Looking to invest in cryptocurrency for the long-term? Let’s walk through some of the most popular options for investment in 2024.
Disclaimer: This article does not constitute investment advice. Please consult a wealth advisor before making an investment decision.
What are the best long-term cryptocurrencies?
Let’s walk through some of the most popular cryptocurrencies to invest in for the long-term. Remember, the section below does not constitute investment advice. You should do your own research before buying and/or selling any coin!
Bitcoin
Originally launched in 2009, Bitcoin is the world’s oldest and most well-known cryptocurrency! As of 2023, Bitcoin has a market capitalization of $500 billion — and is often called ‘digital gold’.
Fixed supply: There will never be more than 21 million Bitcoin. As a result, many investors see BTC as ‘digital gold’ — an asset that derives value from scarcity!
Trusted cryptocurrency: Originally released in 2009, Bitcoin is the world’s biggest cryptocurrency. While other cryptocurrencies are more recent, Bitcoin has been running for more than a decade without failing.
Inflation hedge: Because Bitcoin has a limited supply, many investors see it as a hedge against inflation of the U.S. dollar and other fiat currencies.
Cons
Limited dApps: Unlike other blockchains, Bitcoin was not built to support decentralized applications and NFTs.
Ethereum
Originally launched in 2014, Ethereum is the world’s biggest blockchain for NFTs and DeFi protocols! As of 2023, Ethereum has a market capitalization over $190 billion!
Decentralized apps: Ethereum is the biggest blockchain for decentralized applications and NFTs! Many investors see buying ETH as a bet on Web3 and a decentralized Internet.
Layer 2: Ethereum supports Layer 2 solutions like Optimism and Arbitrum. These Layers 2 offers fast transaction speeds and low fees!
Declining supply: As of 2022, the Ethereum blockchain began burning a portion of transaction fees. This means that Ethereum’s supply decreases over time — which could lead to an increase in price!
Cons
Competition: Many blockchains have been created specifically to compete with Ethereum. Examples include Cardano, Solana, and Polkadot!
High fees: In the past, Ethereum has been criticized for having higher transaction fees than competitors.
Chainlink
Chainlink is a decentralized oracle that allows users to create smart contracts based on real-world events. Chainlink can potentially be used to verify identity on the blockchain, manage supply chains, and even gamble on sports matches!
Pros
Use case: Chainlink supports a unique use case! As blockchain technology enters the mainstream, it’s likely that an oracle solution like Chainlink will be needed to bridge the gap between on-chain and off-chain events.
Partnerships: Chainlink has partnered with Swift, an interbank messaging system that collaborates with some of the biggest financial institutions in the world! Because of this partnership, many banks are now exploring the possibilities of using Chainlink to connect to the blockchain.
Trust: Chainlink is a trusted cryptocurrency project. Currently, Chainlink has partnered with more than 1,600 projects and has surpassed $7 trillion in Transaction Value enabled.
Cons
Lack of transparency: Some critics have said that Chainlink is not as transparent about token supply as other cryptocurrency projects. It’s unknown how much LINK is held by Chainlink developers.
Polkadot
Polkadot is a cryptocurrency project that allows incompatible blockchains to interact with each other. Many investors believe that Polkadot may be essential architecture in a multi-blockchain future!
Pros
Unique use case: Polkadot makes it easy to connect unrelated blockchains and even create new blockchains! Some investors believe that Polkadot could form the foundation of Web3 in the future!
Fast transaction speeds: Polkadot offers fast transaction speeds compared to other blockchains! Currently, the blockchain can process up to 1,000 transactions per second!
High staking rewards: Polkadot offers high staking rewards for cryptocurrency holders! By staking DOT on your cryptocurrency wallet, you can earn rewards as high as 14%!
Cons
Increasing supply: DOT — Polkadot’s cryptocurrency — has relatively high inflation. From 2021-2022, DOT’s supply increased by roughly 11% per year.
Cardano
Cardano — like Ethereum — allows users to interact with decentralized protocols and NFTs. Cardano was founded by Ethereum co-founder Charlie Hoskinson, who wanted to create a new and improved blockchain for smart contracts.
Pros
Peer reviewed: Cardano prides itself on using peer-reviewed research for all changes and enhancements.
Tokens built on Layer 1: Unlike blockchains like Ethereum, Cardano-based tokens and NFTs aren’t created via smart contracts. Instead, they are built on the same architecture as the Cardano blockchain. This leads to lower fees and more secure transactions!
Low inflation: Currently, ADA has 3% inflation a year. By 2050, the inflation rate will be close to 0%!
Cons
Slow upgrading: Because Cardano has taken a peer-reviewed approach to upgrades, the blockchain does not release enhancements as frequently as some of its competitors!
Adoption: Cardano took time to release features like smart contract functionality. As a result, the blockchain does not have the same amount of adoption as competitors like Ethereum.
Avalanche
Like Ethereum, Avalanche gives users the ability to interact with decentralized protocols and NFTs. Originally launched in 2020, Avalanche is now one of the world’s biggest blockchains!
Pros
Support: Avalanche supports NFTs and DeFi and is EVM-compatible — meaning that it’s easy to port assets from the Ethereum blockchain.
Tokenomics: Avalanche’s supply is capped at 720 million. In addition, transaction fees are burned so that supply decreases over time!
Fast transactions: Avalanche offers fast transaction times and low speeds compared to other blockchains!
Cons
Competition: Avalanche is considered a competitor to blockchains like Ethereum and Cardano. As a result, Avalanche faces fierce competition!
Aave
Aave is an Ethereum-based DeFi protocol that allows users to take out cryptocurrency loans and earn interest! Unlike centralized lenders, Aave isn’t controlled by any one company — instead, it’s owned by holders of the Aave token!
Pros
DeFi: Decentralized finance protocols like Aave allow users to make loans and transactions without the need for financial intermediaries like banks. Aave can be a good investment option if you’re bullish on the future of DeFi.
Governance benefits: Owning Aave tokens gives you a voice on the future of the protocol. Owning Aave allows you to vote on improvement proposals!
Trust: Aave is one of the most trusted protocols on the Ethereum blockchain. As of the time of writing, there is more than $4 billion locked on the Aave protocol.
Cons
Stagnation: Aave’s price has been relatively stagnant since its highs in 2021!
What is a long-term cryptocurrency investment?
Investing in cryptocurrency for the long-term means buying and holding cryptocurrency for long periods of time — as long as years or even decades!
If you’re investing in cryptocurrency for the long-term, it’s likely that you believe that the crypto you’re holding has utility and will attract users in the years to come!
What are the benefits of long-term cryptocurrency investments?
Let’s walk through some of the benefits of long-term cryptocurrency investments.
Build wealth over time: Investing in cryptocurrencies for the long-term can be a good option if you’re looking to build wealth over time. However, it may not be the best option if you’re looking for short-term profits!
Less active management: If you’re trading cryptocurrency in the short-term, you’ll need to actively keep an eye on a cryptocurrency’s price. In contrast, buying and holding crypto for the long-run does not require you to actively watch the market.
Potential for high rewards: Compared to other types of capital investments, cryptocurrency has the potential for a large return on investment! For example, just $1,000 in BTC in 2010 would be worth more than $200 million today.
Which crypto has 1000x potential?
Because cryptocurrencies like Bitcoin and Ethereum already have large market capitalizations, it’s unlikely that the price of both assets will increase 1000x in the near future.
The cryptocurrencies that will increase in value 1000x in the future likely have very small market capitalizations today. However, it’s important to remember that many small coins may be less established and more likely to fail.
What is the best cheap crypto to buy now?
It’s important to remember that you can get started investing in cryptocurrencies like Bitcoin and Ethereum for as little as $1! Cryptocurrency exchanges give users the ability to buy small amounts of cryptocurrency.
If you’re looking to buy cryptocurrencies with a smaller market capitalization, you should exercise caution. As stated earlier, smaller cryptocurrencies are often more likely to fail.
How to choose the best long-term cryptocurrency investments for your portfolio
Here are a few tips to keep in mind when you invest in cryptocurrency for the long-term!
Understand value
Before you invest in a cryptocurrency, it’s important you understand where the value of the cryptocurrency comes from. You may want to look at details about the cryptocurrency — such as potential use cases and total supply!
Recognize risk
Before you invest, it’s important to keep in mind the potential risks underlying your cryptocurrency investments. It’s important to remember that the crypto market is still relatively young, and that assets can be extremely volatile.
Research your cryptocurrency
Do research on your cryptocurrency before you invest. You can take a look at the project’s white paper to understand how the blockchain deals with issues like governance and security or look at what other investors are saying about the project online!
Tips for investing in crypto
Here are a few tips to help you get started investing in cryptocurrency.
Decide how much to invest
Before you get started investing, you should plan how much you want to invest in cryptocurrency. This may be a lump sum or a percentage of your monthly income. Generally, you should never invest more than you can afford to lose.
Find a cryptocurrency exchange
If you’re getting started investing in crypto, you should find a trusted exchange that allows you to buy and sell cryptocurrency. For more information, check out our list of the best cryptocurrency exchanges.
Watch out for scams
Unfortunately, scams are rampant in the cryptocurrency space. Before you invest, you should do research to make sure that the cryptocurrency you’re investing in has an experienced team and is trusted by the community.
Do I have to pay taxes for investing in crypto?
It’s important to remember that cryptocurrency investments are subject to tax!
When you dispose of your cryptocurrency at a profit, you’ll pay capital gains tax!
Want to estimate your tax bill from your crypto investments? Check out our free crypto tax calculator!
