Is crypto a good long term investment. The answer is yes and no depending on your choice of coins.
Some will stand the test of time others will bite the dust
Your investment strategy for trading crypto.
First of all I am not a resident expert nor providing investment advise. However I am a successful investor and have a deep seated belief in the Block Chain technology.
My first advise is to stay in the top 50 coins while avoiding meme coins that are pumped by market players.
Dodge Coin and Shiba Inu are meme coins and are basically for those that love risk adventure. However they are not a long term product.
Bitcoin has half the total market value of all crypto products
Having so much value speaks volumes for the product. Bitcoin was set up to monetise Blockchain and is the only whole coin. All the others are Alt coins.
The most dominant factor is supply / demand. In this case there are a limited amount of Bitcoins available and that supply can never be increased.
As a store of value Bitcoin is rated against Available Gold the original Fiat backer. Gold has a market value of around nine trillion dollars and has seen little growth over the past decade.
Bitcoin as I write is about $1.07 trillion total market with a coin value at around us$56,000.
Therefore to equal Gold Bitcoin must reach nearly $500,000 a coin at target set for 3-5 years from now.
Taking this a step further if Bitcoin was to just double every year, as the past indicates.
|Market value at $ 65,000||Year 2012 finish|
|double is $130,000||Year 2022|
|Then to $ 260,000||Year 2023|
|Finally $ 520,000||end of year 2024|
James from Invest answers recommends Bitcoin as the safest and best long term prospect.
You need to ride the dips and gains
When you set a term timeframe the dips and gains are not really significant. They are part of life and to be expected along the way.
When the temptation to day trade takes you look forward to an end return and forget the impulse. You are a Hodler not a player.
What follows Bitcoin in the best value
Certainly Etherium is the next biggest with a Market cap of us$536 Billion or about 8% of a full Bitcoin
This is often termed the coin killer and likely to become as valuable as Bitcoin.. Even if it remains at 8% that is a 10x in the next four years which is a great return.
Advisor Raul Paul has all his eggs in this basket to be the ultimate winner.
Two similar coins are Solana ( Sol) and Cardano (ADA) which are also crowd favourites. Either one of these could reach a value equal to Etherium in the future. Solana currently showing the best prospects for long term investment
Fastest moving coins that have value
These are the ones we all crave and I am sorry because the future is hidden. Delaying my entry into Bitcoin was a very expensive decision so I have realised there is no time like the present.
However having a small bet can sometimes pay off. We all want these so look for a few important ingredients
- Price history, buy low not high
- Industries that support what they do
- Do they really achieve something
- What is the value based on
One at the moment is Fantom.
Given its transaction speeds and the advanced smart contracts platform it offers, Fantom could be a solid cryptocurrency investment. The price has dipped since its all-time high, and it still has a much smaller market cap than some of its main competitors.6 Oct 2021Fool.com
At $2.10 at time of writing it is well below its high.
The Fantom Foundation is building a highly scalable blockchain ecosystem that facilitates decentralized, scalable, and secure technologies.
Tread your own path.
This is a great tool with ETORO a company that has been operating since 2007.
With this asset you follow experienced traders that have a track record of success.
Your funds are with ETORO however you copy trade with an expert.
You can trade all sorts of assets and it is one way to get a feel for the market.
Certainly long term investing is easy when in the hands of an expert.
A virtual portfolio
This is a great way to practice in the market. Your dummy portfolio is managed exactly like real trading however no funds are involved.
You can buy and sell, swap, change and even loose without risking a cent.
If ever you are unhappy with the results you can change horses mid race.
Using more than one trading platform
With over 9000 alt coins they are shared between a range of brokers. Therefore you may need to use more than one at any time.
It is imperative that you keep track of your investments because you are the only one in control..
Using a range of brokers means that investment details need be closely monitored as they could be lost.
Can your investments be hacked
It has happened and probably will again. it is recommended you keep all details secure on a Ubikey
A private key is a sophisticated form of cryptography that allows a user to access their cryptocurrency. A private key is an integral aspect of bitcoin and altcoins, and its security makeup helps to protect a user from theft and unauthorized access to funds.Investopedia
Follow the experts
I like Michael Saylor, Raul Paul, Kathy Woods from Ark investments, James from Invest Answers who all chart the growth and understand what is happening. They are all generally bullish in the market for long term growth.
Interest rates are so low that there must be somewhere better to put some funds. Property is leaving us behind and shares are hit by inflation . Therefore is Crypto market a saviour for us all.
It has risks and high returns so it is in my long term investment portfolio.