Here are three cryptocurrencies worth considering for long-term investment.
In the last two years, cryptocurrencies have shifted from being short-term speculative assets to being regarded as long-term assets suitable for well-diversified portfolios. This change largely stems from the recent introduction of exchange-traded funds (ETFs) dedicated to major cryptocurrencies.
Bitcoin
Bitcoin (CRYPTO: BTC) commands 60% of the total cryptocurrency market cap, making it an obvious choice. Known to be the first crypto in many investors’ portfolios, both retail and institutional, Bitcoin has a significant track record.
Over the past decade, it has consistently been one of the best-performing assets globally, having achieved the highest returns in 10 of the last 13 years. Its least impressive year was 2015, still providing a 36% return, while other years have seen increases as high as 5,428%.
Ethereum
Ethereum (ETH 0.45%) is the second largest cryptocurrency by market cap and has shown consistent success since its inception in 2015.
What sets Ethereum apart is its foundational role in the blockchain ecosystem. Beyond serving as a digital currency, it underpins a range of financial innovations, particularly in decentralized finance (DeFi).
USDC
Finally, consider USDC (USDC 0.01%), a stablecoin that maintains a 1-to-1 peg to the U.S. dollar. As long as the U.S. remains a leading economy, USDC will continue to be relevant. Its value is expected to consistently hold at $1.
This stability may seem unexciting, but it allows for earning yields by using USDC across various blockchains. Currently, platforms like Coinbase Global (COIN +2.48%) offer yields of around 3.5% on USDC deposits, which could increase as DeFi evolves.
For those considering investing $500, a mix reflecting your risk tolerance may be beneficial. A 60-40 split between Bitcoin and Ethereum with any remaining funds in USDC can be a strategic choice. For example, purchasing shares of the iShares Bitcoin Trust (IBIT +4.07%) and iShares Ethereum Trust (ETHA +7.81%) while allocating leftover funds to USDC could be an effective approach.
