3 Bargain Cryptocurrencies To Buy And Hold For The Next 5 Years

Investors looking for growth cryptocurrencies trading cheaply should take a closer look at these 3 cryptos

Last Updated September 22nd 2021

7 Min Read

Key points

Blockchain technology is changing the world and the demand for cryptocurrencies with practical usage is growing.
Bitcoin’s growing adoption coupled with its lagging supply will play a role in its value growth long term.
Ethereum is in a transition that will see it anchor its position as a top platform blockchain.
Binance coin is set to accelerate its coin burn, a factor that will play into its supply dynamics over the next 5-years.

Blockchain technology is one of the technologies that will change the world in the next five years.

It is already showing signs of disrupting how banking works, by eliminating the middleman in everything from payments processing, to how people borrow and lend money.

This means investors that take advantage of top cryptocurrencies that are leading the change to decentralization stand to reap big. Bitcoin (BTC), Ethereum (ETH), and Binance coin (BNB) are three cryptocurrencies that are at the very cutting edge of the crypto revolution.

Here are a few reasons why these cryptocurrencies are solid bets to buy and hold for the next 5 years.

Bitcoin

For someone who is looking to buy and hold for the next 5-years, Bitcoin is no-brainer crypto asset to buy and hold.

One of the factors that make Bitcoin a no-brainer cryptocurrency to hold is block halving.

The Bitcoin block halving is a reduction by half of the number of Bitcoins that miners receive.

The next block halving is in 2024 and is expected to reduce the Bitcoin rewards to 3.125.

The reason why it is such a big deal is that this reduction in supply happens suddenly and creates a disequilibrium to the supply and demand dynamics of Bitcoin.

This creates a scenario where demand keeps going up but the supply of new coins coming into circulation is significantly reduced, hence pushing up the price.

In the past, Bitcoin halvings have led to a significant rally in the price of Bitcoin. The 2016 Bitcoin halving was a precursor to the 2017 rally that saw Bitcoin hit highs of $20k.

Similarly, the 2020 halving was followed by a rally that saw Bitcoin hit highs of $64k in April this year.

This pattern is likely to repeat again in 2024. It’s a case of simple economics of demand and supply.

In essence, for someone who chooses to hold Bitcoin anywhere between now and 2026, there is a good chance of exponential gains.

If previous halvings are anything to go by, then Bitcoin has the potential to hit prices above $300k at some point in 2025.

However, it is not just the halving that makes Bitcoin a no-brainer cryptocurrency to buy and hold for the next 5-years.

Bitcoin’s growing adoption is also a factor. For context, Bitcoin is the most adopted cryptocurrency in the world.

Pretty much every store that accepts cryptocurrencies accepts Bitcoin first, then the other cryptocurrencies.

It has reached a point where even countries are now adopting Bitcoin as legal tender. El Salvador is the first country to make this move, and it’s bullish on it.

So bullish that in this week’s crypto market correction, the country added to its stash of Bitcoins.

If the El Salvador Bitcoin experiment turns out to be a success, then there is always the possibility that more countries could follow suit.

Besides its adoption for everyday use, Bitcoin’s uptake by institutional players as an investment vehicle is on the rise.

The world over, the number of Bitcoin investment vehicles is growing. While the US has been lagging behind on this front, things could change for the better in the next 5-years.

Such investment vehicles, especially physically settled ETFs play into the demand and supply dynamics of Bitcoin.

In essence, as the uptake of such institutional-grade investment vehicles grows, so will the value of Bitcoin due to its demand and supply dynamics.

All these factors point to a cryptocurrency whose long-term price is likely to go up exponentially.

Besides, Bitcoin is yet to retest its time highs. The EverGrande crisis in China that has affected all markets globally has hit Bitcoin as well.

Bitcoin price has tanked in the last few days. This means it is trading at a perfect entry price for someone looking at the market for the next 5 years.

Check Out: Pros and Cons of Investing in Bitcoin

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum

Cryptocurrencies are a highly volatile asset class, and there is no telling what could happen in the next five years.

Therefore, when looking to invest in altcoins, it is best to invest in the strongest of them.

Ethereum happens to be one of the strongest altcoins in the market today. Not only it is the largest cryptocurrency by market cap, but it is also one of the most adopted.

The adoption of Ethereum is so high, that the number of new Ethereum addresses is now much higher than that of Bitcoin.

However, it is not just the new addresses that point to Ethereum’s strengths. This is the most adopted platform blockchains in DeFi today.

Over 90% of all DeFi and other projects run on the Ethereum blockchain. Its adoption, in the long run, is also set to grow now that Ethereum is working on solving its scaling problems.

This will be attained through Ethereum 2.0, which is in its advanced stages. For instance, in August, the London hard fork was completed successfully.

The London fork tackled one of the toughest challenges that Ethereum has been dealing with, and that’s sky-high gas prices.

Before this fork, Ethereum users had to bid to have their transactions go through faster. This led to a situation where users would bid up gas prices unsustainably, in a bid to outbid everyone else.

With the London fork, it is an algorithm that determines the gas prices. The algorithm takes an overall look at the demand and then sets the base gas prices.

This has already helped drive down gas prices and will play a role in the adoption of Ethereum going into the future.

Besides the stabilization of gas prices, Ethereum 2.0 is introducing a layer-2 solution on the Ethereum blockchain.

This will help take off the pressure that is currently placed on this blockchain and leads to high transaction costs, and slow speeds.

One of the scaling solutions that are coming with Ethereum 2.0 is optimism. This layer-2 solution is secure and will play an instrumental role in Ethereum scaling.

By solving the problems that have dogged it for years, Ethereum is set for exponential growth long term.

At the same time, the upgrades on this blockchain are touching on its energy consumption.

Currently, Ethereum uses more energy than some countries. This has become a cause of concern lately and is affecting its adoption by institutional money.

However, with Ethereum moving away from Proof-of-Work to Proof-of-Stake, this will no longer be a problem. This could see Ethereum gain widespread adoption by institutional players.

Considering that institutional money has become one of the biggest drivers of crypto value growth, this is good news for Ethereum.

With all these factors going for it, Ethereum is a no-brainer cryptocurrency to buy and hold for the next 5-years.

Don't Miss: Investing In Ethereum Right Now Could Make You A Millionaire Retiree

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Binance Coin

Like Ethereum, Binance coin is a high market cap that has good prospects going into the future.

There is so much going for it that in the future, it has a pretty good chance of hitting a couple of thousands of dollars per token.

One of the factors that play in Binance coin’s favor is its supply. Binance coin is deflationary and applying basic economics, Binance coin can only go up long term.

To understand how its deflationary nature plays into its price action, one needs to look at its price action since it launched 5-years ago.

At the time, it was trading at less than a dollar. However, due to the quarterly coin burns that have become a part of this crypto’s tokenomics, it rallied to a high of over $600 in April this year.

This will be the case going into the future, as the quarterly coin burn remains a huge aspect of Binance coin’s core fundamentals.

Things are even getting better, because going into the future, the quarterly coin burn is set to be accelerated.

Binance has stated that in the future, it intends to cut the coin burn to just five to eight years.

This means Binance coin’s supply is set to shrink much faster than at any other time in than in the past. Going by economics 101 on the laws of demand and supply, this will serve to bid up the price of BNB.

That’s because the number of new coins coming to the market is shrinking, while the demand is going up.

The aspect of Binance coin’s demand is not speculation. It is actually one of the most adopted cryptocurrencies, and adoption is growing.

This has a lot to do with the Binance Smart Chain. The Binance Smart Chain is Binance’s platform that developers can use to launch tokens.

Since it launched, the Binance Smart Chain has seen exponential growth in adoption on everything from DeFi to other projects.

Given that one needs BNB for them to develop on the Binance Smart Chain, the demand for BNB is always high at any given time.

Binance coin is also the crypto that is used for paying fees on the Binance exchange. This too plays positively into its demand and supply dynamics at any given time.

Decreasing supply against rising supply makes it quite logical to buy and hold Binance coin for the next 5-years.