- Consider these cheap long-term crypto plays to generate strong returns in 2022.
- XRP (XRP): This coin is aimed at institutional money, which is flowing into the crypto world rapidly.
- Cardano (ADA): Upcoming projects could trigger growth for this crypto.
- Solana (SOL): Low transaction fees and fast transaction times matter in the world of crypto.
There are plenty of short-term momentum moves to talk about in the crypto world. However, where many investors start to lose interest is in the discussion around long-term cryptos to buy and hold for a designated period of time.
Of course, patient investors in the crypto world have generally done quite well for themselves. Despite this year’s rather impressive negative performance, many tokens have seen massive appreciation over the course of one, two or more years. Holding steady, rebalancing from time to time, and looking for new positions to add (or add to) on significant dips are ways to keep moving forward, despite volatility.
In this market, I think the buying opportunity among long-term cryptos is relatively limited. Many tokens have little value, outside of community and other intangible factors that are difficult to value. However, there are some interesting projects creating real utility worth considering.
Here are three of my top picks for investors looking at where to start in the $1.8 trillion world of cryptocurrencies.
An open-source cryptocurrency project aimed at improving the cross-border money transfer market, XRP (XRP-USD) remains a highly volatile token. One of the “old guard” in the crypto world, XRP has been around since 2012. Indeed, few projects are able to declare that they’ve been around for a decade, making XRP an interesting token to look at from a long-term perspective.
XRP’s value comes from its core use case. The XRP ledger, powered by XRP, allows institutions engaging in cross-border transactions to do so in a lower-fee, seamless fashion. Indeed, one of the key use cases in the crypto world is facilitating monetary transactions. XRP is purpose-built for this role, and is often viewed as a proxy of institutional engagement in the crypto world.
Now, there has been some controversy behind XRP. Ripple, XRP’s parent company, has been involved in a long-standing legal battle with the Securities and Exchange Commission since 2020. While this lawsuit, which alleges Ripple insiders engaged in illegal securities offerings, rages on, significant risk is put on investors willing to take a position in XRP.
I think this risk may be worth the reward, should a positive outcome arise from this case. It’s widely expected we could have some resolution this year. Accordingly, should there be positive news, XRP is a token I think may have significant upside over the long term.
Cardano (ADA-USD) is a proof-of-stake project I’ve had my eye on for some time. That’s because this is one of the first pure proof-of-stake networks to be developed. As one of the first movers, Cardano has seen incredible interest build in recent years. Additionally, this token’s long-term track record speaks for itself.
While Cardano has underperformed of late (as has the overall market), there’s a lot to like about how this network is positioned. Specifically, for environmentally conscious investors, Cardano provides a compelling investment thesis.
The Cardano Forest project, which aimed to plant one million trees to offset its carbon footprint, has done so as of the beginning of this year. For investors worried about the effects of proof-of-work mining, this is the sort of positive news investors like to see.
From a fundamental standpoint, Cardano also stacks up well to its competitors. The Cardano network provides users and developers with excellent interoperability and scalability, something that’s generally lacking in the crypto world. Thus, for those thinking long-term, this is a project to consider right now.
As far as top proof-of-stake cryptocurrencies go, Solana (SOL-USD) remains a top pick of mine. Partly, this is because Solana has a unique consensus mechanism, called proof-of-history, that allows for transactions to be processed lightning-fast. Indeed, Solana remains one of the fastest blockchains out there, due to this innovation.
Now, Solana has been under pressure of late. Much of this has to do with network outages, due in part to high transaction volumes. However, Solana’s developer team has addressed many of these issues, some of which were tied to the network’s own proof-of-history consensus mechanism.
Solana’s market share in the decentralized finance world is growing. Indeed, as a fast-moving player in the NFT world, I like how Solana is positioned. Accordingly, for those bullish on the future of DeFi and NFTs, SOL is a token to consider.
Over the long term, I expect Solana to continue to gain market share relative to competing networks. Thus, this is a top long-term crypto holding I’m going to stick with.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.