Over the last decade, the crypto market has grown exponentially in number and popularity. Since there are literally thousands of different cryptos out there, it can be hard to know which ones offer the best long term prospects.
In this post, we’ll review some of the most promising cryptocurrencies that are worth a long-term investment, according to their fundamentals, adoption, and evolution.
We’ll also cover what to look for when selecting crypto assets for long term ownership and how stablecoins can fit into a portfolio.
At last, we’ll mention Jetonbank as one of the top online banks to open a crypto account to handle long term crypto investments.
Which Cryptocurrencies Have the Most Potential for Long-Term Growth?
Bitcoin (BTC)
Bitcoin is currently the biggest cryptocurrency both in terms of market capitalization and in terms of brand name. Over the years, Bitcoin has still provided fantastic returns for long-term investors despite its wild price fluctuations. Some predict that Bitcoin will remain the dominant form of value like virtual gold.
Ethereum (ETH)
Ethereum is the second largest cryptocurrency in terms of value and one of the most widely used blockchain platforms. Ethereum’s developer community is massive, and the smart contract functionality is continuously evolving. Its Ethereum Virtual Machine enables dApps and non-fungible tokens (NFTs) to be developed and executed on top of the Ethereum blockchain. The network effect indicates Ethereum has huge long-term growth potential.
Solana (SOL)
Solana has had spectacular gains in the last 15 months for positioning itself as an Ethereum alternative with higher transaction speeds and lower fees. Solana’s proof-of-history consensus algorithm has already allowed it to execute more than 50,000 transactions per second (TPS). Because of its developer tools, it is an attractive blockchain for developing DeFi apps and NFT marketplaces. And if Solana is able to keep scaling while decentralizing, it could be one of the best long term investments.
BNB
BNB is the native token of Binance cryptocurrency exchange, the largest exchange by trading volume. BNB is used to pay the lower trading commissions on Binance, thereby providing intrinsic value. A portion of Binance’s earnings is also invested into repurchasing and refinancing BNB each quarter, making it a deflationary asset. As Binance exchange and the BNB ecosystem continues to grow, BNB presents a great long-term investment opportunity.
What Factors Should I Consider When Choosing a Cryptocurrency for Long-Term Investment?
In choosing cryptocurrencies for the long term you should pay attention to fundamental elements such as adoption, growth, scaling, and centralization resistance.
Some crucial points to research:
- Functionality - Is the cryptocurrency used in real life that will continue to encourage use such as payments, smart contracts, or decentralized applications? The more utility, the greater long-term value.
- Network Impact - How many developers are involved in the project? Larger networks are difficult to penetrate and self-reinforce, and thus better suited for sustained expansion.
- Scalability - Will the blockchain scale up to meet future requirements through technical solutions such as sharding or sidechains? Scalability without sacrificing decentralization is essential for sustainable growth.
- Decentralization - Does the project have a true decentralized point of failure? Over-centralization creates governance and censorship challenges that weaken a cryptocurrency’s long-term viability.
- Innovation - How much does the development community engage? Technical developments keep projects on track with shifting demand and competition from other coins.
Analysing these important factors with respect to independent data and metrics can help pinpoint digital assets with solid fundamentals that could benefit from a long-term holding.
How Can Stablecoins Fit Into a Long-Term Cryptocurrency Investment Strategy?
Bitcoin, Ethereum and other major crypto coins have delivered great returns, but their prices can be highly volatile in the short term. This volatility makes them less appealing as short-term investments or "buy and hold" investments.
However, stablecoins are digital currencies that aim to keep volatility to a minimum by being pegged to outside currencies or commodities.
Stablecoins such as Tether (USDT), USD Coin (USDC) and Ethena USDe (USDE) have stable $1 values via collateral or algorithmic processes.
Stablecoins allow long-term holders to invest in cryptocurrency without relying on fluctuating markets for returns.
They enable the trader’s profits to be held in a crypto-friendly, interest-bearing account until the prices reach a reversal point.
Is Bitcoin Still the Best Cryptocurrency to Invest in For the Long Run?
Despite having been around for more than 10 years, Bitcoin still holds a market share of more than 55% of the entire crypto market.
This first-mover advantage and growing adoption in the real world positions Bitcoin as the top long-term cryptocurrency investment.
Bitcoin is the father of the blockchain and it continues to establish itself as an alternative to gold for storing value.
There are several reasons why Bitcoin could still prevail long-term:
- Unsurpassed Brand Recognition - "BTC" is the brand that is most synonymous with cryptocurrency and gives you an early bird perspective for continued adoption.
- Decentralized Network - With more than 21,000 nodes around the world, Bitcoin does not have any single point of failure making it remarkably safe from attacks and censorship.
- Limited Supply - Due to its limited supply policy, only 21 million Bitcoins will ever be issued. This dearth fuels its digital gold narrative.
- Blue Chip Status - Being the oldest cryptocurrency, Bitcoin's 14+ years of history of survival across multiple bear markets solidifies its blue-chip status.
- Payment Acceptance - The number of merchants who accept Bitcoin as payment surpasses all other coins and creates real-world use and adoption.
Other cryptocurrencies may offer higher near-term returns, but none can compete with Bitcoin’s reputation, network impact and first-mover advantage.
The safest cryptocurrency to put your money into is Bitcoin for the most conservative long-term vision.
Which Online Bank is the Best to Open a Crypto Account for Investment?
To long-term cryptocurrency owners, setting up a dedicated crypto bank account at a crypto-friendly bank comes with many benefits over holding coins on exchanges.
These online crypto banks provide safe storage, interest-paying opportunities, and simple deposits and withdrawals.
The best crypto banking account you can choose is Jetonbank.
A licensed and regulated bank headquartered in the Commonwealth of Dominica, Jetonbank offers corporate, and crypto banking services to clients across the globe.
Its online banking system enables the storage and trading of more than 10 cryptocurrencies from one centralised account.
The main advantages of opening a crypto account at Jetonbank:
- Cold Storage Vaults - Military-grade encryption and multi-sig security makes cryptocurrencies more secure than exchange wallets.
- Competitive Rates - Avg 5% APY on certain coins by Jetonbank's saving offerings.
- Easy to Trade - Buy and Sell the best coins at low 0.1% charges with instant fiat deposit/withdrawal capabilities.
- Multi-Currency Support – Buy and sell major cryptocurrencies as well as fiat currencies from one compliant account.
- Bank-Aligned Protections – Strict KYC, 2FA login, insured deposits up to $250K offer banking-grade protections.
If you are looking for the safest and most compliant way to invest in crypto for a long-term basis, then a crypto banking account with Jetonbank offers you the digital banking experience and a variety of benefits.
Bitcoin, Ethereum, Solana and stablecoins like USDT all present excellent arguments for long-term investment opportunities based on their base cases and potential.
Educating longer term investors on the real-world value, network effects, and development activity of projects will enable them to make informed decisions when it comes to selecting digital assets for long-term expansion.
To secure crypto holdings, generate yield, and enable transactions, crypto banking accounts from controlled online banks offer long-term strategic benefits. Through careful research and diversification, cryptocurrency could become part of long-term portfolios.