Mainstream adoption of cryptocurrencies has been gaining steam for years and was accelerated by the COVID-19 pandemic. Like gold, these digital assets are increasingly seen as investments to hedge against inflation during economic uncertainty.
There is a wide variety of digital tokens and other crypto-related projects that one could invest in to reap massive profits in the long term. For instance, investing $5,000 in these 3 cryptocurrencies could make you rich over the next ten years.
For novice crypto investors, it is probably best to start with established, yet fast-growing assets, such as Ether and Cardano. While still volatile, the regulatory framework around them is clearer than with other tokens, which could help temper future risk.
Investing in emerging digital assets in addition to other stocks can offer a good form of diversification for investors. The price correlation between cryptocurrencies and the US stock market is close to zero. That means the crypto market is unaffected by the stock market and vice versa. As a result, you could improve your diversification by allocating a portion of your portfolio to cryptocurrency.
After evaluating various metrics such as price history, unique features, etc., these are the three assets to buy and hold for the long term.
3 Cryptocurrencies Could Make You Rich Over the Next 10 Years
1. Ethereum (ETH)
Ethereum is one of the most promising blockchain technologies on the market. Following its birth in 2015, the digital currency has grown immensely, from $1.50 a coin to almost $2,300. Ethereum’s rapid growth has transformed early investors into millionaires. However, it is not too late to invest in this platform.
Ethereum is an open-source, public blockchain-based computing platform. The protocol is often used as a platform to develop decentralized applications (dApps). And the digital currency allowing those applications to operate is Ether, the native token of the network.
The Ethereum blockchain is far more rapid than Bitcoin. It can process transactions in as little as 15 seconds to 5 minutes. On the other hand, the transaction processing time of Bitcoin is 10 minutes. This makes Ethereum one of the best networks to support any program or application. In addition, its ability to solve problems with accuracy and precision is unparalleled.
Ethereum: Unique Features
Ethereum’s speed and its ability to act as a platform for dApps have attracted the attention of multiple companies. In addition, Ethereum’s open-source concept allows developers to build new cryptocurrencies on top of it, like Chainlink and XRP, which are known as tokens. Some of these assets come in the form of different cryptocurrencies, like Tether (USDT), Uniswap (UNI), or USD Coin (USDC).
Notably, cryptocurrencies are not the only digital assets that can be created on Ethereum. NFT (non-fungible token) is another example of an offering created using Ethereum. These digital tokens are powered by Ethereum and are used to represent ownership of unique items, according to the Ethereum website.
The rapid growth and enormous potential of Ethereum make it a worthy investment. Buying ETH now is highly likely to generate massive returns in the future.
Read Also: Will Ethereum Make Me Rich In Ten Years?
2. Cardano (ADA)
The Cardano project began in 2015, intending to solve some of the problems that Ethereum faced due to its Proof-of-Work (PoW) consensus model. Cardano was founded by Charles Hoskinson, a former co-founder of Ethereum.
Some of Cardano’s key improvements are multiple processing layers for settlements and computations, Proof-of-Stake (PoS) consensus, and the ability to upgrade its network easily in the future. Cardano currently has around 150 developers actively working on the project and pushes out around 700 commits per week. These factors make ADA one of the most actively developed projects in the blockchain space today, suggesting that it will deliver on its development roadmap. Furthermore, Cardano's progress makes it likely to steal market share from Ethereum.
Cardano has already inked some notable partnerships with universities, governments, and businesses, including the University of Illinois, Ethiopia, and New Balance. In addition, Hoskinson has pushed hard to see Cardano’s potential come to fruition in Africa, where he believes blockchain can make a huge impact. This is in part due to a large proportion of the African population being unbanked. New Balance also has plans to use Cardano’s network to track the authenticity of its shoes.
Cardano was one of the first blockchain platforms to come up with the concept of Proof-of-Stake. Popular blockchains like Bitcoin and Ethereum use the Proof-of-Work consensus to secure their blockchains. PoW has its cons, namely being energy inefficient and requiring power machines to secure the network.
Cardano’s Ouroboros proof of stake mechanism is scalable and can process up to 1,000 TPS (transactions per second). In contrast, Bitcoin is 3-7 TPS and Ethereum 10-20 TPS (not factoring in Layer 2 technology or Ethereum 2.0).
Cardano's cutting-edge offerings add value to ADA. Buying ADA now could help investors become rich over the next decade.
3. Chainlink (LINK)
Chainlink is the first and most widely used oracle service. It forms the backbone of smart contracts, specifically those relying on real-world external data to perform their tasks, especially the subfield of decentralized finance (DeFi). It primarily functions on the Ethereum platform but is designed to support other blockchains too.
Since Chainlink was the first oracle system and features a robust design, it is the preferred oracle provider for nearly all projects. Thus, it is the most integrated service in the crypto ecosystem and has tremendous implications. Chainlink boasts a tally of 512+ projects and ventures, both within and outside the crypto space.
Chainlink benefits from access to multiple kinds of data and different ecosystems. With a diversified profile of clients, Chainlink delivers all sorts of data to various applications. This creates a synergistic effect between Chainlink and all other parties in the ecosystem.
Chainlink is known to integrate with a new partner almost every single day. As a result, it is growing at a remarkable rate. Buying LINK now is an excellent way to become a part of this ecosystem.
Check Out: Why Chainlink Is Going To Explode
With its groundbreaking success, Bitcoin has ushered a wave of cryptocurrencies built on a decentralized peer-to-peer network. Investing $5000 in ETH, ADA, and LINK can help investors become rich over the next 10 years. That said, investors must evaluate their risk appetite before investing in cryptocurrencies.