Cryptocurrency is a good investment if you want to gain direct exposure to the demand for digital currency. A safer but potentially less lucrative alternative is to buy shares in companies with exposure to cryptocurrencies. Many cryptocurrency investors see cryptocurrencies as a long-term investment. Some investors claim that they will never sell their cryptocurrency because they believe that cryptocurrencies will replace both gold and fiat currency.
However, cryptocurrencies have suffered from bear markets for several years, causing thousands of investors to lose 60% or more of their portfolio. In any case, Bitcoin has broken the highest prices of all time over and over again. However, the implication here is that cryptocurrency returns are inflated by survivors' bias. That is, investors tend to view the performance of existing cryptocurrencies, such as BTC or Ether, as a representative and exhaustive sample without taking into account the thousands of cryptocurrencies that have gone bankrupt.
Cardano is a long-term investment in the cryptocurrency market. If you do your research and learn as much as possible about investing in cryptocurrencies, you should be able to manage investment risk as part of your overall portfolio. The most viable method to consider adopting when investing in cryptocurrencies is a long-term buying and holding strategy. Before investing in a cryptocurrency for the long term, make sure you understand what you are investing in.
In fact, even from a mathematical point of view, long-term investment is usually more favorable than short-term investment. Although these returns are unlikely to be seen again, cryptocurrencies could outperform traditional investment markets in the near future. Make sure that the currency you are investing in has a reputable team and a solid foundation before investing. HODLing, or for HODL, is a play with the concept of “clinging” to a long-term crypto investment.
And as such, if you think that the dominance of Ethereum smart contracts won't last forever, Solana might be the best cryptocurrency to invest in for the long term. It's easy to see why it's the leader, with a much higher price and market capitalization than any other cryptocurrency investment option. For every cryptocurrency you invest in, make sure you have an investment thesis on why that currency will stand the test of time. The goal of any investment is to make you money, and cryptocurrency investments can make your money work in more ways than one.
Another great way to find the best long-term cryptocurrency investments for HODLing is to do some research into previous all-time highs. The biggest advantage of investing in cryptocurrencies than investing in cryptocurrencies is its bullish potential. If you are wondering whether or not you should HODL your cryptocurrency investments in the long term, keep in mind the key points discussed below.