Are you looking for the best long-term cryptocurrency investments? Look no further than Bitcoin and Ethereum, the top contenders in the crypto market. These two digital currencies can be easily traded on popular platforms such as Uphold, Robinhood, Coinbase, eToro, WeBull, and Crypto.com.
Cryptocurrency is an investment class that comes with both high risks and high rewards. It has the potential to generate significant wealth and has revolutionized the financial landscape by shifting from centralized to decentralized systems. In the 21st century, cryptocurrencies have experienced exponential growth in value, popularity, and complexity.
However, it’s important to note that not all cryptocurrencies are created equal. Many will fade away over time, leaving only a few projects that reap substantial rewards. The ability to pick winning projects is a skill within the crypto industry and is crucial for long-term survival and success.
In this article, we will delve into the inherent value of cryptocurrency, explore the reasons for investing in this asset class, and highlight two specific cryptocurrencies that are poised to dominate in the long run.
To comprehend the reasons behind the abundance of lucrative investment opportunities in the cryptocurrency market, it is crucial to understand its origins and principles. This story begins with the inception of Bitcoin, the pioneering cryptocurrency.
During the tumultuous times of the 2008 financial crisis, Bitcoin emerged as a solution for decentralization. Its creator, Satoshi Nakamoto, whose true identity remains unknown, published a whitepaper outlining a novel approach to handling money without the need for central authorities. This revolutionary concept arose as a response to the growing mistrust in traditional financial institutions and the dependence on centralized power structures.
Bitcoin was designed to eliminate intermediaries in financial transactions, thereby reducing costs, enhancing efficiency, and increasing financial inclusivity. Over time, numerous other cryptocurrencies have emerged, each addressing unique challenges with a focus on decentralization.
Now that you understand its origin, the next question often raised by investors is: why does cryptocurrency have value?
The intrinsic value of cryptocurrency lies in its convenience of exchange and the advantages it offers over other currencies in the event of widespread adoption. This is known as a convenience yield, a concept that holds empirical validity for cash-like assets.
A familiar example of the convenience yield is the decision to keep money in a bank account, despite the lower interest rates compared to alternative investment options such as Treasury bills or AAA corporate bonds.
Cryptocurrency’s convenience yield is multifaceted. On one hand, it serves as a hedge against inflation, seigniorage, and flawed monetary policies, operating independently of central banks. It relies on intricate algorithms and decentralized governance. Furthermore, cryptocurrency is designed to be more efficient, decentralized, and capable of handling larger transaction volumes. As a result, it has the potential to surpass traditional fiat currencies in terms of convenience, efficiency, and reliability.
It is important to note that this is a simplified explanation. The value of each cryptocurrency reflects the platform or exchange upon which it is built, each offering distinct value propositions as further explored in the article.
High Risk, High Reward
The value of cryptocurrency is known for its wild fluctuations, making it a potentially high-risk investment. However, risk alone is not the sole determinant of success or failure. The suitability of high-risk investments for an individual investor depends on their goals, risk tolerance, and overall financial strategy.
Bitcoin, for example, became the best-performing asset of the decade after its recent surge to $60,000 in late November 2021, outperforming stocks, commodities, and other asset-based investments. Nevertheless, it is essential to acknowledge survivor bias when using Bitcoin as a benchmark for cryptocurrency returns. Most altcoins, which refer to cryptocurrencies other than Bitcoin, become obsolete in the long run.
Given the speculative nature of cryptocurrency and its uncertain regulatory future, it is advisable to invest only money that one is willing to lose. Cryptocurrency can serve as a valuable hedge within a well-balanced portfolio, offering substantial upside potential without requiring significant capital investment.
Navigating the vast realm of cryptocurrency can feel like searching for a diamond in the rough. Countless projects emerge, each with their own unique value propositions and promising roadmaps. However, the unfortunate reality is that the majority of these projects will eventually fade away, leaving only a select few winners to claim the spotlight.
With each new bull market, fresh and innovative coins enter the scene, boasting improved use cases and capturing the attention of investors. Choosing a winner amidst this sea of options is akin to finding a needle in a haystack—a risky endeavor at best and a futile pursuit at worst. CoinMarketCap’s recent data indicates that over 20,000 cryptocurrencies are currently available, with many more falling short of making it onto the platform.
Yet, amidst this ever-changing landscape, there are exceptions to the cycle of replacement. Throughout the history of cryptocurrency, two digital currencies have demonstrated resilience and longevity, weathering multiple boom and bust cycles: Bitcoin and Ethereum.
Bitcoin and Ethereum stand as established champions, forming the bedrock of the cryptocurrency narrative. They represent the most prominent and reliable long-term investment options within the crypto market. While this does not guarantee their enduring success, Bitcoin and Ethereum offer investors the best risk-to-reward ratio, providing a solid foundation for those without a crystal ball.
While many people view Bitcoin as a speculative store of value, this characterization only scratches the surface of its true significance. Bitcoin offers a glimpse into a future where financial equality reigns, free from the influence of self-interest or governmental manipulation. It transcends being merely a tool for everyday transactions and serves as a catalyst for global unification through a transparent and incorruptible currency. Bitcoin represents a pathway to a fairer and more just global economy.
As the most decentralized and widely recognized cryptocurrency, Bitcoin has established itself as a market leader, commanding over 40% of the crypto industry. Its anonymous creator, organic growth, and rigorous testing have all contributed to its merit-based success. Within the realm of cryptocurrency, Bitcoin stands out as the most secure and proven option.
An easy way to conceptualize Bitcoin is as digital gold. Like gold, it possesses immutability, perfect scarcity, non-sovereignty, and divisibility. However, it surpasses gold in terms of portability. While gold requires mining and physical transportation, Bitcoin can be sent globally within minutes.
In essence, Bitcoin can be seen as a super commodity—an imperfect yet remarkable alternative to inflationary fiat currencies. It serves as a hedge against inflation, offering a reliable store of value.
Furthermore, Bitcoin operates as a Layer 1 blockchain—a foundational infrastructure within a blockchain-based financial system. Layer 1 blockchains serve as the backbone of decentralized ecosystems, functioning independently without reliance on external networks.
Like other cryptocurrencies, Bitcoin utilizes blockchain technology to secure its transactions. Blockchains are decentralized digital ledgers that track the origin and movement of digital assets.
Standing side by side with Bitcoin in the cryptocurrency landscape is Ethereum – the second-largest cryptocurrency by market capitalization and the leading altcoin in the industry. Ethereum was founded in 2013 by visionaries Vitalik Buterin and Charles Hoskinson, among others.
While Ethereum and Bitcoin are often compared, they are not direct competitors. Rather, they complement each other, serving different purposes within the crypto industry. Comparing Ethereum to Bitcoin is like comparing apples to oranges, as they operate in distinct ways.
Ethereum can be envisioned as a vast global computer network that spans thousands of devices worldwide. It operates concurrently across this network, rather than being confined to a single machine. Individuals around the world contribute their computing power to maintain the network’s security and are rewarded with Ether (ETH) for their participation. ETH is the native cryptocurrency of Ethereum and acts as the driving force behind the network, fueling its operations.
The primary objective of Ethereum is to enable developers to create and deploy decentralized applications (dApps) that run on a decentralized network rather than a centralized server. These dApps have a wide range of applications, including decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and much more. The possibilities are limitless.
While both Bitcoin and Ethereum are Layer 1 blockchains, Ethereum distinguishes itself by offering a greater degree of flexibility and programmability. Unlike Bitcoin, which prioritizes maximum security through a slow and inflexible approach, Ethereum allows for more versatility in programming. This makes it a second-generation blockchain, setting it apart from Bitcoin’s first-generation design.
Despite facing competition from other platforms such as Binance Smart Chain and Solana, Ethereum maintains a dominant position. It is the market leader in programmable blockchains, hosting over 50% of liquidity across all blockchains. Moreover, Ethereum boasts the largest ecosystem of developments, dApps, and partnerships.
RoboFi is a blockchain-based DeFi platform that offers various staking services for cryptocurrencies like VICS and Ethereum (ETH). By utilizing RoboFi’s staking services, users have the opportunity to earn rewards on their staked assets.
The rewards received from staking on RoboFi are contingent upon the duration of the staking period and the specific cryptocurrency being staked. Typically, longer staking periods result in higher rewards, while shorter periods offer greater flexibility and liquidity. This flexibility allows users to select a staking strategy that aligns with their investment objectives and risk tolerance.
In addition to staking rewards, RoboFi provides users with a range of other DeFi services, including decentralized exchanges and liquidity pools. These services grant users increased access to the cryptocurrency markets and multiple avenues for earning rewards. Overall, RoboFi is a comprehensive platform that caters to the diverse needs of cryptocurrency holders, offering numerous opportunities for generating passive income through their investments.
Here’s how staking works on RoboFi:
Choose a token to stake: Start by selecting a token from the available options supported by RoboFi, such as VICS, ETH, USDT, or USDC.
Deposit your tokens: Once you’ve chosen a token to stake, deposit your tokens into the staking pool. This involves transferring your tokens from your personal wallet to the staking pool contract on the RoboFi platform.
Earn rewards: By staking your tokens, you can earn rewards in the form of ROBO tokens. The amount of rewards you earn depends on the quantity of tokens you’ve staked and the duration of your staking period.
Unstake your tokens: If you decide to unstake your tokens, you need to initiate a withdrawal from the staking pool. There is a waiting period before your tokens are released and returned to your personal wallet.
By following these steps, users can participate in staking on the RoboFi platform and potentially earn rewards based on their staked assets.
To acquire Bitcoin and Ethereum, you can explore centralized exchanges such as Crypto.com, WeBull, and eToro. Before diving into the buying process for either Bitcoin or ETH, it is crucial to conduct thorough research and compare your options. Find a reputable source that aligns with your requirements. Key factors to consider include transaction fees, trading features, security measures, and compliance with cryptocurrency regulations.
How to Safely Store Cryptocurrency
The most prevalent method of storing cryptocurrency is by utilizing a crypto wallet. Unlike traditional wallets that physically safeguard your assets, crypto wallets do not hold the coins themselves. Instead, they store the private keys required to access and manage your coins.
Your cryptocurrency remains on the blockchain, while the wallet serves as a gateway to interact with and control your digital assets. There are two main types of crypto wallets: software wallets and hardware wallets. Software wallets store your private keys online and offer a convenient way to manage your crypto. They can be accessed through various mediums such as web browsers, mobile apps, or desktop applications, as long as you have an internet connection.
On the other hand, hardware wallets are physical devices designed to store your private keys offline. This feature enhances their security compared to software wallets, as they are immune to cyber attacks like phishing and other forms of hacking. Hardware wallets are generally considered the gold standard for secure crypto storage. However, they may not suit everyone due to their limited flexibility.
Ledger stands as the global leader in the hardware wallet industry, renowned for its Ledger Nano X, Nano S Plus, and Stax hardware wallets. Trusted by millions of users worldwide, Ledger offers a secure and user-friendly experience. Both the Nano X and Nano S Plus are excellent choices, supporting over 1,000 different tokens while providing state-of-the-art security. Ledger wallets incorporate tamper-resistant Common Criteria (CC) EAL5+ certified Secure Element (SE) chips on all nanodevices, ensuring remarkable security measures.
The Stax, Ledger’s latest wallet, introduces an innovative model featuring the world’s first curved E Ink touchscreen. It caters to astute investors who seek comfortable day-to-day transaction management.
Finest Software Wallet – ZenGo
ZenGo stands as the world’s only self-custodial software wallet that operates without a private key. This unique approach eliminates the need for users to remember a complex seed phrase, providing them with peace of mind. ZenGo implements three-factor authentication (3FA) to ensure the utmost security.
ZenGo has received high praise from users globally, boasting an average rating of 4.8 on both the App Store and Google Play. Many individuals appreciate ZenGo for its user-friendly interface and versatility.
The realm of cryptocurrency holds the potential for significant returns, as evidenced by the success of Bitcoin and Ethereum. The number of individuals investing in cryptocurrency has been steadily increasing, including institutional investors who have shown growing interest in recent years.
However, it is crucial to acknowledge that investing in cryptocurrency carries inherent risks. Cryptocurrency remains highly speculative, and the implications of future regulations are uncertain. While it has the potential to reshape global financial systems, only those willing to endure the market’s potential volatility should seriously consider entering the crypto market.
Robofi is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.
VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.
I'm Carina, a passionate crypto trader, analyst, and enthusiast. With years of experience in the thrilling world of cryptocurrency, I have dedicated my time to understanding the complexities and trends of this ever-evolving industry.
Through my expertise, I strive to empower individuals with the knowledge and tools they need to navigate the exciting realm of digital assets. Whether you're a seasoned investor or a curious beginner, I'm here to share valuable insights, practical tips, and comprehensive analyses to help you make informed decisions in the crypto space.