Many traders have made a fortune in a short amount of time during this recent bull market in crypto. However, those who didn’t sell at or near the top may be victims of buyers remorse. After all, this sector has seen a vicious decline, which has even the most prominent cryptocurrencies down big from their peaks. Accordingly, finding cryptos to buy and hold forever sounds great, but may be a strategy that’s hard to implement for most investors.
That said, cryptos have now become quite popular worldwide and have managed to gain wide acceptance, with many investors increasingly considering them as appropriate long-term investments. Finding great long-term investments, and attempting to hold onto said investments forever, is a great way to build long-term wealth. That is, for investments that generally move higher over long periods of time.
While the entire crypto sector is only a little more than a decade old, there are many taking this very long-term view of this space. However, picking which tokens are worth holding for a decade or longer can be difficult to do.
Here are three top tokens I think have the staying power for long-term investors.
Cryptos to Buy and Hold: Bitcoin (BTC)
Bitcoin (BTC-USD) is perhaps the best long-term cryptocurrency investment. It’s the oldest and most-established cryptocurrency out there. That in and of itself is a reason many institutional investors hold this cryptocurrency in their portfolios.
Over the long term, Bitcoin has indeed proven its resilience via its overall up-trending price action. Notably, it has also survived mounting criticism from the mainstream media, banking industry, political class, environmentalists and bans by governments.
Admittedly, a few of these headwinds did result in stumbles for Bitcoin. The market has crashed on multiple occasions, with Bitcoin leading the way in many of these declines. However, each and every time, Bitcoin made it out, and also made new highs. This is a testament to this token’s resilience and viability as a long-term holding.
Track record aside, there are some other factors as well which make Bitcoin a great long-term buy. These include the fact that Bitcoin addresses an urgent and real global issue: inflation. Bitcoin’s stable supply is often viewed as a key factor to consider, for those who see the U.S. dollar ultimately depreciating toward zero. While strong right now, a reversion in U.S. dollar strength is something investors should keep an eye on with this token.
After its launch in 2015, Ethereum (ETH-USD) reached impressive highs, actually outperforming Bitcoin in terms of growth during parts of the recent bull market.
However, since this bear market began, Ethereum has outpaced Bitcoin in terms of declines. A higher-growth mega-cap cryptocurrency, Ethereum is often viewed as the “growth” cousin of “value” token Bitcoin.
Suggesting Bitcoin is a value investment may be a little outlandish. However, Ethereum’s incredible growth in recent years speaks for itself. This smart contract-enabled blockchain has given rise to the decentralized finance (DeFi) space, as well as non-fungible tokens (NFTs) and many other real-world use cases. For those looking for utility in the crypto world, much of this still flows through Ethereum.
Indeed, the size of Ethereum’s ecosystem is the key factor most investors consider when looking at Ether. As a long-term holding, this is one I think remains an intriguing option as well, due to the network’s upcoming merge. This merge will bring Ethereum’s main network in line with its Beacon chain. Essentially, this means that Ethereum will move from proof-of-work to proof-of-stake, making the network more efficient, and reducing energy consumption along the way. For long-term investors, this is a top catalyst to consider.
Cryptos to Buy and Hold: Solana (SOL)
Within the two-year period that Solana (SOL-USD) has been around, its user base and popularity exploded. Additionally, the network’s developer activity soared, and the value of its native SOL token increased by over 13,000%. This token, at its peak, had a market cap of more than $78 billion. With all that, the Solana ecosystem flourished rapidly.
Today, that market capitalization is closer to $13 billion. Still a massive project, and in the top 10 in terms of market cap rankings, Solana’s allure has been hit by recent network outages. Essentially, this network has seen so much activity, it’s crumbled under the pressure. On the one hand, this indicates strong demand (a good thing). However, on the other, it also suggests there are some structural issues to be worked out. In this market, which is focused on de-risking, that’s not a good thing.
That said, Solana is working on improving the sustainability of its blockchain. The developer team behind Solana has announced some important updates which should solve many of the network outage issues. For long-term investors, that’s music to the ears.
While the market hasn’t come around to the idea that Solana’s growth may outshine its headwinds, at these levels, Solana is looking like a long-term investment with significant upside.
On the date of publication, Chris MacDonald owned Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.