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3 Cryptos to Buy and Hold Forever

  • These three cryptos to buy are now trading at levels that may be too attractive to ignore.
  • Bitcoin (BTC-USD)It is the top crypto and is likely to continue leading the pack over the long term.
  • Ethereum (ETH-USD): Ethereum’s upcoming upgrades next year will only improve this network’s long-term viability.
  • Solana (SOL-USD): This token is down currently, giving investors an excellent opportunity to take a long position in it.
cryptos to buy and hold - 3 Cryptos to Buy and Hold Forever

Source: Chinnapong / Shutterstock

For the past few weeks, cryptos mostly moved in tandem with stocks, while maintaining impressive stability during large market swings. However, the idea that cryptos are low-beta assets was certainly  put to the test previously, with many top tokens seeing outsized moves (both up and down) in recent years. Accordingly, while many may be looking for cryptos to buy and hold right now, others may understandably think that this sector may be too volatile to touch.

That’s fair enough. But there appears to be some validity to the idea that, over the long-term cryptocurrencies can be a small portion of portfolios.

These digital assets tend to grow very rapidly (given the nascent nature of this space), and their appropriate valuations are difficult to nail down. Thus, many investors with a shorter time horizon may be waiting for the next bull market to begin, while longer-term investors may be looking now for cryptos to buy and hold forever.

But there really aren’t that many great options for long-term investors in the crypto space. It’s hard to tell which projects will prove to be durable. That said, these three cryptos are indeed worth buying and holding forever.

Let’s dive in.

BTC-USD Bitcoin $20,515
ETH-USD Ethereum $1,572
SOL-USD Solana $32.10

Bitcoin (BTC-USD)

A concept image showing Bitcoin (BTC) in a bubble.
Source: Shutterstock

Any list of cryptos to buy should probably start with Bitcoin (BTC-USD). The world’s largest cryptocurrency by a country mile, Bitcoin has shown its value as a long-term holding, as it celebrated  its 13th birthday earlier this year.

That’s nothing compared to many companies which have been around for more than a century. But that’s the longest track record in the sector, which started with Bitcoin.

Bitcoin’s lead over cryptos in terms of market capitalization relative has diminished over the years. That’s because a number of other high-growth projects have arisen, sucking up capital along the way. However, for Bitcoin, the more projects there are circulating in the ecosystem, the better. That’s because Bitcoin’s relative stability tends to result in all crypto investors buying some Bitcoin.

Before recent months, every single decline in the price of Bitcoin has eventually been revealed to be a good buying opportunity.

Right now, the question is whether this will be the case yet again. I do believe that, as in the past,  it’s just a matter of time before new all-time highs are seen once again in Bitcoin.

Ethereum (ETH-USD)

A concept image of mining an Ethereum (ETH) token.
Source: Shutterstock

Next on our list of top cryptos to buy is the world’s second-largest cryptocurrency, Ethereum (ETH-USD). The lifeblood of the world of blockchain-based decentralized finance, or DeFi,  Ethereum really is a separate ecosystem. Countless other projects are based upon its blockchain, which is among the most-used in the crypto world, a trend that will likely continue.

Much of this was caused by Etheruem’s early adoption of smart contracts. By allowing various users to enter into contracts, the crypto made a whole range of financial opportunities available to investors. Besides being a digital currency, Ethereum is also a network that can support transactions. Thus, for long-term investors who are bullish on the growth potential of DeFi, ETH is one of the best projects to consider.

As Ethereum’s ecosystem continues to grow, its market value should also increase, according to the valuation models most experts have put together. These models indicate that each token’s value represents the aggregate value of all the projects on its blockchain.

If that’s the case, the more DeFi grows, the greater Ethereum’s value will be over time. That’s probably an overly simplistic way to view this token, but it has been embraced by most long-term investors.

Solana (SOL-USD)

Concept art of the Solana (SOL-USD) blockchain.
Source: Shutterstock

Last, but certainly not least, we have Solana (SOL-USD).

Like Etheruem, Solana is a layer-1 blockchain, upon which a significant amount of DeFi activity is carried out. However, unlike Ethereum, Solana’s speed and cost structure provides benefits to end users that has many investors calling Solana an “Ethereum killer.”

While I don’t think that any single blockchain will be able to kill Ethereum in the long-term ( if I did, then ETH wouldn’t be on this list),  this idea has some merit. Using a unique proof-of-history validation method, Solana has found a way to process tens of thousands of transactions per second, at a fraction of a penny each. So there’s a big difference when it comes to fees between Solana and Ethereum, whose fees soared to the $100+ range last year.

Network outages and other issues have kept this token’s valuation down. That said, many long-term investors may want to look at its recent dip as a buying opportunity.  Because when a flood of capital returns to this sector, I have a feeling Solana will see a lot of this capital flow its way.

On the date of publication, Chris MacDonald has positions in Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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