Which Crypto to Buy Today for the Long-term
Day by day cryptocurrencies (digital currencies/assets) are gaining popularity in the commercial, financial, and many other sectors. Such evolution has been noticed since the launch of Bitcoin in 2009. Today, cryptocurrencies are among the hottest topics in the business world, and investment in currencies is considered good, although very risky. The idea of digital currency development was to bypass the government and bank dependencies to create a fairer market, that is decentralized, faster, and cheaper to make transfers with.
According to Ikhwan (Cryptocurrency Investment Decision Making In Economic Psychology Perspective 2021) with more people's interest in the use of cryptocurrency, it will have the potential to be part of the economic revolution. Also, as explained by cryptocurrency observer Murad Mahmudov "Crypto is a new form of thinking about money, storing money, transferring money, and just dealing, managing, and understanding money, and all kinds of second-order financial effects that come out of it".
Digital assets are bought and sold 24/7 through various online platforms, providing investors with greater flexibility. The short-term and instant transactions are done quite frequently. However, long-term investment in cryptocurrency can also bring excellent returns. Such strategies are based on long-term price changes, rather than small jumps over a short period. So which projects are suitable for long-term investment and will ensure optimal growth?
What is Long-Term Crypto Investment?
Investing in cryptocurrency for the long term means buying and holding cryptocurrency for long periods of time for months, years, or even decades.
The process involves choosing a coin that has utility and will bring a high return after a long period. Such investments require an understanding of current market dynamics and making the right analytics.
Nevertheless, not every project is designed to fit over the long term, and some qualities, including original ideas, committed teams, and practical timetables, are necessary for success. The long-term investors do not expect the price to jump up or down and mainly focus on future growth opportunities, preferring projects that have proven their sustainability.
Many growing cryptocurrency projects quickly fail because they are not suitable for long-term growth. Reliable projects offer crypto assets with fundamental functionality and can influence the market as a whole. Typically, long-term cryptocurrencies have high market capitalization and these investments are generally considered less risky and more rewarding.
Investing for the Future: Strategies for Long-Term Success
Here are a few tips which help to get started investing in cryptocurrency.
Selecting the best long-term digital assets for your investment portfolio takes a lot of research and investigation. Note that investing in cryptocurrencies involves risks, and it’s important to follow some basic steps to help you choose the best long-term cryptocurrencies:
Before you start
- Determine how much you're willing to invest: Before you begin investing, you should consider how much you're willing to put in digital currencies. This might be a single cash or a portion of your monthly earnings. It's not recommended to spend more than you can afford to lose. Before investing in a cryptocurrency, you should understand and research its worth and what exactly affects its rise and fall. Also, take a look at details about the cryptocurrency, such as potential use cases and total supply.
- Find a good cryptocurrency exchange: If you’re getting started investing in crypto, you should find a trusted exchange that allows you to buy and sell digital currencies. Such is Fastex exchange advanced platform where you can buy & sell crypto and start trading on both long and short-term investments.
- Keep an eye out for frauds: Unfortunately, there are many scams in the digital currency world. Make sure the cryptocurrency you're investing in has a knowledgeable team and is well-regarded by the community by doing some research before you buy. Before investing, consider the possible risks associated with cryptocurrencies. It's necessary to remember that the cryptocurrency market is still very new, and assets may be quite volatile.
- Research: Begin by exploring cryptocurrencies and their core technologies. Define their use cases, the potential for adoption, and any unique features they offer by exploring crypto communities. Follow cryptocurrency news sources to stay informed and look what other investors say about the project online.
Pick up the Most Suitable Strategy for Yourself
Here are a few strategies to keep in mind when you invest in cryptocurrency for a long period.
Buy and Hold Strategy
Buying and holding principle refers to the process of investing in high-quality assets with a solid basis and hanging onto them for a long period of time, ignoring short market swings. Investors may benefit from larger financial gains by keeping with their investments for the long run. One of the most well-liked and successful stock market investing strategies continues to be buy and hold using individual tendencies and analysis to make judgments, or monitoring the market, which are common concerns for those who employ this method.
The idea behind buy-and-hold trading is that, even in moments of market unpredictability, an item can rise in value if you keep it for a long period.
Cash is rarely king
According to J.P Morgan, the long-term returns on cash on the sidelines are quite low. The statistics have shown that the investors who have kept their money in the bank have lost out on the remarkable returns that long-term investing would have provided. If you decide to invest, keep in mind that stock and currency investments have historically beaten bonds over a longer amount of time, while there may be occasional setbacks.
Right time analytics
Investing or trading after the market has fallen significantly is usually a bad idea. Selling when the market is at its lowest point is a classic financial error that restricts all the chances to profit from a market decline and not freak out. People tend to sell stocks after they have already dropped. As the statistic suggests, major outflows frequently occur when stock prices are near to a bottom, meaning that investors get locked in their losses and miss out on the possible comeback.
Key Factors for Long-term Crypto Investment
The last decade has shown how cryptocurrencies demonstrated considerable long-term price increases. Long-term crypto investments have both pros and cons. It is important to understand them and carefully analyze them in relation to your investment approach and goals.
- Market capitalization:
Examine a currency's market capitalization, which is a true indicator of the current market price. Usually, cryptocurrencies with a bigger market capitalization are more stable and reliable. If you’re looking to buy cryptocurrencies with a smaller market capitalization, you should exercise caution. As has been suggested, smaller coins are more likely to explode. Examine market reactions and price history to better understand the cryptocurrency's progress and possible volatility. However, remember that the past performance of the currency is not always true indicative of future results, and various factors can influence its future.
- Team and development:
Assess the development team behind the cryptocurrency. Check out skilled developers, extensive engagement with the community, and a track record of delivering on their roadmap. Examine the team's qualifications, prior work, and future goals. You can observe social networks like Twitter, Telegram, Discord, etc., to get fresh updates regarding development updates.
- Adoption and use cases:
Investing in cryptocurrencies in the early stages can offer a big advantage. Evaluate the level of adoption and real-world use cases for the cryptocurrency you chose. By identifying promising projects and technologies in their starting periods, long-term investors have the potential to benefit from significant growth as adoption increases and mainstream acceptance grows. Evaluate whether your chosen crypto asset offers unique benefits within a given sector. Also, currencies with tangible partnerships and applications are more likely to have long-term potential.
- Technology and scalability:
Examine the underlying technical indicators of the currency you choose. Scalability is an important element since it decides whether the network can manage growing traffic and transaction volumes. Seek for cryptocurrency that has strong consensus methods and plans for scalability. Accordingly, long-term investors can support and profit from technology breakthroughs. As blockchain adoption increases, cryptocurrencies with strong fundamentals and real-world use cases may probably gain value over time.
- Community and governance:
Measure the scope and involvement of the coin community. A reliable and engaged community can encourage adoption and give continuous support. Starters and investors in the field of cryptocurrency may exchange ideas and remain informed about projects and the market through crypto communities. When given appropriate guidance, people may find the answers to the questions and proceed with their crypto assets. By holding community currencies for a long-term, investors can participate in network activities and receive rewards for securing the blockchain network.
- Security and diversification:
Consider the security measures implemented by the cryptocurrency. Check out projects that have had external security audits or have a clear and proven codebase. Security is critical for protecting your funds and network functionality. To spread out the risk it is recommended to diversify your cryptocurrency portfolio. Try investing in digital currencies with a variety of use cases, market caps, and trading volumes.
- Volatility for long-term investments
The cryptocurrency sphere is deservedly considered to be very volatile. If you spend hours watching the markets and frantically placing orders, you can earn significant profits. However, volatility can also lead to huge losses. When choosing a cryptocurrency project for long-term investments, investors plan to hold funds until they receive a specific profit after a certain period has passed. High-volatility projects bring smaller amounts during the day in comparison with long-term investments where growth is higher.
Overall, it's essential to understand that investing in digital currencies involves risks like as price swings and lack of regulation. It’s advisable to conduct thorough research, diversify the investments, and seek professional advice before making any investment decisions.
Best Cryptocurrency to Invest for Long-term
Here's a list of some cryptocurrencies that are showing significant promise catching the attention of many investors. Investors who keep their cryptocurrencies for a long period may profit from price gains and make significant returns by choosing the most suitable currency they need.
Fasttoken (FTN)
FTN ensures significant growth potential and low-risk investments. The coin was developed by Softconstruct, a ready-to-use IT solutions provider with 700 partners, and over a million customers globally. Here all the payments are made through FTN using Fastex Exchange.
It can be exchanged on centralized cryptocurrency exchanges and is widely used as a gaming coin by several providers. On December 30, 2023, Fasttoken's live price was $1.375 per (FTN / USD), with a $419,63 million market capitalization and $11,72 million in 24-hour trading volume.
FTN stands as the primary cryptocurrency of Bahamut Blockchain, a publicly accessible layer 1 EVM-based blockchain system employing a distinctive PoSA algorithm. FTN has vital importance in enabling staking, block generation, and validation processes, as well as cross-chain operations, vital for ensuring high liquidity. Fasttoken is commonly traded and invested in through Fastex exchange, which has a comprehensive ecosystem including Fastex wallet, FTNFT, Fastex-verse, Akneye, Fastex pay, and NFT marketplace.
Bitcoin (BTC)
Originally launched in 2009 Bitcoin serves as the most successful crypto that established the fundamental concepts of the crypto market.
Since the beginning of 2024, the BTC exchange rate has decreased and increased significantly. As of late February, it rose in price again, exceeding the cost of approximately $62 thousand. It should be noted that the veteran of the cryptocurrency market capitalization has reached a staggering 834.93B as of December 30, 2023. Thus, this virtual coin accounts for 420 million crypto users worldwide.
Many forecasters are confident that in the nearest future, Bitcoin will exceed the value of $100 thousand. And then it alone will own half of the entire cryptocurrency market as many highlighted it as a top cryptocurrency for long-term investment.
Bitcoin has high liquidity, always having buyers and sellers to trade with, no matter the time and conditions. Its high volatility can bring huge profits for long-term investments. However, it demands a lot of analysis and time to choose the right moment for withdrawal.
Ethereum (ETH)
The ETH rate changed in 2021 almost similar to the BTC rate. The coin has already set two different records in mid-December at 2220 USD and mid-February at 2587 having frequent rises and falls within a month. Ethereum is also a veteran of the cryptocurrency market and takes a well-deserved second place after Bitcoin in terms of capitalization, and owns 288.35B of the value of the entire market as of January 2024.
Some forecasters are confident that now is the best time to buy Ether because this cryptocurrency has every chance of surpassing the leader. For example, ETH is potentially more energy efficient than Bitcoin due to the transition to a new protocol. Therefore, the coin is still capable of impressing all market participants in the future with the manifestation of its capabilities.
Dogecoin (DOGE)
Buying Dogecoin will be an excellent choice for those traders who prefer long-term trading. Not long ago, this digital currency managed to increase in price. The popularity of this coin has risen thanks to Elon Musk in June 2022, as he said that he would keep buying and supporting Dogecoin. This speaks about its response to news and volatility which is good for long-term gains.
The rate of the Dogecoin meme coin currently fluctuates regularly. Though at the time of its release, almost no one took this cryptocurrency seriously. However, today it is popular for network calculations. As of mid-December 2023, the live price of Dogecoin became $ 0,1 per (DOGE/USD) with a market cap of USD 14,4B and 1,97B trading volume in 24 hours.
Dogecoin is unlikely to be able to compete with Bitcoin, however, this coin was able to occupy its niche. Now its rate is increasing with good frequency and all forecasts are more than positive. Now DOGE is positioned as a currency that is often used to help animals.
Binance Coin (BNB)
Binance Coin is the native cryptocurrency of the world's largest exchange by volume. It runs both on its blockchain, the original Binance Chain, and the DeFi-focused Binance Smart Chain (BSC) as well. The Binance cryptocurrency exchange quickly took a leading position in the world, which dictated the need to create its coin. Thus, in 2017, the BNB cryptocurrency, or Binance Coin, appeared. The coin was initially released on the Ethereum blockchain in the ERC-20 standard, but later the coin was transferred to its blockchain in the BEP-2 standard.
Binance is known for being one of the first companies to embrace new trends in the cryptocurrency market. With subsidiaries around the world and partnerships with major banks and firms, Binance continues to expand its operations in different countries.
The main task of the coin is to cover all kinds of commissions on the crypto exchange: trading, listing, transaction, and others with the potential for high liquidity. But soon BNB took the status of an investment crypto-asset, entered the TOP 10 of the most popular cryptocurrencies, and began to be traded on leading exchanges.
At the ICO stage, BNB sold 100 million coins. As of mid-December 2023, the live price of BNB was $ 253,52 per (BNB / USD) with a market cap of $38,46B and $769,39M trading volume in 24 hours. However, as of late January, it rose to $46,47B market capitalization and $777,68M trading volume and continues to rise.
Ripple (XRP)
Ripple also known as XRP is an open-source cryptocurrency and blockchain platform. Its decentralized protocol is specifically designed for cheap and fast transactions. Over the years, Ripple (XRP) has evolved, and in addition to processing XRP transactions.
XRP actively collaborates with international banks and investment companies. According to experts, this factor could be the key to Ripple’s success. It is not just a cryptocurrency but a full-fledged payment infrastructure that can potentially replace SWIFT.
According to Traders Union, at the end of 2024, the price of XRP will reach a range from $0.5372 to $0.6566. As of 30 December 2023, the live price of XRP was $0,62 per (BNB / USD) with a market cap of $33,74B and $718,57M trading volume in 24 hours which is undoubtedly a good buy for long-term traders at below $1 price.
Solana (SOL)
Solana is a high-performance blockchain platform with its cryptocurrency SOL created to provide a fast decentralized network. One of its main features is the unique Proof-of-History (PoH) protocol, which provides a correct time in the blockchain, reducing network load and increasing productivity.
This platform has been mainly built for decentralized applications and financial transactions.
Sonala is super fast, with new blocks generated every 400 milliseconds. Also, it can handle around 65,000 transactions per second which makes it perfect for projects that need speed, stability, and lots of transactions, especially in fast-moving markets.
By October 2023, the live price of SOL was $21,39 per SOL/USD with a market cap of $8,83B and $637,12M trading volume in 24 hours. However, after sharp rises in mid-February 2024, its price rose to 116,99 with a $51,54B market cap and $2,47B trading volume, and still continues to rise.
Conclusion
It is now popular to buy cryptocurrency for a short-term. However, many of the most famous projects can be profitable in the long term. Instead of benefiting from small price fluctuations throughout the day, you can invest for the long term in a cryptocurrency with greater growth potential.
Compared to other types of capital investments, cryptocurrency has the potential for a large return on investment. Investing in cryptocurrencies for the long-term can be a good option if you’re looking to build wealth over time. However, it may not be the best option if you’re looking for short-term profits. If you’re trading cryptocurrency in the short term, you’ll need to actively keep an eye on a cryptocurrency’s price. Even long-term investments in cryptocurrency are considered risky, but still not as risky as short-term ones. In contrast, buying and holding crypto for the long run does not require you to actively watch the market.
However, remember that investing in cryptocurrency, like any other investment, involves risks and may cause losses because of poor analytics. It’s important to stay updated on market trends, be prepared for volatility, and invest the amount that you can afford to lose. Therefore, before investing, always do your own research on the project, especially If you’re new to cryptocurrency investing or unsure about specific projects, consider seeking advice from professionals with expertise in the field.
FAQ
How to make an investment decision on long-term cryptos?
Do good research! Understand their project base, technology, crypto use cases, and development system. Before making any crypto investment, consider market factors like market capitalization, stability, and adoption rate. Also, analyze your risk tolerance. Established currencies may offer lower risk, while newer ones might have higher potential gains (but also higher risk).
What are the benefits of long-term cryptocurrency investments?
Long-term crypto investing offers high return potential compared to traditional investments. Additionally, you generally don't need to actively monitor markets compared to short-term trading.
How to choose the best long-term cryptocurrency investments for your portfolio?
Select cryptocurrencies with a large market capitalization and good liquidity. A higher market cap indicates a bigger investment base and the liquidity ensures that you can easily trade with your coins without significant losses.
How much should I invest in crypto for the long term?
Your investment can be a single cash or a portion of your monthly earnings. It's not recommended to spend more than you can afford to lose.
Is Bitcoin still a good long-term investment?
Bitcoin has high liquidity, always having buyers and sellers to trade with, no matter the time and conditions. Its high volatility can bring huge profits for long-term investments.
What are the biggest risks of long-term crypto investing?
Cryptocurrencies are different and may carry various risks such as significant price swings. Investing without proper research can lead to huge losses. Money that you cannot afford to lose should never be invested in cryptocurrency.
Disclaimer: Includes third-party opinions. No financial advice.
Related Articles
