Got $500? 3 Cryptocurrencies to Buy and Hold for Decades

If you've got $500 to put into cryptocurrencies, it can be hard to know where to start. Before you even think about choosing individual cryptos, think about how these high-risk assets fit into your wider portfolio. The idea is to only include a small percentage of crypto and balance it out with a mix of less-risky assets, including stocks and bonds.

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Once you've done that, look for cryptocurrencies that are already relatively established and have real-world utility. These are more likely to survive long term.

Here are three to consider.

1. Bitcoin

When I first started investing in cryptocurrencies, I got frustrated with lists like these that started with Bitcoin (CRYPTO: BTC). It's the biggest and best-known crypto out there, and back then I wanted to find under-the-radar projects that still had the potential to go to the moon. Since then, I've seen prices plummet, and some of those lesser-known projects have collapsed completely.

A look at historical prices shows that Bitcoin is one of the best choices for long-term investors. It is still volatile, but it's always erased its losses and gone on to reach new highs. If you only hold one cryptocurrency, make it Bitcoin or Ethereum (CRYPTO: ETH).

Bitcoin has potential as the backbone to the on-chain economy. It is already attracting increased institutional and corporate investment, and some governments have added it to their reserves. Another area where Bitcoin may stand out is as a form of digital gold -- a safe asset that may offer a hedge against inflation. It has yet to prove itself in this regard, but it may do so as it continues to mature.

2. Ethereum

Ethereum is the second-biggest crypto by market capitalization. It was the first crypto to introduce smart contracts, which are what make cryptocurrencies programmable. Smart contracts allow developers to use Ethereum's ecosystem to build other cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and a host of decentralized applications.

Critics point to Ethereum's high fees and relatively slow transaction times. That hasn't stopped Ethereum from retaining its dominant position in decentralized finance. According to DefiLlama, almost 60% -- more than $70 billion -- of the funds in on-chain applications are on the Ethereum network. Some are turning to faster, lower-cost cryptocurrencies like Solana (CRYPTO: SOL), but when it comes to handling people's money, reliability goes a long way.

One of the exciting things about blockchain this year is that we've seen big steps toward mainstream integration for real-world asset tokenization, particularly stablecoins. If companies use public blockchains for these projects, Ethereum and Solana are both strong choices. That could translate into growth in the coming decades.

There's now a legal framework for stablecoins in the U.S., and Citi thinks issuance could grow from about $280 billion today to as high as $4 trillion by 2030. Broader tokenization of other assets, such as equities, bonds, and real estate, also look likely to soar in 2026 and beyond.

3. Chainlink

If, like my former self, you're looking for a lesser-known cryptocurrency with potential, Chainlink (CRYPTO: LINK) is one to have on your radar. Chainlink is an oracle crypto, which means it feeds data from other blockchains and the real world into decentralized workflows. I mentioned smart-contract cryptos -- these are tiny pieces of decentralized blockchain code.

Automated code needs accurate data. Let's say a farmer takes out a decentralized insurance contract. The idea is that it pays out under certain weather conditions that might damage the crops. It would rely on the oracle to tell it when those conditions are met, triggering the payment. Similarly, if people start to trade tokenized versions of stocks, there needs to be a reliable on-chain source of pricing data.

Chainlink has fallen 40% during the past year. At the same time, it's secured partnerships with major financial institutions, blockchains, and even the U.S. government. This is a cryptocurrency that could underpin many of the uses for blockchain technology, and that gives it strong growth potential.

Consider crypto ETFs

One of the things that holds new crypto investors back is the idea that they need to open an account with a cryptocurrency exchange and figure out a safe place to store their assets. Crypto ETFs take that worry out of the equation, as you can buy them through your brokerage account. The fund takes care of custody, and the ETFs are protected against brokerage failure by SIPC insurance.

Spot Bitcoin ETFs were first launched in early 2024, and Ethereum ETFs followed that summer. Since then, they've attracted more than $100 billion in funds. The first Chainlink ETF has just launched, meaning you can access all these cryptos in ETF form. They are also all available from top cryptocurrency exchanges if you prefer to go that route.

Citigroup is an advertising partner of Motley Fool Money. Emma Newbery has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, and Solana. The Motley Fool has a disclosure policy.