Looking to invest in cryptocurrency for the long-term? Let’s walk through some popular options in 2026.
Disclaimer: This article does not constitute investment advice. Please consult a wealth advisor before making an investment decision.
| Cryptocurrency | Summary |
|---|---|
| Bitcoin | The world’s largest cryptocurrency, Bitcoin has been compared to digital gold. |
| Ethereum | The world’s #1 blockchain for smart contracts and decentralized apps! |
| Solana | One of the fastest smart contract blockchains, offering rapid speeds and low fees. |
| Chainlink | A decentralized oracle that bridges the gap between real-world events and the blockchain. |
| Polkadot | A solution that allows incompatible blockchain networks to communicate with each other! |
| Cardano | A smart contract blockchain with a limited supply and a research-based approach to development. |
| Avalanche | A smart contract blockchain with a unique consensus mechanism, built for speed and efficiency. |
| XRP | A cryptocurrency designed to enable fast, cross-border payments. |
| Aave | A DeFi protocol that allows users to earn interest and take out loans! |
Do I pay tax when I hold crypto for the long-term?
Simply buying and holding cryptocurrency is not subject to tax.
You only pay tax when you sell or dispose of crypto. Exchanges like Coinbase now report your crypto disposals to the IRS on Form 1099-DA. The first of these forms covered the 2025 tax year.
Looking for an easy way to report your taxes? Try CoinLedger, the platform trusted by more than 1 million investors around the world. You can generate a complete tax report in less than 30 minutes. There’s no need to enter your credit card details until you’re ready to download your tax forms!
What are the best long-term cryptocurrencies?
Let’s walk through some of the most popular cryptocurrencies to invest in for the long-term. Remember, the section below does not constitute investment advice. You should do your own research before buying and/or selling any coin!
The nine cryptocurrencies below were chosen on four things: a track record of several years, a working use case that is not just speculation, enough liquidity to buy and sell easily, and an active developer community. The list is not ranked, and it is not exhaustive. Plenty of large cryptocurrencies are left off it, including some that sit in the top ten by market capitalization.
Bitcoin
Originally launched in 2009, Bitcoin is the world’s oldest and most well-known cryptocurrency! Bitcoin is often called ‘digital gold' and is considered a hedge against inflation. As of September 2026, Bitcoin trades around $83,000 and has a market capitalization of roughly $1.7 trillion. That is well below its all-time high of about $126,000, set in October 2025.
Fixed supply: There will never be more than 21 million Bitcoin. As a result, many investors see BTC as ‘digital gold’, an asset that derives value from scarcity!
Trusted cryptocurrency: Originally released in 2009, Bitcoin is the world’s biggest cryptocurrency. The cryptocurrency has an established global community and a track record of success.
Inflation hedge: Because Bitcoin has a limited supply, many investors see it as a hedge against inflation of the U.S. dollar and other fiat currencies.
Strategic reserve: In March 2025, the US government established a Strategic Bitcoin Reserve, capitalized with bitcoin already forfeited to the government. Bitcoin is the only asset held in it.
Cons
Limited dApps: Unlike other blockchains, Bitcoin was not built to support decentralized applications and NFTs.
Ethereum
Launched in 2015 after a 2014 crowdsale, Ethereum is the world’s biggest blockchain for NFTs and DeFi protocols! As of September 2026, Ethereum trades around $2,700 and has a market capitalization of roughly $327 billion.
Decentralized apps: Ethereum is the biggest blockchain for decentralized applications and NFTs! Many investors see buying ETH as a bet on Web3 and a decentralized Internet.
Layer 2: Ethereum supports Layer 2 solutions like Optimism and Arbitrum. These Layers 2 offers fast transaction speeds and low fees!
Declining supply: The Ethereum blockchain burns a portion of transaction fees. This means that Ethereum’s supply could decrease over time, which could lead to an increase in price!
Digital Asset Stockpile: ETH is not held in the Strategic Bitcoin Reserve, which holds bitcoin only. Non-bitcoin assets forfeited to the US government sit in a separate Digital Asset Stockpile, and the government is not authorized to buy more without new legislation.
Cons
Competition: Many blockchains have been created to compete with Ethereum. Examples include Cardano, Solana, and Polkadot!
High fees: Ethereum has been criticized for having higher transaction fees than competitors.
Lagging price growth: In recent years, Ethereum has seen slower price growth than competitors.
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Solana
Solana is one of the fastest-growing smart contract blockchains. As of September 2026, Solana is one of the ten largest cryptocurrencies, trading around $119 with a market capitalization near $70 billion. In recent years, it’s seen more price growth than Ethereum!
Pros
Fast speeds: Solana offers some of the fastest speeds on the market, with up to 2,600 transactions per second.
Growing user base: Solana’s user base has been growing rapidly in comparison to competitors like Ethereum.
Upcoming upgrades: Solana’s upcoming Firedancer upgrade may make the blockchain’s speeds as rapid as 1 million TPS.
Digital Asset Stockpile: SOL is not held in the Strategic Bitcoin Reserve, which holds bitcoin only. Non-bitcoin assets forfeited to the US government sit in a separate Digital Asset Stockpile, and the government is not authorized to buy more without new legislation.
Cons
Centralization: Critics have said that Solana sacrifices decentralization for speed. Solana has roughly 780 active validators, and it would take about 19 of them acting together to halt the network.
Chainlink
Chainlink is a decentralized oracle that allows users to create smart contracts based on real-world events. Chainlink can potentially be used to verify identity on the blockchain, manage supply chains, and even gamble on sports matches!
Pros
Use case: Chainlink supports a unique use case! As blockchain technology enters the mainstream, it’s likely that an oracle solution like Chainlink will be needed to bridge the gap between on-chain and off-chain events.
Partnerships: Chainlink has partnered with financial institutions like Euroclear, BNY Mellon, and Swift. Chainlink allows these institutions to make their platforms interoperable with the blockchain!
Trust: Chainlink is a trusted cryptocurrency project. Chainlink has partnered with more than 2,400 projects and has enabled more than $34 trillion in transaction value.
Cons
Competition: In recent years, other blockchain projects have created their own decentralized oracles. While Chainlink still has a dominant position, it faces increased competition.
Stagnation: LINK reached its all-time high in 2021. As of September 2026, LINK trades around $14, far below that peak.
Polkadot
Polkadot is a cryptocurrency project that allows incompatible blockchains to interact with each other. Many investors believe that Polkadot may be essential architecture in a multi-blockchain future!
Pros
Unique use case: Polkadot makes it easy to connect unrelated blockchains and even create new blockchains! Some investors believe that Polkadot could form the foundation of Web3 in the future.
Fast transaction speeds: Polkadot offers fast transaction speeds compared to other blockchains! Currently, the blockchain can process up to 1,000 transactions per second due to its unique architecture, where parachains process transactions in parallel.
Staking rewards: You can stake DOT from your own wallet to earn rewards. Following the March 2026 issuance cut, the nominal staking yield is around 5%, well below the double-digit rates Polkadot paid previously.
Cons
Increasing supply: DOT, Polkadot’s cryptocurrency, is inflationary, though less so than it was. Polkadot cut annual issuance in March 2026 and introduced a hard supply cap, which puts inflation at roughly 3% a year.
Price decline: As of September 2026, DOT trades near $1.17, with a market capitalization of roughly $2 billion. That is far below its 2021 high.
Cardano
Cardano, like Ethereum, allows users to interact with decentralized protocols and NFTs. Cardano was founded by Ethereum co-founder Charles Hoskinson, who wanted to create a new and improved blockchain for smart contracts.
Pros
Peer reviewed: Cardano prides itself on using peer-reviewed research for all changes and enhancements.
Tokens built on Layer 1: Unlike blockchains like Ethereum, Cardano-based tokens and NFTs aren’t created via smart contracts. Instead, they are built on the same architecture as the Cardano blockchain. This leads to lower fees and more secure transactions!
Low inflation: ADA’s measured supply growth has been running near 2% a year. Under Cardano’s published monetary schedule, that rate falls close to 0% by 2050.
Digital Asset Stockpile: ADA is not held in the Strategic Bitcoin Reserve, which holds bitcoin only. Non-bitcoin assets forfeited to the US government sit in a separate Digital Asset Stockpile, and the government is not authorized to buy more without new legislation.
Cons
Slow upgrading: Because Cardano has taken a peer-reviewed approach to upgrades, the blockchain does not release enhancements as frequently as some of its competitors!
Adoption: Due to its research-based approach to development, Cardano has lagged behind competitors when it comes to releasing features like smart contract functionality. As a result, Cardano does not have the same amount of adoption as its competitors.
Price decline: As of September 2026, ADA trades around $0.24, with a market capitalization near $9 billion.
Avalanche
Like Ethereum, Avalanche gives users the ability to interact with decentralized protocols and NFTs. Originally launched in 2020, Avalanche is now one of the world’s biggest blockchains!
Pros
Support: Avalanche supports NFTs and DeFi and is EVM-compatible, meaning that it’s easy to port assets from the Ethereum blockchain.
Tokenomics: Avalanche’s supply is capped at 720 million. In addition, transaction fees are burned so that supply decreases over time!
Fast finality: Avalanche uses a unique consensus mechanism called Snow, which finalizes transactions in about a second.
Cons
Competition: Avalanche faces fierce competition from other smart contract blockchains.
Price decline: As of September 2026, AVAX trades around $10, with a market capitalization near $5 billion.
Centralization: 31% of Avalanche’s original supply was distributed to investors, the Avalanche team, and advisors, raising concerns about centralization.
XRP
XRP is a cryptocurrency created by Ripple. XRP was designed for the specific purpose of enabling faster, cross-border transactions. As of September 2026, XRP trades around $1.50 and has a market capitalization of roughly $94 billion, which makes it one of the largest cryptocurrencies by market value.
Pros
Use case: While cross-border payments typically take days, XRP can settle these transactions in seconds.
Partnerships: XRP has partnered with prominent financial institutions like Santander and Bank of America.
Regulatory situation: For years, XRP faced scrutiny from the SEC for being an ‘unregistered security’. That litigation ended in 2025.
Digital Asset Stockpile: XRP is not held in the Strategic Bitcoin Reserve, which holds bitcoin only. Non-bitcoin assets forfeited to the US government sit in a separate Digital Asset Stockpile, and the government is not authorized to buy more without new legislation.
Cons
Price decline: XRP reached its all-time high of $3.65 in July 2025. It has fallen well below that level since.
Centralization: Critics have said that XRP is relatively centralized, with its parent company Ripple Labs owning a large stake.
Aave
Aave is an Ethereum-based DeFi protocol that allows users to take out cryptocurrency loans and earn interest! Unlike centralized lenders, Aave isn’t controlled by any one company, instead, it’s owned by holders of the Aave token!
Pros
DeFi: Decentralized finance protocols like Aave allow users to make loans and transactions without the need for financial intermediaries like banks. Aave can be a good investment option if you’re bullish on the future of DeFi.
Governance benefits: Owning Aave tokens allows you to vote on governance decisions and the future of the protocol.
Trust: Aave is one of the most trusted protocols on the Ethereum blockchain. As of September 2026, roughly $19 billion is locked on the Aave protocol.
Cons
Price decline: Aave reached its all-time high in 2021. As of September 2026, AAVE trades around $147, with a market capitalization near $2.3 billion.
What is a long-term cryptocurrency investment?
Investing in cryptocurrency for the long-term means buying and holding cryptocurrency for long periods of time, as long as years or even decades!
If you’re investing in cryptocurrency for the long-term, it’s likely that you believe that the crypto you’re holding has utility and will attract users in the years to come.
What are the benefits of long-term cryptocurrency investments?
Let’s walk through some of the benefits of long-term cryptocurrency investments.
Build wealth over time: Investing in cryptocurrencies for the long-term can be a good option if you’re looking to build wealth over time. However, it may not be the best option if you’re looking for short-term profits!
Less active management: If you’re trading cryptocurrency in the short-term, you’ll need to actively keep an eye on a cryptocurrency’s price. In contrast, buying and holding crypto for the long-run does not require you to actively watch the market.
Potential for high rewards: Compared to other types of capital investments, cryptocurrency has the potential for a large return! For example, $1,000 of BTC bought in mid-2010 would be worth roughly $1 billion today.
Which crypto has 1000x potential?
It’s unlikely that large and established cryptocurrencies will increase in value by 1,000x.
For example, it’s difficult to imagine Bitcoin increasing in value by 1,000x when its market capitalization is already roughly $1.7 trillion.
The cryptocurrencies with the most potential for growth are those with the smallest market caps. However, these cryptocurrencies typically are less established and have greater chances of failure.
If you’re trying to spot a project with high-growth potential, you should stay cautious of potential scams and do your best to balance risk and reward.
What is the best cheap crypto to buy now?
It’s important to remember that you can get started investing in cryptocurrencies like Bitcoin and Ethereum with just a few dollars! Cryptocurrency exchanges give users the ability to buy small amounts of cryptocurrency.
If you’re looking to buy cryptocurrencies with a smaller market capitalization, you should exercise caution. As noted earlier, smaller cryptocurrencies are often more likely to fail.
How to choose the best long-term cryptocurrency investments for your portfolio
Here are a few tips to keep in mind when you invest in cryptocurrency for the long-term!
Understand value
Before you invest in a cryptocurrency, it’s important you understand where the value of the cryptocurrency comes from. You should understand utility and potential use cases. For example, Bitcoin’s value comes from its security, its limited supply, and its widely recognized reputation as ‘digital gold’.
Recognize risk
Before you invest, it’s important to keep in mind the potential risks underlying your cryptocurrency investments. It’s important to remember that the crypto market is still relatively young, and that assets can be extremely volatile. If you’re not in the position to ride out highs and lows, long-term crypto investing may not be right for you.
Research your cryptocurrency
Before you invest in a cryptocurrency, you should take time to understand the cryptocurrency’s approach to tokenomics, security, and its potential use cases. Stick to reliable sources and get a sense of the project’s reputation within the crypto community. Remember, if something sounds too good to be true, it probably is.
Tips for investing in crypto
Here are a few tips to help you stay safe while investing in crypto.
Decide how much to invest
Before you get started investing, you should plan how much you want to invest in cryptocurrency. This may be a lump sum or a percentage of your monthly income. Generally, you should never invest more than you can afford to lose.
Find a cryptocurrency exchange
If you’re getting started investing in crypto, you should find a trusted exchange that allows you to buy and sell cryptocurrency. For more information, check out our list of the best cryptocurrency exchanges.
Watch out for scams
Unfortunately, scams are rampant in the cryptocurrency space. You should do research to make sure that the cryptocurrency you’re investing in has an experienced and trustworthy team and that the project has a good reputation within the community.
Use a hardware wallet
A hardware wallet like Ledger is a great option if you’re planning to hold your cryptocurrency for the long-term. Hardware wallets store your private keys offline, protecting you from potential hacks!
Do I have to pay taxes for investing in crypto?
It’s important to remember that cryptocurrency investments are subject to tax.
When you dispose of your cryptocurrency at a profit, you’ll pay capital gains tax depending on how the price of your crypto has changed since you originally received it.
Want to estimate your tax bill from your crypto investments? Check out our free crypto tax calculator!
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