Bitcoin started the crypto wave in 2009. Thousands of cryptocurrencies have been launched since Bitcoin’s introduction. New investors may feel overwhelmed about their choices. So how do you research thousands of cryptocurrencies and find the best ones for your portfolio? Reviewing every cryptocurrency is no easy task, but filtering your search and setting criteria can reveal compelling opportunities. We will share some top cryptos to start your search and what indicators to look for in any virtual currency.
Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature.
Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies.
Alto IRA allows you to invest in stocks, bonds, mutual funds, ETFs, real estate, cryptocurrencies, and even gold for your retirement.
The Benefits of Investing Long-Term in Cryptocurrency
Long-term investors can navigate market volatility. They look at how an asset can perform in the future instead of how it will perform within the next hour. Long-term crypto investing takes less time than trading crypto. They buy crypto and wait for the long-term investment narrative to play out in their favor. Trading cryptocurrencies can add stress to your life as you wait for the price charts to move in your favor.
Although cryptocurrencies have crashed recently, this boom-and-bust cycle is nothing new for these digital assets. Bitcoin has endured several crashes over the past decade, most notably after the 2017 peak. Crypto attracted many investors and speculators during Bitcoin’s run-up in 2017. After appreciating over 2,000% in 2017, Bitcoin crashed by over 80% the following year. Bitcoin reclaimed its all-time high in 2020 and promptly soared to over $60,000 per coin. Despite the volatility, Bitcoin has trounced the stock market over the past ten years and produced life-changing gains for early adopters.
The only downside to any soaring investment is capital gains taxes. You will have to give a percentage of your profits to the government. You don’t have to give your capital gains to the government if you use a crypto IRA provider. The crypto gains will accumulate in your portfolio, and you won’t have to pay taxes on them when it’s time to sell.
Factors You Should Consider in Choosing Crypto for Long Term
Bitcoin isn’t the only crypto generating solid returns for investors. Expanding your horizons can reveal promising investments in the crypto market. You should review the following factors to identify investment opportunities.
Market Performance
Although past results don’t guarantee future returns, they reveal how a digital currency tends to perform. Many crypto investors view Bitcoin as the brand crypto market. It’s the largest cryptocurrency by market cap, and many cryptos move in the same direction as Bitcoin. Therefore, investors should look for cryptocurrencies that have outperformed Bitcoin. These cryptos have ideally generated higher gains during bull markets and lower losses during bear markets.
Dogecoin investors enjoyed stronger returns in 2021 than Bitcoin investors, but the altcoin has crashed more than Bitcoin in the current economic downturn. Some investors will happily risk more downside for high potential upside, but not everyone has that type of risk tolerance.
Market Competition
Crypto investors can choose from thousands of cryptocurrencies, but not all of them directly compete with each other. For example, Bitcoin and Ethereum serve two different functions. Bitcoin is a method of payment, while Ethereum’s blockchain has formed the backbone of many cryptocurrencies, NFTs, DeFi apps, and smart contracts. Cryptos compete with each other for general market share, but subsets of cryptocurrency compete based on having similar utility.
Longevity
Investors feel more confident if an asset has been tested and proven for a long time. Bitcoin has survived several crashes since its 2009 debut. Bitcoin is one of the few cryptocurrencies that has been around for over a decade. Ethereum, the world’s second-largest cryptocurrency, was launched in 2015, making it less than 10 years old.
Longevity has become more of an issue for cryptocurrencies established more recently. Shiba Inu launched in August 2020 and quickly gained a following. The cryptocurrency soared quickly but then fell over 80% from its all-time high. Shiba Inu has a short history in the spotlight and less than a year of uptime. This limited data makes Shiba Inu a high-risk investment. The digital asset can gain significant momentum during a bull market, but it can also blend in with the other cryptocurrencies launched in recent years. If the crypto crowd begins to favor other virtual currencies, Shiba Inu could be left in the dust.
Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature.
Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies.
Alto IRA allows you to invest in stocks, bonds, mutual funds, ETFs, real estate, cryptocurrencies, and even gold for your retirement.
Track Record
A crypto’s reputation and performance can offer hints about future performance. Bitcoin has a proven track record of acceptance among merchants. Thousands of companies let consumers buy goods and services with Bitcoin, such as Microsoft, Starbucks, Etsy, Home Depot, and PayPal. A cryptocurrency with less of a track record is riskier.
Technology
Blockchain technology has created more possibilities and is the foundation for any cryptocurrency. Some cryptos have better technology than others. Some cryptos have faster transaction speeds and various utilities.
Adoption Rate
The crowds heavily influence a cryptocurrency’s value. Dogecoin and Shiba Inu produced incredible gains for early adopters because millions of people quickly rushed into the asset. As more people adopt cryptocurrency, it becomes more viable. While most crypto-friendly merchants accept Bitcoin as an alternative form of payment, some also accept Dogecoin. If Dogecoin didn’t receive massive adoption in 2021, it probably wouldn’t be accepted by as many merchants.
Best Crypto to Buy for Long-Term
Long-term crypto investors look for a promising outlook. Therefore, they patiently hold onto assets until they realize their full potential. You can start your search for a long-term digital asset with this list.
Bitcoin (BTC)
Bitcoin is the original cryptocurrency, and it has room for more gains. Bitcoin’s limited supply has some investors using it to seek refuge from inflation, similar to gold. Only 21 million Bitcoin exists, and a central authority cannot increase the coin supply at will.
Ethereum (ETH)
Ethereum is the second-largest crypto, and its blockchain network is among the most popular. Many developers use the Ethereum blockchain to create apps, cryptos, NFTs, and other resources.
Binance Coin (BNB)
The Binance crypto exchange is one of the most popular places for people to trade crypto. Binance lets investors trade cryptos with BNB, their own cryptocurrency. In addition, users get transaction discounts if they use Binance Coin for the orders. Binance offers thousands of cryptos, and as the platform attracts more investors, Binance Coin will gain popularity.
XRP (XRP)
XRP aims to revolutionize the global banking system. This cryptocurrency is a faster solution than the old and outdated SWIFT model. Over 200 financial institutions already use Ripple to accelerate international trade and cut transaction fees to under $0.01.
Cardano (ADA)
Cardano uses a proof of stake system to consume less energy, making it an environmentally friendly crypto. Developers can use Cardano’s blockchain to develop apps for Web 3.0.
Solana (SOL)
Solana pitches itself as the Ethereum killer. Solana’s blockchain enables smart contracts and can process 65,000 transactions per second. This number dramatically surpasses Ethereum’s speed of 16 transactions per second. But, Ethereum is switching soon to a proof of stake model, which will speed up transactions; despite this, Solana is establishing itself as a viable alternative to crypto.
Buy Crypto Today and Save Long-Term for Your Retirement
Cryptocurrencies are still in the earning innings and gaining widespread attention. Virtual currencies have produced immense capital gains for pioneers in the crypto market. Crypto’s history suggests more gains in the future, but you can get out of capital gains taxes with most plaforms.
