3 Cryptocurrencies To Buy And Hold For The Next Decade
Picking the suitable cryptocurrencies to buy and hold for a decade is no mean feat. That’s because the market is ever-evolving, and what is in today may be totally irrelevant tomorrow.
This article highlights three cryptocurrencies that one can buy and comfortably hold for the next decade. Whatever happens over the next 10-years, these cryptocurrencies are likely to keep gaining in value.
Best Cryptocurrencies To Buy And Hold For The Next Decade
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Coin (BNB)
1. Bitcoin (BTC)
The crypto market leader
For anyone who wants to buy and hold a crypto asset for a decade, then Bitcoin (BTC) is an obvious choice.
One reason why Bitcoin stands out is its network effect. For most people who are developing the slightest interest in the crypto market, the first thing they hear about is Bitcoin. This is a big deal because Bitcoin is likely to attract the most capital as the market grows in adoption. Such a scenario is already evident in its price action in 2021.
With most institutional players only taking an interest in cryptocurrencies in 2021, most of this money has flowed into Bitcoin. This doesn’t mean that it is the best or the most innovative cryptocurrency out there, it is simply the one that is most known. Its popularity will only entrench it as a top cryptocurrency going forward, which will play into its long-term price dynamics.
The second reason why Bitcoin is a worthy hold over the next decade is its scarcity aspect. There are only 21 million Bitcoins that can ever be mined.
This is very little considering that Bitcoin is the most adopted decentralized cryptocurrency in the world. It is the closest thing that the world has to a decentralized one-world currency.
Besides the capped supply, several other factors play into Bitcoin’s supply. One of the more notable ones is the halving. Bitcoin halving creates a supply shock because it cuts the rewards that miners receive from mining by half.
With demand growing and supply cut in half, it is not surprising that after every halving, the price of Bitcoin always rallies in a parabolic curve. For instance, after the 2016 halving, the price of Bitcoin went on to hit highs of $20k in 2017 from under $1000. Then after the halving of 2020, Bitcoin went from a low of $8000 to a high of $64k in 2021.
Investors can expect a similar price action later along in this decade, precisely in 2024. The Bitcoin halving of 2024 will cut the mining reward to just 6.25 Bitcoin. That’s a huge drop in supply, especially now that the demand for Bitcoin by institutional money is rising faster than ever before.
If past Bitcoin halvings are anything to go by, then Bitcoin could easily test prices above $500k after the next halving.
This may seem far-fetched, but considering that it could easily test $100k within 2021, then $500k to $1 million by the next halving is within the realms of possibility.
At current prices, such prospects make Bitcoin potentially good crypto to buy and hold for the next 10-years.
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2. Ethereum (ETH)
The world’s leading platform blockchain
Ethereum is in the process of an upgrade that is set to cement its position as the top platform’s blockchain. It is shifting to become a Proof-of-Stake blockchain, a factor that will cut its energy consumption by over 90%. This means it will become a lot more attractive to institutional investors who are increasingly being forced by their backers towards environmental consciousness.
Besides becoming more attractive to institutional players, Ethereum’s upgrades are set to make it more scalable and more affordable to those building on top of it.
Scalability will be achieved through Ethereum’s layer-two solution called Optimism. Many other layer-two solutions will operate alongside Optimism, such as Polygon.
Without the scalability bottlenecks that Ethereum has today, highly complex dApps will build on top of Ethereum. It already has a majority of the dApps market, and with a higher level of protocol efficiency, Ethereum will be unmatched in this market.
This is likely to play into its price dynamics over the next decade. That’s because Ethereum tokens are needed for one to start building on the Ethereum blockchain.
Still, on-demand and supply, the recent Ethereum upgrade, popularly known as the London Fork, introduced a coin burn feature as part of the gas stabilization mechanism. Since this affects the supply of Ethereum as usage grows, its demand stands to grow exponentially going into the future.
All these factors could see Ethereum tests prices above $10k over the next decade. Such potential makes it high potential crypto to hold over the next decade.
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3. Binance coin (BNB)
A top exchange cryptocurrency
Finally, the third cryptocurrency for the next decade is the Binance coin (BNB). It’s the cryptocurrency that powers the world’s largest crypto exchange by volumes.
One thing that makes Binance coin appealing over the next decade is the coin burn feature. Since it was launched, Binance Coin has been burning coins quarterly, which has played into its demand dynamics.
Binance recently announced that it would accelerate the coin burn over the next 5 to 8 years. This means in this period, the price of Binance coin will keep going up as well. It’s simply a case of demand and supply factors at play.
Besides the coin burn, Binance coin has a lot of uses on the Binance exchange. It is the crypto used to pay fees on the exchange. Considering how much volumes Binance handles at any given time, the use case of Binance coin is huge on this front.
Then there is the fact Binance coin is continuously innovating. While the exchange is only a few years old, it has since launched the Binance Smart Chain, a big player in the dApps ecosystem.
Such innovations will only add to the use cases of Binance Coin going into the future. This makes it a perfect cryptocurrency to hold over the next decade.
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