Cryptos are a popular way of investing money. The rise of Bitcoin and later Ethereum has paved the way for another type of coins, but also made a lot of people interested in those cryptocurrencies. Earning money from cryptos can be tricky, and to help you place your money in the right way, this article was conceived. We will help you choose the best long-term crypto investments.
Firstly, we will give you a short introduction to crypto-assets. After that, you can check our list of the best long-term crypto investments you could choose from. Before investing in anything, you should do your research and be careful when making any investment decisions.
What are crypto assets?
Crypto assets are digital assets which use cryptography to secure their transactions and control the creation of additional units. They are usually decentralized and are based on blockchains. As of today, there are over 1,500 different cryptocurrencies in existence, which makes investing in them a bit tricky.
Trading cryptocurrencies is a popular way of making money but it is also risky. You can lose money by investing in the wrong coins, or even see your investment vanish if something unexpected happens. The top coins are not always the winners in the long run and they may not even be good investments.
As with everything that is involved with money, there are risks when investing in cryptos. However, some are still profitable to invest in and might help you make some good money in the future. Whether it’s worth it or not depends on how much time you have and how much risk you’re willing to take.
Which are the best long-term crypto investments?
Just like stocks, there are several types of coins: utility, security, privacy, and others. Investing in cryptos is a little tricky and you might want to reconsider your options before investing a lot of money into it. The three major types of coins are Security tokens, Utility tokens, and Platform coins. Each one has its ups and downs and might not be the best long-term investment for you.
Security tokens are similar to stocks, bonds, or other securities in that they are financial investments. They give the owner shares or equity of a company through blockchain technology. The investor can then trade those tokens on stock exchanges like regular stocks. They attract many investors because they are secure and seen as a safe investment with low to no risk. However, most of them have a high entry point because they are not cheap.
In order to invest in them legally, you will need to pass some KYC (Know Your Customer) procedures since they follow regulations and laws like any other security. This means that they will require you to prove your identity before trading them online. They follow similar rules to other securities, but instead of being traded on a stock exchange, they are traded via cryptocurrency exchanges.
The main downside of security tokens is that they have high entry fees which can be hard for new investors to deal with. The upside is that they usually pay dividends for the investor which can help earn a lot of money over time. Some examples of security tokens include Polymath (POLY), Harbour (HLR), and BlockEx (DAX).
There are two types of utility tokens: user and platform. User utility tokens represent future access to a company’s product or service while platform tokens represent usage rights on the platform’s network. Platform utility tokens come with voting rights within the network and allow access to the company’s services or product at a cheaper rate than usual. Utility tokens typically have lower entry prices compared to security tokens which makes them more attractive for investors who don’t have much money available at once. Utility tokens can also be used for payment for products or services within the company’s network which makes them more valuable than platform coins.
The downside of utility tokens is that they don’t entitle their owners to ownership interests or dividends which makes them less desirable when compared to securities like stocks or bonds that do offer this feature. So far, there have been very few cases where utility tokens have paid dividends to their owners which makes them less appealing than securities. Some examples of utility tokens include ChainLink (LINK), Binance Coin (BNB), and TRON (TRX).
Platform coins are cryptocurrencies that serve as a base currency for their blockchain ecosystem (e.g., Ethereum is an example of a platform token). They allow developers to create smart contracts and build decentralized applications on top of them (dApps). When developers develop dApps on top of platforms like Ethereum, they can issue their native tokens called ERC20 tokens (Ethereum-based ERC20 tokens). Platform coins like Ethereum can also create their utility tokens which can also be used for payment within the ecosystem’s network/platform. Most ICOs issue their platform coins to raise funds for their projects, but these projects often fail due to poor planning or lack of interest from users/investors. Examples of platform coins include Ethereum (ETH), Litecoin (LTC), NEO (NEO), and Stratis (STRAT).