These tokens are likely to lead the way as society continues to adopt cryptocurrencies and blockchain technology.
Cryptocurrencies as a whole are still in their infancy. There is still a long way to go for society to accept and use cryptocurrencies. The current lack of regulation is both a blessing and a curse, often resulting in meme coins and other speculative digital assets failing frequently.
On the other hand, cryptocurrencies have significant potential to modernize and improve the global financial system.
Perhaps the key message here is to choose your cryptocurrencies wisely. Focus your attention on tokens established with real-world applications. Here are three top cryptocurrencies you can buy and hold for decades.
Since cryptocurrencies remain riskier than most investments, it’s not a bad idea to start with a modest amount, like $500.
Image source: Getty Images.
1. A cryptocurrency intended for the financial system
XRP (XRP 0.30%) has been one of the most controversial cryptocurrencies. Its developer, Ripple Labs, has spent several years in a legal battle with US regulators over the legality of the company selling tokens to exchanges and investors. However, now that the litigation is over, there is a lot to like in XRP.
It is the native token of the XRP Ledger blockchain and the global blockchain-based payment platform, Ripplenet. The platform facilitates cross-border transactions in which one party can send money to another in another country using XRP as an intermediary. It is a transparent process with bank-level compliance with money transfer regulations in each active market. The platform is attractive because it is faster and cheaper to use than SWIFT, the legacy global banking messaging network.
Today’s change
(-0.30%) $-0.01
Current price
$1.92
Key Data Points
Market capitalization
$116 billion
Daily scope
$1.90 -$1.95
52 week range
$1.65 -$3.65
Volume
2.6B
Currently, SWIFT still dominates cross-border financial transactions, but XRP has enormous potential if it gains traction over the next decade and beyond. The price of XRP skyrocketed after the Ripple Labs litigation concluded. Since then, a broad drop in cryptocurrency prices has driven XRP lower, giving investors a dip they can buy into if they believe in its long-term upside potential.
2. This cryptocurrency is like digital gold
Bitcoin (BTC +0.96%) is the first cryptocurrency and remains the largest today, with a market capitalization of $1.7 trillion, about five times that of the next closest cryptocurrency. Ironically, Bitcoin is only the third most used blockchain, measured by total value locked (TVL). Instead, Bitcoin has continued to appreciate as an anti-inflationary asset, much like a digital version of gold.
Investors continue to covet and value Bitcoin. More and more parties are starting to accumulate it. Some companies have started keeping it on their balance sheets, and the United States announced plans to create a strategic reserve of Bitcoin earlier this year.
Today’s change
(0.96%) $841.98
Current price
$88914.00
Key Data Points
Market capitalization
$1.8 billion
Daily scope
$87655.00 -$89542.00
52 week range
$74604.47 -$126079.89
Volume
27B
It is difficult to compare the value of Bitcoin to that of real estate, gold and stocks, the value of which is still much higher. Additionally, governments around the world continue to borrow money in ways that erode the purchasing power of their fiat currencies. This makes Bitcoin a no-brainer to at least have some exposure in your portfolio over the coming decades.
3. Invest in the world’s first smart contract platform
Ethereum (ETH +1.87%) is the second largest cryptocurrency in the world after Bitcoin. Its blockchain is popular for decentralized applications (dApps) and smart contracts. The Ethereum blockchain today has a total value locked (TVL) of $68.7 billion, approximately eight times that of the nearest blockchain, Solana. This means that it is by far the most widely used blockchain in the world.
Use of the Ethereum blockchain impacts the market price of Ether, the blockchain’s native token. Ethereum is a proof-of-stake blockchain in which people stake their Ether to validate transactions on the network in exchange for tokens. At the same time, the network burns (destroys) Ether as people use it. The busier the network, the more supply it consumes.
Today’s change
(1.87%) $55.64
Current price
$3032.25
Key Data Points
Market capitalization
365 billion dollars
Daily scope
$2945.80 -$3047.49
52 week range
$1398.62 -$4946.05
Volume
16B
Constant creation and destruction of Ether helps control the supply. Ethereum’s dramatic lead in blockchain usage also creates a network effect over time, as developers will want to rely on Ethereum to ensure their dApps attract as many users as possible. It makes Ethereum a commodity cryptocurrency that investors may want to buy and hold for the long term.
