Which Cryptocurrency to Hold Long-Term?
If you have been watching the crypto industry closely, you have probably noticed that most coins have a sustained uptrend, such as Bitcoin, when looking over a longer horizon which weeds out the noise of volatile periods such as 2022. They prove to be an alternative hedge against rampant inflation and eventualities like retirement.
But finding the right combination of cryptocurrencies to maximize your returns throughout the investment and set you up for a secure retirement can be overwhelming.
To help you start investing in crypto over a long period, I came up with a list of established crypto assets with the most potential to grow further.
If held over a long time, through the volatility and geopolitical turmoil, portfolios, such as retirement-focused, should weather the storm. They can grow exponentially more significant than the traditionally structured 60/40 balanced portfolios that focus on stocks and bonds and leave out cryptocurrency assets and precious metals (e.g., gold and silver).
When considering which crypto assets are better to hold long-term to generate crypto wealth, I look at their past price action and the sustainability of their networks, potential for long-term value gain, safety, security, and purpose/long-term goals.
Best Long-term Digital Asset Investments
Bitcoin (BTC)
Bitcoin is the pioneer cryptocurrency and one of the best cryptocurrency choices for investors in the crypto market. It currently has the largest market capitalization in the cryptocurrency market, which dwarfs smaller crypto assets.
Compared to other investment assets, it has been the best-performing investment for the last ten years, with a sustained uptrend since its launch in 2009.
BTC has been adopted by countries like Salvador as a legal tender and has also been widely accepted as a payment method by most eCommerce and physical stores worldwide.
Large corporations like Tesla and MicroStrategy have added it to their balance sheets, and multi-national banks like Morgan Stanley are considering recommending it to their wealthy clients.
Factors that make it an excellent long-term investment include its finite supply, which many consider a more excellent store of value than fiat currency due to its scarcity.
Some say Bitcoin (BTC) is the best buy-and-hold investment of the century as more serious Institutions look to diversify into this asset class, increasing demand.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market cap. It is the native token for the most prominent smart contract network and is one of the most in-demand crypto assets, especially within the DeFi and NFT niches.
These two niches, alongside web3, are expected to be the next big trend in the crypto-verse. I, therefore, expect them to play a crucial role in catapulting Ethereum token prices to unprecedented heights over the next few years.
One of the primary reasons I believe everyone should add Ethereum to their project wealth portfolio is its massive potential for future value gain. Others include the fact that, like Bitcoin, it too has sustained a spirited long uptrend since its launch in 2015.
And as the global adoption of blockchain technology rises over the next few years, I expect it to rely heavily on smart contract technology and the Ethereum ecosystem. These should send ETH token prices and your ETH holdings, by extension, on an up-channel trajectory.
Uniswap (UNI)
Uninswap is arguably the most popular Decentralized Exchange (DEX) globally, has solid fundamentals, and is the most liquid DEX. It runs on the Ethereum blockchain.
UNI seeks to provide a lasting solution to the loss of privacy and regulatory control issues facing centralized exchanges.
Digital asset investors consider it an excellent long-term investment because it is anchored on a solid blockchain network. Its goals are feasible. The overall project is highly sustainable, providing an automated liquidity pool for buying and selling crypto without an intermediary.
This can be considered a solid digital investment to help diversify one's portfolio.
Binance Coin (BNB)
Binance coin is the native token for the most innovative and fast-growing crypto exchange – Binance. But Binance is proving to be more than an exchange. Launched in late 2017, Binance has slowly morphed into one of the largest blockchain ecosystems by launching the Binance Smart Chain network and tapping into the fast-growing DeFi, NFT, and Web 3 niches.
Binance is expected to grow its ecosystem and establish itself as the perfect alternative to the ETH smart contract platform.
BNB has proven to be a sustainable cryptocurrency project. The network has well-laid long-term goals and a strong leadership team committed to their timely execution. I've also added it to my list of long-term plays because it has proven resilience. It has survived two major crypto crashes, i.e., in 2017 and 2021.
Still, it has been one of the few altcoins to survive regulatory threats worldwide from multiple governments and regulatory agencies.
Solana (SOL)
Solana is one of the fastest-growing cryptocurrencies. It is a proof-of-stake blockchain platform designed to rival and serve as a better alternative to the Ethereum smart contract platform. It beats Ethereum in virtually every aspect, especially transaction speeds, fees, and versatility.
SOL is also one of the fastest-growing altcoins. It grew from oblivion to become a top 10 cryptocurrency in less than 24 months in thousands of crypto competitors.
Institutions have expressed interest in building on the Solana network in the future. But this isn’t the only reason I believe SOL to be the best digital investment for anyone planning a secure retirement.
I am confident that SOL will sustain an uptrend for the foreseeable future and that the Solana network is sustainable. Solana has proven its dynamicity by embracing such fast-growing crypto niches as DeFi, NFT, Web 3, and meme coins that promise to play a crucial role in its future uptrend.
How to Identify the Top Long Term Cryptocurrencies for Your Investment Portfolio?
I look at five key factors when vetting crypto assets and adding to my basket of long-term crypto investments. These help me determine whether a cryptocurrency is a viable long-term investment worth buying and holding to retirement.
First, I will only go long-term on digital assets with proven sustainability.
Secondly, I will only go after crypto, proven its resilience in serious threats. For instance, I will check how it rebounded from a significant crash in the cryptocurrency market, devastating negative news, or like a Black Swan event.
Thirdly, I will want to look at the developments within the coin’s network to determine its innovativeness/dynamicity. I would also like to look at a coin’s past price action to determine its tick factors. And lastly, I will carefully analyze its fundamentals and analyst opinions to help map out its most likely future price action.
Which Coin Will Rise In The Future?
I am confident that virtually all the crypto assets listed above will post generational gains. But I am currently banking on industry revolutionary coins with small market caps and relatively low maximum token prices like Solana and Uniswap to post the most prominent value gains in the next 10 years.
Is Holding Crypto Long Term a Good Idea?
Well, look at it this way. In the last ten years, digital assets outperformed virtually all other investment classes, including commodities and precious metals. The 10-year ROI for some of these coins, like Bitcoin, exceeds 30000%. Equally reputable coins like Solana, on the hand, have grown their introductory price by as more than 130000% in the last 24 months.
Of course, past price action is no indicator of future performance. But the world is only waking to the realization of the revolutionary force crypto ushers into the world. The crypto market will continue to expand with more businesses that utilize smart contracts and blockchain technologies.
As more retail and institutional investors get into digital currency investing, I expect different coins to post massive gains, making them worth buying and holding over the long horizon.
Which Crypto Is Best for Long-Term Investing?
Well, the majority of cryptocurrencies share characteristics. They, for instance, are one of the most volatile investment classes available today.
To be on the safer side when investing in crypto for this purpoase, I would advise you to consider the more reputable and relatively grounded crypto-asset – Bitcoin. This should be the foundation of your portfolio. It has already proven its resilience and sustainability and is one of the most widely accepted digital assets.
Benefits of Long Term Crypto Investments
There are innumerable reasons why anyone should consider investing in cryptocurrencies over the long term. But here are the three I think are most convincing:
Enjoy dramatic returns on investment: Crypto analysts and investors are confident that Bitcoin's price could reach $1 Million in the next ten years. This would mean growing your current BTC holdings 20X.
Multiple passive income streams: Long-term crypto investing doesn’t just involve buying and holding. It also lets you explore additional passive income-generating investing strategies like staking that earn you double incomes.
Cryptocurrency-assests are still in the early-stages: Crypto technology and crypto coin prices are still in their early stages, similar to the Internet start-up period of the early 2000s. I expect the technology and the coin prices to rise more significantly than traditional stock/bond investments, and early adopters will be the biggest beneficiaries.
Early investors in Amazon are most likely enjoying their retirement years more than those who passed on it thinking it was a fad. Those who invested early in vetted digital projects like Bitcoin and Ethereum blockchain technology companies have accumulated generational wealth.
Final Verdict
Are cryptocurrencies a good buy-and-hold investment?
This is a comfortable yes, but please practice due diligence with all investment decisions. Everyone has different goals, different risk tolerances, and different amounts of money to invest. Those closer to retirement age might choose Bitcoin for investing over smaller and unproven digital assets.
While some coins are already up from their introductory prices by more than 100000%, we are yet to exploit their potential fully. You should expect their volatile prices to continue rising and set new price records.
What is the best cryptocurrency to hold for the long term?
Bitcoin is one of the best buy-and-hold investments because it has posted good price gains over the last decade and is resilient.
And should further cryptocurrency regulation occur, Bitcoin has a greater likelihood of withstanding the compliance criteria and has the backing of major companies looking to adopt it.
It has survived every threat thrown its way from banning China, the expulsion of crypto miners from the Asian country, the threat of regulation in the US, criticism by environmentalists, widespread scam claims, and close association with criminal activities by the mainstream media.
History is short on records of investment classes that survived such hostilities. Crypto doesn't have a long account for survivability and wealth preservation compared to gold and silver. Still, time will tell if early investors were right to choose to include this new-era asset class as part of their investment and retirement portfolios.
There is a saying in Real Estate, “When is the best time to buy real estate? Yesterday!” The same could be said for proven cryptocurrency assets. Don't let the noise of current market volatility and uncertainty paralyze you in your tracks, get started today investing in your future. The longer you wait, the less your wealth portfolio will be when you want to retire.
Risk Disclosure: Any investments come with an inherent risk, where you could end up making less money than what you put in. Before investing your hard-earned cash, be sure to speak with licensed professional financial advisor first. Always remember that past performance is not an indication of future returns.
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