Best Long Term Crypto for 2024
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When selecting the best cryptocurrency for long-term investment, it's crucial to focus on assets that have demonstrated resilience, innovation, and potential for widespread adoption. Bitcoin and Ethereum remain top choices, with Bitcoin seen as a digital store of value and Ethereum as the foundation of the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.
Conducting thorough research and considering factors such as market trends, technological advancements, and regulatory developments are vital when choosing the best crypto for long-term investment. This article is intended as a guide and not as investment advice.
Here are our top three picks, followed by complete reviews of all our selections with pros and cons.
Methodology
How our crypto tax experts identified the best long term crypto
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
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.
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
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.
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
Peer-reviewed development process ensures high-quality updates.
Low transaction fees and energy-efficient consensus mechanism.
Cons
Slower pace of development compared to competitors.
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
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.
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
Largest ecosystem of decentralized applications.
Transition to proof-of-stake aims to reduce energy consumption.
Cons
High transaction fees during peak usage.
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
Incentivizes the use of underutilized storage space.
Potential to disrupt traditional cloud storage markets.
Cons
Complex technology with ongoing development challenges.
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
Enables seamless communication between diverse blockchains.
Strong staking rewards for token holders.
Cons
Complex governance structure may deter some investors.
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 long term is one that you believe has strong fundamentals and growth potential. Bitcoin, Cardano, and Ethereum are three of our top picks for the best, 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 price in 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 activity in crypto. Understand that this article does not constitute investment advice but is rather meant as a helpful guide for you to begin your research.
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