Store of value coin prices is meant to stay stable or increase. Store of value coins is deflationary coins. There are mainly two types of coins with expanding maximum supply and fixed maximum supply. For example, there is only 21 million Bitcoin in total and there will not be one more Bitcoin when the last Bitcoin is mined. Bitcoin price has always gone up since its creation and its ecosystem is proven that it is commonly accepted by masses and it can be trusted and reliable.
There are new blockchain ecosystems and each ecosystem has its native coin. There is no perfect coin in the market as we don’t have a perfect fiat currency in real life. Bitcoin is contradicted by many authorities because of its extreme energy consumption. People are defending Bitcoin’s energy consumption and telling that the current banking system is using more energy and Bitcoin is reducing it.
The biggest problem with blockchain networks is called Blockchain Trilemma: how to adjust speed, security, and scalability. Because when you want a faster network, you need to compromise it with security or scalability. There are main blockchain networks with different approaches to Blockchain Trilemma. Ethereum is the leading blockchain network with the highest security but less speed and transactional costs. There are Avalanche, PolkaDot, Binance Smart Chain, Cardano, Solana, Terra, etc. They all trying to solve that trilemma and all of them are very promising.
If the project (blockchain network) is good, it doesn’t necessarily mean that its native coin price will go up in long term. Scarcity is an important keyword in long-term price predictions. You should be careful if a coin has a limited or unlimited maximum supply.
Since the beginning of the first cryptocurrency Bitcoin in 2009, there are now thousands of different cryptocurrencies with different utilizations. There are different blockchains, ecosystems, protocols, Dapps, and Dexes. There are even meme coins that are created as a joke. But not all of them have a real-life use or promise to have a real-life use.
It is estimated that there are more than 15,000 cryptocurrencies in the world now. But it is also estimated that only a handful of them will last for the long term and most of them will just vanish over time.
It is very important to make sure we are investing in the right cryptocurrencies. Cryptocurrencies don’t have a long history and the market is still in its adolescence period. The general view on cryptocurrencies is that the prices will continue going up for the long term. In this article, you can find out which cryptocurrencies can be invested in for the long term. Store of value coins is a good choice for the long term if you don’t have a big risk appetite.
There are mainly two types of store value coins; stablecoins whose prices are pegged to real-life assets such as US Dollar, Euro, Gold, or precious metals, and digital coins that are created on their native blockchain and have scarcity with their supply.
Stablecoins are pegged to a real-life asset in one to one ratio. For example, USDT, USDC, and BUSD coins are always worth 1$ USD. They are created and backed with real-life assets. PAXG is a gold pegged stablecoin and its price is always equal to gold prices.
On the other hand, there are deflationary coins that have its blockchain and have limited supply. There are debates about if Bitcoin is a store of value coin or not, but after 11 years passed since the creation of Bitcoin, its price is always going up and started to take more place in our daily lives.
Luna tokens are Terra’s native tokens and it is a very promising way of a store of value cryptocurrency. Terra’s unique algorithm allows Luna to be a store of value coin. The network has its stable coins pegged to fiat currencies for example UST for US Dollar, TerraEUR for Euro, TerraGBP for sterling, TerraJPY, and for its home country TerraKRW for Korean Won.
There are many more stablecoins pegged to real-life assets such as diamonds, gold, and different country’s fiat currencies. There are also different stablecoin protocols built on blockchains such as Ardana. Since the cryptocurrency markets are too volatile, different platforms and protocols are trying to solve this problem. Chai is one of them and trying to be a future cryptocurrency payment system.
You probably have heard about if you bought 1$ of Bitcoin 5 years ago or 7 seven years ago, it could worth that much. Cryptocurrency investment is very rewarding but most of the coins haven’t proven themselves. Bitcoin and many other big major cryptocurrency prices went up too high from where they started and we might be still at the very early stage for cryptocurrencies adoption. Make your own research about different leading coins and invest at your own risk.
During the pandemic, almost all central banks in the world printed more money than ever before and we are witnessing increasing inflation rates even in developed countries. High inflation is very unfamiliar for developed country citizens. At the same time, since the pandemic started, cryptocurrency prices skyrocketed. People who invested in store of value coins before the pandemic have more profit than those who simply hold fiat currency and put it in a saving account.
The good thing about the store of value coins is you can stake or put them in a saving account and receive a passive income. Many store of value coins have a use case in their ecosystem and network. You can use those coins for the transfer of funds or governance in their network. Terra networks’ Luna is a good example for that.
You can buy store value coins on a centralized or decentralized exchange platform like many other coins. Centralized platforms allows you to make purchase of store value coins with fiat currencies such as Dollar, Euro, or Sterling. Decentralized exchange platforms requires an crypto wallet with some crypto funds. You can visit wallets or platforms pages on our website. You can choose the best platform or wallet that fits your needs.
The most store of value cryptocurrencies are not regulated and traded without a custody behind them. Invest in store of value coins at your ow risk.
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