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How to Invest in Crypto for Long Term?
How to Invest in Crypto for Long Term? Investing in cryptocurrencies for long term can be an exciting journey. It can be much more rewarding than any other investment if chosen wisely. So lets get into the question as to how to invest in the crypto for long term aiming maximum returns.
Before proceeding, do you know that back in 2010 a person named Laslo Hanyecz spent 10,000 bitcoins to purchase two Papa John’s pizzas. Today, in 2024, those 10,000 bitcoins are worth over $700 million.
Hope you got the answer.Anyways, lets proceed.
Choosing the right cryptocurrencies
This involves doing some research and understanding of the different cryptocurrencies. Since, Bitcoin and Ethereum are well established projects, there are numerous other options as well like Polygon (Matic), Solana and Arbitarium.
The point is to pick the one which are fundamentally strong, numerous use cases, community backing and scalable with technology.
For example, the world is moving towards the artificial intelligence, so the crypto-coins which update
themselves to follow the trend would sustain.
Risk Management
You must know that cryptocurrencies are subjected to high volatility. It is therefore important to
assess your risk tolerance. Be mentally prepared for the amount of volatility you can handle.
HODL
“Hold on for dear life” or simply HODL is a strategy where cryptocurrencies are bought for long without taking into account their short-term price fluctuations. Because, over the time digital assets eventually recover from the crashes and follow the uptrend.
On 22 May 2024 an old bitcoin wallet from 2010 moved $140 million worth of BTC. The owner hodled bitcoin from $0.10 to $7,1000. This is a legendary patience a perfect HODL.
This would also free your mind from the short term worries and saves you ample time which you
would have otherwise used in watching your portfolio repeatedly.
Diversification
Don’t put all you eggs in one basket. Put up a mix of coins in your portfolio. Do not invest in just
one cryptocurrency as it would be too risky. The better option is to choose multiple categories of
coins like bitcoin, ethereum, Matic, SOL, AI and others. You can even consider to invest a minimal
amount in some meme coins like Dogecoin and SHIB.
Secure Wallets
Choosing security measures in necessary to safely store your digital assets for long term. This involves
enabling multiple layer authentication like 2FA (two-factor authentication) on your wallets. You can even go for the hardware wallets which are much secure than cloud based cryptocurrency wallets.
Stay informed
Just putting your money in the crypto for long term is not enough, you have to be in touch with th
crypto-market developments. This will save your funds from any potential fraud like the FTX fallout.
Staking
There are some coins which allow you to stake your coins like CAKE cion. Staking coins earn you rewards which depend on the number of coins staked and its staking time period. This way you can earn extra income with same investment.
Long-Term Vision-
Have a broad mindset that you are investing with for 10 years or 20 years not just for a couple of months.
Invest with a long term goals in mind.
Here are the long Top 5 Ethereum based Layer 2 Coins that can explode anytime.
Is crypto a good investment for long term?
Investing in the good crypto-coins can be a good investment for long term. Bitcoin, for example has moved from $0.10 in 2010 to over $72,000 in 2024. Matic coin has moved from $0.003144 in 201 to $2.92 in 2021. There are many such coins which have grown by 1000X to 10,000X like SHIB, DOGE and so on.
This indicates that investing in the strong projects yields maximum returns over the long run.
But there is other side of the story as well. There are cryptocurrencies which have reduced to a zero or
have crashed and failed to recover.
It is therefore important to invest only after a proper research about the cryptocurrencies.
Where to hold crypto for long term?
For a long term, it is better to store your cryptocurrencies at a place which is outside the reach of public internet. That is why we have already written a detailed post on the ultimate way store cryptocurrency offline. Please do check it out!
Which coin grows fast?
Coins which are fundamentally strong, follow the trend of market, have strong community and a small market-cap tend to faster. Though some meme coins grow much faster than others, they are too risky and may dump as harder.
The better answer, for long-term investment in crypto, would be to pick the top coins like bitcoin, ethereum and solana. You can pick others as well based on your own research.
Here are Top 10 Cryptocurrency Exchanges with lowest fees!