雅虎香港財經 3 Cryptos to Buy (and Never Sell)
After a big rally at the beginning of the year, Bitcoin (BTC-USD) seems to be in a consolidation mode. I also believe that cryptocurrencies have navigated through the worst period they’re going to see in some time. Indeed, going forward, I expect some of the best cryptocurrencies to remain in an uptrend. It’s therefore a good time to consider long-term cryptocurrency investments with multi-bagger return potential.
Importantly, investors have several positives to point to, particularly in the realm of regulations. The European Union has already approved the world’s first comprehensive crypto regulation. It’s likely that other countries will follow. The advantage is that retail and institutional investors will have regulatory clarity. This will broadly encourage more investment in the crypto space.
Among other bullish factors, a Bitcoin halving is due in 2024. The cryptocurrency has surged in the past after halving events, and I think this time won’t be any different. Also, the current period of tight monetary policy is likely to end. This, combined with a weaker dollar, should boost risk assets over the medium-term.
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With that said, let’s discuss these top cryptos I think are worth buying and never selling.
Bitcoin (BTC-USD)
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As far as blue-chip cryptocurrencies are concerned, Bitcoin remains the top dog. Indeed, I think this top crypto is must for any long-term portfolio.
Bitcoin has surged by 62% for year-to-date 2023. However, Bitcoin remains significantly below all-time highs. This has led some bullish analysts to put out incredible price targets, suggesting Bitcoin could trade at $100,000 per token by the end of 2024.
It’s also worth noting that the number of crypto investors has been projected to touch one billion by 2025. Regulations are a big catalyst behind such a movement, as it gives individuals the confidence to invest. Bitcoin has a limited supply, and as the number of investors swell, the cryptocurrency should trend higher over the long-term. Potential dollar weakness is another factor that’s likely to support upside in Bitcoin over the near-term.
The Bitcoin halving in 2024 is an important catalyst for Bitcoin, at least historically speaking. Following the last Bitcoin halving, the price of Bitcoin increased by 750%. Even if BTC surges by 200% or 300%, the outlook is bright for the next 24 months.
Overall, Bitcoin is poised for multi-bagger returns from current levels. It makes sense to buy and hold the cryptocurrency for the next five years.
Ethereum (ETH-USD)
Source: shutterstock
Ethereum (ETH-USD) is another blue-chip cryptocurrency to buy and hold forever. Ethereum has almost matched Bitcoin in terms of returns on a year-to-date basis in 2023. I further believe that the cryptocurrency can outperform Bitcoin in the next five years.
There are many reasons to be bullish on Ethereum. Bitcoin’s development cycle is almost complete. However, Ethereum development, as a percentage of its roadmap, sits at around 55% after its major Merge upgrade. Ethereum has an exciting roadmap, positioning Ethereum to surge higher.
I believe that a key part of this roadmap will be various upgrades aimed at increasing the network’s transaction speeds, while subsequently lowering transaction costs. Once that’s achieved, Ethereum will have an edge over Bitcoin and several other blockchains.
Earlier, sharding was a part of the roadmap to achieve higher transaction speed. However, danksharding is likely to be implemented to make Ethereum a truly scalable blockchain. I would be betting on 5x to 10x returns with Ethereum over the next five years.
Dogecoin (DOGE-USD)
Source: Wollertz / Shutterstock
Dogecoin (DOGE-USD) really hasn’t participated in this recent cryptocurrency rally. However, I remain bullish on the meme coin because of the key backing of Elon Musk.
Without a doubt, Dogecoin has a unique advantage of having a blockchain with significantly lower transaction cost as compared to Bitcoin or Etheruem. This is a key differentiator, and a reason why Elon Musk has endorsed the cryptocurrency. Additionally, Dogecoin has more than four million holders, which makes a strong case for Dogecoin’s wider adoption as a digital currency.
I believe that Dogecoin investors are waiting for an important catalyst. Once the cryptocurrency is accepted as a payment method for Twitter, it’s likely to surge. In my view, Musk is waiting for regulatory clarity on cryptocurrencies before integrating crypto into his social media platform.
From a price perspective, Dogecoin trades around 7 cents apiece. I don’t see the cryptocurrency making new highs any time soon. However, I do think Dogecoin can surge 5x to 7x over the next five years.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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