2 top cryptocurrencies to buy and hold for decades

Bitcoin and Ethereum trade at attractive discounts to their all-time highs.

| More on:
Blue and white Bitcoin logo.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Bear markets aren't fun. But despite the near-term pain, these challenging market conditions create an opportunity for investors to acquire industry-leading assets at a discount to their previous highs. Let's explore why Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) could make great ways for investors to bet on a long-term crypto rebound. 

1. Bitcoin 

With a current price of $30,100, Bitcoin is down 56% from its all-time high of roughly $68,800, reached in November 2021. But this dip could represent a good entry point for investors, because the iconic asset's long-term bull thesis as an increasingly trusted store of value remains intact. 

Never underestimate the power of a first-mover advantage. It gives an entity name recognition, which can translate into trust and staying power. And after the high-profile meltdown of Terra/Luna (a $40 billion blockchain that collapsed 99% after its complex stablecoin algorithm failed), Bitcoin looks even more appealing. Its relatively simple design and 13-year track record make it ideal for investors who want a reliable place to keep and potentially grow their wealth without all the frills. 

Bitcoin's strong brand has also earned it institutional interest from organizations such as the derivatives marketplace CME Group, which offers Bitcoin (along with Ethereum) futures. Institutional investment can help improve the liquidity of the Bitcoin market, and possibly reduce its volatility relative to more speculative and illiquid cryptocurrencies

2. Ethereum

As the second-largest cryptocurrency with a market cap of $223 billion, Ethereum enjoys much of the same trust and brand recognition that gives Bitcoin its staying power. But the asset's utility and ambitious development roadmap will give it a long-term edge over rivals. 

Unlike Bitcoin, which primarily serves as a way for people to store and transfer wealth, Ethereum boasts a much broader use case. The blockchain is optimized to support autonomous programs called decentralized applications (dApps), which use smart contracts to offer services on the blockchain. And it is the undisputed leader in this category, hosting almost 3,000 of the roughly 4,000 projects. 

To keep up with demand, Ethereum's developers are implementing an ambitious upgrade called The Merge, which will transition Ethereum from a proof-of-work consensus mechanism where miners solve puzzles to verify transactions and mint new coins to a proof-of-stake where users can verify transactions by locking up or staking' existing coins in return for new ones.

The first step in this process is expected to go live in August, reducing Ethereum's energy consumption by over 99% and opening the door for more changes to improve the platform's speed and scalability. 

Get greedy when others are fearful

It's tempting to buy when prices are rising and sell when they are falling, but investing legends like Warren Buffett recommend doing the opposite. Buying during a bear market allows you to get in cheaper and capitalize on the potential recovery. Bitcoin and Ethereum's industry leadership and active development could make them top picks for investors who want to get greedy when others are fearful.   

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum and Terra. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

More on International Stock News

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
International Stock News

If you invested $10,000 in Nvidia stock the day ChatGPT came out, this is how much you'd have today

Buying Nvidia when the disruptive AI chatbot launched would have been a smart move.

Read more »

A Tesla car driving along a road at sunset
International Stock News

Why Tesla stock was climbing today

Investors were encouraged by news of a price hike on the Model Y.

Read more »

Plate with coloured wedges being parcelled out like a slice of pie representing a share split
International Stock News

Stock-split watch: Is Nvidia next?

Nvidia last split its stock when it traded for a pre-split $744 in 2021.

Read more »

A woman in jeans and a casual jumper leans on her car and looks seriously at her mobile phone while her vehicle is charged at an electic vehicle recharging station.
International Stock News

1 Wall Street analyst thinks Tesla stock is going to $125. Is it a sell?

Tesla is no longer a magnificent stock, according to a Wells Fargo analyst.

Read more »

A young man goes over his finances and investment portfolio at home.
International Stock News

Is Nvidia stock a buy?

The company's stock could rise 40% over the next two years and outperform the S&P 500.

Read more »

Man with hands in the middle of two items with money bags on them.
International Stock News

Is Nvidia headed for a stock split?

Nvidia stock has split five previous times in the company's history.

Read more »

Digital rocket on a laptop.
International Stock News

Nvidia shares surged (again) today. Is it too late to buy the red-hot artificial intelligence (AI) growth stock?

Nvidia stock has gained nearly 300% over the past year. Can investors still profit from this AI stock?

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Can you buy Nvidia shares on the ASX?

This stock has rocketed higher. How do we get access to it?

Read more »