3 Cryptocurrencies to Buy and Hold Forever – The Motley Fool | Jewelry Dukan

It’s been a tumultuous year for crypto, with prices falling dramatically year-to-date but recovering this summer. Massive catalysts that will permanently change the second largest cryptocurrency and the crypto world have arrived. With all of this in mind, it’s a good time to keep a long-term perspective and look at three top cryptocurrencies to buy and hold forever.

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1. Ethereum

the merging, Ethereum (ETH -1.45%) The long-awaited transition from proof-of-work consensus to proof-of-stake was completed last week.

While it has become a common misconception that The Merge will speed up transactions on the Ethereum network and reduce fees, there will be other benefits. The move to Proof-of-Stake will allow more Ethereum holders to participate in the network’s rewards as they can now stake their Ethereum to earn a reduction in transaction fees. While holders have 32 Ethereum and must meet several other requirements in order to do so, there are many third-party services like coin base (COIN -4.18%) Allow customers with smaller amounts of Ethereum to invest their Ethereum in staking pools to earn interest. Coinbase currently pays out a 3.25% annualized return on staked Ethereum.

The merger will also drastically reduce Ethereum’s carbon footprint as power-hungry mining machines will no longer run day and night to produce Ethereum blocks. Some sources estimate that before the merger, Ethereum’s energy consumption was equivalent to that of a country like Chile. Experts predict that moving to Proof of Stake will reduce this energy intensity by over 99%, which is a big deal for the planet and for investors who may now feel more comfortable investing in Ethereum.

The great thing about holding Ethereum for the long term is that while The Merge is a big deal, Ethereum developers are not stopping. Vitalik Buterin, co-founder of Ethereum, estimates that the blockchain will only reach 55% of its potential after The Merge. The merger paves the way for sharding, which involves splitting the blockchain into many chains to reduce network congestion, which should eventually help improve speeds and reduce fees once fully implemented. The progress so far and future ambitions make Ethereum, the second largest crypto by market value, an asset to buy now and hold forever.

2. Bitcoin

While all eyes were on Ethereum prior to The Merge, Bitcoin (BTC -0.46%) has recovered quietly, gaining about 15% since hitting its cycle low of $17,664 in mid-June.

Post The Merge, Bitcoin, the #1 cryptocurrency by market value, will top the crypto world alone as the most important proof-of-work asset. Bitcoin proponents see Bitcoin’s Proof-of-Work consensus as more secure than Proof-of-Stake and believe The Merge will improve Bitcoin’s image as a secure decentralized network. I believe that both Proof of Work and Proof of Stake have their own merits, and I consider owning both Bitcoin and Ethereum to be the most sensible approach for investors.

Some have questioned bitcoin’s status as an inflation hedge, as bitcoin’s price has fallen this year in part due to rising U.S. inflation. However, it is important to remember that Bitcoin is a global network with users all over the world. Despite its decline this year, it still represents a viable and accessible safe haven for individuals in countries with rampant long-term inflation, such as Turkey and Venezuela. The maximum supply of 21 million bitcoin is an attractive feature in a world where governments are printing increasing amounts of currency, reducing the purchasing power of the existing currency in the process. I don’t know if Bitcoin’s price will be higher or lower in a week’s time, but I feel good about owning it as a potential hedge against future inflation and believe all investors can benefit from even a small amount in to own their portfolios.

3. Raven Coin

With a market cap of $530 million and ranking 71 in terms of market cap Raven Coin (RVN -4.80%) is much smaller and less established than Bitcoin or Ethereum. There is therefore a higher level of risk in investing in Ravencoin, but there are also significant benefits. Unlike Bitcoin and Ethereum, which have price points in the thousands of dollars, you can buy Ravencoin for only around $0.06. Ravencoin has had a brilliant performance this summer, gaining more than 50% in the last 30 days alone.

Ravencoin’s summer surge is due to it being a proof-of-work crypto that can be mined using GPU (Graphics Processing Unit) mining devices. All GPUs mining Ethereum had to go somewhere after the Ethereum merger, and Ravencoin is one of the most attractive targets. Ravencoin hash rate has skyrocketed, suggesting that miners have already switched to Ravencoin.

A short-term catalyst is all well and good, but that’s why Ravencoin is much more than just a short-term trade. Ravencoin was created with the aim of allowing individuals to create their own tokens. Users can burn 500 Ravencoin and create their own token that represents a real-world asset. An example of how this could be useful is in real estate tokenization. A property owner could use Ravencoin to tokenize an investment property and split it into 100 parts. This would give real estate investors significantly more liquidity than today and lower the barriers to entry for real estate investments.

Bitcoin, Ethereum, and Ravencoin are all good choices to buy now and hold forever. Cryptocurrencies are volatile and are best suited for risk-tolerant investors. For these investors, buying the top cryptocurrencies now while the market is uncertain is a move that could pay off in the long run.

Michael Byrne has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool has a disclosure policy.

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