Best Long Term Cryptocurrency Investment in 2024
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It is one thing to understand what cryptocurrencies are, but it’s another to know how to invest in them. Although many investors will look to trade Cryptocurrency on a short-term basis to profit from price fluctuations, the best way to approach this market is on a long-term basis.
Today, Cryptocurrency is all the rage, and everyone wants to know what they can get out of it as it seems to have enormous potential and market value. People’s most frequent questions regarding cryptocurrencies include: Is it secure? What exactly is the benefit? How can you make a secure investment?
Although there are plenty of cryptocurrencies already available worldwide and more keep coming, you should only pay attention to the cryptocurrencies that can be beneficial for you. Some Cryptocurrencies have a higher value and importance and thus a higher preference than others.
This review will discuss the best long-term crypto investments, focusing on five noteworthy projects with solid upside potential.
Best Long Term Cryptocurrency: What is Cryptocurrency
A cryptocurrency is a digital currency represented by an encrypted data string. A peer-to-peer network known as a blockchain monitor organizes it and serves as a secure ledger of buying, selling, and transferring transactions.
Cryptocurrencies, based on blockchain technology, are digital currencies secured by cryptography. Blockchain technology is a distributed ledger that is enforced by a network of computers. These currencies make counterfeiting and double-spending almost impossible.
Cryptocurrencies, unlike physical money, are decentralized digital assets, meaning governments or other financial institutions do not issue them. The name “cryptocurrency” depicts that it uses encryption to verify transactions.
Cryptocurrency means that storing and transmitting cryptocurrency data between wallets and public ledgers requires advanced coding. While encryption provides safety and security, the mining process allows the creation of cryptocurrency units.
Mining entails using computer processing power to solve complex mathematical problems to generate coins. Users can also purchase the currencies from brokers, which they can then store and spend using cryptographic wallets.
6 Best Long Term Cryptocurrency for Investment
#1. Bitcoin (BTC)
Bitcoin is the most commonly known and most invested-in Cryptocurrency, with a market capitalization of almost $1.7 trillion. Being first introduced in 2009, it has reached a high level of popularity since then.
Moreover, Bitcoin is also the most successful of hundreds of attempts to utilize cryptography to generate virtual money. Hundreds of imitators have followed in its footsteps yet failed to replace it. Hence, it remains the largest Cryptocurrency by market capitalization, a position it has held for more than a decade since its inception.
How it works:
Bitcoin keeps track of transactions in a blockchain, a distributed ledger. It is very secure, and unless there is a large-scale collaboration between transacting parties, fraud is impossible in Bitcoin.
With the use of high-powered computers, Bitcoin miners solve complex riddles to confirm blocks of transactions. If they are successful, these blocks are added to the blockchain record, and the miners are paid with tiny amounts of bitcoins.
Pros
- Bitcoin is a very accessible and flexible currency. Its coins can be bought and sold at any time.
- Bitcoin offers excellent security and anonymity to its users.
- Its price fluctuates, resulting in significant return potential for those who purchased it cheaper.
- A decentralized currency grants users complete autonomy and ownership over their funds.
Cons
- Bitcoin is decentralized, and thus it is not regulated, making it vulnerable to scams.
- Although Bitcoin has been around for a long time, it is still not widely accepted, limiting its uses.
#2. Ethereum (ETH)
Ethereum is less expensive than bitcoin, costing around $4000. Moreover, It has a $520 billion market capitalization. Although you may think of it as having lesser value than a Bitcoin, that is not the case, and its inherent value places it ahead of the more valued currencies.
With time and use, it has the potential to treble in value. And its worth isn’t solely determined by its utility as a medium of exchange. Because of its application potential, Ethereum has a strong chance of overtaking bitcoin.
How it works:
Ethereum, like all cryptocurrencies, is based on a blockchain network. Using computers, people mine and add new blocks to the blockchain, which is at the heart of the system. The participants are then given Ether as a reward (ETH).
Ethereum is unique because users may create applications that run on the blockchain in the same way that software runs on a computer. For example, personal data can be stored, transferred, and one can handle sophisticated financial transactions through these.
Pros
- For Ethereum, the cost of a coin is very reasonable, and it is less risky.
- Ethereum is a tried-and-true network and the most prominent blockchain and cryptocurrency ecosystem.
- Ethereum can also handle other financial transactions, execute smart contracts, and store data for third-party apps.
- Developers always seek new methods to improve the network and create new applications.
Cons
- Due to concentrated ownership by a few people, Ethereum’s asset distribution is a problem.
- Moving from centralized processing to decentralized networks, developers may find Ethereum challenging.
#3. Chainlink (LINK)
Being a decentralized oracle network, Chainlink enables smart contracts to securely communicate with real-world data and services outside of blockchain networks.
With Chainlink, existing technologies that presently power modern economies can connect to the growing blockchain industry to improve commercial and societal operations’ security, efficiency, and transparency.
How it works:
Chainlink uses a decentralized network of oracles to collect data from numerous sources, combine it, and give a single, validated data point to the smart contract to trigger its execution, removing any centralized point of failure.
In Chainlink, a service level agreement (SLA) request is sent to the Chainlink protocol, which then uses the information to find oracles that can deliver the data. The aggregating contract is used in the last step, where the most accurate result from the oracles is input on-chain.
Pros
- Chainlink allows ETH and Bitcoin to work together and incorporates payment providers like banks.
- LINK tokens are a superb investment tool.
- Designed to work with any blockchain, Chainlink has many integration possibilities.
- Chainlink has proven relatively stable, suffering no significant losses during the latest crypto market downturn.
Cons
- Chainlink is still not very well-known due to poor marketing.
- Chainlink’s operation is restricted by its internal use and success because it relies on the relevance of use.
#4. Polkadot (DOT)
Polkadot is a distributed computing platform built on blockchains that works like open-source software. As a result, it can be a foundation for other blockchains to perform secure transactions between chains.
One can transfer any asset or data type; tokens are not one of them. Its scalability allows several validators to secure a large number of blockchains. The coin’s name is DOT, worth approximately $40. It’s the ninth-largest Cryptocurrency.
How it works:
The Polkadot platform relies on a relay chain that employs a proof-of-stake consensus method. The DOT token grants validators are voting power to participate in project decisions and development.
When validators have a financial interest in the legitimacy of the verification process, one can use the DOT token to link and incentivize them to operate honestly in the network. This enables anyone betting on DOT to block the token in a contract to perform one or more of its functions.
Pros
- Developers have the flexibility to choose the components that best fit their application’s unique chain.
- Polkadot is already in the top 10 coins in market capitalization and has begun interaction with other networks, like Chainlink.
- Developers can build chains and applications using a shared security system, removing the need to secure their chains.
- Bridges allow Polkadot’s parachains to link to external networks like Bitcoin and Ethereum
Cons
- Polkadot is up against many blockchains, like Ethereum, which already established network effects.
- Hackers have taken advantage of coding flaws twice, stealing millions of dollars before being caught.
#5. Uniswap (UNI)
Uniswap is a collection of Ethereum-based computer tools that allow decentralized token swaps. Unicorns are used to make it function. It is now known to be one of the most successful projects in the Decentralized Finance movement due to its ingenuity.
Uniswap allows traders to exchange Ethereum tokens without trusting anyone with their money. Meanwhile, anyone can lend their Cryptocurrency to liquidity pools, which are special reserves. They receive fees in exchange for contributing money to these pools.
How it works:
Uniswap departs from standard digital exchange design in the absence of an order book. Instead, it employs a Constant Product Market Maker model, which is a variation of the Automated Market Maker concept (AMM).
Smart contracts called automated market makers hold liquidity pools that allow users to trade. The liquidity providers contribute to these reserves. These providers can be anyone as long as they deposit the equivalent of two tokens in the pool. Traders must submit a fee for a piece of the pool which is then allocated among the liquidity providers.
Pros
- Uniswap facilitates liquidity providers by paying them trading fees for their services.
- Uniswap is entirely transparent, and its code is open-source.
- UNI gives you a lot of options when it comes to protocol administration.
- Their tokens are instantly listed on major cryptocurrency trading platforms.
Cons
- Uniswap no longer receives compensation once users remove their funds.
- Uniswap supports only assets housed on the Ethereum blockchain.
#6. ApeCoin (APE)
The last on the list is APE coin. The APE coin is a decentralized protocol introduced after the increased popularity of the Bored Ape Yacht Club (BAYC). Since its introduction, it has gained much attention in the crypto world, and many crypto investors are investing in it despite the highly risky nature of these crypto tokens.
This cryptocurrency is a product of DAO (Decentralized Autonomous Organization) and offers a ticket to enrollment at DAO. Moreover, APE has opened numerous opportunities in the NFT markets, and the trend in buying and selling of these NFTs has reached its peak.
Furthermore, these cryptocurrencies are distinct from other cryptocurrencies because their use of Lite Coin (LTC) POW Protocol and BTC allows the mining of these coins with GPU. Using GPUs increases the availability, accessibility, and affordability of these coins. An increase in demand has caused it to gain a listing on various crypto platforms like Binance, FTX, etc.
How it Works
This cryptocurrency uses the decentralized consensus algorithm (POW) and is an Ethereum based token that serves as a reward for those holding the Bored App NFTs. These NFT holders can claim their coins anytime for free from the APE Coin website. Additionally, individuals who do not have the Bored App NFTs can benefit from this application as these cryptocurrencies are heavily traded on various exchanges.
Mainly used in the utility and governance function, these coins allow users to make payments within all kinds of web3 applications and all kinds of transactions, including those not related to the Bored App Yacht Club.
Pros
- The algorithm of APE, Lyra2REv3, is resistant to Application Specific Integrated Circuit (ASIC) miners, which allows easy accessibility and increased affordability.
- BAYC Members are eligible to claim these coins for free.
- These cryptocurrencies are a product of the Decentralized Autonomous Organization (DAO) system that allows participation from all token holders in how the organization functions.
- These decentralized apps can be bought and sold freely on Decentralized exchange.
Cons
- The token holders are only eligible to vote on minor issues.
- The APE market is highly volatile and speculative and thus needs to be given time before investing.
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Benefits of Investing in Cryptocurrency
The advantage of cryptocurrency transactions is that they can be completed in minutes. Then, when the network confirms the block containing your transaction, it is fully settled, and the funds are available to use.
Cryptocurrency is also accessible to anyone. All required is an internet connection and a computer or smartphone. When compared to opening an account with a traditional financial institution, creating a cryptocurrency wallet is extremely quick.
All cryptocurrency transactions are recorded on the blockchain ledger, which is open to the public. This level of transparency can reduce the number of fraudulent transactions.
How to Choose a Crypto Asset for Long Term
It is critical to have a clear perspective before engaging in cryptocurrency trading. Make it clear that someone wins and someone loses in Cryptocurrency. Large whales control the cryptocurrency market, which is highly volatile.
Knowing the tokenomics, roadmap, market cap, and utilities will significantly influence picks as new players emerge daily. If you’re unfamiliar with fundamental analysis, reputable exchanges ensure that you only have access to verified, secure, and dependable tokens.
People typically buy coins when cheaper, which is incorrect because every individual should invest in cryptocurrencies after checking the market capital. The higher a coin’s market capitalization is, the better it is for cryptocurrency trading.
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Conclusion: Is Cryptocurrency a Good Long Term Investment
You will not incur any trading fees if you use the long-term strategy and take the long-term view — and leave your investments alone after purchase. A long-term investor does not trade daily, so trading fees have no impact on their profits. The risk is reduced.
Due to their high market demand, digital currencies may also be a long-term investment. Inflation risk is reduced. Bitcoin is immune to inflation, unlike other world currencies regulated by governments. There’s no need to worry about your Cryptocurrency losing value because the blockchain system is infinite.
Cryptocurrency has a lot of potential for profit and growth, both now and in the future. So no matter how much you invest, make it a point to learn everything about Cryptocurrency and keep up with market trends.
Your investment objectives determine the correct answer to this question. For example, investing in Crypto could be a great option if you have some spare cash that you don’t mind investing for one to two decades.
A long-term buy-and-hold strategy is the most viable method to consider when investing in Crypto. This is also known as HODLing, and it allows you to ride out volatile short-term waves.
You have direct control over your portfolio when you invest in Cryptocurrency for the long term. This translates to lower fees and easier access to your money. In addition, if you invest in a small but diversified group of coins, Cryptocurrency can help you build personal wealth over time.
Best Long Term Cryptocurrency FAQs
Is Crypto Safe for Long Term?
An increasing number of users indicates that a cryptocurrency is gaining traction and, as a result, is an excellent long-term investment.
If you believe blockchain-based technology will become increasingly popular in the future, investing in Cryptocurrency for the long term can be a wise decision.
What Crypto has the most potential?
Finding the best altcoins can be difficult due to the many options available, but it’s well worth it because these coins can often provide triple-digit returns!
Bitcoin, Ethereum, Chainlink. Polkadot and Uniswap are some of the most potential containing cryptocurrencies.
Is Crypto worth long term?
A transaction with Cryptocurrency takes very little time to complete. In a short period, coins or tokens and cash can be made available to user accounts. The transaction fees associated with this fund transfer are also modest.
There are nearly 8,900 cryptocurrencies on the market right now. While one can use Cryptocurrency to make purchases, most people consider it a long-term investment. Therefore, in the coming years, the cryptocurrency market will expand.
You have direct control over your portfolio when you invest in Cryptocurrency for the long term. This translates to lower fees and easier access to your money. In addition, if you invest in a small but diversified group of coins, you can use Cryptocurrency to build personal wealth over time.
