The Best Cryptocurrency to Buy With $500 Right Now (If You're Thinking Long Term)

Buying $500 worth of crypto doesn't need to be too complicated, nor does it need to feel like you're buying a lottery ticket with slim odds of a payoff. If you're thinking about holding an investment for decades, one smart move is to buy the asset that has the fewest ways to get knocked off track if the world changes a lot.

Bitcoin (CRYPTO: BTC) fits that bill. Here's why it's the best option for a long-term oriented investment of $500, especially if you've never bought any crypto before.

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Bitcoin's best features are immutable

Bitcoin doesn't depend on promises of flashy new features to make people interested in buying it. Nor is it a cryptocurrency that has much in the way of utility, like some of its smaller rivals. Instead, it's a pure store of value, and its developer community intends to keep it that way.

There can only ever be a maximum of 21 million Bitcoins. Around 20 million of those already exist, and are in circulation. The remainder need to be mined before they can circulate, and, by virtue of the coin's code, it gets twice as difficult to mine every four years or so. In theory, that will happen in about 2140, when all of the coins that can exist will be in circulation.

You don't even need to buy a full Bitcoin to get upside from that process of ever-increasing scarcity. With $500, you can buy a tiny fraction of a coin, and it will still become more valuable over time, assuming that there's at least some level of demand for it as a digital store of value.

Accessibility is better than ever

It's also quite easy to buy Bitcoin these days, via Bitcoin exchange-traded funds (ETFs).

That means you won't need any wallet software or technical knowledge to buy and hold it in a brokerage or retirement account. This is useful because those are the kinds of accounts you're already planning on using for many years. Importantly, the easy accessibility of Bitcoin via ETFs is another factor that will help to increase its value, as the underlying asset is now quite integrated into the financial system, thereby giving ready access to a lot more capital to purchase it. The same can't be said for many other cryptocurrencies, which lack a convenient vehicle for holding them in a traditional financial account.

Of course, volatility is still a feature of Bitcoin, even if it has declined versus earlier years. Plus, its declines can be quite fierce, and last for more than long enough to punish anyone who needs to withdraw their money on a short timeline.

So, be aware that thinking for the long run is a prerequisite for buying this coin. Once you're comfortable with holding it for a while, consider diversifying your crypto portfolio with additional investments -- assuming you're willing to take on a bit more risk with your cash.

Alex Carchidi has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.