Long-Term Crypto Investments: Which Coins To Consider?

Cryptocurrency is digital money that isn't managed by a central system like a government. Instead, it's based on blockchain technology, with Bitcoin being the most popular one. While you can use cryptocurrency to make purchases, most people treat it as a long-term investment.

There are a few principles to keep in mind when selecting cryptocurrencies for long-term investment. Firstly, the currency must have a solid reputation. The technology must work, it must be secure, and the coin issuer must be scandal-free. Secondly, the cryptocurrency must offer something different, whether it's a unique selling point or a new twist on an existing idea.

With these principles in mind, here are some of the top cryptocurrencies to consider for long-term investment:

- Bitcoin (BTC): The most well-known and established cryptocurrency with wide acceptance in payments.

- Ethereum (ETH): The second-largest cryptocurrency that enables decentralised finance (DeFi) and non-fungible tokens (NFTs).

- Cardano (ADA): The fourth-largest cryptocurrency that runs on the Cardano blockchain, offering high speeds and low transaction fees.

- Polygon (MATIC): A protocol that helps developers create Ethereum-compatible blockchains, aiming for a multi-chain system.

- Stellar (XLM): A decentralised network that enables the conversion and trading of any currency with faster and cheaper transactions.

- Monero (XMR): A cryptocurrency that prioritises total privacy and anonymity for its users.

- Chainlink (LINK): A decentralised data processing network that facilitates the integration of off-chain data into smart contracts.

Bitcoin

There are several factors that influence Bitcoin's price. These include institutional adoption, regulatory changes, macroeconomic trends, and the halving event, which reduces the rate at which new coins are created. For example, in 2024, the approval of spot Bitcoin ETFs by the SEC increased the legitimacy of cryptocurrency and led to a surge in Bitcoin's price.

While investing in Bitcoin can be lucrative, it is essential to consider the risks. The value of Bitcoin can fluctuate significantly, and wild price swings can be unnerving for investors. Additionally, the high price of a single share of Bitcoin, typically over $50,000, can be a barrier for investors who want to avoid buying partial shares.

In conclusion, Bitcoin is a smart long-term investment option due to its widespread adoption, positive long-term price trends, and potential for continued growth. However, investors should carefully consider the risks and volatility associated with this cryptocurrency before making any investment decisions.

Ethereum

While Bitcoin is an effective store of value, it doesn't support smart contracts like Ethereum. Arguably, Ethereum is equally capable as a store of value, and its utility as a smart contract enabler makes it a clear winner in terms of functionality.

Volatility

Volatility was previously seen as a negative, but smart investors have learned to capitalise on market cycle patterns and parabolic gains produced by market bubbles. Ethereum's high volatility could create opportunities for massive gains.

Liquidity

Lower Inflation Risk

Unlike world currencies, which are regulated by governments, Ethereum has a transparent inflation plan that is less prone to interference. The blockchain system is infinite, so there's no need to worry about deflation.

Decentralised Finance

As a relatively young technology, Ethereum and decentralised finance (DeFi) are attracting new applications and users. This newness brings unpredictable price swings and volatility, which may create opportunities for massive gains.

Finality

Tokenisation

Long-Term Stability

> "While Bitcoin has positioned itself as an alternative monetary system in the financial market, Ethereum has mostly focused on monetising smart contracts. Also, being the first cryptocurrency, Bitcoin has been widely used for speculative purposes. These traits are reflected in the user composition... where the behaviour of Ethereum users is observed to be more stable as these users are more optimistic about the market."

Mainstream Adoption

Network Effects

Track Record

Name Advantage

Infrastructure Advantage

Ongoing Improvements

Hedge Fund Interest

Hedge funds are mostly invested in Bitcoin and Ethereum, which will keep their market caps higher for years.

Diversification

For investors who already have Bitcoin exposure, Ethereum could be a good way to diversify their crypto portfolio.

While there are risks and drawbacks to investing in any cryptocurrency, including high transaction fees and the threat of online hacking, Ethereum has unique advantages that could make it a good long-term investment. It has strong network effects, a reliable track record, ongoing improvements, and diverse use cases beyond just storing value.

Cardano

Yet, with great crypto highs come inevitable corrections. Post the peak of the Alonzo hard fork in September 2021, ADA faced a downward shift. As of June 8, 2024, ADA is trading at $US.43, around 50% higher than where it was in October 2023.

According to crypto experts, Cardano's price is expected to increase in the coming years. In 2025, the minimum price of Cardano is expected to be around $0.5281, with a maximum of $0.6537. In 2026, the minimum and maximum prices are expected to be around $0.7608 and $0.9228, respectively. In 2027, the minimum ADA price might drop to $1.09, while its maximum can reach $1.33.

Overall, Cardano has the potential to be a good long-term investment, but it is important to remember that cryptocurrency is a risky asset class and there are no guarantees.

Stellar

The current market price per XLM coin is roughly $0.021. At this price, the Stellar Lumens market cap is roughly $5M USD, based on a total supply of 50 billion XLM coins. The lowest ever price recorded for XLM was $0.002 and 100 sats. In January 2018, it reached an all-time high of $0.93.

While Stellar Lumens' trend has been going down, with no end in sight for investors asking, "Why is Stellar Lumens dropping?" things appear to be ready to turn around for the altcoin. Because it offers such disruptive cross-border payment technology, the price today will not be the price tomorrow, and all of the positive Stellar Lumens news is expected to further drive long-term growth in the asset.

Monero

Risks of Investing in Monero:

Due to its privacy features, Monero is often abused by hackers, online drug traffickers, and money launderers. Monero has been mentioned in the mainstream media as some websites were "hijacking" their visitors' CPU power for mining XMR.

There is also a risk that Monero will have high transaction fees. As usage increases, the blockchain will become harder to sync, and transaction fees will increase.

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