Which cryptocurrencies can I hold for the long term?
Nowadays, investing in cryptocurrency hardly counts as speculative activity. The digital assets are being carefully considered by both retail and institutional investors. Digital currency is getting so much attention that investors are treating them as valuable for both long-term investment and short-term profit. The question is, which cryptocurrencies should you pick for long term? We go over some of the cryptocurrency coins that consistently rank at the top of the market cap rankings to make it simpler for you. These might make good long-term investments given their comparatively high levels of stability. Continue reading to learn about the finest long-term cryptocurrencies to purchase this year.
What we are going to learn?
By market cap, Bitcoin is the most valuable cryptocurrency in the world. You can use it to buy things both online and offline, or if you’re like the majority of bitcoin investors, you can regard it as one of your buy-and-hold assets in your investment portfolio. It now has a place in your long-term cryptocurrency portfolio because it is more of a safe-haven investment than a currency. Elon Musk, the CEO of Tesla, said that the business had spent $1.5 billion on Bitcoin and subsequently that it would accept it as payment for its vehicles, which gave the cryptocurrency a boost last year.
Many other businesses, like Microsoft, PayPal, The Home Depot, and Rakuten accept Bitcoin as payment, albeit indirectly in certain circumstances. Musk later withdrew his support, citing environmental concerns. As an investment, other companies are acquiring Bitcoin. A cash loan backed by bitcoin was made by Goldman Sachs for the first time in April. As you follow Bitcoin day to day, you will see that it is a volatile asset. This is demonstrated by the recent drop in price from a one-year high of nearly $68,000 to around $21,000 today. Even yet, it has outperformed all other investment assets over the past ten years, and a recent network upgrade to enhance features will make the platform more useful and might increase the coin’s value.
The market cap of ETH places it as the second-largest cryptocurrency. A blockchain platform and its native coin are both known by the name Ethereum. Ethereum has become one of the best platforms for decentralized applications, commonly known as dApps, in addition to having the ability to be used as a store of wealth, which is one of bitcoin’s strengths. In fact, because it supports tools like smart contracts, which run automatically when certain criteria are satisfied, it has become a platform of choice for developers.
Upgrades are currently being made to Ethereum. According to the Ethereum website, the merger, which was once known as Eth2 but is now more commonly known as The Merge, would enhance the network’s scalability, security, and sustainability. The value of ETH may increase by more than double this year, according to some analysts, who disagree with the notion that The Merge will boost its price. The interest of investors in ETH has been noticed by Goldman Sachs. As with Bitcoin, it intends to support the trading of Ether options.
In our ranking of the top long-term cryptocurrency investments for 2022, Solana is the next project to take into account. Solana, a platform that is frequently called an Ethereum Killer, is the home of a decentralized blockchain that enables the deployment of smart contract agreements. However, across the majority of criteria, Solana outperforms Ethereum substantially.
Solana can process about 65,000 transactions per second, while Ethereum can handle only 16,000. In addition, Ethereum costs are still high despite the fact that transactions on the Solana network are almost free. As a result, Solana might be the greatest cryptocurrency to invest in over the long haul if you believe that Ethereum’s supremacy in smart contracts won’t persist indefinitely.
The native ERC-20 cryptocurrency of the FTX cryptocurrency exchange is called the FTX Token. The FTX international exchange, which has 302 tradable assets, excellent regulatory compliance, and a high liquidity rating, is very well-liked. Due to legal limitations, the international FTX exchange is not available in the US. As a result, the firm established FTX.US, which sacrifices several capabilities to comply with federal and state law. In comparison to the more than 300 marketable assets on the international platform, FTX.US offers over 30 assets available for trade.
With a maximum supply of 352.17 million FTT, there are now 136,045,993 million in use. As a hedge against inflation, FTT uses an aggressive burn strategy. Additionally, 33 percent of all fees made on the exchange are used to buy and then burn FTT tokens. The popularity of FTX is rising and it is a reliable initiative. In the long run, FTT might be a wise investment.
Binance Coin (BNB)
Binance’s cryptocurrency asset, BNB, was formerly known as Binance Coin. It permits users of the Binance exchange—which supports daily trade volumes worth billions of dollars—to gain access to a 25 percent decrease in trading fees. Furthermore, and possibly most importantly, BNB is utilized to pay transaction fees on the Binance Smart Chain. Emerging cryptocurrency projects that are debuting for the first time are now preferred by the aforementioned network. In light of the fact that the Binance Smart Chain is home to thousands of tokens, demand for BNB is consequently anticipated to increase over time.
Long-Term Cryptocurrency Investments’ Advantages
- The long-term ability to outpace inflation by purchasing and keeping cryptocurrencies may pave the way for financial freedom.
- The technology behind cryptocurrencies, according to younger investors, will likely become more widely used in the future, enhancing their worth.
- The greater the number of practical applications, the more likely it is that it will become a long-term store of value with increasing worth.
- You have full control over your portfolio when you invest long-term in cryptocurrencies. Better access to your investment and lower fees are the results.
- If you invest in a modest, varied group of coins, you can use cryptocurrencies as a tool to develop your own wealth over time.
Is it worthwhile to invest in cryptocurrencies over the long term?
These 5 are our top choices for long term investment, when it comes to cryptocurrencies. However, please keep in mind that cryptocurrency investment is highly risky and you should do your own research before making any investment decision. Your investing objectives will determine the best response to this issue. Investing in cryptocurrencies could be a wonderful choice if you have some extra cash that you don’t mind holding for one to two decades.