As we already know, cryptocurrencies are volatile assets and could increase and decrease in price at any time. Some crypto is best held for long-term profit and in this post, I have compiled the top 3 coins that would be best to hold for long-term profit.
As always, you are advised to do extensive research before investing in any digital asset. Below are my top 3 cryptos for long-term profit.
Ethereum (ETH)
As far as market capitalization goes, Ethereum is second only to Bitcoin. The Ethereum blockchain and its associated cryptocurrency have the same name. While Bitcoin excels at serving as a store of value for its token, Ethereum has proven to be one of the most popular environments in which to develop decentralized applications (dApps).
Developers love it because it can run smart contracts, programs that carry out a predefined action when certain circumstances are satisfied.
The Ethereum network is now undergoing maintenance and an upgrade. There will be increased network scalability, security, and sustainability as a consequence, as stated on the Ethereum website, a process once known as Eth2 and now known internally as The Merge.
Some market watchers are skeptical that The Merge will have a positive impact on ETH, while others predict that the cryptocurrency’s value might more than double this year. The success of The Merge, set to occur on September 19, 2022, is crucial. As of mid-July, ETH bulls have been stocking up on coins in anticipation, sending the price up by more than 50% in only one week, as reported by Finbold.
Goldman Sachs has seen a growing interest in ETH among investors. Like Bitcoin, it promises to provide options trading for Ethereum.
Polkadot (DOT)
Since its inception in 2020, Polkadot has become one of the greatest long-term cryptocurrencies to purchase with a market worth of over $8.58 billion. It’s not only a coin but also a blockchain infrastructure on which new kinds of decentralized applications may be built.
Polkadot was developed so that different blockchain networks may communicate with one another and new chains could be launched from inside the existing network. The network’s proof-of-stake validation of security and transactions is made available to consumers, and it becomes simpler to move digital assets like applications and tokens across blockchains thanks to the integration.
The latest version of the Polkadot parachains makes it easier for them to communicate with one another and share assets, expanding the network’s potential applications.
Polkadot competes with Ethereum and Cardano, but its early adoption of smart contracts is seen by some as giving it a leg up that it should be able to keep.
Bitcoin (BTC)
Bitcoin’s market valuation is the highest of any cryptocurrency. You may either use it to buy things online or in person, or you can add it to your investment portfolio and treat it like any other buy-and-hold asset. Put it in your long-term cryptocurrency portfolio since it’s now more of an investment refuge than a currency.
When Tesla’s CEO Elon Musk revealed in 2021 that the business had bought $1.5 billion worth of Bitcoin and would accept Bitcoin as payment for its automobiles, the cryptocurrency’s value skyrocketed.
Despite Musk’s quick reversal and subsequent sale of most of Tesla’s Bitcoin holdings due to environmental concerns, several other firms accept Bitcoin as payment, including Microsoft, PayPal, The Home Depot, and Rakuten.
A growing number of corporations are including Bitcoin in their portfolios. Additionally, Goldman Sachs issued the first Bitcoin-backed cash loan in April.
The recent drop in Bitcoin’s price to around $18,000 from a peak of over $68,000 a year ago demonstrates the asset’s volatility when it is tracked day to day. Despite this, it has been the best-performing investment asset over the last decade, and a recent network update to enhance features will make the platform more usable, which might increase the coin’s value.
Since the value of any given cryptocurrency may fluctuate rapidly, it may make sense to invest only in the original and most valuable crypto over the long haul.