Cryptocurrencies, like any other financial instrument, may be a potential long-term source of earnings. Many investors also receive interest payments on their cryptocurrency assets. With so many cryptocurrencies to choose from, some have seen enormous growth in recent years. However, the most significant part of investing in this market is determining which cryptocurrencies to trust. Many investors put their money in Bitcoin because it was the first cryptocurrency. If you’re looking for cryptocurrencies to invest in for the long term, this blog post will reveal the top 5 best cryptocurrencies to invest in.
Top 5 Cryptocurrencies for Long-Term Investments
- Bitcoin (BTC)
Dwarfing all other cryptocurrencies, Bitcoin is the granddaddy of them all. The first and most popular cryptocurrency has been around for over a decade. Bitcoin is often called “digital gold” because it shares many attributes with precious metals.
There are over 2000 businesses that accept Bitcoin as payment. Its use and acceptance have grown in the eCommerce industry, making it a good choice for holding in one’s portfolio.
The largest banks, like Citibank and Morgan Stanley, have a positive stance on Bitcoin. As of the latest updates, the market cap of BTC is the highest with $364 billion and a circulating supply of 19.15 million coins.
Patrons can use Bitcoin to shop at some world-famous brands, like Microsoft, AT&T, Subway, Virgin Galactic, and Twitch. Besides, fashion giant Gucci, tech giant Microsoft, and US telecoms also accept this currency, making it more promising for long-run investments.
- Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market capitalization. Investors often flock to Ethereum because it is more than just a digital currency. It is a platform that developers can use to build decentralized applications that are not subject to censorship or interference by a third party.
It is a second-generation blockchain designed with the same foundation as Bitcoin but with more features. In comparison to BTC, Ethereum allows for much greater functionality, which makes it another viable cryptocurrency for diversifying your investments.
Regarding the current market cap of Ethereum, it ranks second, just after BTC. It has a live market value of $163 billion with a supply of 122 million ETH coins. The companies and businesses that accept Ethereum include Dell, Microsoft, Overstock.com, Shopify, Amazon, Tag Heuer, and NewEgg.
- Cardano (ADA)
Third on the list is Cardano, an innovative contract platform that is similar to Ethereum. Cardano is often touted as the “Ethereum killer” because it has the potential to dethrone ETH as the king of smart contracts. That’s because Cardano offers more features and is more scalable than Ethereum.
Cardano’s has immense long-term potential. That’s because the Cardano team is constantly innovating and improving the platform. As per the recent market cap update, ADA coins are ranked eighth, with a capital value of $15 billion and a circulating supply of 34 billion ADA coins.
The companies and businesses that accept Cardano include McDonald’s, Starbucks, Burger King, and VISA, among others.
- PolkaDot (DOT)
Next on the list is PolkaDot, a smart contract platform similar to Ethereum. PolkaDot is more scalable, which makes it a good contender for this list. It uses a special sharding technology that divides data horizontally so that more transactions can be processed each second.
Polkadot also allows you to utilize multiple blockchains at the same time by connecting them into a single network. That’s why one of the largest telecom companies, Deutsche Telekom, partnered with DOT to make the most of its decentralized system.
Compared to the expensive cryptocurrencies Bitcoin and Ethereum, PolkaDot is a cheaper way for investors to put their money to work.
According to the latest update on CoinMarketCap, this currency ranks 11 with a $7 billion supply of over 1 billion DOT coins.
Last on the list is Chainlink, a decentralized oracle network similar to Polkadot. Chainlink uses a unique consensus algorithm called Proof of Authority, which makes it different and more secure from others.
Chainlink is the only network that can fix the inefficiencies of the oracle market. This makes it a good investment for anyone who wants to get into this growing industry.
The market capitalization of this currency can increase dramatically in the long term as more companies and businesses adopt the platform. It is ranked 23rd with a capital of $3.5 billion and a circulating supply of over 491 million Link coins.
Benefits of Investing in Cryptocurrency
There are several benefits to crypto investments, both short-term and long-term.
- For one thing, the crypto market is very volatile. There are a lot of opportunities for gains, but it is also very risky.
- Another important benefit of investing in crypto is that it’s a very young market. This means that there is a lot of room for growth.
- You can lower your risks and improve your chances of success by putting your money into different kinds of cryptocurrencies.
Which currency to choose for investment
There is no easy answer when it comes to investing in cryptocurrency. Suppose you are looking to buy crypto for long-term investments. You have many options, but patrons often stick with the coins with the highest market capitalization, such as BTC, ETH, and others. It offers a good idea of what the community considers most valuable and is a viable opportunity to get started in the world of blockchain technology.
This blog post featured some of the best cryptocurrency projects and also discussed why one should invest in them. Each of the mentioned assets has unique features that make them more attractive than other options in the market. One must invest in currencies that have an upward trend of growth over time. They are more likely to follow this trend after a fluctuation. For instance, the price of Bitcoin has varied throughout the years, although it has been on a long-term upward trend. A project with a track record of development is destined to do well throughout future market cycles. When choosing which coin to invest in, do your research to find the best fit for you.
There are many cryptocurrencies, but not all are created equal. If you’re searching crypto for long term investment, this blogpost will help you choose.