Forget Crypto in 2025: Check Out These 4 Better Long-Term Investments

It feels like there's no stopping Bitcoin right now. The lead cryptocurrency keeps setting all-time highs and just topped $100,000 for the first time. We've seen crypto bull runs like this before. As a relatively young and unregulated asset, crypto is more prone to speculative rallies fueled by FOMO.

Don't get me wrong, I'm not part of the die-hard anti-crypto brigade. In fact, I own some cryptocurrency and think blockchain technology could prove transformative. But it only makes up a small part of my portfolio. Crypto is just too uncertain and unstable to trust as a basis for my future.

If you're investing for the long term -- particularly your retirement -- there are better assets to focus on first. Here are four investments to put in your brokerage account in 2025.

1. S&P 500 ETF or index fund

The S&P 500 tracks the performance of the biggest 500 companies in the U.S. It may not be as exciting as crypto, but its historic returns are pretty impressive. Just as with any investment, it will have good and bad years, but it has averaged 8% a year since 1928 -- more if you reinvest any dividend payments.

Now, 8% may not sound like a lot given that Bitcoin has gained over 130% since the start of the year. But there have also been years when Bitcoin's value has dropped dramatically. It lost almost 65% in 2022, for example. And that volatility, combined with uncertainty and a lack of fundamentals, makes it difficult to count on crypto as a long-term investment.

Moreover, a slow-and-steady approach could still make you a millionaire. Let's say you put $500 a month into an ETF (exchange-traded fund) or index fund that tracks the S&P 500. If you earned 8% a year, you could turn a $240,000 investment into over $1.5 million in 40 years. Consistently making lower-risk investments is a tried-and-tested way to build wealth.

ETFs are like baskets that contain a mix of investments. Some will track an index such as the S&P 500, while others might follow an industry or theme such as the healthcare sector. You can buy them through your brokerage account, just as you would other securities. Click here to learn more about our best brokerages with low fees and a wide selection of investments.

2. REITs

Real estate investment trusts (REITs) are similar to ETFs in that you can get exposure to a mix of assets in one fell swoop. In the case of REITs, that means you can add real estate to your portfolio without having to get a mortgage or manage property.

REITs own and manage income-producing properties, such as offices, warehouses, medical facilities, and more. They can be a good way to diversify your portfolio. Plus, REITs have to pay at least 90% of their taxable income to shareholders, which can generate a steady stream of dividend payments.

You can buy publicly traded REITs from all top brokerages and investing apps. REIT returns can differ wildly depending on which ones you choose, so research a trust's performance, management team, and sector before you buy.

3. Dividend stocks

For some people, one of the draws of cryptocurrency is the ability to earn interest on their coins and tokens. This can happen through staking, which means tying up your crypto to contribute to network security and earning staking rewards. Another way is through crypto lending, where the platform lends out your assets and pays you some of the interest.

But many other investments also generate returns -- and they do it without the risk of a semi-regulated platform lending out your money. We touched on REITs above. Some companies also pay dividends, particularly larger, more established ones.

Research individual dividend-paying stocks or ETFs to see how they might fit with your other investments.

4. Paying down high-interest debt

When FTX and the Luna network crashed in 2022, I read hundreds of heartbreaking stories about people who'd lost everything. The worst were the people who'd borrowed to buy cryptocurrency. They were left paying interest, even though the assets they'd bought were almost worthless. Cryptocurrencies can and have fallen to zero, and it's dangerous to take out loans to buy a risky asset.

If you carry a balance on your credit card, pay it down before you invest in anything, especially crypto. You could be paying an APR of around 20% or more. The money you lose in interest payments is more than you'd gain with many investments.

Even better -- the returns on repaying debt are guaranteed. Once you've paid off your balance, you'll have more cash to save and invest.

Build your foundations before you buy crypto

Rather than buying crypto in 2025, build a diversified portfolio with a mix of assets. Look for investments that have a solid track record and are likely to generate steady returns over time. If you invest a portion of your paycheck every month, you don't need to gamble on high-risk assets.

ETFs, REITs, and dividend-paying stocks can all play a part in your balanced portfolio. You might even add a small amount of crypto once you've built your investment foundations. Cryptocurrency is doing well right now, but there's too much uncertainty about what will happen next to bet your future on it.