Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” Thankfully, generating wealth in the long term is attainable for all of us if we make wise investment decisions.
Adding crypto to your portfolio could be a great way to generate wealth over time, but most new investors get stuck on choosing the right cryptocurrency. This could mean choosing one among thousands of coins out there. If you’re wondering what cryptocurrencies to buy right now for the long term, this article has you covered. Let’s dive in.
Promising Cryptocurrencies for Long-Term Investment in 2024
Bitcoin
Launched in 2009, Bitcoin (BTC) was the world’s first-ever cryptocurrency. Initially designed as a decentralized electronic payment system, it went on to become one of the most sought-after financial assets in history.
Bitcoin is the anchor of the cryptocurrency market and has the largest market cap at more than $500 billion. However, it has a limited supply of 21 million coins, of which about 19.5 million coins have already been mined. This means that as Bitcoin’s supply limit gets closer to being breached, it will become more scarce, and its price may go up as a result.
In addition, the US Securities and Exchange Commission (SEC) is expected to approve Blackrock’s Bitcoin exchange-traded fund (ETF) in 2024. And don’t forget the halving too, which is about 100 days away. Both these events could significantly boost BTC’s price.
The limited supply and the impending ETF approval and halving in 2024 make Bitcoin the best cryptocurrency to buy today for the long term.
Ethereum
This coin is the second-largest cryptocurrency by market capitalization (with more than $196 billion) and deploys around 90% of the world’s smart contracts, making decentralized finance (DeFi) a reality. With DeFi, individuals are empowered to have complete control of their finances without middlemen or centralized authorities monitoring their activities.
Along with this, Ethereum provides developers with a platform for creating dApps (decentralized applications) on the blockchain itself. DApps provide a decentralized, trustless, and censorship-resistant platform for users and can be used for many purposes, including gaming, finance, social media, etc. Many crypto projects, like Uniswap, Shiba Inu, and Decentraland, among many others, are built on the Ethereum blockchain.
Moreover, Ethereum boasts of being more secure, scalable, and sustainable than Bitcoin. In fact, a section of the crypto market believes that an event called “The Flippening” will take place where Ethereum’s market cap will one day cross the market capitalization of Bitcoin. This makes the coin a definite forerunner for a long-term investment.
Binance Coin
Binance is the world’s biggest cryptocurrency exchange based on its daily trading volume. Its token, the Binance Coin (BNB), is the platform’s main cryptocurrency and powers its ecosystem. It ranks fourth among all crypto tokens, with a market cap of more than $33 billion.
BNB can be traded like other tokens for its value, used to pay for goods and services, pay transaction fees on the Binance Smart Chain, participate in exclusive token sales, and donate to charity, among other functions.
Moreover, Binance uses a fifth of its profits every quarter to repurchase and destroy BNB tokens, reducing its total supply over time. This means that investing in BNB long-term would mean staying invested in the growth of the largest crypto exchange well into the future.
Ripple
Ripple is an open-source, international, peer-to-peer platform that makes cross-border transactions seamless and inexpensive. Ripple’s blockchain is called the XRP ledger and has the XRP token as its native currency. The payment platform operates on a low-cost, high-speed, and green model. XRP can thus be used to make quick conversions between different currencies. Moreover, Ripple’s token boosted up to the fifth highest position by market cap (of more than $26 Billion) in the crypto market after a US Court ruled in its favor against the US SEC, declaring that XRP is not a security.
The coin’s utility is defined by its high speed, high liquidity, and energy efficiency. Additionally, It is used by financial giants like the Bank of America and Standard Chartered Bank, among many others, for cross-border transactions. This makes it a great coin to consider investing in over the long term.
Cardano
Cardano is the world’s 7th largest cryptocurrency, with over $8 billion in market cap. ADA serves as the native token for Cardano, a proof-of-stake platform with a global change-oriented mission. Established in 2017 and named after Gerolamo Cardano, the platform’s token, ADA is a nod to Ada Lovelace, the world’s first programmer. Cardano’s decentralized ecosystem supports dApps and smart contracts. It uses the unique Ouroboros consensus mechanism for improved scalability.
Any technology Cardano develops goes through peer-reviewed research, making it robust and stable, as almost all potential scenarios are accounted for. Cardano is touted to be an Ethereum killer and competes with Ethereum for dominance in the smart contract and dApps space.
Making a Decision
Choosing only one from among five attractive investment options can be tough. But we’ve got a solution for you – Coin Sets. Coin Sets are thematic crypto baskets built on the concept of index investing. They are based on popular themes from the crypto market and enable you to invest in the growth of specific themes like AI rather than having to handpick individual coins.
Two of the coin sets you can consider are the Crypto Blue Chip (which consists of the top 5 coins by market cap) and the BTC 50 :: ETH 50 (which is half-Bitcoin and half-Ethereum) Coin Sets. Investing in a Coin Set enables your investments to grow as the theme does while protecting you from the volatility of any one particular coin.
Factors to Consider When Choosing a Crypto for the Long-Term
To succeed in the ever-changing crypto world, remember to look at:
The fundamentals of the project
This includes examining the whitepaper and understanding the project’s goals, technology, and the problem it aims to solve. It also includes assessing the team behind the project, their experience, and the project’s community support. This step helps you determine if the cryptocurrency has a strong foundation and a clear purpose.
The market value
This refers to the cryptocurrency’s current price or valuation. You can evaluate this by studying the price trends, market capitalization, and trading volume to gain insights into a cryptocurrency’s popularity and demand in the market. It also helps evaluate and manage risk.
Liquidity
This measures how easily a cryptocurrency can be bought or sold without significant price changes. High liquidity means there are enough buyers and sellers, making it easy to execute trades quickly. Low liquidity can cause price volatility and difficulty in buying or selling large amounts without impacting the market.
Utility
A cryptocurrency’s value often depends on its utility. If it has practical use cases, partnerships, or a growing ecosystem, it is more likely to succeed and have long-term value.
Innovative technology
It can set a cryptocurrency apart and provide unique advantages. Evaluating the technology helps gauge the cryptocurrency’s potential for future growth and adoption.
When you start a long-term investment in cryptocurrencies, we can’t stress enough the importance of thorough research. While the promise of profits is attractive, the crypto industry is a high-risk market. Doing your research on cryptocurrencies can be a cumbersome process. Enter Mudrex Insights, which provides insights from fundamental, technical, and sentiment analysis for over 200 coins. If you’re unsure about the potential for a particular coin or token, just head over to the app and examine the insights provided to make a decision. Mudrex has done the research, so you don’t have to.
Conclusion
In conclusion, the crypto market is one of the methods for wealth creation, but it’s essential to recognise the accompanying risks. Staying patient and informed will help you navigate the exciting world of cryptocurrencies. Remember, don’t put all your eggs in one basket, keep yourself updated, and Do Your Own Research (DYOR).
The five best cryptocurrencies to buy today for the long term are Bitcoin, Ether, Binance Coin, Ripple, and Cardano. All of these are fundamentally strong coins to invest in and are fairly safe investments.
