As part of this crypto outlook 2024, I’m presenting seven cryptos for long-term investors to buy and hold for substantial gains. These cryptos present a solid mix of blue-chip coins and more speculative options. All of these coins offer great upside potential and should be considered.
There’s evidence that holding a small number of cryptos can boost risk-adjusted returns in an otherwise all-stock portfolio. This is due to the explosive growth potential of these investments, which underlines why they may be suitable for people of all risk tolerances.
So here are seven cryptos to buy.
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Often regarded as the original cryptocurrency, Bitcoin (BTC-USD) continues to hold the largest market cap. It also acts as a standard in the crypto world.
Bitcoin is perhaps the most important crypto for investors to track and pay attention to. When BTC rises, so do all other coins, and the inverse is true as well. This has an important implication. It’s one of the major trading pairs for altcoins, with altcoins being priced in BTC rather than USD.
Although the effect of the Bitcoin spot ETF may be muted, I believe that its long-term potential will be felt in time. Sooner or later, institutions will start buying BTC from exchanges. And that’s when we’ll see that indirect lift to the coin’s price.
Also, something to keep in mind is that the Bitcoin halving event is due to happen in April. Bitcoin has historically rallied before this event and afterward. In addition, its capped supply of 21 million coins makes it a great inflation hedge. A strengthening BTC price is a key thesis to my crypto outlook for 2024.
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Known for its smart contract functionality, Ethereum (ETH-USD) is a foundational blockchain that supports a vast ecosystem. ETH plugs some holes that Bitcoin can’t fill. That includes expanding its utility through decentralized applications and sophisticated smart contracts.
I’m also bullish on ETH as part of my crypto outlook 2024. The reason is that there’s an Ethereum spot ETF that is looking primed for approval in the middle of the year. However, this could happen as early as March.
It seems likely that the US SEC will approve an Ethereum spot ETF, which could be highly accretive for investors. The reason is that institutions will also need to buy ETH from exchanges once the OTC markets are out of liquidity.
However, in practice, I feel that an ETH spot ETF could offer more upside than in the case of Bitcoin. ETH’s market cap is just 33.02% of Bitcoin’s, which means there’s naturally less liquidity in the market and more potential buying pressure from institutions purchasing ETH from the exchanges.
ETH is, therefore, one of my top picks for buy-and-hold crypto investors this year and beyond.
Binance Coin (BNB-USD)
Binance Coin (BNB-USD) has various uses within the Binance ecosystem. That includes fee discounts on the Binance exchange, participation in token sales, and more.
The resilience of BNB as an altcoin is carved in stone. It’s the most successful coin ever to be launched via an initial coin offering (ICO) and is tied to the world’s largest cryptocurrency exchange.
BNB is also one of the most functional and utilitarian coins in its specific ecosystem, which offers tangible value to both users and investors. The Binance exchange has also seen a sharp recovery in its trading volume market share, reaching 49% two months after settling its case with the US Department of Justice.
Looking ahead, as the Binance exchange continues to grow, so will the value of BNB. Binance reported a growth of 40 million new users in 2023 and has also reported growth in its newer segments of payments and P2P trading. BNB is, therefore, a coin that investors should keep on their radars.
Coming up to one of my favorite altcoins is Cardano (ADA-USD), which is known for its strong focus on sustainability and scalability. It’s sometimes referred to as the “Ethereum killer” due to these properties.
ADA has a devoted fanbase. Better, enthusiasm from retail seems to be bleeding over into the developer community as well.
One way to measure the enthusiasm of the development community is via the Cardano GitHub, which has been subject to a flurry of activity. It saw a substantial 245% increase in its average daily developer activity on GitHub compared to Ethereum (ETH) over the past month. In addition, some estimates have said the ADA coin could reach $1 this year, up from 50 cents at the time of writing.
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Solana (SOL-USD) has become a popular platform for dApps, DeFi, and NFTs. The reason I’m bullish on SOL is that I believe that it will court the interest of bulls amid the halving event.
SOL currently trades far below its all-time high at just $98, which is less than half of its peak. SOL’s name was (perhaps unfairly) dragged through the mud as part of the FTX saga. Today, SOL seems like it has the potential to surge to new heights as it continues its strong price recovery, it has surged from $86 just a week ago.
In addition, there’s speculation that SOL could surge above $150. That is if it can push above the current resistance.
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Polkadot’s (DOT-USD) interoperability feature allows different blockchains to connect and share information. It’s also a major growth driver for the cryptocurrency. It’s also why I’ve been bullish on the DOT cryptocurrency.
Furthermore, one of the major challenges in blockchain technology is scalability. DOT is addressing this by allowing multiple transactions to be processed on different chains simultaneously. That can significantly improve the network’s overall capacity and transaction speeds.
Analysts have speculated that DOT-USD could reach as high as $15 as it recovers from a sharp sell-off.
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As a decentralized oracle network, Chainlink (LINK-USD) provides real-world data to smart contracts on the blockchain.
One of the most fascinating features of LINK is that it even allows for physical assets to be tokenized and fractionalized on the blockchain, such as real estate. Imagine putting the rights to your house on the blockchain and let hundreds, if not thousands of independent buyers scoop up a piece of the asset – this is the future that LINK is pioneering.
LINK also trades substantially below its all-time high and has much more room to grow amid the hype around the Bitcoin halving event. I foresee that due to its use case and ability to generate real value for its users, it will be worth far more in the future.
Some estimates see LINK reaching $18.83 by February, which is a substantial increase from $15.75 at the time of writing.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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