Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. A safer, but potentially less lucrative, alternative is to buy shares in companies with exposure to cryptocurrencies. With over 19,000 different coins and tokens on the market, investor interest is growing rapidly. However, choosing the right mix to maximize your long-term returns can be overwhelming.
Bitcoin is a volatile asset, since you track it day by day. However, it has been the best-performing investment asset for the past 10 years, and a recent network upgrade to add functionality will make the platform more useful and could make the currency more valuable. Ethereum is in the process of being updated. Initially called Eth2 and now internally referred to as The Merge, the result will be improved scalability, security and sustainability of the network, according to the Ethereum website.
Although Ethereum Upgrade Could Level The Playing Field, Cardano's Popularity Among Decentralized App Developers Could Keep Demand For Its ADA Token High. In the 24 hours after Cardano's recent “hard fork”, or protocol change, more than 100 smart contracts were implemented on the network, according to CoinMarketCap. Cardano led the group during a recent rally, gaining up to 40%, CoinDesk reported. The rally followed a massive cryptocurrency sale that reduced overall market capitalization by 30%.
Suppose your retirement date is years away and you decide you need to allocate at least 20% of your investment portfolio to aggressive investments. If that's the case for you, then long-term cryptocurrencies could be a pathway to high returns. Cardano is a long-term investment in the cryptocurrency market. Another strategy that many crypto investors use in the long term is to earn interest on their digital assets.
Instead of simply storing your Bitcoin, Ethereum or altcoin, you can bet them through a crypto wallet to earn between 2% and more than 10% annually in your cryptocurrency. The good thing about this is that interest is paid in the cryptocurrency you bet on, so you can accumulate more cryptocurrencies passively. The Exodus wallet allows users to stake their cryptocurrencies on interest, as well as trade and store cryptocurrencies securely. Exodus is available on iOS, Android and desktop and is free to use.
Another option to store your cryptocurrency is Exodus Wallet. This software wallet has tons of features that allow you to earn interest on your digital assets, which many long-term investors do to earn higher returns. Exodus is free to use and is available both in the mobile app store and on computers. Crypto markets are volatile, so buying cryptocurrencies at any price, let alone a drop that could become a long-term trend, is risky.
While prices could return to previous levels, they could also fall further, leaving your investment underwater. HODLing, or for HODL, is a play with the concept of “clinging” to a long-term crypto investment. Currently, investing in cryptocurrencies in the long term has been proven to be profitable, but it is important that you know the market before investing. And as such, if you think Ethereum's smart contract dominance won't last forever, Solana might be the best cryptocurrency to invest in for the long term.
Given the old investment adage “buy the fall”, investors may now be looking for a slice of the volatile cryptocurrency market in the hope that this will mark a temporary recession rather than a long-term bear market. The most viable method to consider adopting when investing in cryptocurrencies is a long-term buying and holding strategy. This volatility is a big part of the reason why experts recommend keeping your cryptocurrency investments at less than 5% of your portfolio to begin with. Yes, in fact, investing in cryptocurrencies in the long term is a more appropriate strategy than trying to outperform the market in the short term.
Another great way to find the best long-term cryptocurrency investments for HODLing is to do some research on previous all-time highs. A profitable long-term investment in cryptocurrency is one with a value that appreciates over a period of time that is tailored to your investment objectives. Although these returns are unlikely to be seen again, cryptocurrencies could continue to outperform traditional investment markets in the near future. If you like the sound of what Lucky Block is building, you can invest in this project by purchasing an allocation of its native crypto token.
If you are wondering whether or not you should HODL your cryptocurrency investments in the long term, keep in mind the key points discussed below. However, it is crucial to note that investing in cryptocurrencies exposes your investment to volatility and numerous risks, such as hacking wallets. . .