Cryptocurrencies have surely taken the world by storm, and there’s no stopping them. Everyone is jumping on the crypto wagon for short-term profits or long-term holding, further driving it to mainstream adoption.
While short-term crypto traders have made quick profits, a long-term cryptocurrency investment strategy is considered to be much better than a short-term cryptocurrency investment strategy since crypto assets typically follow cycles and compound over time, thereby appreciating in value. And despite the extreme bouts of volatility that crypto markets offer, the potential for massive returns has lured several investors to the space.
If you have been considering investing in cryptocurrency for a long term and are confused about which top cryptocurrency you should invest in, we’ve got you covered. For those of you who are looking to go forward with a long-term cryptocurrency investment strategy, here are the top 4 cryptocurrencies you could invest in.
Bitcoin, the first and most well-known cryptocurrency, is without a doubt the top cryptocurrency for long-term investment. The main reason for Bitcoin’s popularity is that investors believe the cryptocurrency will appreciate in value over time due to its restricted supply, as opposed to fiat currencies like the dollar or the pound. Most investors also believe that as fiat currencies weaken, Bitcoin will continue to appreciate in value.
Created in 2009 by an individual or group of individuals using the pseudonym Satoshi Nakamoto, Bitcoin (BTC) is the first cryptocurrency, often referred to as digital gold. BTC is also the dominant crypto, and not without reason: its price, market capitalization, and volume are all significantly higher than any other crypto. Although thousands of different cryptocurrencies are on the market, Bitcoin still accounts for over 40% of the total cryptocurrency market capitalization.
From around $0.0008 to $0.08 per coin more than a decade ago, Bitcoin’s price has increased by around 113% since last year, reaching a record high of over $67,000 in the second half of October 2021. While Bitcoin’s volatility is one of its most prominent risk factors, the potential for massive profits as a result of this volatility is also what has made it so popular. Several analysts estimate that BTC’s price will rise through 2021, reaching as high as $80,000 or $100,000, then to $250,000 by 2025 and a massive $5 million per bitcoin by the end of this decade.
Second only to Bitcoin, both in price and market cap, Ethereum is another highly preferred crypto investment for many because it isn’t just a cryptocurrency that you can use for transactions. It’s also a network that lets developers build their own cryptocurrency through its ERC-20 compatibility standard. In addition to providing a platform for creating various cryptocurrencies, Ethereum also provides for the execution of decentralized smart contracts. DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens) are yet other concepts that have increased the value of Ethereum over the years.
According to co-founder Gavin Wood, Ethereum’s blockchain was created as a “one computer for the entire planet,” capable of making any program more resilient, censorship-resistant, and fraud-resistant – thanks to the use of a globally dispersed network of public nodes. Since its launch in 2015, Ether has been vying with Bitcoin for the position of the largest cryptocurrency by market capitalization and even came close to overtaking Bitcoin in February 2018. Experts anticipate that Ethereum will “flip” Bitcoin and become the most valued blockchain and cryptocurrency in the long term.
Despite substantial setbacks, including hefty transaction costs, Ethereum has gained about 900 percent in the last year. This is due to the much-anticipated London Hard Fork upgrade, which will let the network execute plenty more transactions per second while simultaneously lowering the network’s exorbitant gas fees (as a result of this increased scalability).
Developed in 2015 by Ethereum co-founder Charles Hoskinson, Cardano is an open-source and decentralized public blockchain platform noted for its early adoption of proof-of-stake validation. Thanks to its substantial market gain in recent times and its energy-efficient processes that are considered more eco-friendly than Bitcoin, Cardano (ADA) has attracted a wide variety of investors.
ADA is the internal cryptocurrency of Cardano, which facilitates peer-to-peer transactions. While ADA may not be able to compete with Bitcoin and Ethereum, its current price has seen a phenomenal increase. The price of ADA has climbed 1600 percent year to date – $2.15.
According to the Economy Forecast Agency, the price of ADA is predicted to reach $3.83 in 2021, $7.70 in 2022, $8.93 in 2023, and $15 by the end of 2025.
Polygon (previously Matic Network)
Polygon, previously known as Matic Network, is an Ethereum token that uses level two sidechains to deliver cheaper and quicker transactions. Developed with a goal to expand Ethereum and improve its infrastructure, Polygon is an India-based cryptocurrency that aims to make Ethereum blockchain transactions cheaper and faster. As we saw earlier, Ethereum’s high transaction costs are a fundamental obstacle to its growth, and Polygon addresses these issues by developing a decentralized platform that enables low-cost transactions.
MATIC was renamed Polygon earlier this year in a bid to gain worldwide recognition. Despite being renamed Polygon, the Polygon network’s native coin is still known as MATIC. The network primarily employs point-of-stake checkpoints, allowing for up to 16 transactions per block on a single MATIC sidechain. This might allow millions of transactions on the blockchain in the future.
MATIC, which started the year at $0.01, grew by more than 10,000 % over the past few months and currently trades at $1.86. By the end of 2021, MATIC is expected to be valued at $1.74, $3.09 by the end of 2022, and $3.61 by the end of 2024.
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