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Best Long-Term Crypto Investments – Forbes

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Nearly every asset class has been crushed in 202…….

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Nearly every asset class has been crushed in 2022 so far. Stocks and bonds are down sharply, and gold is off by around 10%. Only cash equivalents have sustained a positive return.

None of these have seen more pain than cryptocurrency. In November 2021, Bitcoin (BTC) was close to $69,000—today, it’s around $20,700, a decline of nearly 70%. Ethereum (ETH) is down 58%.

Altcoins are no better, with Cardano (ADA) and Solana (SOL) shedding more than 70% and 55% of their value year to date, respectively.

So is there anywhere in crypto to invest right now?

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Beware the Crypto Bear Market

This year’s drawdown is only the latest in a long line of bear cycles in this highly cyclical industry. So why does this time feel so stark for cryptocurrency?

It’s worth remembering that crypto was not around for the Great Recession and the financial crisis of 2008. In fact, both events inspired Satoshi Nakomoto to launch Bitcoin in the first place in 2009.

Between then and the end of 2021, the U.S. stock market enjoyed one of the longest bull runs in history.

Cryptocurrency has grown tremendously from its earlier days, so extrapolating past price data to now is a tricky business.

What we do know from previous crypto winters is that some cryptocurrencies will cease to exist, and it’s unlikely that crypto will rise substantially until the stock market recovers.

The coins to invest in are, therefore, ones that have the strongest fundamentals, chiefly real use cases. These cryptos are most likely to survive a prolonged period of subdued buying.

Cryptocurrencies reliant on marketing and community, such as meme coins, only stand to benefit from bull market hysteria, with limited survival during downturns.

Even in the less daunting crypto winters of days gone by, many coins failed to recover from previous all-time highs. Others, of course, are gone forever, and this time will be no different.

Large-Cap Cryptos Are Safest

Similar to blue-chip stocks, the biggest cryptocurrencies will likely weather the storm the best. These coins are the …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiWmh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9pbnZlc3RpbmcvY3J5cHRvY3VycmVuY3kvYmVzdC1sb25nLXRlcm0tY3J5cHRvLWludmVzdG1lbnRzL9IBAA?oc=5

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