Some individuals invest in cryptocurrency to do scalping. They purchase digital currency and then rapidly sell them. When the winds are blowing in your favor, you may make a tidy profit. On the other side, when cryptocurrency values begin to fall, as we witnessed in the latter half of 2021, this type of short-term trading can be detrimental to your financial health.
Investing in cryptocurrencies over time is a different strategy. Rather than aiming to earn a fast profit, the objective is to invest in digital currencies that have the potential to yield huge returns over the period of years, if not decades.
The bitcoin business has grown dramatically over the last decade, and it is expected to reach new heights in 2022. There are lots of alternatives for crypto investors, and here we look at the top cryptocurrencies to invest in this year.
Here are three cryptocurrencies to purchase and hold for the long term for investors with the fortitude to wait for game-changing gains.
Ethereum: the coin to purchase and hold for the long term
Ethereum is yet another well-known cryptocurrency, and it is now the second-largest digital currency in terms of market value. Everything is in position for the release of Ethereum 2.0, which will address the most serious issue that Ethereum presently faces: transaction speed.
Ethereum is an excellent illustration of what long-term investment in the correct cryptocurrency can achieve. Since its inception in 2015, the value of Ethereum’s native token has increased by more than 348,000%. However, there have been other large pullbacks along the road, which may have led some to lose out on those profits.
A terrific past does not automatically translate into a fantastic future. In the case of Ethereum, though, we believe that investors who wait will be rewarded.
Ethereum is gaining traction that is difficult to reverse. Based on market capitalization, it is the world’s second most valuable cryptocurrency, after only Bitcoin. The Ethereum blockchain serves as the foundation for more than 40 of the top 100 cryptocurrencies. Ethereum, according to billionaire Mark Cuban, might be a huge winner this year, with significant new apps on the way.
The integration of the beacon chain with the Ethereum mainnet will be a huge step forward in the Ethereum 2.0 upgrade this year. Staking will be possible throughout the network as a result of this. The last phase of this project is set to begin in 2023. In the not-too-distant future, Ethereum will be significantly quicker and scalable, with reduced transaction fees.
The last phase of this project is set to begin in 2023. In the not-too-distant future, Ethereum will be significantly quicker and scalable, with reduced transaction fees. This might pave the way for further adoption in the coming years.
Solana is our second pick cryptocurrency to buy and hold
Some of Ethereum’s current proof-of-work (PoW) protocol’s drawbacks have allowed rival blockchains to gain traction. One of the most successful is Solana (CRYPTO:SOL).
Solana has grown by more than 20,000% since its inception in early 2018. It is presently ranked fifth among the leading cryptocurrencies in terms of market capitalization. However, with a market valuation of roughly $52 billion, Solana has a long way to go before catching up to Ethereum.
There’s reason to believe Solana can run a long distance from here. It boasts the fastest-growing crypto ecosystem, with over 400 projects. Solana’s blockchain is lightning fast, having the ability to execute up to 65,000 transactions per second. And it’s inexpensive: the average transaction cost is $0.00025.
Solana has been subjected to a number of high-profile distributed denial-of-service assaults, the most recent of which caused its stock price to plummet last month. Developers, on the other hand, have a strong incentive to solve any security concerns. Solana appears to be a top blockchain in the long run.
Avalanche is our final pick cryptocurrency to buy and hold this year
Avalanche (CRYPTO: AVAX) is the group’s new child on the block. It held its initial coin offering (ICO) in 2020. Avalanche has risen more than 2,200 percent since then, and it currently stands as the 11th most valuable cryptocurrency by market capitalization.
Avalanche, on the other hand, might be just getting warmed up. It is far quicker than Ethereum, capable of processing more than 4,500 transactions per second. No blockchain that supports smart contracts has a faster time to completion (the amount of time required to irrevocably add a transaction to the blockchain).
Ethereum, Solana and Avalanche represent strong, innovative blockchains and have the capacity to gain and hold value in the long term.
This guest article is from Coinsfera.com. While you consider starting or expanding your alt-coin portfolio, Coinsfera can offer you a simple way to purchase Bitcoin and many popular alt-coins with cash or credit card. They offer digital asset sales both online and in their stores around the world. Visit them to buy Bitcoin in Dubai, and check out their blog for helpful info in understanding blockchain technology and trends.
Whitepaper.io does not offer financial or investment advice and this content should be interpreted as the personal opinion of the author only. We advise you to be confident in your understanding before buying or selling any cryptocurrencies