Crypto has been growing rapidly over the last couple of years, although its value plunged by about two-thirds in the past year. It is a market for risk-takers since it is more volatile than the stock market because of less established names, less regulation, the disintegration of the stablecoin, and the technology behind it that can lead to scams.
However, investing in crypto is becoming viable for investors looking to diversify their portfolios. Here are five of the best long-term crypto investments.
Bitcoin was the first cryptocurrency and is the largest in the market, constituting about 40% of the total market. It is the first option for most people looking to test out the waters in crypto investments. Its value arises from its scarcity and ability to be a value store. Bitcoin is a good investment because of its accessibility and liquidity. It takes a few minutes to transfer to another user and can be used to pay for services or products from the list of suppliers accepting it. In addition, you can easily sell it at any moment.
In September, the Ethereum blockchain made a massive jump from proof-of-work to the proof-of-stake algorithm. This jump makes the blockchain readily scalable and minimizes the transaction’s energy demand. However, the high gas fees are an entry barrier for people who want to transact on the platform. On the other hand, the blockchain’s programmability is strong enough to allow you to do transactions automatically. Its network size also allows millions of users without impeding its functioning.
Solana is among the best long term crypto investment. It runs its own blockchain like Bitcoin and was built from scratch for Defi, a rapidly growing finance area involving smart contracts. Defi is large enough to attract winners and disrupt all transactions that depend on agents, centralized exchanges, brokers, and other expensive middlemen. SOL’s fast network and low fees give it a strong staying power and ecosystem to ensure it remains among the top 10 cryptos. Its network can process at least 50,000 transactions per second. In addition, it has achieved high scalability levels by leveraging different breakthrough innovations.
Avalanche is another best long-term crypto investment and competitor in the Defi and smart contracts area. It’s a native currency and is among the fastest smart contract platforms worldwide. It also facilitates the launch of blockchains by enterprises through subnets, and its network can process transactions significantly faster. It can also support many blockchain projects.
5. Binance Coin
Binance coin is the third-largest non-stablecoin crypto after Ether and Bitcoin. Binance is a global crypto exchange with Binance coin as its native coin on its blockchain. Binance is a young coin launched in 2017 and is more deflationary than Bitcoin. It engages quarterly burns that reduce supply, aiming to reach a 100 million supply through this burning mechanism.
Crypto is a great way to diversify your portfolio, and these five best long-term crypto investments are a great place to start. Take your time to learn about each crypto to engage from the point of knowledge.