There are various projects in the digital cryptocurrency market, each of which pursues a specific goal. Cryptocurrency is popular, and there are countless investment options. However, there will be very few cryptocurrency projects that will experience exponential growth and make HODLers a bit of luck. These are the projects that every cryptocurrency investor should focus on tracking and collecting. It is very hard to tell which coins will be stable and which are doomed to fail. A project that looks successful today can go downhill in a matter of weeks. In this article, we will discuss the best cryptocurrencies for a long-term investment that has growth potential.
- Bitcoin (BTC)
Bitcoin is the most popular cryptocurrency in the world in terms of market capitalization. People utilize it for online and offline purchases, or see it as one of their purchases and hold assets in their investment portfolio. It has evolved more of a safe-haven investment than money, making it a place in the long-term cryptocurrency portfolio. Bitcoin has the benefit of being the first child, has the most extensive market share, and is now the most prevalent. These features permit Bitcoin to maintain and grow in value over time, making it one of the safest long-term cryptocurrency investment purchases.
Bitcoin saw a significant boost in 2021 when Tesla CEO Elon Musk revealed that the company had bought $1.5 billion. Although Bitcoin has experienced a lot of volatility in recent years and is almost a volatile asset, it has been the best-performing investment asset in the last 10 years, and recent network upgrades to add performance have made the platform even more valuable and can make the coin more beneficial. Since all cryptocurrencies can be volatile, investing in the first and most useful cryptocurrencies can be reasonable if you need to hold for the long run.
- Ethereum (ETH)
ETH is known as the second-largest cryptocurrency in terms of market capitalization. Ethereum is both the name of a blockchain platform and the name of the native cryptocurrency of this platform. The token can be utilized as a store of value, which is Bitcoin’s power, but Ethereum has even appeared as one of the most acceptable platforms for decentralized applications, also known as dApps.
It has become a famous platform for developers due to its help for applications such as intelligent contracts, which automatically run a function when certain situations are met. Ethereum recently underwent an update that changed the network from a proof-of-work protocol to a proof-of-stake protocol, which is predicted to enhance the network’s scalability, security, and stability.
Some reviewers are skeptical that the merger will have a bullish impact on Ethereum, and in fact, Ethereum fell in the days following the upgrade in spite of an early summer buying craze that pushed the price up more than 50% in one week. Nevertheless, over-inflation likely contributed to the increase and caused inevitable correction.
- Cardano (ADA)
Cardano is another cryptocurrency to buy and HODL. This platform had a big advantage over Ethereum. While Ethereum used an older Proof-of-Work protocol to verify transactions and protect network integrity before the merger, Cardano’s Proof-of-Stake protocol performed similarly but was quicker, more affordable, and more efficient. While Ethereum’s upgrade to proof-of-stake can flood the market with proof-of-stake assets, Cardano’s favor among decentralized application developers could maintain the request for its ADA token high.
- Polkadot (DOT)
Right now, Polkadot has become one of the most promising long-term cryptocurrencies to purchase since its launch in 2020. It is a cryptocurrency that is a blockchain network where developers can create innovative decentralized systems.
Polkadot is created to link different independent blockchains into a single network and even form new chains. This integration lets users access the network’s proof-of-stake validity of safety and transactions, making it more straightforward to transmit digital assets like apps and tokens across blockchains. A recent update simplifies communication and asset transfers between Polkadot parachains, opening up the network to further use cases. While Polkadot has to compete with Ethereum and Cardano, its earlier entry into smart contracts gives it an advantage that some reviewers predict it to retain.
- Chainlink (LINK)
Chainlink is another one of the best cryptocurrencies for long-term investment. The Ethereum-based Chainlink network offers real-time data from off-blockchain smart contracts to on-blockchain smart contracts through nodes and oracles. Its task is to make the world’s first blockchain oracle network.
Oracles are behind some of the considerably significant blockchain technologies and play an essential role in the development of blockchain. The Chainlink 2.0 upgrade creates off-chain networks on top of oracles to decrease the computational pressure on the Ethereum mainnet. The upgrade also executes Staking, which improves safety and integrity by providing nodes with powerful economic motivations for trustworthy behavior.
A worthwhile long-term investment in cryptocurrency is an investment of value that increases over some time and matches your investment objectives. Generally, long-term investors maintain their investments for many years or decades to increase their returns. Therefore, if you think that blockchain-based technology will explode in the end, investing in crypto for the long term can be an excellent choice. Nevertheless, it is important to keep in mind that investing in cryptocurrencies exposes your investment to volatility and multiple hazards such as wallet hacking. So, before jumping into the cryptocurrency area, you need to know what you’re placing your hard-earned capital to risk.
To purchase or invest in cryptocurrencies for the long term, you must have a high-risk tolerance. The value of cryptocurrencies increases and drops drastically. As a result, there is no assurance that they will be constant eventually. Take a moment to think about what would occur to you if all of your cryptocurrency were abruptly worthless. Besides, putting your capital into cryptocurrencies is itself a speculation, not an investment. You can only hope that at some point in the future, you can trade your coins for more than you spent on them.