Despite a devastating start to 2022 for cryptocurrencies and the stock market, crypto is still on a global ascent to prominence as more investors (institutional and retail) consider it a key part of their portfolios.
And with the recent upturn in momentum thanks to exciting instruments like DeFi and NFTs, February might be the right time to add cryptocurrencies to your long-term investment portfolio – or buy the dip as crypto investors say.
Five Long-Term Cryptocurrencies Worth Buying In 2022
1. Bitcoin (BTC)
Bitcoin is among the only tried-and-tested, blue-chip coins within the crypto asset class. Besides being the oldest cryptocurrency, Bitcoin also made history by becoming:
- the first cryptocurrency with tradable futures contracts
- the first digital currency to have an American ETF (exchange-traded fund) track its price movements
- the first crypto on the balance sheet of an S&P 500 company, i.e., Tesla
Before Tesla purchased $1.5 billion worth of bitcoin back in February 2021, BTC was valued at about $39,000. If recent history is anything to go by, any time BTC trades at $39,000 or less is a good time buy.
Plus, with the recent concerns over fiat inflation, never has there been a better time to diversify from traditional currencies to Bitcoin.
2. Ethereum (ETH)
Although Ethereum has historically played second fiddle to Bitcoin, it is still one of the best cryptocurrencies available, accounting for roughly 20% of the market. Ethereum’s currency, Ether, is the second most valuable coin with an impressive $300 billion market capitalization.
But Ethereum is not just a secondary option; Ethereum’s blockchain is currently the most widely used, providing a platform for payments and financial transactions across multiple industries.
Add this to Ethereum’s central role in emerging instruments like DeFi, NFTs and the plethora of decentralized apps built on ETH’s network, and you have a future-proof cryptocurrency.
3. Polkadot (DOT)
Did you know that a cryptocurrency can use multiple blockchains simultaneously? Polkadot is one such cryptocurrency.
It aims to create a crypto network that links various blockchains where developers can collaborate and build decentralized systems.
Polkadot has enjoyed exponential growth thanks to this innovation, rising by 565% from its launch in September 2020 to February 2022.
4. Cardano (ADA)
Cardano is a promising cryptocurrency, despite its relatively late entry into the scene, partly thanks to its early adoption of a proof-of-stake validation system.
This validation system makes Cardano one of the best cryptos for eco-conscious investors since it reduces transaction time while minimizing energy demands and environmental impact.
Furthermore, Cardano uses ADA (its native coin) to facilitate decentralized apps and smart contracts, much like Ethereum.
5. Solana (SOL)
Many crypto experts consider Solana one of Ethereum’s biggest competitors. It boasts a robust network with a growing number of DApps (decentralized apps), smart contracts and DeFi (decentralized finance) uses.
While Solana is famous for its programmer-friendly Rust language and minimal transaction fees, its main competitive advantage is its hybrid proof-of-history and proof-of-stake validation system.
All these factors combined make Solana an early contender for blockchain-based games, a move that could spur even more usage.
Is Crypto a Sound Long-Term Investment?
From a historical standpoint, yes. Many cryptocurrencies have grown north of 1000% since their launch in the past ten years. For instance, Bitcoin rose from $1 in 2011 to an all-time high of $68,000 in 2021.
That said, familiarize yourself with cryptocurrencies, follow crypto news and analyze the market so you can make informed investment decisions.
