Best Long Term Crypto for 2024

Zac McClure
ByZac McClure, MBAReviewed byAlex MilesUpdated on July 1, 2024 · minute read
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When selecting the best cryptocurrency for long-term investment, it's essential to focus on assets that show proven resilience, innovative features, and potential for broad adoption. Bitcoin and Ethereum are perennial favorites. Bitcoin is regarded as a digital store of value, and Ethereum is the backbone of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.

We recommend conducting extensive research into factors such as market trends, technological developments, and regulatory changes before investing. While this article serves as a guide, it should not be considered investment advice. With that in mind, here are our top three picks, followed by detailed reviews and a list of pros and cons for each selection.

Bitcoin

Bitcoin

Best long term crypto for store of value

Cardano

Cardano

Best long term crypto for sustainable blockchain solutions

Ethereum

Ethereum

Best long term crypto for smart contracts and DeFi

Best long term crypto to invest in 2024

Here are our top picks of the best long term crypto to invest in, with pros and cons and reviews to help guide your research. This does not constitute investment advice but is rather meant as a guide so you can make an informed decision. Always do your own research and understand the risks involved before investing in any cryptocurrency.

Avalanche

Best long term crypto for DeFi and NFTs

Avalanche is a high-performance blockchain platform that supports decentralized applications, including DeFi and NFTs. It's known for its fast transaction speeds and low fees.

-  Pros & Cons

Pros

  • EVM compatibility allows for easy porting of Ethereum assets.

  • Deflationary tokenomics with capped supply and transaction fee burning.

Cons

  • Faces stiff competition from other smart contract platforms.

-  Why our experts picked it

Avalanche's innovative consensus mechanism and growing ecosystem make it a promising long term investment for those betting on the future of DeFi and NFTs.

Bitcoin

Best long term crypto for store of value

The origin of it all: Bitcoin, the first and most well-known cryptocurrency, is often referred to as 'digital gold' due to its fixed supply and widespread acceptance as a store of value.

-  Pros & Cons

Pros

  • Limited supply of 21 million coins provides scarcity.

  • Longest track record of reliability and security in the crypto space.

Cons

  • Limited functionality for decentralized applications.

-  Why our experts picked it

Bitcoin's established reputation and scarcity make it a top choice for long term investors seeking a digital store of value.

Cardano

Best long term crypto for sustainable blockchain solutions

Cardano is a proof-of-stake blockchain platform known for its scientific approach and emphasis on sustainability. It aims to provide secure and scalable solutions for decentralized applications.

-  Pros & Cons

Pros

  • Peer-reviewed development process ensures high-quality updates.

  • Low transaction fees and energy-efficient consensus mechanism.

Cons

  • Slower pace of development compared to competitors.

-  Why our experts picked it

Cardano's focus on sustainability and rigorous development approach position it as a strong long term investment in the evolving blockchain landscape.

Chainlink

Best long term crypto for decentralized oracles

Chainlink is a decentralized oracle network that connects smart contracts with real-world data. It plays a crucial role in enabling complex smart contract functionalities.

-  Pros & Cons

Pros

  • Wide range of partnerships with major industry players.

  • Essential for the functioning of many DeFi protocols.

Cons

  • Concerns about centralization in the node operator network.

-  Why our experts picked it

Chainlink's unique position as a leading oracle provider makes it a critical component of the blockchain ecosystem, offering long term growth potential.

Ethereum

Best long term crypto for smart contracts and DeFi

Ethereum is the leading platform for smart contracts and decentralized applications, including the rapidly growing DeFi sector.

-  Pros & Cons

Pros

  • Largest ecosystem of decentralized applications.

  • Transition to proof-of-stake aims to reduce energy consumption.

Cons

  • High transaction fees during peak usage.

-  Why our experts picked it

Ethereum's ongoing upgrades and dominant position in the DeFi and NFT markets make it a top long term investment for those looking to capitalize on the growth of decentralized technologies.

Filecoin

Best long term crypto for decentralized storage

Filecoin is a decentralized storage network that allows users to buy and sell unused storage space. It aims to create a more efficient and cost-effective data storage market.

-  Pros & Cons

Pros

  • Incentivizes the use of underutilized storage space.

  • Potential to disrupt traditional cloud storage markets.

Cons

  • Complex technology with ongoing development challenges.

-  Why our experts picked it

Filecoin's innovative approach to decentralized storage presents a unique investment opportunity in the expanding world of Web3 infrastructure.

Polkadot

Best long term crypto for blockchain interoperability

Polkadot is a multi-chain platform that enables different blockchains to transfer messages and value in a trust-free fashion. It's designed to facilitate interoperability and scalability.

-  Pros & Cons

Pros

  • Enables seamless communication between diverse blockchains.

  • Strong staking rewards for token holders.

Cons

  • Complex governance structure may deter some investors.

-  Why our experts picked it

Polkadot's vision of a connected multi-chain future positions it as a key player in the evolving blockchain ecosystem, offering promising long term growth prospects.

What is a long term crypto investment?

A long term crypto investment refers to the strategy of buying and holding a cryptocurrency for an extended period, typically several years but at least longer than one year, with the expectation that its value will increase over time. This approach is often based on the belief in the underlying technology and potential for widespread adoption.

Holding crypto long term can also result in significant tax benefits for US and other taxpayers, as long term crypto capital gains rates are generally more favorable and come into play after you hold an asset for a year.

What are the benefits of long term cryptocurrency investments?

Long term cryptocurrency investments offer several advantages:

  • Potential for Substantial Returns: Historically, cryptocurrencies like Bitcoin and Ethereum have provided significant returns to long term investors.

  • Reduced Impact of Short-Term Volatility: By holding investments for a longer period, investors can potentially weather short-term market fluctuations.

  • Simplicity and Lower Transaction Costs: long term investing involves fewer transactions, resulting in lower fees and a more straightforward investment strategy.

  • Lower Capital Gains Taxes: typically short term capital gains are taxed at a higher rate than long term capital gains. Learn how to calculate your crypto taxes, and make investment plans and imagine future gains with our free crypto profit calculator.

What is the best cheap crypto to buy now?

Popular “cheap” crypto to purchase now include meme tokens such as Doge, Shib, and Mog. That said, identifying the best "cheap" crypto to buy for long term investment requires looking beyond just the price per unit and considering the project's market capitalization and potential for growth.

If a given crypto appears to be “expensive” on a per unit basis, that does not mean it has less upside than a crypto that appears to be “cheap” because the units are cheap. In other words, a crypto priced at $1 may potentially go to $10, whereas a crypto priced at a penny may be overvalued and lose value.

Cryptocurrencies with a lower market cap but strong fundamentals and a clear use case might offer higher potential returns. It's important to conduct thorough research and consider factors such as the project's use case, team, technology, and market position.

In short, beware “unit bias” where you perceive a crypto to be “cheaper” because the unit price is lower. Market cap is generally a more important number than unit price in terms of potential growth for a given cryptocurrency.

How to pick the best long term crypto

When selecting the best long term crypto investments, consider the following criteria:

  • Strong Fundamentals: Look for projects with solid technology, a clear use case, and a strong development team.

  • Market Potential: Consider the potential for adoption and growth in the project's target market relative to its current market cap. Are there similar projects with a much higher market cap? If so, there may be significant long term upside.

  • Community and Ecosystem: An engaged community can be a good indicator of a project's long term viability. Crypto is often driven by narrative, and a community will help push the story and make a case for investment to a wider audience.

  • Risk Diversification: Spread your investments across different projects to mitigate risk. You may love a particular project, but to mitigate risk, spreading investments across assets is generally recommended.

You may also be interested in the best crypto to stake, as a long term passive income strategy.

Taxes when investing in crypto

Tax rates for cryptocurrency vary from region to region, and it's essential to be aware of the tax implications of your crypto investments. In many jurisdictions, profits from selling cryptocurrencies are subject to capital gains tax.

Keep complete records of transactions and consult a crypto tax professional to ensure compliance with local tax laws. When in doubt, consult one of our crypto tax professionals for guidance.

Schedule a FREE crypto tax consultation

Best long term crypto FAQs

Here are answers to frequently asked questions about the best long term crypto investments and best crypto for the long term.

What is the best crypto to hold long term?

The best crypto to hold for the long term is one that you believe has strong fundamentals and growth potential. Bitcoin, Cardano, and Ethereum are three top picks for the best long term crypto to hold, with potential for substantial growth and innovation.

What is the best crypto to buy today for the long term?

The best crypto to buy today for the long term depends on your investment goals and risk tolerance. Consider projects with solid fundamentals, a clear vision, and potential for future adoption, and understand how Bitcoin drives the crypto market broadly before investing in any cryptocurrency.

Learn about the Bitcoin halving and other key factors that might impact crypto as a whole, and always take your own risk appetite into consideration before investing in any crypto, whether short or long term.

Which crypto has the most future?

Predicting which crypto has the most long term upside is a real challenge due to the rapidly evolving nature of the industry. There is no crystal ball to predict the price of any crypto. However, cryptocurrencies with strong use cases, technological innovation, and active development are more likely to succeed in the long run.

Be certain to conduct your own research and know the risks involved before undertaking any crypto activity. Know that this article is not investment advice but is meant to be a helpful guide for you to begin your research.

How do I store my long-term crypto investments securely?

To securely store your long-term crypto investments, we strongly encourage using a hardware wallet like Trezor or Ledger. These are physical devices designed to protect your private keys from online threats. Additionally, ensure you enable two-factor authentication on your accounts, use strong, unique passwords, and keep a secure backup of your recovery phrases in a safe place. Avoid storing large amounts of cryptocurrency on centralized exchanges, as they can be vulnerable to hacks and security breaches.

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.

Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Alex Miles
Reviewed byAlex MilesCo-Founder at TokenTax
Prior to TokenTax, Alex worked as a Product Designer at Dropbox and before that Readmill (acquired by Dropbox). He holds a BS in Digital Information Design - Interactive Media from Winthrop University.

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