Best Long-Term Crypto Investments: Which Coins To Buy?

Cryptocurrency is having a moment in 2024, with thousands of coins to choose from. Crypto has established itself as a notable player in the financial markets, with growing numbers of investors viewing it as a worthwhile part of their portfolios. However, cryptocurrencies are incredibly volatile and not for all investors. Before diving in, it's important to decide if they fit your risk tolerance.

Bitcoin and Ether are in a league of their own as the two best cryptocurrencies to buy. Bitcoin is the first cryptocurrency and the largest by market capitalization, with a valuation of about $1.3 trillion, or roughly 53% of the overall market. It's also the most mainstream acceptance of any of the top cryptocurrencies. Ether, meanwhile, is the native token on the widely used Ethereum blockchain, which is custom-made for smart contracts and decentralized finance tools.

Other cryptocurrencies worth considering include Solana, Avalanche, and Cardano. Solana is known for facilitating the easy creation of decentralized applications, or dApps, and has very low transaction fees. Avalanche has ambitious goals, including allowing users to deploy their own mini-blockchains on top of its network. And Cardano is a proof-of-stake blockchain that aims to foster a developer-friendly ecosystem for dApps.

Bitcoin's long-term potential

Bitcoin is the world's first and largest cryptocurrency by market capitalisation. It is also the most mainstream and well-known cryptocurrency. Bitcoin's longevity and time-tested status make it a popular hold for long-term investment.

Bitcoin's price has skyrocketed as it has become a household name. In May 2016, one bitcoin was worth about $500. As of September 2024, a single bitcoin's price was around $56,902, representing a growth of 11,280%. Bitcoin's price is driven by its mainstream acceptance, as evidenced by the debut of 11 new Bitcoin exchange-traded funds (ETFs) in January. The approval of spot Bitcoin ETFs has attracted billions of dollars in assets under management, leading to a fierce rally in Bitcoin's price.

Another catalyst for Bitcoin's long-term growth is the Bitcoin halving event, which occurs roughly every four years. During this event, the rewards for mining Bitcoin are cut in half, increasing the scarcity of Bitcoin. Within 18 months of previous Bitcoin halvings, the price of Bitcoin has consistently rallied fiercely.

Bitcoin's dominance in the cryptocurrency market is notable. As of 2024, it accounts for about 53% of the overall market. Its longevity and widespread adoption make it a relatively stable investment compared to newer cryptocurrencies.

While Bitcoin has experienced extreme volatility, with significant price swings, its durability and time-tested status make it a solid bet for the long haul. As the first cryptocurrency with the largest market capitalisation, Bitcoin should continue to be a popular choice for long-term investment.

Ethereum's market dominance

When considering which cryptocurrency to invest in for the long term, it's important to look at the market dominance of different coins. As of 2024, Bitcoin is the world's largest cryptocurrency by market capitalisation, and it is the most well-known and time-tested. However, Ethereum is a close second and has established itself as one of the most dominant forces in the crypto market.

Ethereum's dominance is evident in its market share and the functionality it offers. In terms of market share, Ethereum is the second-largest cryptocurrency by market capitalisation, with a valuation of about $450 billion and accounting for nearly 18% of the total cryptocurrency market as of June 2024. This puts it ahead of competitors like Solana, Polkadot, and Cardano.

Ethereum's dominance goes beyond just market capitalisation. It was the first platform to introduce smart contract functionality, enabling developers to create and automate various features. Ethereum is also the leading blockchain for decentralised applications (dApps) and decentralised finance (DeFi) protocols, providing the infrastructure for much of the DeFi space. This gives it a functional use case beyond simply holding value.

Ethereum's Proof-of-Stake consensus mechanism has also made its blockchain highly efficient, and future upgrades are focused on further improving transaction speeds and security. However, one challenge Ethereum faces is high network traffic that can slow down transactions. Additionally, Ethereum's transaction costs can be high and, in some cases, may even exceed the value of the transaction.

Overall, Ethereum's market dominance is significant due to its large market share, its role in enabling smart contracts and dApps, and its position as the leading blockchain for DeFi. These factors contribute to its competitiveness as a long-term investment option in the cryptocurrency space.

Binance Coin's growth prospects

Binance Coin (BNB) has established itself as a mainstay in the cryptocurrency market. As the native token of the world's largest cryptocurrency exchange, Binance, BNB offers a range of benefits to users, such as reduced trading fees and access to exclusive token sales. With a market capitalisation of around $80 billion, BNB is currently the fourth-largest cryptocurrency by value.

Recent Performance

BNB has demonstrated resilience in the face of market volatility. In 2021, during the crypto market boom, BNB reached an all-time high of $690. Following this peak, BNB experienced some turbulence due to challenges in the overall crypto market, such as the collapse of Terra Luna and the FTX catastrophe. Despite these setbacks, BNB has shown a ability to bounce back, with its price currently hovering around $560.

Factors Influencing BNB's Price

The popularity of the Binance exchange is a key driver of BNB's prospects. As the largest crypto exchange in the world, with nearly 190 million users across more than 180 countries, Binance drives significant demand for BNB. However, it's worth noting that Binance's market share has been declining in recent years, which could potentially impact BNB's price.

BNB's price is also influenced by broader digital asset trends and the fate of its parent company, Binance. The regulatory scrutiny, fines, and legal issues that Binance has faced in various markets have occasionally triggered negative responses in BNB's price.

Future Outlook

The future performance of BNB will depend on a variety of factors, including the success and expansion of the Binance ecosystem, regulatory stability, and overall crypto market conditions. Analysts predict that BNB has the potential to surpass $600 in 2024 and could even reach $1,000 before 2030 if key resistance levels are broken.

Investment Considerations

When considering whether to invest in BNB, it's important to assess your risk tolerance and conduct thorough research. While BNB has a strong market position and active management, its success is closely tied to the performance of the Binance ecosystem. Additionally, the centralised nature of BNB means that its community has reduced freedom compared to other decentralised cryptocurrencies.

Solana's transaction speed

When considering which cryptocurrency is best for long-term investment, it is important to look at a variety of factors, including transaction speed. One crypto that stands out in this regard is Solana (SOL).

Solana is a decentralised blockchain platform that was created with scalability in mind. It is one of the fastest blockchains on the market, with a transaction speed of almost 65,000 per second. This speed is achieved through the unique Proof of History consensus mechanism, which allows nodes to synchronise time across the network. In comparison, Bitcoin can process just a fraction of this number of transactions per second, with Ethereum and Ripple also lagging far behind.

The speed of Solana's network is made possible by its innovative architecture. Unlike other blockchains, Solana incorporates a timing mechanism that is implemented prior to its Proof-of-Stake protocol structure. This allows for the ultra-fast processing of transactions, with the ability to scale as usage of the protocol grows. This scalability is a key advantage, as it means that transaction speeds can increase as the number of users and transactions on the network grows.

The speed of Solana's network has made it a popular choice for decentralised applications and smart contracts. It is also well-suited to NFTs, as it can process transactions at a much lower cost than other blockchains. This has led to Solana being dubbed an "Ethereum-killer", as it offers a more efficient and cost-effective alternative to the Ethereum blockchain.

In addition to its speed and scalability, Solana also offers low transaction fees, averaging at around $0.00025. This makes it a more affordable option for users, particularly when compared to the high fees associated with Ethereum transactions.

Solana's combination of lightning-fast transaction speeds, scalability, and low fees makes it a compelling choice for long-term investment. Its ability to process a high volume of transactions efficiently and cost-effectively positions it well for widespread adoption and continued growth in the crypto market.

Polkadot's interoperability

As of 2024, Bitcoin and Ether are considered the two best cryptocurrencies to buy. Bitcoin is the oldest and most popular crypto token on the market and is the largest cryptocurrency by market capitalization. Ether, meanwhile, is the native token on the widely-used Ethereum blockchain.

Other cryptocurrencies worth considering include Solana, Avalanche, Polygon, Cardano, and Polkadot. Polkadot is a Layer-0 protocol that connects and secures several blockchains, allowing them to be interoperable. It is a true multi-chain application environment where cross-chain registries and cross-chain computation are possible.

Polkadot is designed to be an underlying infrastructure for a multichain future, allowing diverse layer-1 parachains to interact and communicate with each other within its ecosystem. It also allows parachains and external networks like Bitcoin and Ethereum to interoperate via bridges. These bridges provide a compatible way for two blockchains to interoperate securely, even if they have different protocols, rules, communities, and governance models.

Polkadot is also one of the most active platforms for developers to create on. Its native token, DOT, is used to participate in governance decisions, including tabling proposals, voting, and bonding.

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