To enhance their portfolio, investors are advised to consider diversifying with other promising altcoins such as Ethereum, Chainlink, Polkadot, Cardano, Avalanche, and Aave. As a leading DeFi project, the native token is expected to maintain its position in the years to come, making it a good long-term investment for those who want to get exposure to DeFi. In this guide, we’ll highlight 7 great ‘set-it-and-forget-it’ cryptos to hold in your portfolio over the long-term.
If you already use a particular exchange, you may want to simply choose cryptocurrencies that you can purchase there. If you’re willing to shop around with multiple exchanges, you may have more options. The value of a cryptocurrency depends on its functionality and how many people use it. While Bitcoin and Ethereum have developed large followings, the smaller cryptocurrencies still have to prove themselves. These currencies can quickly gain or lose value based on how people perceive and use them. As a stablecoin, its value is pegged to a fiat currency—in this case, the U.S. dollar—which allows it to retain its value, helping to reduce volatility in your crypto portfolio.
Ethereum is constantly evolving thanks to its team of developers. On the other hand, cryptocurrency has some characteristics that could help ensure its long-term success. Many cryptocurrencies are powered by robust blockchain technology that has far more use cases than just the coins themselves. If blockchain technology becomes increasingly important in financial technology, then the coins built on those blockchains may increase in value as well. For example, the Ethereum blockchain has a native token that is a cryptocurrency. And the same blockchain supports other digital assets that may have a variety of functions.
As of 2023, Bitcoin has a market capitalization of $500 billion — and is often called ‘digital gold’. That’s because bitcoin represents more than 45% of the total cryptocurrency market. So when we talk about any cryptos outside of bitcoin, all of those cryptos are considered altcoins. One of Near Protocol’s standout features is its human-readable wallet addresses, which makes it easier for mainstream users to interact with blockchain applications. This, combined with its developer-friendly environment, has led to rapid adoption in the Web3 space.
For example, the Bitcoin roadmap includes a halving event every four years which is known to cause market-wide volatility. Other benefits include exclusive invites to webinars, which offer a chance to talk with the SpacePay team about the latest developments. Arbitrum, functioning as an Ethereum Layer 2 scaling solution, aims to enhance transaction efficiency and reduce costs. Arbitrum also uses fraud proofs and an arbitrator mechanism to settle disputes off-chain.
Investors are drawn towards $BTC due to its unparalleled brand recognition and historical performance. Moreover, it also offers a relatively stable price compared to newer tokens. Before you invest, you should do research to make sure that the cryptocurrency you’re investing in has an experienced team and is trusted by the community. Let’s walk through some of the benefits of long-term cryptocurrency investments. There are exchange-traded funds, or ETFs, that trade in both bitcoin futures and bitcoin’s spot price.
As we’ve mentioned, the federal government hasn’t taken meaningful steps to regulate cryptocurrency. While many coins are down in the past 90 days (as of August 2024), the largest are still up from this time last year and from the start of this year. Bitcoin, for example, is down 2.44% from its high this spring, but it’s still up 40.61% year-to-date. While cryptocurrency and traditional currency have some similarities—both are stores of value and can be used to purchase some goods and services—their differences are more prevalent. Chainlink is connecting the world to blockchains with the next generation of high-throughput DeFi markets.
Regular investmentsA common strategy for long-term investment, which helps avoid investing more than can be lost, is to invest regular smaller amounts over time. This strategy also helps to avoid some of the impacts of market volatility and accumulates assets over time. There is a similar risk of losses, but there are also investors who have carefully picked “the next big thing” in crypto and profited. Avalanche (AVAX) is one of the most important competitors of Ethereum. It is one of the most well-balanced layer 1 networks, directly competing with Solana for Ethereum’s market share.
These trends are often tied to the future of the industry as a whole. Hence, cryptocurrency can be a good long-term investment if it continues to fulfill a quintessential need in the industry. In the long term, crypto assets that perform well beat inflation, some by ten and hundred folds. Bitcoin is often called an inflation hedge and has been used by institutions to protect their cash against inflation.
By investing in crypto, you add another asset that could grow exponentially and also protect your portfolio from possibly declining sectors and assets. An informed investor can mitigate some market risk and make portfolio changes as required. It also has an active developer community and supports diverse projects. It further allows collaboration and innovation, enabling projects to interact and share resources. Thus, it has also become a preferred platform for building scalable and interoperable dApps.
