There are currently over 21,000 distinct cryptocurrencies available to buy or trade. While it can be challenging to determine the optimal allocation of your cryptocurrency holdings in order to maximize your long-term crypto investments even under the best of market conditions, doing so during a bear market can be extremely stressful.
5 Long-Term Crypto Investments to Consider
When considering total market value, Bitcoin easily outpaces all other digital currencies. You should include it in your long-term crypto investment portfolio because it has become more of an investment haven than a currency.
Bitcoin’s recent price drop to around $16,000 from a yearly high of over $51,000 demonstrates the asset’s volatility when it is tracked from day to day. However, at one point last year, it was the best-performing investment asset of the previous 10 years. Since the value of any given cryptocurrency might fluctuate rapidly, it may make sense to invest in the original and most valuable crypto for the long term.
When considering total market cap, Ethereum is the second-largest cryptocurrency. Ethereum has emerged as one of the greatest platforms for decentralized software, commonly known as dApps, and its token may be used as a store of value, similar to bitcoin.
Ethereum’s recent upgrade, “The Merge,” changed the network’s consensus mechanism from a proof-of-work to a proof-of-stake system. According to the Ethereum website, the upgrade will enhance the network’s scalability, security, and longevity.
To diversify your cryptocurrency portfolio, consider purchasing Cardano. According to CoinMarketCap, Cardano’s growth has been exponential since its recent “hard fork,” or update to its protocol, when more than 100 smart contracts were published on the network. According to CoinDesk, a network upgrade on September 22 increased speed and programmability without compromising security.
The Binance Network Token (BNB) was formerly known as Binance Coin. It provides a discount of 25% on trading fees for customers of the Binance exchange, which processes a daily trading volume of billions of dollars. And probably most importantly, BNB is utilized to pay transaction fees on the Binance Smart Chain. When you think about the dozens of tokens that are listed on the Binance Smart Chain, it’s easy to see why BNB is in such high demand.
DeFi Coin is another alternative cryptocurrency to hold for the long haul. DeFi Coin, as its name suggests, is a cryptocurrency token deeply rooted in the rapidly developing field of decentralized finance (DeFi). Total value locked (TVL) in the sector was over $200 billion in the first three months of 2022. This coin has tremendous long-term potential.
Because of its connection to the brand-new DeFi Swap decentralized exchange, DeFi Coin has been called “one of the best altcoins of the year.” DeFi Coin is the native token of this DEX and may be used to stake, exchange, and farm yields.
If you’re looking for a long-term crypto investment that will help you achieve your financial goals, buy cryptocurrencies whose value will increase over time.
In order to maximize their returns, long-term investors typically hang onto their investments for a number of years, if not decades. Investment in cryptocurrency over the long run can be a good choice for those anticipating a boom in blockchain-based technologies.
It is important to remember, however, that cryptocurrency investments are very volatile and have a number of hazards, including the possibility of having your wallet stolen. To that end, before placing your money into the cryptocurrency market, ensure you fully grasp what it is you’re investing in.
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