During the past two years, cryptocurrency has transformed from a short-term speculative asset into a long-term asset to buy and hold in a well-diversified portfolio. In large part, this is due to the recent launch of exchange-traded funds (ETFs) for major cryptocurrencies.
With that in mind, here are three cryptocurrencies that you can buy and hold for decades.
Bitcoin
Given that Bitcoin (CRYPTO: BTC) accounts for 60% of the total market cap of the crypto market, this is a no-brainer decision. Bitcoin is typically the first crypto added to a portfolio for both retail and institutional investors, and for good reason.
During the past decade, it has been easily one of the top-performing assets in the world. In fact, the crypto has been the top-performing asset in 10 of the past 13 years.
And Bitcoin has done so with style. In fact, its weakest bull market year was 2015, when it only returned 36% to investors. In other years, it has skyrocketed as much as 5,428%. Until this year — which, admittedly, has been a real stinker — the digital token had delivered two straight years of triple-digit percentage returns.
Some institutional investors now refer to it as digital gold due to its ability to retain its value over a long period of time. Some hedge fund investors also use it as a hedge against macroeconomic uncertainty and geopolitical risk, the same way they use gold.
So I feel confident holding on to Bitcoin for decades. It is the rare asset that has maximum upside potential, as well as some potential downside protection.
Ethereum
Ethereum (CRYPTO: ETH) ranks second among cryptocurrencies only to Bitcoin in terms of market cap and has a proven track record of success dating from 2015.
What makes Ethereum interesting is that it is a cornerstone for everything that happens within the blockchain and crypto world. In addition to being a digital currency, it is also a blockchain ecosystem. As such, it gives investors unprecedented upside potential.
By investing in it, you’re gaining exposure to all the other sectors and niches of the blockchain world, especially decentralized finance (DeFi). And this is what makes Ethereum so exciting. It is now the preferred blockchain of Wall Street. As such, it is at the forefront of several major innovations within the financial sector, including real-world asset (RWA) tokenization, transforming ownership of stock, bonds, and other assets into tradeable crypto tokens.
