The best digital currencies for long-term investment. The cryptocurrency market is becoming more and more popular day by day for investment and profit. The acceptance of these currencies among the people, the possibility of their use in some online stores, etc., make their position in the market more stable. There are different ways to make money from digital currencies. Buying and selling bitcoin is perhaps the most well-known method. But there are many digital currencies that can be obtained by investing in them for a long time. But what is thebestdigital currency for long-term investment? In this article, we will find an answer to this question. Stay with us until the end.
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Criteria for choosing the best digital currency for long-term investment
You can get worried or confused when choosing the right cryptocurrency to invest among the types of digital currencies , some important factors must be taken into account, the most important of which are:
market size
The larger the cryptocurrency market, the more people trust it. This confidence makes the life of this coin longer and increases buyers. So it is important to pay attention to the market size of that coin when choosing the best digital currency to invest.
The volume of daily transactions
The higher volume of daily transactions promises that the speed of liquidity is faster in the cryptocurrency market. The best cryptocurrencies for investment have a relatively high transaction volume. If you want to take advantage of enough market volatility to trade, then this metric will help you to trade quickly.
The size of the volatility in the cryptocurrency markets
Cryptocurrencies that have more intraday trading volume also suffer from more daily volatility. This feature is more useful for traders who want to make daily profits. You have several options to choose how to buy and sell cryptocurrencies: Read also:
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Long-term investment
To choose a digital currency for investment, you should pay attention to the history of the founders of that currency, the trend of price growth, and the expectations of experts about the desired digital currency.
Periodic buying and selling
For this, you can define two limits for profit and loss and buy and sell only within the specified limits. With this method, you do not need to be a full-time trader and you are in greater control of the risk of profit and loss.
Daily buying and selling
Professional traders choose this method; That is, those who use light volatility to make a profit. Doing it right and accepting a little risk can result in good profits for the trader throughout the day.
Cryptocurrency wallet
Having a reliable and secure cryptocurrency wallet that ensures the security of the cryptocurrency is very important for choosing a coin. To invest or buy and sell cryptocurrencies, you need a safe place to store them.
Introducing the 6 best digital currencies for investment in the long run
Next,we'll review some of the best cryptocurrencies to buy, sell, and invest in. Of course, you should note that you should do your research before making any investment. Because the cryptocurrency market is constantly fluctuating and this list can change . How to buy and sell digital currencies? Cryptocurrency trading
Bitcoin is the best currency to invest in the long run
Bitcoin is the best currency to invest
Bitcoin or BTC is the first proposed currency in the list of the best digital currency for long-term investment, and it is the most important and popular digital currency. This valuable cryptocurrency has been operating since 2009 and has taken a positive trend even today. Bitcoin also has a market share of $559.07 billion (as of May 24, 2022), and has a 42% share of the cryptocurrency market.
Although the price of Bitcoin experienced a significant decline in 2022, it remains a good long-term investment option according to crypto market analysts. As Bitcoin is more accepted among the people than other digital currencies, it can be said that it is considered as a secure payment method. For this reason, it can be said that she has good luck. You can see the Bitcoin price history in the image below.
Advantages of buying and selling Bitcoin
Bitcoin is a globally accepted cryptocurrency. Bitcoin price fluctuations also affect other cryptocurrencies. In fact, the price of this digital currency largely determines the price of other currencies. So having it on your trading list is a good option.
Bitcoin often has a buyer, and the possibility of converting it into cash is very high. You can buy and sell bitcoins on different markets and platforms and profit through volatility.
Disadvantages of buying and selling bitcoin
Bitcoin experiences large price fluctuations in short periods and the speed of currency conversion in the network is very low. That is, if you want to trade with someone else, the price of bitcoin can go up or down in the ten minutes you wait for it to hit your wallet. Of course, this problem does not exist when trading on platforms.
Long term investment in bitcoin
Considering that not a lot of time has passed since the emergence of bitcoin , the laws regarding bitcoin in some countries remain unclear and this cryptocurrency remains not accepted by many governments and organizations. If the country you live in prohibits buying, selling and holding bitcoin (or all digital currencies), your capital will be at risk.
International laws, economics, and politics can greatly influence the fate of Bitcoin. Although opinions about the future of Bitcoin are very positive, you should always be aware of the market conditions for this cryptocurrency.
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Ethereum is the best currency to invest in the long run
Ethereum , ETH , is the best digital currency to invest in the long run after Bitcoin. The market size of this cryptocurrency is around $239 billion (as on May 24, 2022). Ethereum is actually a blockchain platform that hosts many cryptocurrencies. Ether is the base cryptocurrency of the Ethereum platform, better known in the market as Ethereum. Given that Ethereum occupies an important market share after Bitcoin, buying and selling it is a good option for volatility and profit. You can see the Ethereum price history in the image below.
Advantages of buying and selling Ethereum
Ethereum is becoming more popular among users due to its high transfer speeds and the move to Proof of Stake algorithm instead of Proof of Work.
Proof of Stake Algorithm: Get rewarded for producing a new block equal to one's assets in the network
Proof of Work Algorithm: Get rewarded for producing a new block with the help of computing power
Like Bitcoin, Ethereum has many users and the potential for fast cash transfer is high. In addition, Ethereum is a smart contract that is trying to make its scale wider than before. With the launch of Ethereum 0.2 and the new Ethereum company, the growth of Ethereum is expected to be faster than before.
In addition, the lower price of Ethereum compared to Bitcoin makes it easier to buy and sell. So, if you have little capital and just entered the world of digital currency, then Ethereum is the best digital currency for long-term investment and purchase.
Disadvantages of buying and selling Ethereum
The volatility of Ethereum is as high as that of Bitcoin. This cryptocurrency saw a price of $1,432 once in 2018. But then it reached $83 within a year. Currently (as of May 24, 2022), Ethereum is trading at $1,984.19.
If you intend to buy and sell in the market of Ethereum or any other cryptocurrency, you have to accept the risk of sudden price changes. Of course, learning and using technical analysis can turn price fluctuations into a profit opportunity for you.
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Investing for the long term in Ethereum
Cryptocurrency research studies have predicted a significant growth in the price of Ethereum in the next 10 years. According to this study, the price of Ethereum will reach $3,644 by 2030. To invest in Ethereum , all the points we have said regarding Bitcoin are correct: you must be able to accept the risks of Ethereum devaluation and unexpected changes.
Of course, Ethereum has an important advantage that significantly reduces the possibility of a price drop. New Ethereum blockchain update (change mining reward mechanism from Proof of Work to Proof of Stake). It gives more stability for this cryptocurrency to continue to exist in the market.
Bitcoin Cash is the best currency to invest in the long run
Bitcoin Cash with the abbreviation BCH is a hard fork (independent sub-branch) of Bitcoin that started working on in 2017. Currently, this cryptocurrency is ranked 24th in the market.
The motivation behind the developers of Bitcoin Cash was to make it suitable as a currency for everyday transactions. They did this by increasing the capacity of each block from 1MB to 8MB. The price of Bitcoin Cash at the beginning of its introduction was $200 per coin. Although the high potential of this digital currency for investment and buying has been proven so far, this currency has not been spared from extreme volatility in the market. In the image below, you can see the Bitcoin Cash price history.
Advantages of buying and selling Bitcoin Cash
So far, Bitcoin Cash has been the most successful hard bitcoin fork in the history of cryptocurrencies. Bitcoin cash hash rate is increasing day by day. This shows that mining pools are hoping for the future of Bitcoin Cash and trying to support it.
Disadvantages of buying and selling Bitcoin Cash
The transaction speed of Bitcoin Cash is 10 minutes, just like Bitcoin. This time still makes it unsuitable for everyday transactions, contrary to the wishes of the original developers of Bitcoin Cash .
Investing for the long term in Bitcoin Cash
Crypto research predicts a bright future for Bitcoin Cash. According to the results, the price of Bitcoin Cash will be higher than Ethereum and its price will reach $13,000 by 2030. However, if Bitcoin Cash cannot give miners a good reason to stay on the network (for example, a massive price increase) as the size of the network increases And increasing the difficulty of mining, they may leave the network in frustration. If this happens, the price of Bitcoin Cash will see a sharp drop.
?Do you think it is the best currency to invest in the long term
The cryptocurrency Tron, TRX, is an operating system on the “Blockchain” that wants to make this technology suitable for everyday use. While Bitcoin can support up to 6 transactions per second and that number is 25 transactions in Ethereum ; Tron can process up to 2,000 transactions per second. This feature made Tron coin suitable for everyday use.
Tron , like Ethereum , strives to be an all-in-one platform to provide various services. In 2018, the platform launched BitTorrent file sharing service, which was a big step for Tron . The Tron platform is generally a good host for decentralized applications such as cryptocurrencies. For example, one of Tether's crypto networks runs on the Tron platform . You can see the price history you can see in the image below:
Advantages of buying and selling tron
Tron is one of the emerging digital currencies. This cryptocurrency cannot be mined and all its tokens already exist. Therefore, the reason why users are in the network is simply the Tron transaction . This feature provides a kind of relative stability for this cryptocurrency. Of course, during the first three months of its activity, Tron price reached $0.2 and now (on May 24, 2022) it is around $0.081022. Although you can see different fluctuations like other cryptocurrencies, these fluctuations are not as severe as other currencies.
The low price of Tron makes it one of the best cryptocurrencies to buy. This cryptocurrency can be a trader's gateway to the world of digital currencies. Although Tron is an emerging cryptocurrency compared to Bitcoin and Ethereum, it has a bright future ahead.
Disadvantages of buying and selling tron
One of the drawbacks of Tron coin has to do with the wide supply of tokens. Tron providers have different strategies to keep its price down and Tron price is just as likely to see a downtrend as it can see rapid growth. Therefore, investing in this currency should be done with caution and taking into account market conditions.
Investing for the long term in Troon
According to cryptocurrency activists, Tron is the best cryptocurrency for long-term investment due to its potential. Investing in Tron is especially recommended for people who are content creators or are interested in distributed applications.
Cardano is the best currency to invest in the long run
The fifth coin from the list of the best cryptocurrencies for investment is Cardano with the abbreviation ADA. Cardano is one of the largest blockchain platforms with Proof of Stake algorithm. Cardano's designers say their goal is to allow "innovators and visionaries" to step in to build a better world. Cardano's idea is to create a more transparent and ideal society by redistributing power from centralized structures to individuals.
Cardano's designers say they have been able to implement some of their ideas even today. So far, Cardano 's blockchain has helped many agricultural companies track their products. Using this platform, retailers can identify counterfeit goods; Finally, by encrypting educational documents on the Cardano platform , forgery of these documents can be prevented. These features made Cardano able to achieve good growth in the cryptocurrency market. You can see Cardano's price history in the image below.
Advantages of buying and selling Cardano
Like you can see, Cardano does not have a high price tag and is a good choice for beginners. The 450% growth in its price since the beginning of its introduction until today shows the high potential of this cryptocurrency. Cardano now ranks eighth in the cryptocurrency market.
The experienced team behind Cardano and their previous successful projects (such as Ethereum ) make the future of this cryptocurrency even brighter. In addition, the high speed of transactions on this platform (257 transactions per second) and its cheapness make Cardano very suitable for everyday use.
Disadvantages of buying and selling Cardano
Of course, it should not be overlooked that cryptocurrencies like Ripple or Tron have a higher transaction speed than Cardano. In addition, the official wallet of this cryptocurrency has many problems that may lead you to other wallets\
Investing in Cardano Market
Cardano is a trusted cryptocurrency. This coin attempts to solve the time and transaction issues that Bitcoin faces. Although it is impossible to make an accurate prediction of Cardano 's future today and consider it a competitor to Bitcoin, it is well worth a moderate investment. If you build a long-term investment portfolio and invest in different cryptocurrencies, then buying Cardano may be one of your low-risk options.
Polkadot is the best currency for long-term investment
Polkadot coin DOT is an open source multi-blockchain protocol that is easy to transfer cryptocurrency or any other type of data. As a result, a large group of block chains can work together on the basis of this protocol. For this reason, Polkadot is also called the Internet of Blockchains
In fact, Polkadut intends to solve one of the most important problems of Blockchain, namely the impossibility of communication between them. This feature of Polkadot coin , along with its high scalability and ability to upgrade the network without hard fork, makes this blockchain and cryptocurrency one of the best active in the market. DOT cryptocurrency is the original cryptocurrency of the Polkadata blockchain, which is presented by the acronym DOT. The same cryptocurrency is also known as Polkadot . You can see the price history of births in the image below.
Advantages and disadvantages of buying and selling Polkadot coin
Polkadot has managed to maintain and improve its position in the market amidst the many fluctuations in the cryptocurrency market. For this reason, this cryptocurrency is currently one of the good investment options. However, Polkadot has many important competitors. Cryptocurrencies Tezos, Cosmos, and Tron are cryptocurrencies with the ability to create smart contracts and proof of ownership methods that have been able to largely meet the needs of the market. But Polkadot 's ability to connect to the blockchain remains a great strength of this cryptocurrency.
Invest in Polkadot Market
Investing in the Polkadot market , like any other investment, has its own risks. But having Polkadot in your investment portfolio is a smart choice to divide the risks and increase the probability of profitability of the portfolio. Blockchain ’s scalability, ultra-low transaction fees, and high network security envision a bright future for this cryptocurrency and make Polkadot the best digital currency for long-term investment.
Frequently asked questions before buying and investing in cryptocurrency
If you are planning to invest in cryptocurrency, you should ask yourself some questions before you start. Below, we have listed the frequently asked questions before choosing the best digital currency to invest.
? Why do you want to buy cryptocurrency?
Before making any investment decision, you should check your financial situation and determine your investment goal. Do you want to buy bitcoin or other cryptocurrency to get rich fast?
If yes! Maybe you should think a little more. The best investments are safe, long-term options. Do not enter the cryptocurrency market for fear of missing out. Instead, invest in studying and planning for the long term to get the best results.
?What are the risks of cryptocurrency markets
Be warned that the cryptocurrency market is full of risks. A young market with a short life (compared to the stock market or forex) and the price of cryptocurrencies can grow or decrease significantly even within an hour. There is no specific guarantee for the future of this market. You have to consider the risk of losing all of your assets in the market overnight. So invest in this market only to the point that losing it won't hurt you.
? Where and how do you want to buy cryptocurrency
There are many ways to buy digital currencies. One of these methods is cryptocurrency exchange or direct purchase from the seller. It is very important to know that neither the government nor the law support any of the methods.
Therefore, you should and should use native cryptocurrency exchanges to buy and invest. Reputable exchanges provide you with enough information about the buying and selling process, complete support and a secure cryptocurrency wallet to store your assets.
?What is the future of the cryptocurrency market?
The future of the cryptocurrency market depends on many factors. The development of the Internet, legislation, political environment, payment systems, investment of large companies in the market, and even international financial crises affect the future of the cryptocurrency market. These factors apart from the level of acceptance of these coins among ordinary people.
However, the news of the growth of these markets is increasing day by day. So far, big companies like Tesla and Microstrategy have invested in cryptocurrency, and the number of these companies is increasing day by day. Various countries are working on legalizing cryptocurrencies. For example, El Salvador has legalized bitcoin payments in the country. The list of countries and large global companies is increasing day by day. This issue has clarified the future of cryptocurrencies at least in the medium term, i.e. in the next five to ten years.
? Can investing in anonymous cryptocurrencies be profitable
Unfortunately, in recent years, there have been a lot of fraudulent Ponzi schemes in the cryptocurrency market. These projects promise users huge profits and after collecting the required amount, the project file is closed. Therefore, before choosing a cryptocurrency to invest in, do enough research.
? Is it profitable and reasonable to participate in an ICO?
There is no definitive yes or no answer to this question. If you are planning to participate in an ICO project, you should research the project well before doing so. That is, get to know the project managers, check their purpose in designing coins and measure their effectiveness. The more practical the offered coin is and can solve a particular problem, the more credibility the project team has in its resume, and the more balanced the coin offering, the more logical it will be to participate in the initial coin offering.
Is it better to invest in gold or digital currencies
Of course, be careful that many projects have failed so far. Even those who have a good white paper and a professional team behind them. Therefore, always keep in mind the different possibilities when investing.
Currency market and its risks
The cryptocurrency market, like any other capital market, has its own risks. What we have said in this article is just a general guide to choosing the best digital currency for long-term investment. Finally, you are the one who chooses the currencies to include in your long-term investment portfolio based on your initial capital, your level of familiarity with the cryptocurrency market and various market analysis methods, and finally your risk tolerance. Paying attention to these things can help you choose the best cryptocurrency to trade.
Remember that the best strategy for buying and investing in the cryptocurrency market is to have multiple currencies in your portfolio. In this market, don't put all your eggs in one basket and work on different coins.