Right now, the smartest cryptocurrency investors in my opinion are focusing on long-term strategies. They realize the true value of digital currencies and they intend to capitalize on them for the long term.
Are you also thinking along these lines? I assume so since you’re here to learn about the best long-term cryptocurrency investments.
With that said, I’d like to talk about cryptocurrency investments from a few different perspectives. There are tried-and-true cryptocurrencies that have led the field for over a decade and still provide the best investment opportunities. There are also brand-new, up-and-coming cryptocurrency investment opportunities that are also worth mentioning. I plan to go into greater detail about them below.
Before I get started:
Please understand the best way to make the most of long-term crypto investment strategies is investing through a cryptocurrency IRA. Not only will you gain access to exciting tax advantages, you’ll also experience other benefits as well.
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Bitcoin (BTC)
As I mentioned, there are tried-and-true cryptocurrency investments that everyone should own. No matter how you feel about this digital dynamo, Bitcoin is still the cryptocurrency leader. And it will remain at the top of the mountain because it’s gained so much traction in the business world.
You may not know this, but there are many businesses accepting Bitcoin as payment at this point. Companies like Visa, Tesla, major banking institutions, traditional car companies, and more are getting in on the action.
As an investor, it always makes sense to go where the money’s going. And if you haven’t been paying attention, the money is being funneled into Bitcoin faster than you can shake a stick.
At the time of this writing, Bitcoin is currently trading for $55,086. And the total market cap is just over $1 trillion right now.
Would regular people, celebrities, businesses, global banking conglomerates, and others really funnel over $1 trillion into a bad investment?
Think about that for a moment. Absolutely not! They are plowing so much money into Bitcoin because their investments are growing at a rapid rate.
Are There Bitcoin Investing Risks?
The most important thing to understand about Bitcoin investing is that its valuation fluctuates a great deal. In July 2021, Bitcoin traded as low as $28,000. It’s more than doubled since then and it’s currently trading $10,000 off its high right now.
So yes, Bitcoin valuation trades all over the place. That’s why I always tell investors that they have to hold on for the long term. They have to weather the storm of these ups and downs because this investment is going to fluctuate.
Believe it or not, Bitcoin has an unheard of 200% compounded annual growth rate (CAGR) over the last decade. This is an astronomical return to say the least. And it makes Tesla’s incredible stock price increase look like a freaking joke in comparison!
In fact, if you bought Bitcoin 10 years ago and held onto it until today, you would have made a 5.2 million% return. I promise I’m not making this up.
So, if you haven’t invested in Bitcoin yet, I suggest you do so now. And I suggest you do it within a cryptocurrency IRA to make the most of your long-term investing strategy.
Ethereum (ETH)
Ethereum isn’t the same as Bitcoin because it’s more than a simple cryptocurrency. Actually, it’s a network as well that gives developers the opportunity to create cryptocurrencies of their own. They can do so by accessing the Ethereum network and utilizing it toward their aims.
From a market cap perspective, it’s definitely worth much less than Bitcoin. But that doesn’t mean that it isn’t worth investing in. As a matter of fact, it’s the second-best cryptocurrency on the market as far as valuation is concerned. And it’s light years ahead of the majority of its competitors.
Right now, Ethereum’s total market cap is $520.8 billion. And that’s down due to the latest coronavirus scare and the recent selloff.
The next cryptocurrency in line by market cap is Binance. It’s trading for $604 at the time of this writing with a total market cap of $100.8 billion. This is significantly less than Ethereum’s overall market cap.
What does this tell us? Like Bitcoin, it tells us that institutional investors, wealthy celebrities, financially well-off investors, and regular people understand Ethereum’s story. They see the value of this exciting investment and they realize that it’s worth investing their money in as well.
Are There Ethereum Investing Risks?
By now, you should know that there are always risks to making investments and Ethereum investments are no different.
Since last Friday, the Dow Jones Industrial Average, S&P 500, and NASDAQ have all taken significant losses. Inflation is running rampant in the US and there are fears of shutdowns because of a new coronavirus variant.
As an investor, it’s your job to deal with the ups and downs. At some point, your investments will look like they’re losing money. But if you hold them for the long term and you wait patiently through the pain, they will eventually become profitable again.
Right now, Ethereum is in the middle of a temporary selloff like just about every other investment at this point.
Will it definitely turn around again? Only time will tell. But if I was a betting man, I’d be buying Ethereum right now while it’s currently on sale. And in truth, that’s exactly what I’m doing.
One last thing…
Ethereum was hacked in 2016. The security flaw has been corrected now for many years, but I wanted you to know. This hack led to losing more than $50 million worth of Ether.
Could it happen again? I doubt it because they are now better prepared. But I wanted to bring this to your attention just to let you know about it.
Ethereum ERC-20
As mentioned above, Ethereum is an incredibly popular blockchain system that uses tokens. And developers are allowed to create their own tokens on the Ethereum network.
There is a very significant token on the Ethereum network known as ERC-20. This token has emerged and is now considered the technical standard. The Ethereum blockchain uses it for small contracts and even provides rules that all tokens that are Ethereum-based need to follow.
This type cryptocurrency is currently trading for $0.033086 USD, which makes it incredibly affordable to say the least. And even better, at the time of this writing it has traded lower by 11.65%.
So, if there was ever a time to get involved with this token it’s now. You might as well buy it now while it’s on still sale at a discount.
NFTs Explained
Investors are a little perplexed by the influx of NFTs hitting the market. They wonder whether or not it’s a good investment. Only you can decide which investment is right for you. But if you’re wondering if an NFT will make money then wonder no longer.
Have you ever wanted to invest in art as a collector? Buying NFTs is a way to invest in digital art online via non-fungible tokens.
Still unsure of what’s going on? Let me explain it in greater detail.
What Is an NFT?
As I just mentioned, NFT stands for non-fungible token. This ultimately means that it’s a unique token that can’t be replaced for something different.
Bitcoin, as an example, is fungible and one could be traded for another Bitcoin. And if you were to make that trade, you’d have the exact same thing.
A non-fungible token, on the other hand, is trading something that is completely unique and one-of-a-kind. And as we all know, unique items are rare, and rarity often leads to investor value.
How Do NFTs Work?
Simply put, at the highest level the majority of these non-fungible tokens exist on the Ethereum blockchain. Their blockchain supports more than the Ethereum cryptocurrency. It also stores additional information that is different from the ETH coin.
This isn’t the only blockchain capable of creating NFTs. Others are also successfully getting in on the action.
How Do You Make Money with NFTs?
Scarcity, or rarity in a nicer sense, is one way that NFTs make money. Other factors include capability, speculation, value appreciation, and more.
As an investor, you might want to buy NFTs and sell them for a higher price after they’ve accrued value. It’s just an additional way to make money as an investor utilizing blockchain technology.
Bottom Line
As you can see, it’s definitely possible to invest in cryptocurrencies for the long term. Hopefully you’ve learned some of the best long-term cryptocurrency investment ideas that I’ve shared today. By investing in these digital tokens and more, you’ll have a chance to grow your wealth tremendously for your retirement.
But you have to work with a top-rated cryptocurrency IRA company to get started. I’ve reviewed the best companies in the industry right now. Please read my review to learn about each company. And use this valuable information to choose the best one to meet your needs.
