Cryptocurrency is an excellent way to gain direct exposure to the demand for digital currency. It is a volatile asset, but has been the best-performing investment asset for the past decade. Ethereum is in the process of being updated, and Cardano's popularity among decentralized app developers could keep demand for its ADA token high. If your retirement date is years away and you want to allocate at least 20% of your investment portfolio to aggressive investments, long-term cryptocurrencies could be a great option for achieving high returns.
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 stake them through a crypto wallet to earn between 2% and more than 10% annually in your cryptocurrency. Exodus Wallet is a great option for this, as it allows users to stake their cryptocurrencies on interest, as well as trade and store cryptocurrencies securely. HODLing, or HODL, is a play on the concept of “clinging” to a long-term crypto investment.
Investing in cryptocurrencies in the long term has been proven to be profitable, but it is important that you know the market before investing. Ethereum's smart contract dominance won't last forever, so Solana might be the best cryptocurrency to invest in for the long term. Given the old investment adage “buy the dip”, 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 reason why experts recommend keeping your cryptocurrency investments at less than 5% of your portfolio to begin with. 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 time that is tailored to your investment objectives. If you like 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 that investing in cryptocurrencies exposes your investment to volatility and numerous risks, such as hacking wallets.