-
Established cryptocurrencies seem to have a better long-term outlook compared to newer ones.
-
For newcomers to cryptocurrency investing, Bitcoin and Ethereum are sensible starting points.
-
Chainlink might become crucial for supplying data to blockchain initiatives in the near future.
-
10 stocks I like better than Bitcoin ›
If you have $500 to invest in cryptocurrencies, figuring out where to direct your funds can be challenging. Before diving into specific cryptocurrencies, it’s wise to think about how these high-risk investments fit into your wider portfolio. Ideally, you’d want to allocate just a small amount to cryptocurrencies and counterbalance that with safer assets like stocks and bonds.
Once you’ve considered that, seek out cryptos that are more established and offer practical uses. These are likely to endure in the long term.
There are a few things to keep in mind.
When I began my cryptocurrency investment journey, I found it frustrating to see lists that always led with Bitcoin. Sure, it’s the biggest and most talked-about cryptocurrency, but I was trying to discover something less mainstream that might still offer potential. Prices have seen some volatility, and many lesser-known projects have fallen apart since then.
Looking at historical price trends, Bitcoin often stands out as a solid option for long-term investors. Despite its ups and downs, it manages to bounce back and, at times, hit new highs. If you’re only going to invest in one cryptocurrency, it should probably be Bitcoin or Ethereum.
Bitcoin could serve as a fundamental component of a blockchain economy. It has gained traction among institutional investors and businesses, with some governments even considering it as part of their reserves. There’s a potential for it to act as digital gold—a safe asset against inflation—though this is yet to be completely validated.
Ethereum, the second-largest cryptocurrency by market cap, was the pioneer in introducing smart contracts, making cryptocurrencies programmable. This functionality allows developers to utilize Ethereum for creating additional cryptocurrencies, stablecoins, NFTs, and various decentralized applications.
Critics of Ethereum often mention its high fees and slower transaction speeds. Nevertheless, it has managed to maintain its leading role in decentralized finance. Reports indicate that about 60% of funds in on-chain applications are on the Ethereum network. Some businesses are exploring quicker, more affordable options like Solana, but in financial matters, trustworthiness is crucial.
A promising aspect of blockchain this year is the progress towards integrating real-world assets through tokenization, particularly with stablecoins. If companies are looking to utilize public blockchains for these ventures, Ethereum and Solana stand out as solid choices. This could pave the way for future growth.
Currently, there’s a legal framework for stablecoins in the U.S. and it’s anticipated that their issuance could rise dramatically, potentially reaching $4 trillion by 2030, up from roughly $280 billion today. The tokenization of other assets like stocks and real estate is also expected to expand over the next few years.
If you’re in search of less-known cryptocurrencies, Chainlink is one to keep an eye on. This oracle cryptocurrency is designed to supply data from various blockchains and real-world situations into decentralized processes. Smart contracts on Ethereum, which we’ve mentioned, require accurate data to function correctly.
For example, imagine a farmer utilizing a decentralized insurance contract that triggers payments based on specific weather events damaging crops. It relies on oracles to alert when those conditions are met to initiate payments. Similarly, trading tokenized stocks will require a trustworthy on-chain source for pricing information.
While Chainlink has seen a decline of 40% over the past year, it has forged partnerships with key financial institutions and the government. This cryptocurrency shows potential to support various blockchain applications and could thrive in the long run.
Many new crypto investors hesitate, concerned about the need to set up an account with an exchange and manage asset security. However, you can purchase cryptocurrency ETFs through your brokerage account, shifting the custodianship to the fund with SIPC insurance providing an additional layer of security.
The first Spot Bitcoin ETF launched in early 2024, followed by an Ethereum ETF that summer, collectively raising over $100 billion. Recently, a Chainlink ETF was introduced, giving you access to these cryptocurrencies in ETF format or through major exchanges, depending on your preference.
Before you buy into Bitcoin stocks, you might want to think about this:
According to our analysts, there are stocks they believe are likely to outperform Bitcoin over the coming years. These stocks have shown promise for notable returns.
Consider the case of Netflix, recommended back in 2004; investing $1,000 then would have turned into $556,658 today! Similarly, with Nvidia, $1,000 invested when they were first suggested would now be over $1 million.
Importantly, the average total return from our stock advisor is vastly higher than the market average, providing an edge for retail investors.
See 10 stocks »
*Stock Advisor returns as of December 1, 2025
Citigroup is an advertising partner. The Motley Fool has positions in Ethereum and Solana, and recommends Bitcoin, Chainlink, Ethereum, and Solana.
Do you have $500? 3 cryptocurrencies to buy and hold for decades
