Here’s why Bitcoin and Ethereum should be in your long-term portfolio.
At one time, cryptocurrency was purely a short-term, speculative investment. But not any longer. Cryptocurrency investing has gone mainstream, and it’s easier than ever to make crypto part of a diversified long-term portfolio.
With that in mind, here are two cryptocurrencies that you can buy and hold for decades.
Bitcoin (BTC +4.93%) continues to be the cornerstone of any long-term crypto portfolio. Seventeen years after its launch, Bitcoin still accounts for 60% of the total market cap of the crypto market. If you have conviction in the long-term staying power of the crypto economy, Bitcoin needs to be in your portfolio.
The numbers don’t lie. Since its launch back in January 2009, Bitcoin has delivered returns of about 114,000% to investors. Although there have been some stinker years along the way, Bitcoin has by and large been on a steady upward growth curve for more than a decade.
In fact, in seven of the 14 years between 2012 and 2025, Bitcoin delivered triple-digit percentage returns. Where else can you find an asset that routinely doubles in value?
In 2011, Bitcoin was trading for about $10. By the end of 2024, it was trading for $100,000, and it continued rising in 2025, reaching a record high of $126,000. The growth rate has truly been exponential, as Bitcoin has broken through the $10, $100, $1,000, $10,000, and $100,000 price levels.
If the pattern continues, the next level for Bitcoin to reach is the $1 million price point. According to some high-profile investors, including Cathie Wood of Ark Invest, Bitcoin could hit that level by the year 2030. So ignore the current volatility and hold on to Bitcoin for the next decade.
The only other cryptocurrency that has been able to come close to Bitcoin’s performance during the past decade has been Ethereum (ETH +7.32%). Since its launch in July 2015, Ethereum is up an incredible 75,000%.
Ethereum pioneered the use of blockchain smart contracts, and has used its early first-mover advantage to become the dominant Layer 1 blockchain network. Ethereum now accounts for roughly 10% of the total value of the crypto market.
Given its longtime strength in decentralized finance (DeFi), Ethereum has earned a reputation as being the preferred blockchain of Wall Street. As the lines between the worlds of traditional finance and blockchain finance converge, Ethereum should continue to soar in value over time.
So what’s the best way to put $500 to work in Bitcoin and Ethereum? If you have an account at a cryptocurrency exchange, you could simply buy Bitcoin and Ethereum in the spot crypto market.
However, given the introduction of spot crypto exchange-traded funds (ETFs) in January 2024, an easier and more convenient option might be to buy $500 worth of Bitcoin or Ethereum via an ETF. You could, for example, pick up 12 shares of the iShares Bitcoin Trust (IBIT +5.18%) or 30 shares of the iShares Ethereum Trust (ETHA +6.78%).
Although ETFs are not for everyone, they make the art of portfolio diversification much easier. And they make it easier to get the perfect portfolio blend.
If Bitcoin and Ethereum come anywhere close to replicating their performance during the past decade, you will be absolutely blown away by how much $500 has turned into in the span of just 10 years.
