5 Long-Term Cryptocurrency Investments You Can Make

Investing in cryptocurrency isn’t just about short-term gains. Many investors are looking to make long-term cryptocurrency investments, and there are plenty of different ways to do this. If you see a future for cryptocurrency, but are turned off by the daily highs and lows of the currencies themselves, then long-term cryptocurrency investments might be the right option for you.

Why Make a Long-Term Cryptocurrency Investment?

The volatility of cryptocurrencies lead many people to believe that making short-term investments is the best strategy. People pick up on all the hype, put some money in, and hope for a quick increase in the value of their coin before selling it on.

It’s that get-rich-quick mentality.

There’s no reason why cryptocurrency investments should be like this though, and for many people, it isn’t. Instead, cryptocurrency can be a long-term investment that’s carefully managed as part of a financial plan. Just like investments in stocks and shares, there are many different strategies for investing in cryptocurrency and many different ways to do it.

The most obvious reason to make a long-term investment in cryptocurrency is that you believe in the future viability of crypto itself, however there are lots of reasons beyond this. The currencies might be the face of crypto, but in the background there are opportunities to invest in associated businesses, crypto infrastructure, and the technology behind it. These investments don’t have to be boom or bust short-term investments. They can be strategic, long-term investments that insulate you from risk while allowing you to capitalize on the growth of cryptocurrency.

5 Ways to Make a Long-Term Cryptocurrency Investment

Crypto investing isn’t limited to holding cryptocurrency. There are lots of different ways to invest and many of these are viable long-term investments.

Hold Cryptocurrency Long-Term

This is the most simple method and a good option. If you believe that cryptocurrency has a big future in modern society, then holding cryptocurrency long-term as opposed to seeing it as a short-term investment is the logical thing to do.

Cryptocurrency may have had huge peaks and troughs, but if you look at it in the long-term, it’s seen consistent growth year on year. If you’re trading crypto in the short term, it’s easy to get caught out by whipsaws. However this isn’t an issue when you’re making a long-term cryptocurrency investment.

long-term cryptocurrency investment - hold currency

Many financial advisors are starting to recognize the value of long-term crypto investments as part of a financial plan. Some advisors still classify crypto as a speculative investment and only recommend investing money you can safely afford to lose, but others are taking a different approach. Many, such as Alex Mashinsky, CEO of Celsius, recommend investing around 5% of your portfolio in a high-risk asset such as Bitcoin – “I would say 5% to 15% of digital assets in general and that is up from 2% to 5%.”

Of course, cryptocurrency is a relatively new phenomenon and nothing is certain. It faces many challenges, not least, governmental regulation and its environmental impact. These issues could derail its value in the future – there are certainly respected people who expect this to happen, but we just can’t know.

If you’ve educated yourself about crypto and are convinced it’s here to stay, then it makes sense to choose a long-term cryptocurrency investment strategy and hold Bitcoin or another currency.

Invest In Businesses with Crypto Interests

Buying and selling crypto isn’t the only way to invest in the industry. If you want to gain some exposure to crypto without holding something like Bitcoin, then a good way to do so is by buying shares in publicly traded companies with exposure to cryptocurrency.

The most famous example here would be Tesla which holds 42,000 Bitcoin at an average cost of $31,700 per coin. Tesla is far from the only company with large crypto holdings though, allowing you to explore different ways to increase your exposure to crypto.

Say you do buy shares in Tesla. First off, it’s a traditional investment based on your assessment of Tesla’s business operations. What’s different is that you’re tied into Tesla’s approach to crypto. If the value of Bitcoin goes up in the long term and Tesla has maintained its holdings, then the value of the business (and your shares) is going to increase.

This is a very different approach to holding crypto long-term, but it is one way of making a long-term investment in cryptocurrency. As long as the business you invest in maintains its crypto holdings, then in some way its value is going to be intertwined with the value of cryptocurrency.

Invest in Crypto Infrastructure

Some people avoid making a long-term investment in cryptocurrency just due to its sheer complexity. Crypto is a fairly new phenomenon with complex technology and processes. When you dig into how crypto works, you’ll find a lot of companies working in the background to grow the industry. Mining companies are one of the most common examples.

Mining is the process of verifying Bitcoin transactions by solving complicated mathematical equations. Whenever a Bitcoin transaction is made, it’s packaged up in an encrypted block and miners compete to verify it.

This is a huge industry that’s gone through exponential growth.

The crypto mining industry’s fortunes might be closely linked to those of crypto, but a long-term investment in one of these companies gives you a chance to be a lot more strategic. Whereas it’s hard to know which cryptocurrencies will ultimately prevail, you can do a lot of research into the companies that provide the infrastructure that underpins crypto.

Companies that are investing in innovative technology to help crypto overcome some of its most pressing issues stand out as long-term investment opportunities. Cryptocurrencies may go up and down, but as long as these companies are expanding their presence within the industry, then your investment is going to be much more secure.

Invest In Blockchain

It’s even possible to have doubts about the long-term future of cryptocurrency itself and still make a long-term investment in crypto. That’s because the technology behind crypto – blockchain is here to stay.

Blockchain may be the backbone of cryptocurrencies, but it has far-reaching implications for many other industries as well. When you invest in blockchain companies, you are making a long-term investment in cryptocurrency. The added benefit is your blockchain investment isn’t completely reliant on the longevity of cryptocurrency.

Long-term investment in crypto - blockchain

Yes, if crypto took a big hit, then so would your investment, but it could certainly weather it. Many different industries will come to rely on this technology, which means it’s ripe for a long-term investment. If crypto continues to make big gains then you will obviously benefit, but even if it doesn’t there’s still something to fall back on.

Invest In Funds that Contain Companies with an Interest in Crypto

We’re all aware of the importance of diversifying your investment. One of the ways you can do this while still focusing on crypto is through a mutual fund or ETF.

Different funds will have investments in different companies; look for ones that are closely related to crypto. This enables you to have an investment in a wide range of companies while still being tied to crypto in some way.

It’s already possible to invest in ETFs that focus on blockchain and soon Bitcoin futures ETFs will also be available. This gives you yet more options when it comes to making a long-term investment in crypto, and is certainly an interesting proposition.

The Keys to Making a Long-Term Cryptocurrency Investment

Long-term investments in cryptocurrency should be a part of your financial plan. The volatility of crypto draws in people who are looking to 5x, or 10x, their money in a short space of time, but that’s not what this is about.

Instead, long-term investments in cryptocurrency can be seen as a way to build long-term wealth and beat inflation.

That being said, we don’t know where crypto is going and there’s still plenty of risk associated with this investment. You’ve got to be willing to lose the money, otherwise, it’s going to be even more difficult to avoid making an emotional decision and pulling your investment at the wrong time.

If you’re happy with the level of risk, then there are plenty of different ways you can make a long-term investment in cryptocurrency. Each one has its benefits and drawbacks, but the key thing is you don’t actually have to hold Bitcoin or other cryptocurrencies to do it.

In fact, investing in the infrastructure and technology behind cryptocurrency could even be the better long-term investment. With so many innovative companies working in this growing industry, there are lots of options to choose from.

Learn more about our bitcoin mining farms.