralized servers will be replaced by a worldwide grid of blockchain networks – a more fluid and decentralized alternative.

Financial transactions, content publishing and data sharing will be managed by many different blockchains, with each highly specialized token playing to its strengths. Of course, blockchain ends up managing everything, but the user on the street won’t necessarily know the difference as long as the developers of Web3 apps do a good job.

The resulting service architecture will be global by default, harder to break than the many single points of potential failure we have now, and control over everything will shift away from large companies, towards the users and creators. This sounds like a huge upgrade to me and I can’t wait to invest in the Web3 vision.

I actually already have that. Polkadot found its way into my crypto portfolio years ago and I don’t mind adding more at lower prices.

Polkadot and Web3 go hand in hand

You see, Polkadot is the tool that ties together the many separate assets you’ll see in a mature Web3 application. The value of this token should rise as Web3 adoption increases, because Polkadot is the very lifeblood of the reimagined web. Its cross-chain communication capabilities allow developers to use many different blockchain tools and cryptocurrencies in a single development platform, greatly simplifying the task of bringing Web3 ideas to life. So when you buy Polkadot, you’re really buying into the notion that Web3 will rise up and take over the current Web2 structure one day.

I bought my first Polkadot tokens two years ago and added a few more in 2022. Due to the ongoing crypto winter, the slow rollout of early Web3 applications and low media interest in Polkadot and Web3, the price of the DOT token has plunged more than 80% below my initial purchase price.

And that’s okay. I look at Polkadot’s low prices and see a standing invitation to buy more. On a modest level, I’d be surprised if Polkadot’s total market capitalization never reaches half a trillion dollars (and it may well go much higher in the long run). Achieving this goal will give you an 86x return on the Polkadot investment you make today.

So I continue to collect Polkadot tokens on the cheap while waiting for the Web3 revolution to gain momentum. 2023 may or may not be the year this happens, but I’d hate to be on the sidelines when it’s too late to profit from the web revolution. For that reason, I strongly recommend that you give Polkadot a serious look today. Read up on Web3 and how Polkadot fits into the big vision, and take action if these big ideas make sense to you.