Many investors view cryptocurrencies as highly-speculative investments. And they are. Most cryptos are best worth looking at as trades, or a way to play momentum in high-growth areas of the market. However, there are some long-term crypto investments that stand above others.
Indeed, AI-related cryptos soared alongside equities, with many tokens seeing greater upside than even the most popular stocks. Accordingly, as a way to play trends, this is a sector many view as a profitable way to trade hype and manias.
However, there are also cryptos that are probably best-served as long-term portfolio holdings. For those looking to allocate a small portion of capital to this sector, here are three cryptos I think are worth buying and holding.
Consider Ethereum (ETH-USD) as a long-term investment. It has delivered impressive returns comparable to Bitcoin (BTC-USD) this year and has the potential to outperform Bitcoin in the coming years. This makes it one of those sustainable long-term crypto investments.
Ethereum stands out as a premier cryptocurrency investment, providing diverse opportunities in NFTs and decentralized finance. Investing in Ethereum taps into the vast blockchain ecosystem and mitigates risk. While its monumental growth may have peaked, Ethereum still holds considerable potential as the leading blockchain for smart contracts and decentralized applications.
After transitioning to proof-of-stake and undergoing the transformative Merge, Ethereum became more energy-efficient. The opportunity to stake Ethereum and earn rewards makes it an attractive investment option. With its growth potential and lower volatility compared to smaller cryptocurrencies, Ethereum offers diversification and potential upside. With ongoing technological advancements and a dedicated development roadmap, Ethereum remains competitive in the blockchain industry.
Solana (SOL-USD) has made a strong recovery since last year’s decline, aligning with the overall cryptocurrency market. However, what sets Solana apart is its thriving ecosystem, which competes with Ethereum in sectors like decentralized finance, gaming, and NFTs.
Solana Labs has introduced a new community office space in Lower Manhattan, spanning 25,000 square feet. This collaborative hub serves as a support system for Solana project participants and facilitates community events, strengthening the vibrant ecosystem surrounding Solana. The dedicated community of developers and users contributes significantly to Solana’s prominence in the crypto industry.
The release of Solana’s “Saga,” the platform’s flagship Android device, has garnered enthusiastic reviews. Its seamless integration with Web3 capabilities has received special acclaim. Solana’s co-founder, Raj Gokul, sees potential for the network to become the “Apple of crypto,” emphasizing the importance of a seamless and reliable user experience. In line with this vision, Solana introduced its web3-oriented Android smartphone, the Saga. This helps build the bull case for Solana to be one of those long-term crypto investments for your portfolio.
The blockchain continues to hold promise in the cryptocurrency realm, and the significant decline in value last year appears exaggerated. However, the current rebound, especially in relation to NFT sales, may be premature. It is advisable to wait for a price dip and/or a sustained improvement in NFT trends before considering investment in this cryptocurrency.
Avalanche (AVAX-USD) has overcome challenges during the crypto winter and is now reclaiming its momentum. Unlike Solana’s focus on the retail crypto market, Avalanche is targeting the institutional crypto market, showcasing its distinct positioning and ambitions.
Following my earlier analysis, Avalanche kicked off May 2023 on a positive note, starting at $16.66. Despite a temporary dip to $14 on May 18, the cryptocurrency is now making a steady climb back towards the $15 mark, signaling a potential resurgence. The surge in trading volume indicates a growing interest and activity within the Avalanche network.
Avalanche secured a significant partnership with Amazon’s cloud computing division in January. This collaboration aims to provide blockchain services to corporations, institutions, and governments, opening doors to a wide range of potential clients and opportunities for Avalanche.
Avalanche price dropped to $13.8 support amid a crypto market downturn but rebounded with Trader Joe’s JOE token. Although below moving averages, a double-bottom pattern suggests a potential rise, targeting $15, a 4.50% increase from current levels.
That said, the crypto coin shows promising potential for real-world applications and growth. Despite a downturn in the 2022 bear market, it has made a strong recovery in 2023, establishing itself as a formidable player in decentralized finance.
On the date of publication, Chris MacDonald has a position in ETH, SOL, AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.