Got $500? 1 Cryptocurrency to Buy and Hold for Decades

There are only a handful of high-market-cap cryptocurrencies that have been around a decade or longer. These include Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Litecoin (CRYPTO: LTC), Dogecoin (CRYPTO: DOGE), and XRP (CRYPTO: XRP).

Of these, the clear top choice is Bitcoin. It's the one cryptocurrency you can confidently buy and hold for decades, and here's why.

Bitcoin's track record

If you're looking at the day-to-day volatility of Bitcoin, you're doing it all wrong. Instead, it's far better to look at the long-term track record of Bitcoin.

Ever since its launch in 2009, Bitcoin has been one of the best possible investments you could make. Incredibly, Bitcoin has only had three losing years in its history. In every other year, Bitcoin has soared in price.

In fact, the "worst" bull market rally came in 2015, when Bitcoin "only" gained 36% for the year. In other years, Bitcoin has routinely delivered triple-digit returns to investors. In the period from 2017 to 2025, Bitcoin grew at a compound annual growth rate (CAGR) of 50%.

While it might be unrealistic to assume that Bitcoin can continue to grow at a CAGR of 50%, plenty of investors think it will continue to do so. Conventional wisdom right now is that Bitcoin will hit a price of $1 million within the next five years. That implies a CAGR of nearly 60%.

A rising pace of institutional adoption

At one time, the number of use cases for Bitcoin was relatively limited. Even though it was launched as a peer-to-peer electronic cash system, Bitcoin has never seen a lot of usage as a medium of exchange. When was the last time you paid for anything with Bitcoin?

Image source: Getty Images.

The good news, though, is that the number of use cases for Bitcoin has grown markedly over the past few years. Cathie Wood of Ark Invest has highlighted eight core use cases for Bitcoin, including its ability to act as a store of value. Put another way, Bitcoin is now viewed as "digital gold" by some investors. It's the place you put your money if you are concerned about macroeconomic weakness or geopolitical tension.

Over the next decade, the number of possible use cases for Bitcoin is likely to grow. That's especially the case now that the U.S. government has designated Bitcoin a "strategic" asset and created a Strategic Bitcoin Reserve to accumulate Bitcoin in the future.

At the same time, Wall Street banks and top financial institutions continue to look for ways to integrate Bitcoin into the global financial system. In a very simple use case, Bitcoin will be used as collateral for different credit and lending products. In more complex use cases, entirely new financial instruments will be created, including Bitcoin bonds. All of this speaks to the rising pace of institutional adoption for Bitcoin.

How to put $500 to work in Bitcoin

One way to invest in Bitcoin is by purchasing it directly in the crypto market, typically via a major cryptocurrency exchange. But you could just as easily invest in one of the spot Bitcoin exchange-traded funds that launched in January 2024. The most popular of these is the iShares Bitcoin Trust (NASDAQ: IBIT), which has $75 billion in assets under management.

Or you can take a look at the dozens of other Bitcoin ETFs that exist right now. All told, there are 67 Bitcoin ETFs available to trade. Not all of them, of course, are spot Bitcoin ETFs. Some are leveraged ETFs that use derivatives to maximize returns. Others are even more exotic. So buyer beware.

If I were investing $500 in Bitcoin today, I'd opt to buy 10 shares of the iShares Bitcoin Trust, which is currently trading around $50. Then, over time, I'd look to dollar-cost average (DCA) into Bitcoin, buying $50 or $100 worth of Bitcoin at regular intervals.

Just keep in mind: Bitcoin should be viewed as a long-term, buy-and-hold investment, and not a short-term speculative asset. As long as you keep that perspective, you can buy Bitcoin and hold it for decades.

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