Cryptocurrency has been trusted by investors as one of the long-term investment assets. Financial instruments are secure and almost impossible to counterfeit, These are the top cryptocurrencies for long term investment. The following article provides information on several long-term crypto investment recommendations according to research results and expert opinion.
Definition of Long Term Investment
Long-term investments are investments made by companies or individuals over a long period of time (generally more than 1 year).
Long Term Investment Goals
Usually, the goal of long-term investment is to prepare for future finances, such as retirement costs, children’s school fees or to grow wealth assets owned by individuals or corporations.
Long Term Investment Benefits
Long-term investments are made by many people for the following reasons:
Monitoring takes some time
Long-term investors generally spend less time monitoring the movement in the value of their assets. This is of course different from short-term investors who have to check small fluctuations every day.
Low transaction fees
In contrast to short-term investors, long-term investors are subject to lower and less frequent transaction fees. For example in terms of brokerage fees or taxes charged.
Types of Long Term Investment
Types of long-term investments include:
Stock funds such as mutual funds are suitable for aggressive investors who don’t have enough time. The funds invested will be diversified into several companies with high growth values, so that the stock returns are more stable than individual stocks.
Bonds are considered a safe and relatively stable long-term investment, especially government bonds. The returns on bonds usually tend to be lower than stocks, but they are also less risky.
A survey conducted by Huobi showed that 45% of the respondents who invested made long – term cryptocurrency investments while 12.5% revealed that they are willing to wait more than 4 years to make a profit on their investment.
List of 5 Crypto Coins for Long Term Investment
Dan Atkinson from capital.com mentions two principles to be aware of before choosing a long term crypto investment . First, crypto must have a solid reputation in terms of technology and security. Second, crypto assets must have a unique selling point that makes them different from other assets.
Summarized from some of the results of research and expert opinion, there are various crypto coins for long-term investments that are quite a lot of people’s interest.
Bitcoin is one of the long-term crypto investments that people are interested in. Data from chainalysis reveals that 60% of the bitcoins in circulation are owned by institutions and individuals who are long-term investors, where they have never sold more than 25% of the bitcoins they have in years.
Despite the ups and downs in price, bitcoin has shown steady growth. As of June 30, 2021, Coinmarketcap shows bitcoin growing from $9,228 to $35,040 in one year.
In addition, Huobi Traders also conducted a survey with long-term investor respondents aged 26-50 years. The survey shows that 69% of respondents choose bitcoin as the asset they have invested the longest (more than one year).
Bitcoin has been widely trusted by the majority of cryptocurrency investors . Support comes from big companies like Paypal, Tesla, Microsoft, and Google. Even in some countries like El Salvador, bitcoin has been legalized as a means of payment.
Different from bitcoin, ether is a cryptocurrency that has its own network. The network can be used to develop other cryptocurrencies such as NFTs , and many more. Just like Bitcoin, the Ethereum blockchain is also known to be transparent and open source.
Chris Burniske, partner of Placeholder VC revealed that ETH is very suitable for long term crypto investment. This sentiment was shared on his personal Twitter in 2019.
Some well-known investors who have also chosen to invest in ether are Winklevoss, Joseph Lubin, Richard Sherman and Mark Cuban.
Binance coin (BNB)
Binance coin is one of the cryptocurrencies that became popular in 2017. After that, this crypto asset has continued to experience a consistent increase even though it tends to be slow. Over the past 4 years, BNB has grown from $0.10 to $303 as of June 30, 2021.
Joshua Frank, CEO of crypto data firm The TIE and a binance coin investor, revealed to Coindesk that some crypto investors view BNB as a better investment than bitcoin because it can get huge returns at a lower cost.
In addition, as reported by Cointelegraph , assets such as BNB and UNI receive positive sentiment as long-term crypto investments because they are utility tokens which are the background for their value appreciation.
UNI is an ERC-20 token on the Ethereum blockchain. In just 3 months, UNI experienced an 8-fold price increase. Like BNB, Cointelegraph also revealed that UNI has experienced an increase in positive sentiment as a long-term crypto investment due to the usefulness of the token so that its value is relatively more appreciated.
Timothy F. Peterson, investment manager from Cane Island Alternative Advisors in his interview with Piotr Rosik revealed that ether and chainlink tokens will be valuable long-term crypto investments for the next 10-20 years.
This assessment is based on consideration of assets with the least downside risk, the greatest potential for increase and the scope of application of these assets.
This content aims to enrich the reader’s information. Always do independent research and use cold money before investing. All buying and selling activities and investing in crypto assets are the responsibility of the reader.