Best Long-Term Crypto Investments 2024
There are several strategies you can use to make money investing in cryptocurrencies. Nevertheless, the first thing to determine is your time horizon. Do you intend to hold for the short-term (up to three months) or the long-term (more than three months)? Each approach has similarities and differences. Your approach may certainly be influenced by the amount of money you have to invest, your financial goals, your availability, as well as your interests. Taking a long-term approach is the path commonly taken for those new to investing as it usually requires less time relative to a more active process. The following takes a closer look at the benefits of long-term investments in cryptocurrencies.
Start investing in crypto now with Bybit!What influences the long-term growth of cryptocurrencies?
There are a number of things to consider that influence the long-term growth of cryptocurrencies. Next, we take a look:
1. Widespread Adoption:
One of the top factors influencing the long-term growth of cryptocurrencies is the widespread adoption of these currencies. When mainstream companies start accepting and promoting the use of cryptocurrencies it provides validation for their use and potentially increases their long term value. For example, companies such as Black Rock, Fidelity, AT&T, Starbucks, and Gucci, are a few examples of companies that accept cryptocurrencies for transactions. Currently, there are an estimated 16,000 businesses globally that accept payment via cryptocurrencies. The global cryptocurrency industry is expected to increase at a compound annual growth rate of 12.5% till 2030. It stood at $4.7 billion in 2022 according to Grand View Research.
This often occurs at the hands of cryptocurrencies by institutional investors. In other words, when mainstream companies start accepting and promoting the use of cryptocurrencies, this helps validate them and makes them more valuable for the long haul. For example, companies such as Black Rock, Fidelity, AT&T, Starbucks, and even Gucci are more examples of companies that recently started accepting cryptocurrencies. These days, nearly 16,000 venues have begun accepting cryptocurrencies as a form of payment. The industry is expected to increase from $1.6 billion in 2021 to $2.2 billion by 2026.
2. Growth of Popularity Among Private Investors:
Although cryptocurrencies are relatively new as an asset class, their popularity has been growing. This is partly due to the fact that more investors are aware of the opportunities to invest in that market as awareness has grown exponentially in recent years. Also, the benefits of adding cryptocurrencies to a portfolio have become more widely known. This is similar to the benefits of adding futures to an investment portfolio. They provide diversification and the possibility of enhanced returns with lower overall portfolio risk. In fact, although cryptocurrencies have been out for years, around 55% of investors invested in Bitcoin in 2021.
3. Technology Development:
Another factor influencing the longevity of cryptocurrencies is the development and advancement of technology. The more technology advances, the more cryptocurrencies become prominent. This is because many businesses are finding ways to incorporate cryptocurrencies into their business models to make them more convenient for customers.
4. Limited Supply:
Although there is a wide variety of cryptocurrencies on the market, there is still a limited supply of many of the most popular cryptocurrencies. For instance, Bitcoin has a supply limit of 21 million coins. Additionally, in order to maintain scarcity, Bitcoin halves its Bitcoin rewards every four years. This is how they control emissions at the code level.
5. Super Cycles:
Another factor influencing the long-term growth of cryptocurrencies are super cycles. This is the widespread notion that cryptocurrencies will eventually be adopted on a much wider scale. Therefore, despite fluctuation and volatility, many people invest in cryptocurrencies because they believe that they will soon be a widely accepted currency globally.
6. Explain How Cycles Work in the Crypto Market:
As mentioned, halving occurs when the supply is limited on the code level. Therefore, Bitcoin is structured to halve the block reward every 210,000 blocks, which takes around four years. The next time this is projected to happen is around 2024.
7. Fed Monetary Policy:
Another major factor that is fueling the long-term growth of cryptocurrencies is the developing federal monetary policy. They have stated that they plan to create a cryptocurrency eventually, which has caused many people to invest in them for the long-term.
Top 7 Cryptocurrencies to Invest Now
When it comes to cryptocurrencies, there are plenty to choose from. Nevertheless, you should take the time to figure out which cryptocurrencies are great long-term investments. Here is a list of 7 other top investments to pay attention to.
Ethereum 2.0
When it comes to long-term cryptocurrency investments, Ethereum 2.0 is one of the top options. This is largely because its PoS (proof of stake) consensus mechanism is expected to be the biggest event in the cryptocurrency markets in 2023. This upgrade is highly anticipated because it is expected to help the cryptocurrency achieve long-term sustainability. It is projected to help the cryptocurrency achieve widespread adoption as well as scalability.
Moreover, industry experts expect this move to make ETH more attractive overall by reducing the amount of supply in circulation, making it “net-deflationary.” Therefore, it is being positioned in a way that will allow it to become viable in the metaverse and other virtual platforms.
Ethereum Price Prediction 2024, 2025, 2030Bitcoin
On the other hand, Bitcoin is arguably one of the most popular and important cryptocurrencies in existence. This is because it is one of the oldest and has experienced one of the most impressive levels of growth in the cryptocurrency market. In fact, experts assert that its growth has outpaced that of the internet's growth in 1998.
Moreover, due to this, they go above and beyond to ensure that the coin stays scarce and deflationary in nature. This makes it maintain its value and novelty over time. Therefore, if you are looking for a long-term cryptocurrency investment, Bitcoin is likely one of your best options.
Bitcoin Price Prediction 2024, 2025, 2030Solana (SOL)
Although it has only been in existence since 2021, Solana is considered a great cryptocurrency to invest in for the long-term. This is because it has its own blockchain, meaning it does not have to rely on another network’s design and other pertinent limitations. Additionally, the length of time it is taking Ethereum to complete the merger, the more relatively independent cryptocurrencies, such as Solana, stand to benefit. Either way, it is presently recovering from its most recent plunge, making it a major long-term contender.
Solana price prediction 2024, 2025, 2030Avalanche (AVAX)
Another great long-term contender in terms of crypto is Avalanche (AVAX). This is because it is up six folds since it first hit the market in 2019. It is actually one of the few cryptocurrencies that are priced higher than it was when it was first created. The company has a vision in which everyone in the world is able to create their own version of the blockchain, in which they have the capacity to build their own products which can be sold or traded on the blockchain. They plan to be the Amazon Web Services of the crypto industry.
Avalanche (AVAX) price prediction for 1 day and 1 weekBinance Coin (BNB)
Yet another amazing option for long-term crypto investments is the Binance Coin (BNB). This is because it is the third-largest cryptocurrency by market cap outside of stable coins. At the moment, its market cap is around $54 billion. It is also the native coin of Binance, which is the world's largest crypto exchange. Moreover, BNB is considered the strongest contender in terms of becoming blue-chip crypto that could one day be in the same category as the likes of Ether and Bitcoin.
Binance coin price prediction 2024, 2025, 2030Tron (TRX)
Next, Tron (TRX) may be an excellent choice for a long-term investment. This is partially because it is one of the oldest cryptocurrencies in existence, coming out in 2017, two years before ETH. Since this time, it has emerged as one of the most serious contenders in the cryptocurrency realm, with a $6 billion cap. Additionally, its mission is also one of the most attractive aspects of this coin. They have a goal of directly rewarding content creators via TRX tokens, which will eliminate the middlemen (i.e., TikTok, YouTube, etc.) In other words, in the future, content creators may be able to obtain direct funding via TRX tokens rather than needing to sign up for these platforms and receive smaller payouts. This could make it a coin that is pushed by creators and influencers all over the globe.
Tron price prediction 2024, 2025, 2030Cosmos (ATOM)
Lastly, Cosmos (ATOM) can also be a great choice for a long-term cryptocurrency investment. With a market value of $3.2 billion, Cosmos is a top 25 token. Despite the fact that it is not as valuable as some of the other tokens, it has a highly ambitious mission to solve some of the most prominent issues in the crypto market, such as the fragmentation of different blockchains, the difficult nature of scalability, and the complex nature of software development.
Cosmos price 2024, 2025, 2030Pros and Cons of Long-Term Investment in Cryptocurrencies
As with all investments, there are pros and cons of long-term cryptocurrency investments. Some of them are as follows:
👍 Pros
•Making Money: One of the top pros of investing in cryptocurrencies for the long term is that you can potentially make lots of money. On the one hand, short-term investments can make you a lot of money because of the high level of market volatility. On the other hand, long-term investments can allow you to make even more money because they essentially trend upwards for the long-term, so while those who invest for the short-term may make some money, with bullish cryptos, those who invest for the long-term stand to make much more.
•No Need to Strategize: Although it is possible to make lots of money in the short term, you need to develop a strategy that will allow you to know when to buy and sell in order to maximize your profits. When developing a strategy for the long-term, there is no need to worry about such things.
•Less Trading Fees: Moreover, investing for the long-term makes for fewer trading fees. This is because the fees are only assessed when you make a transaction.
•Less Emotional Trading: Since short-term investing can lead to lots of wins and losses, this can cause investors to get caught in a cycle of repeatedly investing in certain cryptocurrencies in an effort to recoup losses.
👎 Cons
•You Can’t Predict the Future: One of the disadvantages of investing for the long term is that there is no way to predict the future. So, while it is possible to make money by investing in crypto for the long term, it is not guaranteed. In fact, you could lose everything you invest.
•It’s Too Soon to Know: Additionally, unlike other types of investments, cryptocurrencies are still in their infancy. Therefore, how they will change and grow over time is still unknown. Although there are never any guarantees, not knowing what could possibly happen over time is especially problematic.
When to Buy Crypto for Long Term?
There are two models for investing in cryptocurrencies for the long term. They are as follows:
Investing in a Bear Market: One option is to buy the most promising coins during a bear market to sell them during the next bull cycle in the financial markets. This strategy makes it possible to gain a portfolio gradually on the downs. This was previously considered to be the most productive strategy.
Investing for Decades: Another strategy is to invest in cryptocurrencies for decades. For instance, you can invest in crypto as retirement savings. Doing so requires you to allocate a certain amount every month for these purposes, regardless of the crypto cycle. Therefore, it enables you to avoid the stress and anxiety caused by constantly needing to check the value of your coins, and you can simply set a date to sell the product in the future.
Are Long-Term Crypto Investments Profitable?
In the past, the cryptocurrency market was considered in terms of long-term growth, despite strong corrections. However, the repetition of this pattern is not guaranteed for the long haul; it is worth taking into account the risk of losing investments.
Best Platforms to Buy Crypto
You have plenty of options in terms of where you purchase your crypto. Here is a closer look at two of the most popular.
eToro - Best In US
When seeking to invest in crypto for the long-term, there are plenty of benefits to using the eToro platform. This is because eToro offers moderate fees, meaning that you won’t worry about excessive fees whenever you decide to sell or trade your cryptos.
eToro also offers innovative educational tools, which enable its users to learn more and more about investing over time. This is a vital part of the process, as learning more about crypto investing allows users to make better and more informed decisions.
Additionally, eToro also offers social trading, which means users can simply copy the investment moves of seasoned, successful traders. While this does not guarantee success, this does help users increase their chances of being successful by allowing them to make better choices and develop more sound trading strategies.
ByBit - Best international Crypto Exchange
On the other hand, Bybit also offers an array of benefits for those seeking long-term investments. This is partially due to the fact that it offers an array of educational tools and resources that make it possible for users to learn about products along the way. Bybit offers an extraordinary variety of assets, information, and intuitions for sellers of all stages. For instance, "Bybit Learn" describes the best way to use technological resources as a means of understanding chart patterns. The platform also teaches users about decentralized finance (DeFi), offering detailed analyses of specific coins. Lastly, the platform hosts classes on social media twice a week.
Additionally, you can get up to 100x leverage on crypto when using Bybit. This has been a major attraction to the platform for quite a while. This means you have the option of trading cryptocurrencies on Bybit and trading a position of $10,000 from a $100 investment. Therefore, more experienced traders have the potential to make high profits from leveraged trading; the platform magnifies the potential trading rewards.
Bybit also offers a superior level of technology. Many people prefer the Bybit platform because it can handle 100,000 transactions per second, which is considerably faster than the transaction rates on most other platforms. Additionally, the platform goes above and beyond to avoid server downtime. This is important because server downtime is a problem many platforms deal with when a change in the market forces many people to trade at once.
Summary
Overall, investing in cryptocurrencies for the long term can be as lucrative as it is risky. On the one hand, there are plenty of people who have made lots of money by simply investing in certain cryptos for the long term. On the other hand, there are no guarantees, and you can just as easily lose everything you invest. This means those who wish to invest in crypto for the long-term need to take the time to decide which products are best for their portfolio. They must also choose the best platforms that they believe will provide them with the most benefits for the long haul. Therefore, investors must take the time to do their due diligence before making their final decision.
FAQs
What are the risks of long-term crypto investing?
The price could decrease dramatically and never recover, government regulations could pop up virtually overnight, and you could get scammed if you're not careful.
How do you protect yourself when investing in crypto?
Don't invest what you can't afford to give away, and make sure you set up a fund in case of emergencies.
How do you decide where to buy cryptocurrency from?
You should research and only use reputable platforms that have values that align with your personal financial goals.
What is the most important factor in terms of making money from crypto for the long term?
One of the single most important factors when it comes to investing in crypto for the long-term is timing. You must be able to figure out when the best time to buy and sell the product in order to maximize your potential profits.
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Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Bruce Powers is an expert trader and technical analyst with over 20 years of experience in Forex, commodities, ETFs, cryptocurrencies and other assets. He is an active trader, technical and fundamental analyst, media commentator, educator and a writer. As an author for Traders Union, he contributes his deep analytical skills, expertise and understanding of the global economy and financial markets to provide market analysis and insights. Powers is also a frequent guest on business TV news shows.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.