Knowing which cryptocurrency to buy in the long term is essential if you want to manage your savings well or diversify your capital to mitigate risk. In this article we discuss the advantages and the best cryptocurrencies to invest in the long term.

Why invest in cryptocurrencies for the long term?

Investing in cryptocurrencies obviously has many differences with respect to fixed income or stock market shares. But it is true that, in general terms, you have a better chance of getting a return on your money than in traditional trades. However, there are some important factors to consider when searching which cryptocurrency to buy in the long term. These are:

1. Security

Cryptocurrency operating systems are highly secure. Firstly, because they guarantee the registration of transactions, through technologies such as blockchain. This is also as a result of secure cold wallets like Material Bitcoin that have cold storage systems and protection against hackers.

This double security, as long as the right wallet is used, results in a better service. No matter how long you want to keep your investment frozen until you sell it, a physical steel wallet is perfectly resistant to weather, fire and shocks, and preserves your data correctly. On the other hand, a good wallet will work well with the different investment platforms and has a personal and non-transferable password.

I encourage you to consider this investment possibility because all you need is a device for it and an internet connection. These days, fortunately, the security factor is well covered if you invest in cryptocurrencies.

2. Minimizing volatility

The volatility of cryptocurrencies is one of their main problems, but if you invest for the long term this is minimized. It is no coincidence that by analyzing an asset one or two years ahead, it is possible to study it better and see what the real possibilities of revaluation are. In this way, you will avoid losing money on Small cap stock, which is very common in the world of finance.

On the other hand, you need to differentiate between those who are engaged in trading from investors. The former will seek, above all, short-term profit, and to do so will focus much more on the supporting documents or turning points on the charts. On the other hand, the latter is intended to ensure that, after a reasonable period of time, the investment yields a profit and, perhaps, the intention is not to consult on a day-to-day basis. If yours is the latter case, long-term investment is undoubtedly the best option for you.

There is an important element that you should value in order to minimize volatility: capitalization. Cryptocurrencies with a capitalization of less than $1 trillion are potentially dangerous because, while they have a potential for sudden spikes in appreciation, they also have a potential for large declines.

3. High revaluation potential

The comparison between cryptocurrencies and other financial assets is clear: the former appreciate much more, also in the long term. While it is true that the higher the capitalization of the cryptocurrency, the lower the fluctuation, they are still long-term investments. In addition, the majority trend is for these assets to be used more and more. Therefore, and if you choose well, this will be a good investment alternative.

The truth is that the price of cryptocurrencies is not independent of economic trends. But it is also true that, as an alternative payment method, they are more likely to be used. In addition, some cryptocurrencies such as Bitcoin or Ethereum have a maximum limit of units, total or annual, which helps to minimize the price drop in critical times.

Are you interested in making money 2 or 3 years down the road with a diversified cryptocurrency portfolio? The good news is that, under normal conditions, you will earn much more than you would in other types of investments.

Which cryptocurrency to buy in the long term: Top 5

To find out which cryptocurrency to buy in the long term you must take into account three factors: the evolution of the last few years, capitalization and growth prospects. Here we can evaluate the following cryptocurrencies:

1. Which cryptocurrency to buy in the long term: Ethereum

The Ethereum cryptocurrency is ideal if what you want is an option with favorable performance and potential. On the one hand, it has a market capitalization of $218.61 billion, making it the second largest. Secondly, the evolution of the share price has been positive in recent years, with the exception of 2022, where it lost 65%. Right now, on the Ethereum chart we can see an uptrend for it to reach $2,000 per trading unit in the medium term.

In any case, specialized analysts do see an interesting revaluation option, and for this reason it must be recommend. After all, there are good projections for 2024 and 2025. If you want to invest 2 or 3 years ahead, this option should interest you. In this sense, we do consider that it has a very interesting route.

2. Bitcoin

Is Bitcoin a good long term investment? To talk about Bitcoin is to talk about the leading cryptocurrency, both for creating the blockchain technology and for its capitalization. Today, it has a market capitalization of $831.65 billion, making it by far the most widely used in the market.

On the other hand, the evolution of the share price has also been steadily upward, except in 2022. The Bitcoin chart is, however, a good one if you are thinking of a future investment, especially in the 2 years ahead. Remember that, since it has a production limit, it will tend to limit losses.

Bitcoin, at this point, is an interesting investment possibility if you value the long term above all. It has more than twice the capitalization of the second most used cryptocurrency and remains the leading cryptocurrency in the market. Using a secure wallet such as Material Bitcoin will help you maintain your privacy for longer. In addition, you can buy Bitcoin safely and securely directly from our website and send it to your wallet.

3. Tether (USDT)

Although it is a distant third, Tether USDT, the third-largest cryptocurrency (stablecoin) by capitalization at $81.53 billion, exhibits noteworthy stability when analyzing its graph. Since 2020, it has experienced no major shocks, and its main feature is parity with the U.S. dollar. Tether emerges as an intriguing cryptocurrency, serving as a safe haven that can potentially yield profits in the medium and long term. Utilizing a USDT wallet adds an extra layer of security. For those interested in exploring how to make the most of Tether, I’ve delved into the topic in my article on “how to buy Tether safely.”

4. USD Coin (USDC)

The Top 5 cryptocurrencies is rounded off by USD Coin (USDC), a leading coin with a capitalization of $30.74 billion. If we look at the evolution of the graph, we can say that, in recent years, stability has been its main characteristic. The reason? It is what we call a stablecoin (stable cryptocurrency), because its price is linked to that of the dollar. Like Tether, it is useful as a safe haven security, because it is difficult to lose much value and there are projected profits. And, since it does have a certain capitalization, you are not at great risk either. 

Whatever you decide, remember to know what you are doing. Here’s my guide on getting started with crypto.

Now that you know which cryptocurrency to buy for the long term, we encourage you to consider this investment vehicle. At Material Bitcoin we offer secure, resistant and quality wallets for your investments, contact us to learn more!