Crypto traders are always looking for short-term holds and quick-fire trades, which are common in the market. However, investing in long-term cryptocurrencies supports profits from extended price changes rather than minor price changes over a short time. Long-term crypto investments help a trader gain from larger price changes over a longer span rather than just small changes in a short duration.
So, which are the best low-risk, long-term crypto investments to buy and HODL?
Why Low-Risk, Long-Term Crypto Coins?
Buying and holding low-risk, long-term crypto investments has its advantages. It is quite known that the crypto space is highly volatile, which brings in the opportunity for considerable gains for any trader willing to spend long hours monitoring the markets while stressing over placing orders. The volatility can result in stunning losses. Even long-term crypto investments carry risk. However, a long-term hold is practically involved with lower risk.
For a trader, when they are selecting the best long-term crypto projects, they may plan to hold until they realize a specific return or for a particular time. This is, in a way, different from short-term investors, who strive to lock in much smaller gains for intraday profits.
Having a lower-risk, long-term investment paves the way for an upward trend in value, which, with these types of assets, has been astronomical.
Low-Risk Crypto Coins to Buy and HODL
Cryptocurrencies, in general, are highly volatile, having several dips and peaks in value. As you are searching for long-term growth, you could quickly weed out meme coins as well as scam crypto projects. To ensure that the investments are low-risk, go for the options that have high utility, are well-governed projects, and are well-established.
Some of the best low-risk crypto investments include:
➕ Bitcoin ($BTC)
There is no doubt that Bitcoin should be at the top of your list in search of the best low-risk crypto investments. In mid-2016, its crypto token, BTC, was placed at only $500 and is now valued at $34,100. The token is ranked as the world’s largest crypto by market cap and has found its role not only as a means for online and offline purchases but also as a buy-and-hold asset within the investment portfolios of many.
Bitcoin reached its highest price on Nov 10, 2021, when it was trading at its all-time high of $68,770. The Bitcoin Network uses blockchain technology and a proof-of-work consensus mechanism, which makes it highly secure. Additionally, it is one of the new cryptocurrencies currently used for real-life transactions.
➕ Ethereum ($ETH)
If you are looking to invest in a crypto token that has a solid diversification besides BTC, you may prefer ETH. ETH has become a much more attractive asset following the Merge and the rise in Ethereum Layer 2s. The network also continues to dominate the smart contracts space. It is on this list due to its extensive utility and an opportunity for considerable long-term growth.
The token has also experienced fantastic growth. From 2016 to 2023, its price went from about $11 to around $1,800, an increase of about 16,500%.
➕ Solana ($SOL)
Solana encompasses an intelligent contract blockchain well known for its significant scalability. Its high-throughput platform boasts some of the fastest speeds, processing up to 60,000 transactions per second. Its blockchain runs on a hybrid proof-of-stake and proof-of-history mechanism to process transactions quickly and securely.
Solana was developed to help power decentralized finance (DeFi) uses, decentralized apps (dApps), and smart contracts. After its launch in 2020, SOL’s price started at $0.77. By late October 2023, its price was around $36.44, a gain of over 4,000%.
➕ XRP ($XRP)
Created by the same founders as Ripple, a digital technology and payment processing company, XRP was meant to facilitate exchanges of various currency types, including fiat currencies and other major cryptocurrencies on that network. Between 2017 and 2023, the price of XRP rose by roughly 6000%, which made it one of the best long-term crypto investments.
Its price movement is relative to the changes in volume and market cap, which gives XRP a low-risk assessment. With the SEC lawsuit on the verge of collapse, many are seeing this as an opportunity that could make the token soar.
➕ Chainlink ($LINK)
After its launch in 2022, Chainlink became the first network to connect external systems with blockchains. Chainlink’s price today is at $11.1, having a market cap of around $6.3 billion, making it a strong contender among those looking for low-risk, long-term crypto investments.
Additionally, the crypto token has a limited supply and high utility. $LINK has solid potential and a ranging adoption in the DeFi space. Besides these reasons, Chainlink has a commanding market share in the Oracle industry. It is the first blockchain protocol to solve the Oracle problem.
Is Long-Term Crypto Investment a Good Choice?
Both newbies and investment veterans can take advantage of cryptocurrencies as long-term investments. However, the choice depends on one’s investment objectives. If, for instance, you have available funds that you are willing to commit to for the next five years, exploring crypto investment could be a promising option.
In the crypto space, short-term holds are popular. However, most popular cryptocurrencies may be more profitable with a long-term investment. Investing in low-risk, long-term crypto provides one with the opportunity for massive gains.
However, it is crucial always to be aware that cryptocurrency investments are like other investments in that there is a possibility of loss as well.