2 Top Cryptocurrencies To Buy And Hold Forever

In the crypto market, it can be much more difficult to be a long-term investor than in the equity market. There is simply so much volatility on a daily basis that it can be hard to distinguish between the signal and the noise.

As a result, it can be much tougher to hold on to certain investments when the market starts to turn south -- or to avoid the temptation to take profits when the market heads north.

The good news, though, is that there are two cryptocurrencies that you can buy and hold forever: Bitcoin (BTC -3.97%) and Ethereum (ETH -5.25%). Both have established track records and strong growth prospects.

1. Bitcoin

There's a good reason Bitcoin remains the No. 1 cryptocurrency in the world more than a decade after it was created. Despite the many ups and downs of the crypto market, Bitcoin has always rebounded stronger than ever. Back in May 2010, you needed 10,000 bitcoin to buy two large pizzas. And 12 years later, a single bitcoin is worth over $22,000.

It looks like there is no other investment that you can make right now that will increase in value over time like Bitcoin. According to some investors, like ARK Invest's Cathie Wood, the price of Bitcoin might eclipse $1 million, so there could be plenty more upside to go.

For good reason, then, crypto enthusiasts refer to Bitcoin as "digital gold." It is a store of value that you can count on, regardless of what happens to the broader market. While the latest correction in the crypto market has tested some investors' faith in the digital gold thesis, Bitcoin remains one of the best possible hedges against market volatility.

In part, this is due to the inherent diversification of Bitcoin, a truly global cryptocurrency. As nations around the world embrace crypto, it is going to remain very much a part of the global economic growth story. El Salvador, for example, became the first nation in the world to make Bitcoin legal tender in 2021. And now the country is extending its embrace of the digital token even further, with innovations like Bitcoin tourism initiatives for coastal regions looking to attract new revenue.

And this pattern is being replicated around the world. In April, the Central African Republic became the second nation to make Bitcoin legal tender. The digital currency is a way to unlock economic potential on a global scale. So when you invest in it, you are really investing in the future economic growth of the world.

2. Ethereum

If Bitcoin is digital gold, then Ethereum is digital oil. Ether, the native token of the Ethereum blockchain, is the fuel that powers the modern blockchain world.

Think of the great innovations from the world of blockchain and crypto, like smart contracts, non-fungible tokens (NFTs), and decentralized applications. All of them originated on the Ethereum blockchain. That is why many investors refer to the utility of Ethereum. It is a cryptocurrency with real-world uses for individuals and businesses.

The true value of Ethereum derives from everything that is being built on top of the Ethereum blockchain. In the lingo of crypto, Ethereum is a Layer 1 blockchain, meaning that people can build on top of it, like Lego blocks. Everything that gets built on top of Ethereum gets to use the core infrastructure and security of Ethereum for processing transactions and storing information. This is why so many people are building games, metaverse worlds, decentralized exchanges, and decentralized apps on Ethereum.

So if you buy and hold Ethereum, then you are benefiting not just from the inherent value of Ethereum as a blockchain network, but also from all the accumulated value of what developers and entrepreneurs can think of to do next.

When Ethereum founder Vitalik Buterin dreamed up his vision for Ethereum, he had no idea that people would be creating NFTs one day. Even when developers created the ERC-721 token protocol that made NFTs possible, Buterin probably didn't realize the enormous value that his blockchain would eventually unlock for brands, creators, and artists.

Thus, by investing in Bitcoin and Ethereum, you are investing in the future. Both cryptocurrencies are worthy of buying now and holding for the long term. While meme coins might come and go, Bitcoin and Ethereum will continue to be a core part not just of crypto's future, but also the world's future.

This article originally appeared in The Motley Fool.

Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.