Crypto investors want clarity on which assets can survive multiple market cycles and how to keep more of the upside after taxes. We looked at various tokens in terms of market cap, ongoing development, adoption, and utility to put together both a list of the token a long-term crypto investors might consider as well as recommendations for a general approach to long-term crypto investing.

Note: We are tax specialists, not investment advisers. Before entering the market, you may want to discuss allocation decisions with a licensed planner. It’s always important to understand the risks involved, and tax implications, before making any investment in crypto.

Which crypto to buy today for long‑term investments

Long‑term crypto trends in 2025

Trends in crypto point to several themes shaping long‑horizon crypto portfolios and the taxes that follow:

• Staking moves mainstream. We expect to see more users staking crypto as adoption increases and investors look to maximize their returns from crypto. That shift means a larger share of crypto income is taxed at ordinary‑income rates before any capital‑gains assessment begins.

• ETFs broaden access. The launch of spot Bitcoin and Ethereum ETFs has drawn traditional investors who prefer brokerage custody and automated 1099s. Crypto will continue to become more mainstream year over year, as access widens and owning crypto becomes a normal part of an investment portfolio.

• Layer‑2 and modular blockchains gain traction. Lower fees on networks such as Arbitrum, Base, and Cosmos‑style app‑chains are pushing everyday users into multichain activity. That complexity increases the need for precise wallet aggregation and cross‑chain cost‑basis matching.

• Restaking and liquid staking derivatives rise. Tokens tied to LSTs (stETH, mSOL) and restaking protocols introduce additional income streams and potential wash‑sale questions if legislation closes existing loopholes.

• Bitcoin DeFi expands. Bitcoin is principally known as the largest crypto by market cap,

Taken together, these trends reinforce two guiding principles for investors who plan to hold crypto for years: choose assets and venues with transparent reporting, and maintain detailed records from day one to assure accurate tax reporting.

See our expert picks of the best crypto loans.

How to choose the best long‑term cryptocurrency investments

1. Understand your own risk tolerance, and look at past volatility to understand potential downside should the market see a major downturn. Meme coins and tokens with smaller market caps tend to be more volatile than established tokens like Bitcoin.

2. Look for protocols with measurable fee revenue or enterprise integrations.

3. Check developer activity through commit counts and active pull requests.

4. Favor capped or deflationary supply schedules.

5. Assess the regulatory outlook, giving extra weight to assets already viewed as credible commodities (like Bitcoin).

6. Confirm that liquidity is deep enough to exit without major slippage.

7. Ask yourself what you want to do in crypto. If you simply want to invest and hold, tokens you believe will increase in value, buy the token you believe in. If you want to engage in DeFi or earn staking yield, purchase tokens you believe will retain their value and also offer a solid staking yield.

Use our free crypto tax calculator.

Pros of investing in crypto long term

• Potential for compounding network growth

• Lower capital‑gains tax rates after a year

• Less stress compared with active trading

Risks of investing in crypto long term

• Smart‑contract or governance failures

• Regulatory rule changes

• Higher volatility can be difficult to stomach for risk-averse investors

• Opportunity cost versus traditional markets

• Potential for relatively extreme downturns and higher volatility

• If you don’t understand the tax implications of crypto in your region, you may be in for a surprise during tax season

Long‑term crypto predictions

Nobody can predict with certainty the crypto market, and we do not give financial advice. Do your own research and understand the risks involved before investing in crypto.

We do expect Bitcoin to continue to gain widespread acceptance, Ethereum becoming net deflationary as rollup usage expands, and modular data layers capturing cloud‑style fee streams while facing competition from EigenDA and Near DA.

What’s a good long term crypto strategy?

A good, conservative crypto strategy with a long time frame might look like this: dollar‑cost average into a core of BTC and ETH, keep a smaller allocation for high‑conviction infrastructure plays like SOL and LINK, and rebalance annually to manage tax brackets. Skip triple‑digit yield schemes that rarely outlast a single cycle, and avoid tokens that have historically shown high volatility (unless you intend to DCA low and sell on a spike).

A saying you’ll hear in the crypto world is: “Not your keys, not your coins.” In short, this serves as a reminder that if you hold crypto on a centralized exchange, there is always a risk that the exchange will collapse (see FTX) or have a security breach. Given the decentralized nature of crypto, a major advantage is that you can actually hold the crypto yourself with your own wallet.

See our expert picks of the best crypto wallets.

Long term capital gains tax crypto

For US taxpayers, selling crypto after a holding period of at least a year qualifies the gain for the long‑term capital‑gains brackets of 0%, 15%, or 20%, while sales inside the year are short‑term gains taxed at ordinary income rates that can reach 37%. High earners may also owe the 3.8% Net Investment Income Tax, and there are also

Learn more about the current tax rates for cryptocurrency.