The number of cryptocurrencies and tokens in the market has exceeded 23,000. Investors have become increasingly interested in this emerging asset class. However, choosing the right investment combination to maximize long-term returns is tricky, especially during the cryptocurrency bear market, also known as the “crypto winter.” Experts have selected 5 cryptocurrencies with potential for long-term thinkers.
First cryptocurrency: Ethereum (ETH)
With a significant market cap, ETH is currently the second largest cryptocurrency in circulation. Ethereum is the name of both its unique digital currency and a blockchain system. Sharing Bitcoin’s function as a store of value, Ethereum has become famous for its ability to support decentralized applications, also known as dApps. This functionality has made Ethereum one of the most robust platforms for decentralized applications in the cryptocurrency world. Ethereum has gained popularity among developers for its ability to support decentralized applications with smart contracts that perform certain functions when predetermined conditions are met.
In second place is Polkadot (DOT)
Polkadot has garnered significant attention since its launch in 2020. It has also emerged as one of the best long-term cryptocurrencies to consider. Polkadot is much more than just a cryptocurrency. A Blockchain network that provides a platform for developers to build decentralized systems. The Polkadot network was specifically designed to combine multiple independent Blockchains into a unified network. It also enables the creation of new Blockchains. This integration simplifies the transfer of digital assets such as tokens and applications across multiple blockchains by enabling users to take advantage of the network’s PoS verification of security and transactions.
The leading cryptocurrency Bitcoin (BTC) is of course on the list
Bitcoin is the cryptocurrency with the highest market capitalization globally. It serves not only as a medium for online and off-line transactions, but also as a long-term investment asset in investors’ portfolios. In recent years, Bitcoin has emerged as a safe-haven investment due to its low correlation with traditional financial assets. Tesla CEO Elon Musk announced in early 2021 that the company has invested $1.5 billion in Bitcoin. The news that he would then accept Bitcoin payments for his cars gave Bitcoin a boost. As such, it’s a critical factor for anyone looking for a long-term cryptocurrency investment.
Not to forget Ethereum rival Cardano (ADA)
Cardano is one of the long-term investment options for cryptocurrency enthusiasts. Despite its poor performance in the bear market, the platform has a significant advantage over Ethereum. Therefore, it gained a strong foundation. cryptocoin.com As you follow, Ethereum used an earlier PoW technique to confirm transactions and maintain the security of the system before Merge. In contrast, Cardano’s PoS protocol performed a similar function. But it was faster, more cost-effective and energy efficient.
Latest cryptocurrency, oracle network Chainlink (LINK)
Chainlink, an Ethereum-based network launched in 2014, is considered one of the best long-term investment opportunities in the cryptocurrency market. Chainlink is known for its ability to provide real-time off-Blockchain data to smart contracts on the Blockchain via oracles and nodes. According to Securities.io, the company’s goal is to create the first Blockchain oracle system on the planet. Oracles play a vital role in Blockchain technology. Also, their role in the expansion of Blockchain cannot be ignored. Chainlink will benefit from the 2.0 upgrade, which aims to reduce the computational load on the Ethereum mainnet by building off-chain networks on top of oracles. This particular update will provide nodes with financial incentives to act accurately and reliably. Thus, it will additionally implement staking to further increase the security of the system.
