Cryptocurrencies are becoming more popular every year, and as many as one billion people worldwide now own crypto.
Many people believe it’s the future, and it offers some incredible investment opportunities. There are various ways a person can make money from crypto, and a lot of people are wondering which crypto to buy today for long-term profits. This is a difficult question to answer, but there are some things you can look at to help you make your decision.
In this guide, we’ll go over some of the ways you can find the best cryptos to invest in for long-term results. Keep reading for more.
Quick Gains vs. Long Term Profits
The first thing you need to understand is that all cryptocurrencies have potential, but they’re not all good long-term investments. Some are far better for day trading, but this is a risky approach.
A lot of investors purchase crypto intending to hold it for years. The idea is that it will increase in value over a long time, resulting in significant gains.
Make sure you understand the approach you want to take. It’s important to note that you need to have patience with a long-term strategy. You shouldn’t expect to become rich overnight.
A common strategy is Dollar Cost Averaging (DCA). This is where an investor purchases a set amount of an asset (e.g. Bitcoin) at regular intervals. For example, someone might buy $100 of Bitcoin every week over several years.
The goal here is to make sure you’re purchasing the crypto at the average price over that extended period. If the value continues to increase, you’ll make a steady profit. Trying to predict the market can yield better results, but it’s almost impossible to do effectively, so many experienced investors avoid it.
Risk vs Reward
As it stands, there are more than 23,000 cryptocurrencies available. It’s safe to say that many of these are not good investments.
With that in mind, it’s not always easy to know what’s best. The general consensus in the crypto space is that greater risk = greater reward.
The most secure cryptocurrencies such as Bitcoin and Ethereum are well established and considered relatively safe. At the same time, they’ve already experienced a huge amount of growth, so don’t have the same growth potential as smaller coins. This means your return on investment may be more limited.
Conversely, smaller-cap coins may not be considered as safe. The potential gains, however, are much larger.
When investing in crypto, it’s important to build a strategy from the start. This strategy should dictate how much risk you’re willing to expose yourself to.
Best Cryptos to Invest in for Long-Term Results
When it comes to investing in the long term, many investors would say that it’s best to go for safer, more secure assets. At the same time, it’s also a good idea to know where specific projects are going.
You should always research an asset before investing. This will help you understand the future plans for it so you can determine if it’s something you want to invest in. It’s worth considering several of the biggest cryptocurrencies available which have already established themselves well in the space.
Bitcoin (BTC)
Bitcoin is the first cryptocurrency and is widely considered the safest, most decentralized, and most secure. Since it was launched in 2009, it has held the largest market cap in the crypto space, and it’s very unlikely that will change any time soon.
It has seen huge gains over the years, and while it may not have the same potential anymore, many believe its value will continue to increase significantly. The Bitcoin halving is an event that could help drive the price up very soon.
Ethereum (ETH)
For a long time, Ethereum has been the second-largest cryptocurrency in the world with a market cap several times higher than the next largest. It’s the leading blockchain for smart contracts which allows developers to build and deploy their own decentralized applications (dApps).
Ethereum paved the way for NFTs, DeFi, the metaverse, Web3 gaming, and more. It’s likely to continue to be one of the biggest players in the world of crypto, constantly presenting new opportunities.
Solana (SOL)
Solana has grown quickly, becoming one of the largest smart contract platforms available. It stands out for its low fees (with large fees being one of the main issues with Ethereum).
It uses a proof-of-history consensus to allow transaction speeds higher than 50,000 TPS. It’s a scalable network, so it will likely continue to improve moving forward. While Ethereum remains the largest NFT blockchain in the world, Solana isn’t far behind, and the low fees make it very appealing, especially to newer investors.
Binance Coin (BNB)
Binance is the largest cryptocurrency exchange in the world, and BNB is their native token. It serves to help the exchange operate so that investors can buy and trade cryptocurrencies with ease. It provides several benefits to holders such as reduced fees, access to Launchpool token sales, and more.
New use cases are common, meaning BNB will likely continue to grow. This makes it one of the best blockchains currently in operation, and it can be a great crypto to add to your portfolio.
Fetch.ai (FET)
AI has been making waves recently, and Fetch.ai is an AI-focused project that’s building an open decentralized machine learning network. Fetch.ai is essentially bringing two of the most popular recent tech trends (blockchain and AI) together.
While Fetch has been one of the most popular recently, there are other AI coins available. It’s worth looking at some of the others to determine which you think is best.
Which Crypto to Buy Today for Long-Term
It’s not always easy to know which crypto to buy today for long-term investing. The world of crypto can be very complicated, so you should always do appropriate research before investing in any assets.
Joshua M. Peck is working to help investors make the best investment decisions to achieve their goals. With over 20 years of experience in financial engineering, systems engineering, and risk management, you’ll struggle to find better guidance elsewhere. Take a look at Joshua M. Peck’s Cryptocurrency Risk Management book today.
